If you haven’t noticed there’s been a rise in the number of people who are setting up one-man or one-woman businesses and making money working for themselves.
If you are someone who wants to turn your skills into money working for yourself this should be music to your ears. Despite the discouraging things many unhappy employees might say to those who have a desire to work for themselves, it can be done and is being done by others just like you.
Whether you have a photography skill, some sort of coding skill, or are just really good at creating new products, there’s room in the industry for you to make money working for yourself.
Today I want to talk about 5 specific steps you can take to turning your skills into money.
1) Determine what skill you have and the market rate
One of the most difficult aspects of monetizing your skills is figuring out what people will pay for and how much you should charge. If you have a skill that you aren’t currently getting paid to use you probably don’t have a good idea of how much someone would pay you to do it. You might sing at a friend’s wedding for free but have no idea how much people would pay you to sing at their wedding.
If you’re reading this you probably have a good idea of what skill you could make money off of. To find out how much that skill is worth to others you can turn to a few different sources:
- Look at websites of others already making money from your skill
- Search Google and try to find forums and blog posts where people discuss how much you should charge for a given service
- If applicable, check out what others are charging on Angie’s list
It’s important for you to have a target rate to charge to others because if you don’t have a floor of what you’ll charge you will end up working for very little money, relatively speaking. Once you’re established you have to be willing to walk away from jobs that are low-paying.
2) Find initial jobs
Even tougher than figuring out what to charge clients will be finding that first job. If you don’t have much of a portfolio or experience you will likely need to charge lower than market rate for your first clients. There’s a reason experienced photographers charge so much more than those with less than a year or two of experience; people trust experience.
In the past I did some freelance spreadsheet consulting work. My first client was a friend who owned a small business. He said when he thought to himself who is the best at working with spreadsheets? he thought of me. I definitely was happy to have my first client, but I charged far lower than market rate for the work I did. I didn’t mind, as this was something I did at nights and on the weekend and was just happy to get some experience, someone I could use as a reference, and a little side income from something I enjoyed doing.
Ideas for initial clients:
- Friends
- Family
- Small non-profit organizations in your area
- Small Businesses
- People in your network who own a sole-proprietorship
- Friends of people in your network
You may need to get creative with finding your first few clients. The less you are willing to work for the more likely you are to find your first client. You may even have to work your first few jobs for free.
3) Get a Website and Showcase your Portfolio
Twenty years ago you could get by without a website. Today it’s different. The first thing people will do after hearing about your company or business is Google you. If you don’t have a website you may have lost a client from the get-go. Photographers, website designers, Excel contractors, and pretty much anyone who is trying to make money off of their skill needs a website.
Blogs aren’t just for people who are looking to become freelance writers, though I should say that’s how I found the Wednesday contributor for this website. If you add a blog to your business website it gives you an easy way to showcase your work and show that you know what you’re talking about. Whether you have a blog or not you need to showcase your portfolio of work and someone getting to your website should be able to easily find it.
In a previous post I talked about ways to make your business more legit if you are interested in other ways to make your business more official.
4) Reach out to prospects
So let’s say you have a few clients and completed a few jobs. Your website is set up and you have your portfolio out there for potential clients to view. What’s the next step?
If you want to take your business to the next level and aren’t getting as much referral traffic as you would like, you are going to have to reach out to prospective clients. Who those clients are will depend on who you are targeting. Photographers who specialize in weddings are obviously going to be looking for different clients than a freelance visual basic application developer. Either way you will need to identify your target customers and reach out to them however you think is most effective.
Reaching out to clients could be as simple as getting more eyeballs on your website. Getting people to view your website and portfolio can lead directly to sales. It doesn’t have to be reaching out over the phone – in fact many potential customers may not want to talk on the phone at all.
One strategy I’ve used is put together hidden Twitter lists of businesses. I have one for potential advertisers on my website, one of Minnesota businesses, and another of various businesses outside of Minnesota. This immediately gives me a list of potential clients for when I am trying to expand my small business or get a new one established and off the ground. Read my post Ways to find Customers for your Service Business for more tips.
