4 Tips for Hiring Your First Freelancer
Small businesses need to stay ahead of the curve and constantly innovate to stay relevant. However, implementing new systems or launching a new product can be a daunting task that requires a lot of resources.
This is where freelance consultants come in.
In this blog post, we will discuss why local businesses or start-ups should consider using freelance consultants for various projects and strategic initiatives.
Tip # 1: Know Your Budget
Freelance consultants offer a cost-effective solution for many companies. Hiring a full-time employee for a short-term project can be expensive and may not be the best use of resources. Freelance consultants, on the other hand, can be hired on a project-by-project basis and can provide the necessary expertise without adding to the company's overhead costs.
Since start-ups usually have limited resources for hiring full-time employees, working with freelancers can be a cost-effective way to obtain assistance without incurring significant expenses.
Average Cost of Freelancers
The cost of freelancers varies based on the work that’s being completed and their geographical location.
Engaging contractors from the same location can facilitate productive communication due to the shared language and time zone, although it could also result in higher hourly costs.
From my personal experience, if the project is straightforward with well-defined instructions, I tend to collaborate with contractors from other regions. However, for more complex projects that necessitate frequent communication, I prefer working with individuals within the same time zone.
Freelancers hailing from Asia, Eastern Europe, and South America often quote hourly rates ranging from $5 to $40, which may vary based on the nature of the project. For instance, entry-level tasks such as virtual assistance are likely to attract lower rates, whereas experienced professionals such as developers may command higher fees.
APAC / LATAM-Based Freelancers on Upwork
Despite the lower rates, freelancers in LATAM and APAC are generally known for delivering high-quality work and have a solid academic & professional backgrounds.
Collaborating with professionals from other regions can help provide a fresh perspective to your project that you might not have considered previously.
US-Based Freelancers on Upwork
By way of comparison, if you use the same search terms, you will find that the hourly rate for a US contractor is considerably higher.
Freelancers in the US, Canada and Western Europe will charge anywhere from $50-$300 per hour depending on the scope of the project. (Source: Upwork Talent Network)
Typical Payment Processes for Freelancers
Regardless of where your freelancer is based, when you leverage marketplaces like Upwork, you don’t have to worry about international regulations associated with hiring the freelancer.
There are three main payment options for the vast majority of contracts:
Pay per Hour
Pay by Milestone
Fixed Price
Paying per hour is generally preferred by most contractors because it guarantees they will be paid fairly for their time and service.
Some contractors may be open to receiving payment by milestone. Milestones would be agreed upon by both parties during the Scope of Work before signing a contract.
If you are extremely organized and the freelancer has completed the project multiple times previously, milestone or fixed price payment may work perfectly. Keep in mind with this option, if you make iterations or changes to the original scope, there might be extra fees.
Contractors generally avoid this option due to the risk of Scope Creep.
Fixed price contracts are exactly as they sound. The freelancer agrees to be paid a set amount for a job. This is helpful for companies with a set budget in place.
Should I tip my freelancer?
If you are happy with their work and would like to show your appreciation, a tip is a great way to do so. However, if you do not feel comfortable tipping or cannot afford to do so, that is also perfectly acceptable.
Tipping a freelancer is a way of showing your appreciation for the quality of their work and the effort they put in to complete your project. Freelancers often work on a project basis, meaning that they do not have a steady income or benefits like salaried employees. Therefore, tips can be a significant source of income for freelancers and can help them to continue their work as independent professionals.
Tip #2: Prepare Documentation on the Work you Need Completed
By providing documentation, both you and your freelancer can establish a shared understanding of the work that must be accomplished. This is especially critical when collaborating with freelancers who do not speak the same primary language as you. Simply providing instructions through an audio meeting may not be sufficient to guarantee that you and the freelancer are in sync.
Prepare visuals and documentation on the Scope of Work so that you can ensure the freelancer can provide the results you need.
Tip #3: Understand the Process
The steps involved in hiring a freelancer can differ depending on the platform you opt for, but assuming you intend to hire them directly, the following are the usual steps you would need to take. Having a clear understanding of this process can aid you in identifying potential bad actors and steer clear of any problems.
Define your project: Determine the scope of your project, the skills and experience required for the job, and the budget and timeline for completion.
Identify potential freelancers: You can find freelancers through online marketplaces, social media, referrals, or professional networks. Look for candidates who have relevant experience and a track record of success in similar projects.
Evaluate candidates: Review the freelancers' profiles, portfolios, and reviews to assess their qualifications, work quality, and professionalism. You can also conduct interviews or ask for references to get a better sense of their skills and communication style.
