I'm reposting this that I wrote on the other thread about the ABC cuts.
I don’t intend to minimize the severity of all these cuts, but 300 to 400 jobs with a company the size of ABC is not a devastating news when compared with what other industries are experiencing, although I’m sure it could be devastating for those who will receive pink slips.
The problem with maintaining steady employment in this industry is the wide availability of freelancers, no other industry has such independent pool of (mostly well qualified) daily labor available.
The cost of a freelancer, even thou his rates might be as much as ten times the daily cost of an employee, in the long range is a more economical option and a better controllable cost. Not to mention that the company doesn’t have to worry about investing and updating equipment.
Freelancer’s costs are added to each specific job, thus he (she) is no longer labor, now becomes a “cost of salesâ€, meaning that if there are no sales (assignments) there are no costs; an employee on the other hand is a fix liability on the company books thus effectively bringing the value of the company down.
Most freelancer that I know, (the experienced one with an extensive equipment package) in spite of the economy have seen their business skyrocket in the last few years as more and more companies are opting to go the freelancers way. I just heard that recently The Golf Channel have eliminated all the photographer position and are now going exclusively freelancers.
Also let’s keep in mind this is only happening to the news industry and that amounts to less than 10% of television business, there’s still another 90% percent out there that is doing very well.
For the last 3 years business for most freelancers, at least in this area, has been going thru he roof. I said "most" freelancers because there are those who still have hard time making ends meet. Freelancer's success has everything to do with his skills to handle client's need. I know I sound like a broken record because I've been saying this for years, but this is the way it is. We have freelancers moving in this area by the masses, and a year later they move out.
Also don't forget the biggest stumbling block in becoming a freelancer, I have over $250,000 invested in equipment, this allows me to serve everyone that calls me regardless of what they need; every freelancer in his area has similar packages. It's a substantial investment.
Diversification of skills is the most important freelancer's assets. Leaving a station or place of employment thinking that you'll be able to make a decent living by doing exactly what you were doing before isn't going to work. You have to study and broaden your market in every possible direction.
Clients will not come to you, you have to find them and convince them that you are better. Don't play the cheaper game because it will only work until somebody cheaper comes along, it's a downward spiral. You get clients because you can do a better job and provide a better service; meaning that first you have to find faults in your competitors and capitalize.
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