Archive for the ‘Business’ tag

Does the future of freelancing include journalists?

I’m looking forward to attending “The Future of Freelancing,” a conference this week at Stanford University. Co-sponsored by the John S. Knight Fellowships for Professional Journalists and the American Society of Journalists and Authors, the conference’s goal is to “help freelancers explore their evolving careers and stay inspired.” Well, I know many freelancers that are not only uninspired these days, they are downright desperate. In fact, the conference title might be more fitting if it had a question mark at the end. Because many of my colleagues doubt journalism, much less freelance journalism, has a future.horseless

I’m convinced it does. But it’s going to be so different from what we’re used to that we aren’t even capable of conceiving it yet. A source for one of my stories on digital publishing points out that when the automobile first came out, people called it the horseless carriage. The only way they could define these early cars was by relating them to a familiar mode of transportation. That’s the kind of disconnect we have in the publishing business. The whole world has changed, and we don’t understand the new world well enough yet to see where and how we’ll fit in. And many of us are terrified that we are selling buggy whips.

The terror has been building steadily this year. A couple of months ago, I participated in a lively LinkedIn discussion. The thread was started by a post by freelance colleague Polly Traylor, who lamented the state of the freelance business on her blog. It didn’t take long for many of us to chime in – and the opinions ranged from: it’s a brand new world and “those who learn to adapt and embrace the change may actually find a lot of opportunity in it” to “freelance journalism is dead” and all that’s left to do is “put fresh flowers on its grave.” (You can read the discussion here.)

It’s clear that no one – including the biggest media companies – has a clue. Consider these two news reports from just this week. First, News Corp. announced strategic moves toward its promised strategy of charging readers for online content. It bought Skiff LLC , which makes an e-reader and a digital publishing platform. News Corp. also invested in Journalism Online, a startup by Steven Brill and other media executives that aims to offer a way for publishers to charge readers for online news.

In contrast, Forbes.com is going in the other direction, apparently planning to use thousands of unpaid contributors instead of professional journalists, according to a report by Paul Carr on TechCrunch. At a recent staff meeting Lewis Dvorkin, who oversees Forbes editorial, said that “Forbes editors will increasingly become curators of talent,” according to Carr. As my colleague Howard Baldwin has pointed out, that comment makes us freelancers feel like we belong in a museum. (Getting old is a theme for Howard. See his blog, “Middle-Age Cranky.”)

Meanwhile, social media consultant Paul Gillin recently passed along this trailer to an upcoming documentary, “Fit to Print,” on the dying news business. While melodramatic, what this clip does not exaggerate is the level of fear among professional journalists.

It’s the end of the journalism world as we know it. The big question is: what’s next? I hope this conference gives me at least some possible answers. Tune in next week to find out.

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Watch out for that “first-born son” clause

For the first couple of years I was freelancing, I just signed on the dotted line when it came to contracts. I didn’t want to read the fine print because, frankly, I needed the money. It was depressing enough that virtually every contract granted copyrights to my work in any and all forms in existence now or ever to be invented in the future, throughout the universe.

But curiosity and concern finally won out, so now I’m reading the contracts more carefully. I’m alarmed at what I find in some of them:

The writer pays for the lawyers: This clause specifies that I agree to indemnify the publisher from damages, costs and expenses that the publisher incurs because of copyright infringement or even the claim of copyright infringement. Some contracts specifically state that I am to protect and defend the publisher against such lawsuits at my own expense. I have never been accused of infringement in 25 years as a journalist and will gladly promise that my work does not infringe. But editors change wording, sometimes in major ways. It’s not fair to hold me responsible for a mistake an editor introduced into the article. And what if some kook out there falsely accuses me and the publisher of infringement?

The writer sells her soul: A contract I recently declined not only asked me to indemnify the company – a multi-billion-dollar corporation that is a household name – against any claim of infringement, it also wanted rights to use my name, voice, likeness and biography to promote its website in whatever way it wanted. This was for an initial story paying $400.

The writer stops freelancing: Last year I was presented with a contract to work with a custom publishing firm to produce a corporate magazine, again for a Fortune 500 client. It was no surprise that the contract had a section covering confidential information. Routinely, the contractor promises not to divulge or use any confidential information from the client for any other purpose other than that expressed in the agreement. But this contract stipulated that I could not, ever, disclose or use any information not only about this particular client but any client of the custom publisher. It wasn’t limited to trade secrets or even to information obtained during the course of producing the magazine. It was any information, forever, about any client. And I didn’t even know who the other clients were.

Most publishers are reasonable when I call their attention to these inequitable clauses. They are willing to work with me to make changes that satisfy both our needs, even though they sometimes say I’m the only writer who’s ever raised such questions. Although I have lost some business from a couple of inflexible publishers, so far I’ve been able to afford to do that. I hope that luxury lasts.

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Written by Tam Harbert on February 15th, 2010

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In The business of freelancing category

The real mobile workforce

outsourceA story of mine in this week’s Electronic News reports on a trend that many in the U.S. high-tech industry find disturbing. The latest 10-year jobs forecast from the U.S. Bureau of Labor Statistics says that U.S. semiconductor manufacturing is going to lose 146,000 jobs, or more than 30 percent of its workforce, by 2018. That’s the second highest job loss of any industry, just behind retail department stores. It even beat out such passé industries as printing and newspaper publishing (projected to lose 95,000 and 81,000 jobs, respectively.)

The fact that manufacturing jobs are moving offshore is old news. On close examination, however, the BLS statistics indicate a flight of high-level jobs. Not only research and design engineering, but also top management functions, are leaving the country. In fact, in the management category of semiconductor and electronic component manufacturing, the BLS projects a 35-percent loss in the number of jobs. For chief executive officers in particular, the projection is 41 percent.