Negotiate terms: Discuss the project details, timeline, deliverables, and payment with the selected freelancer. Make sure to clarify expectations, deadlines, and any potential issues upfront to avoid misunderstandings later.
Create a contract: Once you have agreed on the terms, create a written contract that outlines the project scope, deliverables, timeline, payment schedule, and any other relevant details. This will help protect both you and the freelancer in case of any disputes or misunderstandings.
Manage the project: Monitor the freelancer's progress, provide feedback, and communicate regularly to ensure that the project stays on track and meets your expectations.
Close the project: Once the project is completed, review the work, approve the final deliverables, and make the final payment to the freelancer. You can also provide feedback and leave a review to help the freelancer build their reputation and attract more clients in the future.
Image Source: Groove Consulting LLC.
Tip #4 Find your Freelancer on LinkedIn or Marketplaces
There are multiple ways to find freelancers including searching for them on LinkedIn using keywords or looking for partners on marketplaces.
How to Find Freelancers on LinkedIn:
Use the LinkedIn search bar to find freelancers by entering relevant keywords and filters. Examples of keywords to search for include "freelancer," "contractor," "consultant," and "independent contractor."
Refine your search by adding location filters, industry filters, and experience level filters to narrow down the search results.
Examine the profiles of the freelancers that match your search criteria. Review their experience, education, skills, and endorsements to see if they are a good fit for your project.
Contact the freelancers directly via LinkedIn messaging or email to discuss your project and request a quote.
Alternatively, consider posting a job opening on LinkedIn's job board to attract freelancers who may not have otherwise seen your search results.
Finally, ensure that your LinkedIn profile and company page are up to date and professional-looking to make a good impression on potential freelancers.
LinkedIn Best Practice
Make sure when using keywords to include the service or project you need a freelancer for.
For example, search terms like “Freelance Consultant” + “Squarespace Website Design”
OR
“Freelance Consultant” + “Zendesk Implementation Partner”
Find Freelancers on Partner Websites
If you are implementing or improving a software, most software companies will have a marketplace of solution partners than can help you. Keep in mind, they generally will charge more than using a platform like Upwork or Fiverr. These partners are typically certified and have multiple years of experience implementing software and working with the partner.
Zendesk’s Partner Marketplace
Zendesk's solution partners are certified businesses with expertise in implementing and using Zendesk's software to improve customer service. They offer a range of services including software implementation, customer experience strategy, analytics, training and support.
HubSpot’s Solutions Directory
These solution partners have been vetted and certified by HubSpot and provide a range of services such as website design, inbound marketing strategy, CRM implementation, sales enablement, and customer service.
Best & Most Popular Freelance Marketplaces
The most popular freelance marketplaces for intermediate and expert professionals are Upwork, Fiverr, and Catalant in my experience.
Benefits of using a marketplace like Upwork, Fiverr, or Catalant:
Freelance marketplaces give you access to a large pool of talent from all over the world.
You’ll find niche freelancers with certifications and detailed reviews by other businesses.
They allow you to hire contractors on a project-by-project basis, providing flexibility.
The hiring process can be streamlined with the help of tools provided by the marketplace.
You can hire someone and get your project started in less than an hour!
Hiring on Upwork
Upwork has over 12 million freelancers and clients from over 180 countries, covering various industries such as IT and programming, writing, design, marketing, and accounting. The platform provides tools for clients to easily search and hire freelancers, and for freelancers to showcase their skills, apply to job postings, and manage their work and payments.
Hiring on Fiverr
Fiverr is known for its "gig" model, where freelancers offer their services for a fixed price, starting at $5. However, many freelancers now offer more advanced or specialized services for higher prices.
I’ve used this platform for lead lists, logos, brand kits, and more. I have always been super impressed with the sellers and their quality of work!
Hiring through Catalant
Catalant offers a network of over 70,000 experts across various industries, including strategy, marketing, operations, finance, and more.
There is a long approval process for freelancers and this is for more expert-level consulting projects (you’ll pay for it, too).
Final Thoughts
Why hire a freelance consultant if it requires all of these steps?
Freelance consultants offer a cost-effective, experienced, flexible, and fresh perspective to companies, making them a valuable resource for any tech company looking to stay ahead of the curve.
They have often worked with multiple companies across various industries and have a deep understanding of what works and what doesn't. This experience can be invaluable when it comes to system implementation or GTM consulting, as it can help to avoid common pitfalls and ensure a successful outcome.