5) Live off referrals
When we’re talking about small business there is one powerful marketing tool that you must take advantage of: word-of-mouth referrals. When people are trying to find a small business to hire or purchase from, it’s typically for something they haven’t had to deal with before: a wedding photographer, an asphalt driveway company, or any number of goods and services. People trust other people’s opinions. The age of newspaper ads getting business will eventually come to a close, if it hasn’t already. There’s a reason Angie’s List is so hugely successful.
Encourage your clients to refer friends and family your way. Not only do friends and family of your client trust your client’s opinion, they also may have had a chance to see your client. My wife and I have referred multiple couples to our wedding DJ because he did such an awesome job. Those friends got to see him in action and trusted our opinion of working with him.
In short: take advantage of referrals!
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The most important thing to do is to get started. Everyone is learning as they go and it takes time to develop a business so the sooner you start the quicker you can gain momentum.
Have you ever made money from a skill or do you have any plans to in the future?
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These are all important steps DC! In regards to #3, it’s crazy the number of businesses who don’t have a website. The good thing for us is that generally means more business for us. :)
Great post, David. You’ve basically outlined exactly how to get freelance writing jobs, or almost any other job that can be done from home.
I think the hardest part is determining the value of your skill when you are first getting started out, but if you have something of “value” that people would want to use, then you should pursue it. For me, my greatest point of growth is always through referrals. I tell people that my clients are my salesforce, so I treat them like gold and they in turn send me new business. It’s so much better to get a client through word of mouth than cold calling.
Determining the market value is the part I have difficulty with. I think I tend to undervalue my work as a writer. I read somewhere once that if you’ve never had a price refused (because it was too high) then you have no idea where your ceiling really is.
I’d say a good 50% of the work I’ve gotten is through referrals. It pays to deliver!
I noticed many people are using facebook to showcase their business and forgoing a typical website. Do you think that’s wise?
DC, you gave an example of starting for free at a friend’s wedding – that’s a really strong way to go. I know a few people who have rocking businesses now and that’s how they started. They leveraged friends and family doing jobs for them for free. Then, the family/friends put out the good word to their network and that’s how things ramped up. Of course, not all businesses can start like that, but ones like photography, baking, etc. can do quite well with that strategy.
I think everyone has a skill in something. It’s just a matter of being motivated enough to put yourself out there and take advantage of opportunities. Even if you don’t have a technical skill, day care, pet sitting, or cleaning are great ways to earn extra money that also work well with referrals. Make one pet owner happy and you’ll get a whole gaggle of dogs. That’s my fall back plan for when this optometry thing is all done.
FrugalRules Haha yes there is definitely an opportunity there because of other businesses lacking in that area. I’m shocked at some of the larger businesses that don’t have websites.
Holly at ClubThrifty Thanks Holly! Yeah I suppose I did, maybe even by accident.
blonde_finance I think if you get a client through word of mouth they also already have a positive view of you. I’d prefer these types of clients instead of those who are skeptical from the get-go because they don’t’ know anyone who has worked with you.
DebtChronicles Good point! I think slowly raising your rates is the best way to go. Eventually people will start saying no and you can find that sweet spot. There is also something to be said about having a “floor” or minimum that you are willing to go to, regardless of whether you lose potential clients or not.
brokeandbeau That’s awesome and it makes sense. If you are doing a good job there is no reason the person you work for won’t pass your info along to others.
Raquel@Practical Cents I think Facebook can be useful, but I still think a website is the way to go. You have more control over the layout and future changes. Plus you can add content in a more efficient way. Others may disagree, though, and say Facebook is good enough.
PFUtopia Yeah I really think that doing something for free initially can pay off long-term. There’s a reason companies find influencers to test their products for free – or even pay them to test it. They want to get that initial good review and referral.
