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Thursday, April 24, 2008

Recession and its effect on Freelancing

Photo Credit darwinbell

Recession and an economic crisis hitting the U.S. has become a huge concern for many businesses all over the world. There is a lot of dependency for various people all over the world on the U.S. for smooth running of their enterprise and any crunch in the economy is sure to hit their business interests too. But, does recession have an influence on the work of freelancers is the apprehension that many freelancers are being faced with.

As of now, there is no huge change seen in the amount of workload that freelancers are currently finding themselves with even though many of them have U.S. based clients as a major source for projects. But, this may not hold on for long if the state of economy continues for a long time to come.

Another thing affecting the people depending on U.S. based clients is the dropping value of the dollar in comparison to other currencies. This has made it difficult for people located outside the U.S. as the dollar when converted will fetch a lesser value than before.

This has made it necessary for many freelancers to raise the fees that they charge the clients based in the U.S. But, the amount that freelancers have been able to hike to keep it within reasonable limits may not be enough to close in the gap.

To keep yourself from getting affected a lot from the recession, it is better to look for a wider client base if you already do not have one. Improvise on marketing efforts and get more new contacts, probably paying in a different currency such as the euro, to be able to compensate for your loss in earnings.

Developing a bigger client base from multiple countries should also be helpful if the situation worsens. This should enable you to have a softer landing during tough times and be able to surpass the difficulties posed due to the falling economy.