Poll: Are freelancers better equipped to weather inflation? Thread poster: ProZ.com Staff
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This forum topic is for the discussion of the poll question "Are freelancers better equipped to weather inflation?".
View the poll results »
| | | | | I don't know | Sep 13, 2022 |
Freelancers are more used to the ups and downs and to have to tighten their belts from time to time, but we are all different. Personally, I’m not very stressed about inflation (I’m more worried about coping with the energy crisis), for starters it’s not the first time I live through a period of inflation, then I am rather frugal by nature and I have no debts…
| | | | Lieven Malaise
Belgium
Local time: 23:49
Member (2020)
French to Dutch
+ ...
Yes, for the simple reason that we decide how many hours we work and in many cases can 'simply' increase the number of hours to compensate for inflation. This is a 'luxury' that employed people don't have. On a personal level I find it reassuring that I'm able to increase my capacity if whatever financial reasons would make it a necessity (I'm not saying it would be healthy, but finding a bailiff at your door step wouldn't also exactly be good for your health).
Of course you could ... See more Yes, for the simple reason that we decide how many hours we work and in many cases can 'simply' increase the number of hours to compensate for inflation. This is a 'luxury' that employed people don't have. On a personal level I find it reassuring that I'm able to increase my capacity if whatever financial reasons would make it a necessity (I'm not saying it would be healthy, but finding a bailiff at your door step wouldn't also exactly be good for your health).
Of course you could also simply raise you rates but that's, at least in my experience, risky business that I'd like to avoid as long as possible. ▲ Collapse
| | | | | It all depends | Sep 13, 2022 |
I voted 'it all depends'. In reality we don't know what other freelance translators do but it stands to reason to put some money aside for difficult days and to cut down. I'm more worried about the fact that inflation will also lead to less translation jobs as people count the pennies. About better equipped, all freelancers should think about difficult times before these difficult times do pop up as they almost certainly will from time to time, even if in a different manner.
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David GAY
Local time: 23:49
English to French
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Lieven Malaise wrote:
Yes, for the simple reason that we decide how many hours we work and in many cases can 'simply' increase the number of hours to compensate for inflation. This is a 'luxury' that employed people don't have. On a personal level I find it reassuring that I'm able to increase my capacity if whatever financial reasons would make it a necessity (I'm not saying it would be healthy, but finding a bailiff at your door step wouldn't also exactly be good for your health).
Of course you could also simply raise you rates but that's, at least in my experience, risky business that I'd like to avoid as long as possible.
Employees can also work as freelancers on the side during their free time. And they get raises on a regular basis and have social benefits and have a decent pension whereas freelance translators don t enjoy these privileges and can even be forced to cut their rates.
Of course, a freelancer, and an employee can work more by taking more jobs, but it s a short term solution because with a 10 percent p.a. inflation on a 20 year period, there s really no way you can offset inflation. So at the time you ll retire as a freelancer, you ll be very poor and you ll die the same way as Mozart.
[Edited at 2022-09-13 10:08 GMT]
[Edited at 2022-09-13 10:10 GMT]
| | | | Kay Denney 
France
Local time: 23:49
French to English
Better than who? Not the billionaires, nor the royals, nor anyone earning more than the median wage in their country, who don't have to pay rent or mortgage, or who have plenty of savings stashed away.
Better than the unemployed, employees earning minimum wage, part-time workers who can't ever pick up more shifts...
In theory we can take on more work and/or raise our rates. In practice, finding new clients prepared to pay high rates can be difficult, and raising our rates can potent... See more Better than who? Not the billionaires, nor the royals, nor anyone earning more than the median wage in their country, who don't have to pay rent or mortgage, or who have plenty of savings stashed away.
Better than the unemployed, employees earning minimum wage, part-time workers who can't ever pick up more shifts...
In theory we can take on more work and/or raise our rates. In practice, finding new clients prepared to pay high rates can be difficult, and raising our rates can potentially lose us clients. As always, those of us with savings, or a high-earning partner, who inherited their house, or with another income stream, have that cushion against inflation, and those who don't are more likely to suffer. ▲ Collapse
| | | | Lieven Malaise
Belgium
Local time: 23:49
Member (2020)
French to Dutch
+ ...
| Assumptions. | Sep 13, 2022 |
David GAY wrote:
Of course, a freelancer, and an employee can work more by taking more jobs, but it s a short term solution because with a 10 percent p.a. inflation on a 20 year period, there s really no way you can offset inflation. So at the time you ll retire as a freelancer, you ll be very poor and you ll die the same way as Mozart.
