Quick question freelancer…

Do you have a clear and intentional marketing plan or framework?

When I say a plan, I don’t mean random 11:00 AM posts on social media to remind people you still exist, I mean a well-researched and thought-out marketing plan to help you grow, improve your craft, and gain better clients.

I know we’re in an age where marketing can seem “artificial” (especially with so many AI tools you can prompt to get templates from) and most people just want something human that sounds natural without looking “airbrushed”. But even in these times, having a clear and practical marketing plan, while not being overly reliant on proposals is a good way to invest in your freelance business. 

As someone who’s been around the block for a while and knows that two common areas where freelancers spend their money are proposal fees on freelance platforms and marketing efforts, we tend to study the effort and resources invested in both areas from time to time to know which gives you better returns.

So let’s break down both approaches and help you make an informed decision about where to invest your hard-earned money.

 

Understanding the True Cost of Proposal Fees

Proposal fees might seem small at first glance – typically around $3 per proposal on most big platforms. However, these costs can quickly add up:

 

Monthly Breakdown:

– Average proposal fee: $3

– Proposals sent per week: 10

– Monthly total: $120 (40 proposals)

– Annual cost: $1,440

 

And this is just talking about the basics alone, on some of these platforms, you may require:

– Monthly membership fees ($20).

– Premium features (like profile boosts) for better visibility ($10-30).

– Upgrade costs to get the top 3 or 4 slots with proposals (for better visibility).

 

This takes up the total potential annual spending on proposals to secure projects to anywhere above the $1,500 mark.

 

Seeing all you could put into this process… now let’s look at some of the drawbacks and also what you could get out of it.

 

The Hidden Costs of the Proposal System

Beyond the direct financial costs, proposal-based job hunting comes with other drawbacks.

1. Low Conversion Rates

– Industry average: 5-10% success rate.

– Meaning: Out of 40 monthly proposals, you might land 2-4 projects.

– Cost per acquired client: $30-60.

 

2. Competition Factor

– Competing against dozens of other proposals.

– Pressure to lower rates to stand out.

– Reduced negotiating power.

 

With this in mind, let’s look at the alternative… marketing.

Understanding Marketing Investment Options In The Freelance Space

Now, let’s look at what that same $1,500 could do when invested in marketing:

 

1. Professional Website ($500-800 annually): Depending on your niche, skills, and how much time you have, you can set up your website, take care of the domain name and hosting, themes, design, and regular maintenance and content updates. But if you can’t, here’s a ballpark estimate to give you an idea of expenditure.

– Domain name and hosting ($100).

– Professional theme ($100).

– Website maintenance ($300-600).

 

2. Content Marketing ($600-800 annually): An important part of the marketing equation, showing people content that connects with them (and on the platforms they visit the most) is a solid way to keep your brand in their minds and hearts.

This may include:

– Blog posts creation.

– SEO optimization.

– Social media content.

 

3. Social Media Presence ($400-600 annually): Some people prefer to leave this to the professionals, some others don’t, but whichever it is, a healthy social media presence is a good channel to acquire top-level leads and keep them engaged and primed to work with you. 

For this, you may need:

– Professional profile optimization

– Scheduled content posting

– Engagement tools

 

4. Email Marketing ($200-400 annually): The king of all marketing platforms (in my humble opinion), email marketing gives you a rare opportunity to hold 1:1 conversations with your prospects, understand where they’re at in their client journey, find out what they really need, and how you can provide value to them… oh, and there’s also the part where email marketing offers an estimated 3600-4200% ROI (courtesy: mailerlite).

 

With this in mind, your email marketing plan will need:

– Email marketing platform: You can start with the regular Google mail platforms, but if you need something more with better structure and analytics to help you know what’s going on, then you can explore options like Mailerlite, MailChimp, SendinBlue, etc.

– Newsletter creation: Beehiiv is one option that can help out here, but before you do this, you need to have a good grasp of your audience and understand their needs… this way, you can develop content that is in line with your audience’s needs… and cut out the guesswork.

– Lead magnets.

 

5. Networking and Personal Brand ($400)

– Professional organization memberships,

– Networking event tickets,

– Online course platforms,

 

The Benefits of Marketing Investments To Your Freelance Business

1. Long-Term Asset Building.

– Your website and content remain valuable indefinitely.

The compound effect of SEO and content marketing can help to improve your visibility.

– Building a recognizable personal brand.

 

2. Ownership and Control.

– You own your marketing assets.

– You have some measure of control over your client acquisition strategy.

– Freedom to adjust approach based on results and market trends.

 

3. Diverse Client Sources

– Multiple channels for client acquisition.

– Not dependent on a single platform.

– Better leverage to negotiate and charge for your skills’ worth.

 

4. Professional Credibility

– Established online presence.

– Portfolio showcase.

– Industry authority building.

 

Making the Right Choice for Your Freelance Business

Think about these factors when deciding between proposal fees and marketing investments:

1. Business Stage

Early Stage:

– Your marketing will take longer to provide results.

– Proposals can provide quick initial clients.

– Consider a hybrid approach.

 

Established Freelancer:

– Marketing provides better long-term ROI.

– Less dependence on competitive platforms.

– More control over client selection.

 

2. Industry Factors

Technical Fields:

– Portfolio websites are crucial (especially useful if you’re a designer, or developer).

– GitHub/LinkedIn presence is important.

– Case studies are valuable (also make sure you have express permission from clients to pull this off).

 

Creative Fields:

– Visual portfolio essential.

– A healthy and curated Social media presence is crucial.

– Before/after demonstrations are important.

 

3. Target Client Type

Platform-Based Clients:

– Proposal fees might be necessary.

– Consider limited platform presence.

– You should focus on conversion optimization.

 

Direct Clients:

– Your marketing investment may be more valuable.

– You can also charge higher rates.

– You can build better long-term relationships.

 

Smart Investment Strategies

Here are some investment strategies that can help you get the best of both worlds… without breaking the bank!

1. Gradual Transition Plan.

– You can start with sending proposals more often, and letting marketing play the second fiddle.

– You can adjust the ratio as your marketing begins to gain traction.

– Eventually aim for 20% proposals, 80% marketing.

 

2. Track ROI Carefully

– Monitor cost per acquired client/completed project.

– Track your time investment.

– Measure client quality and project values after project completion.

 

3. Diversify Marketing Efforts

– Test different marketing channels to see which one(s) work best for you.

– Focus on the highest-performing methods.

– Regularly review and adjust strategy.

 

Conclusion

While proposal fees provide a straightforward path to potential clients who’ve already indicated an interest in the type of services you provide, they often represent a higher cost per acquisition and may offer less long-term value than marketing investments. Marketing efforts on the other hand, need you to be more patient from the get-go but typically provide better long-term returns and give you more control over your freelance business.

 

A good approach may involve starting with a mix of both methods and then gradually transitioning toward more marketing-focused efforts as your business grows. Remember to:

 

– Track your spending and results carefully, especially early on.

– Invest in methods that align with your industry.

– Focus on building long-term assets.

– Regularly review and adjust your strategy so you don’t become outdated.

 

But is there an ideal approach to this? I’ll let you decide what is ideal for you based on where you are on your freelance journey and what you hope to achieve in the coming months and quarters.