Eyesonthedollar Haha ironically my wife and I were discussing trying to find someone to walk our dog in the middle of the day since that’s a big concern of mine – leaving them alone for a long period of time each day. You really just need to get momentum going and you could easily land more and more jobs.
Great tips, DC! I know some people struggle with figuring out what skills they have to offer because sometimes we don’t recognize what we do extraordinarily well. That’s when you need to talk to a trusted friend who will truthfully tell you where you excel. There truly are plenty of opportunities, you just have to willing to go after then and accept a little rejection along the way.
I’m making money of coaching volleyball, and had I not learned that skill 6 years ago that would not be possible. I’m hoping my one client can start referring me to her friends so I have more clients lined up this summer.
Great post DC! The first step is the most important. You have to think about what you know and what you can sell. Don’t price yourself right out of competition either. Sometimes you have to start low and then raise your prices as you get an understanding.
Fabulous post! The first, second, and third job are always the hardest to find! But once you get rolling, there is no stopping you.
ShannonRyan Great point about talking to a friend. I know that friends have said things to me about my skill set that I would not have thought myself. I’ve seen it go the other way as well where I tell others they have this or that skill and they are surprised that I think they can make money doing it.
Beachbudget Gotta love the one-client life. I had one client for one of my side hustles and decided not to pursue any others. He did refer me to someone but at that point I started to give conservative estimates that leave wiggle room in case things go wrong and I never got the second client.
DebtRoundUp Thanks! I agree, you have to know what you are selling and what value you are providing customers – and why they would want to pay you. Starting slow is the way to go imo.
fitisthenewpoor Thanks! I agree with you on the second and third job. Momentum is so important when it comes to business.
Good stuff! I recently discovered the power of LinkedIn and I have been blown away with the great networking capabilities and have pulled in some nice prospects for my side hustle. The internet has made the ability to turn skills into money a reality.
Not having a website these days, practically means you don’t exist! I think it’s important to know the market rate, and start fair, then move up. I’m just getting into freelance writing and am excited for more opportunities.
deardebt That’s really cool! I just got going on my first freelance writing gig. It was easy for me to set my floor, though – no less than I pay my writers. Otherwise it just didn’t make sense for me.
Excellent tips here DC. I think the hardest thing is to find what you excel at and learn how to monetize it. It seems people are often afraid that they aren’t as good as they think they are, or don’t think it will be profitable enough. But like you said, the most important thing to do is to get started. My wife designs jewelry, and family and friends who are enthused always give great referrals, especially if they like the product.
Hm, I’d say determining that skill is the real struggle. :)
The website one is so important and so often overlooked. I hate how many business here don’t have websites, which makes it very difficult for me to find their operating hours, phone number and whatnot. It doesn’t have to be a complicated site, but you Must Have One!
20 Something Syndrome Sometimes that’s the hardest step! I think people have more skills than they give themselves credit for.
I’ve never been very good at reaching out to prospects. I guess because I can be a little shy sometimes. It’s something I’ve been trying to more actively work on. I used to make money giving swimming lessons when I was a lifeguard. Most of my work came from word of mouth and prior customers. It was a great little side business.
Those are great points DC. Referrals should not be under estimated. Last year I met a man who travels 27/7. He builds WordPress websites for small businesses in Florida. When I asked him how he was able to keep a steady flow of customers while being so far from his home base he said that nearly all of his business came from referrals. If you start your own business you shouldn’t be shy about asking for referrals. After a successful project always ask the customer if they know anyone who could use your services. Chances are they’ll put you in touch with a few more potential customers.
I like how you had to do “reach out” before “referrals.” I had to do soooooo much reaching out before getting to the referral stage. Excellent points!
I have been fortunate to make a decent living off my database consulting business. It’s great beiing able to stay home and still make $ for little necessities. It was slow at first (slow & painful actually.) Now that things are picking up, it’s nice to reap the fruits of my labor.