[Edited at 2022-09-13 10:08 GMT]
[Edited at 2022-09-13 10:10 GMT]
You are assuming that I will never again raise my rates. You shouldn't assume.
| | | | | Yes, in theory | Sep 13, 2022 |
The point here surely is that there is no legitimate reason why our earnings shouldn't rise with inflation.
The only problem is those who are too scared to put their rates up, thus making it harder for everyone else.
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David GAY
Local time: 23:49
English to French
+ ...
Lieven Malaise wrote: David GAY wrote:
Of course, a freelancer, and an employee can work more by taking more jobs, but it s a short term solution because with a 10 percent p.a. inflation on a 20 year period, there s really no way you can offset inflation. So at the time you ll retire as a freelancer, you ll be very poor and you ll die the same way as Mozart.
[Edited at 2022-09-13 10:08 GMT]
[Edited at 2022-09-13 10:10 GMT] You are assuming that I will never again raise my rates. You shouldn't assume.
you assume that there will always be enough work for human translators, that rates won t decline even in nominal terms.
I think it s a very bold assumption.
| | | | William Hepner
United States
Local time: 17:49
Member (2022)
Spanish to English
Freelancers, like other entrepreneurs or small-business owners, have more control over their income growth than their gainfully employed counterparts. This means that, yes, they're better equipped to weather inflation. With that said, it doesn't mean that they will weather inflation better, since there are so many variables determining whether you do better or worse in the freelance game.
In sum, can freelancers do better? Certainly. Will they do better? That I can't answer.
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I'd say it is tricky, because historically, rates have been quite stagnating, it is not too easy to raise rates with your current clients (although official inflation figures are quite strong an argument), the rate ceiling is quite low nowadays with most agencies (you have to take the direct clients route past a certain point) and there is an ongoing price pressure due to several factors (big agencies dictating their terms, MTPE, etc.). This just makes it harder, but not impossible.
... See more I'd say it is tricky, because historically, rates have been quite stagnating, it is not too easy to raise rates with your current clients (although official inflation figures are quite strong an argument), the rate ceiling is quite low nowadays with most agencies (you have to take the direct clients route past a certain point) and there is an ongoing price pressure due to several factors (big agencies dictating their terms, MTPE, etc.). This just makes it harder, but not impossible.
I don't think inflation will not go upwards for too long. In the US, the FED has shown it will hike the interest rates as needed, and the ECB just bumped the interest rates for the first time in 11 years. This is a clear measure to contain inflation (with the risk of accelerating a recession). But the supply-chain and energy-related disruptions will likely go on for some time.
All in all, personally, this will just make it a little harder to hit my minimum target of 50% savings rate.
How much is the average savings rate of your typical employee? From recent studies, even high earners don't necessarily have funds to weather emergencies. And don't even get me started with redundancies and mortgage.
I'll do just fine.
PS: Prophesying that "you'll be very poor and you'll die the same way as Mozart" is a bold assumption if I ever saw one. I mean c'mon.
[Edited at 2022-09-15 16:33 GMT] ▲ Collapse
| | | | David GAY
Local time: 23:49
English to French
+ ...
| worst or best case scenario | Sep 15, 2022 |
Jean Dimitriadis wrote:
PS: Prophesying that "you'll be very poor and you'll die the same way as Mozart" is a bold assumption if I ever saw one. I mean c'mon.
[Edited at 2022-09-15 16:33 GMT]
who knows? it s very difficult to predict
It s the worst or perhaps the best case scenario because it s very flattering to be compared to Mozart
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Tony Keily
Local time: 23:49
Italian to English
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PS: Prophesying that "you'll be very poor and you'll die the same way as Mozart" is a bold assumption if I ever saw one. I mean c'mon.
Wiki says WAM died after falling ill in Prague where he was attending the premiere of an opera he'd written on commission for Emperor Leopold II. Don't see much chance of that happening to me!
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