Some will quibble about how the BLS arrives at this forecast, but anecdotal information from a few executive recruiters backs up the trend. Tim O’Shea, group leader for the semiconductor industry practice at Heidrick & Struggles, has clients asking him to find executives willing to move offshore. “Management is being displaced,” agrees Al Delattre, global market managing director of technology at Korn/Ferry International.

The recruiters are alarmed about the trend. The semiconductor industry warns that the United States is losing its competitiveness. My livelihood is threatened. The industry that I’ve covered for 25 years might disappear from this country, taking with it a lot of the trade and technical publications that are my customers.

But if you take out the jingoism and think in terms of pure capitalism, it all makes perfect sense. Twenty years ago, manufacturing jobs moved to places where costs were lower and labor plentiful. Now, it looks like knowledge workers are going through the same transition. Anyone who’s read Thomas L. Friedman’s “The World is Flat” shouldn’t be surprised. The Internet and telecommunications technology make it possible to do many types of knowledge work from anywhere, so knowledge workers in low-cost areas are going to get a good portion of these jobs. Recognizing this, companies are starting to shift their knowledge workforce, not only by hiring offshore workers, but also by moving their current workers to low-cost regions. Last April, for example, I reported on IBM’s Project Match, whereby the company offered to hire laid-off North American workers for jobs in India and other low-cost countries.

The flight of U.S. executives will continue. After all, how many good reasons can you think of for keeping these executives in the United States? Most of the semiconductor industry’s customers are in Asia. Even if the CEO lives in the States, he spends most of his time traveling to visit customers, business partners and suppliers. Thanks to Wall Street’s meltdown, American finance is increasingly owned by foreigners. Plus, as semiconductor industry lobbyists love to point out, U.S. tax law and regulations make this country a less and less attractive place for business. In fact, one recruiter tells me that the executives of at least one chip company are thinking about moving its headquarters to Singapore because of the high costs of being a U.S.-based public corporation.

Maybe I should move, too. From a business point of view, there’s no reason to stay in this country. It’s not like I have to report to some green-eye-shaded editor wielding a pencil and shouting at the typesetter. I already work with all my clients via the phone, e-mail and Internet. Less and less of my work is actually printed on paper in a factory. It’s all online. U.S. newspapers and news agencies already outsource some of their journalism work to India. To remain competitive, I should move to a low-tax nation in a good climate with excellent Internet and telecommunications service.

The world is changing – quickly and dramatically. I don’t think there’s any stopping this. Businesses are recognizing this. Journalists, accountants and x-ray technicians are recognizing this. Government and industry leaders around the world would do well to recognize these forces and work with them, rather than raising fears and fomenting unrest about the offshoring of American jobs.

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Written by Tam Harbert on January 27th, 2010

Tagged with ,

In Business, Public Policy category

Health insurance: a challenge for freelancers

healthreformI have to admit that I haven’t been following the evolution of the health insurance reform legislation in Congress. That’s because it was making me sick. When I saw old people whipped into a frenzy by Republican extremists circulating misleading information about government death panels, I simply tuned out. It’s just not worth raising my blood pressure over. Literally. If I get sick, or even if I go to the doctor for my annual checkup, I pay out of my own pocket. At least, the first $2,600 of it every year.

That’s the deductible on the health insurance plan that I buy through the State of Maryland. You see, I have personal experience with a “public option,” and not by choice. When I went out on my own as a freelance writer, I could not buy private health insurance. It’s not that I could not afford it. It’s that no private insurer would sell me a policy. At any price.

No, I don’t have a terminal disease. I’ve never had cancer. Don’t have HIV. Or a heart condition. Or even high blood pressure. (For some reason, it’s incredibly low. A nurse once asked me if I was dead.) However, like anyone who’s been on the planet awhile, I do have a few conditions, none of which I consider particularly serious. But apparently the arthritis that I was diagnosed with in my mid 40s – just a few months before I left my job to freelance full time – is enough to make me a leper in the world of private health insurance. No one would touch me.

Maryland is one of 35 states that maintain “high-risk pools” for people who are denied private coverage. The premiums are typically higher than private insurance, unless you fall below a certain income, at which point the rates are partially subsidized. The system has worked well for me so far. I pay my premiums and also contribute regularly to a health savings account, which I can tap into to pay for my own healthcare costs up to the amount of the deductible. Because I pay out of my own pocket, I make more careful choices about what healthcare services to use. I’ve found some helpful sites on the Web (like http://www.healthcarebluebook.com) that tell me what the going rate is for certain services, like x-rays.

I’m grateful, and lucky, that Maryland has such a plan. Freelancers in states without high-risk pools have tough choices. They could become a part-time barista at Starbucks, a company that provides insurance even to part-time employees. They could change their marital or dependency status. (Recently, a friend’s 23-year-old daughter left a job and thought she would buy private insurance, only to find that – because of a melanoma removed from her leg 10 years ago – she was denied. She and her boyfriend moved up the wedding by a year so she could get onto his policy.) They could return to the full-time, traditional workforce.  Or, if they are healthy and feel lucky, they could risk going without insurance.

Whether through a state-run program or by manipulating the private system, people like us are getting by, at least some of us are. Anti-reform zealots complain about the government rationing healthcare. The fact is, healthcare is already rationed – by big companies whose obligation is to make profits, not protect the health of citizens. If we don’t get meaningful reform now, we will in a few years, as a larger percent of the population experiences the arbitrariness and unfairness of the current system in America.

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Written by Tam Harbert on January 11th, 2010

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In Business, Writing category