The Pros and Cons of Being a Freelance Subcontractor

When breaking into the virtual work scene, you will need to decide whether you are going to go it alone or work as a freelance subcontractor. Many of us do a little of both. There is no right or wrong answer, but there are both pros and cons to working as a subcontractor.

Pros

You get paid, regardless… at least you should. It doesn’t matter if the client pays up for the work you completed. Your contract is with the person you are subcontracting under, not the end client. It is their responsibility to track down payment, and your payment schedule should not be dependent upon when or if the client pays. Never sign a contract that states otherwise.

Someone else is doing the marketing and contract negotiations. In addition to relieving yourself of Accounts Receivable duties, you can also take off your Marketing and Legal Department hats. The individual/company that subcontracted you will be responsible for bringing in new clients.

Cons

You have to give up control. You may not be able to work one-on-one with a client at all, or as much as you prefer. This can put a damper on creativity and the growth of the contractor-client relationship.

You take a pay cut. Convenience comes at a cost. You no longer have to do the dirty work of marketing, negotiating and tracking down payment. That is worth something. Plan on the individual subcontracting you to take a little off the top of your hourly or project rate.

You may be kept in the dark about things that will eventually impact you. You are a subcontractor not a partner. You likely won’t be kept in the loop when it comes to how business is going. You may not know until the “no more work” email comes. When you are contracting your own clients, you many times have a little advance notice – from the horse’s mouth or instinctively – when things aren’t quite right.

Noncompetition; Nonsolicitation. Both of these terms are things you will need to understand if you want to be a freelance subcontractor. These clauses are commonly put into subcontractor contracts. They are not all bad. Many will simply state that you cannot solicit your contractor’s clients for a certain period of time after parting ways. However, some go far beyond that. If there is a clause that you are uncomfortable with or feel may impact your earning potential down the road, don’t be afraid to ask to have it removed or changed. Even if your contractor states they have no plans to enforce the clause, it is better safe than sorry.

What did I miss? How do you feel about being a freelance subcontractor? Does it relieve the pressure or hold you down?