ASK US WEDNESDAY: “I have a day job, am freelancing on the side and need advice”

ASK US WEDNESDAY: “I have a day job, am freelancing on the side and need advice”

by Leo Wiles
26 July 2017

I’ve just started out in the world of freelance writing, and have been writing on a voluntary basis for a business that provides a writing service for paying clients. This business has offered me paid work – not a lot by any means, pocket money really – as an outside contractor and I would be a ‘work for hire’ where anything I write that a client buys, I would be giving up ownership of. I have been sent a Writers Agreement to sign, which in all honesty I don’t know what I’m looking at so am yet to sign it.

My questions are: Do I need an ABN for this? Do I need to take out any kind of insurance in the event I get sued or to protect myself? What does a decent writers agreement look like? How do people do this? I’m currently working full time, with no plans on leaving my job. Freelancing is just something I’m doing on the side as I really enjoy it, but I’m feeling so stressed because I don’t know what to do or how to do it. I have no one in this line of work who can help me, so I’m feeling utterly lost. My bottom line is protecting myself against anything life altering, such as legal action, and not having to fork out huge amounts of money for very little return. Any help would be so appreciated. Anon

Thanks for writing in and let’s see if we can help you out with some info.

First off, it’s good that you’re finally getting paid. However, if you’re writing is good enough for them to pay you then you should be asking for market rates rather than pocket money. Of course we realise when starting out trying to earn your stripes that’s not always possible to get, but it is something you should ask for, especially before you sign the contract.

Secondly, is this a starting point into a future vocation or something you plan on doing on the side while keeping your day job? The ABN, the insurance, the scary contract – is it worth all the angst if you a) aren’t making much money or b) don’t plan to move into freelancing on a more full-time basis?

Generally, you will need an ABN to do any freelancing, and to set yourself up as a separate business. You need to declare this income, obviously, and if it’s a second job outside your full-time one it may be subject to a different / higher level of tax – you’ll definitely want to check this out with your accountant.

In terms of copyright, if the copy you’re writing is written in their time as part of your normal job, then as a rule they already own it. And if you’re doing it in your own time, if it really is a tailor-made piece for the client then it probably doesn’t matter if you’re signing it over, as it has no resell/market value.

Insurance-wise, you also need to find out if you fall under the company’s insurance, or if they are requesting you get your own (personal liability and indemnity are often the insurances requested). You might want to look into this if you’re writing copy that might be contentious or subject to a lawsuit. Generally, insurance is less than $40 a month for a $20 million coverage, so it can’t hurt if this is the stepping stone.

As for a decent writer’s agreement I don’t think I have seen one that doesn’t ask for the soul of your firstborn for years. Really, that will be a judgement call that could probably be answered with a bottle of red and the company of a few good friends – or better still skip the wine and get a lawyer to take a quick look at it to see what you’re really signing up for.

Do you have a day job separate from freelancing? What would be your tips for our letter-writer?

Leo Wiles
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