Contract Employee's Newsletter
Helping Contract Professionals Manage Their Careers

Vol. 4, No. 1
April 01, 2004

Edited by James R. Ziegler

A Companion to:
The Contract Employee's Handbook
www.cehandbook.com

Sponsored by:
P.A.C.E. - Professional Association for Contract Employment
www.pacepros.com

 

About The Contract Employee's Newsletter

The Contract Employee's Newsletter is a free online publication for technical and professional contractors containing news, commentary, tips, links to useful resources, nuggets of wisdom submitted by readers, and anything else that seems appropriate at the time. The CENewsletter is published intermittently, whenever circumstances warrant and time allows. Back issues are archived online, and content is eventually rolled into the Contract Employee's Handbook. The subscriber list is confidential and will not be disclosed outside this organization.


In This Issue

Read recent issues of The Contract Employee's Newsletter.

Featured Topic

Two Birds with One Stone

Here's how to market your expertise and make extra money in the process.

It's easy to lose confidence in your skills when you're not working. For instance, if "practice makes perfect," then, the reasoning might go, "less practice makes less perfect." Are you keeping up to speed on new skills and technologies during your downtime? If you aren't working, how do you let people know what you've learned? You may have references and testimonials that can attest to your newly acquired capabilities, but how can you let others know? Skills development and marketing can be a drag. Would you be more interested in these activities if your training and marketing efforts created a modest income, even when you are not billing clients?

In the paragraphs that follow, I want to suggest how you might profitably use the downtime while you are searching for your next contract assignment to:

  • Prove to yourself that you still have what it takes.

  • Demonstrate to prospective clients that you still have what it takes.

  • Create a powerful and effective marketing tool.

  • Generate a modest income even when you are not "working."

How do you know that you have what it takes?

When I was in graduate school at the University of Chicago I was always impressed by the way my professors went about learning a new subject. They would teach a seminar on the subject they wanted to learn, but which they knew little about. Of course, it was a trial by fire, but there is no better way to learn a new skill than to have to teach it to somebody else. Here's what I have in mind.


Your professional Web site

First, you absolutely must have a professional Web site. You really can't qualify as a Contract Professional without one. Your professional Web site is where you showcase your skills, and where you make a case for someone to hire your consulting services.

A good example is the professional Web site of Bob (Robert N.) Watkins, www.bwatkins.com, a captive employee who is breaking into the consulting business. Notice that his site features a photograph of a very professional Bob Watkins "in action." Notice also that Bob emphasizes his skills (NOT his resume!) It is clear that Bob is not a victim of unemployment who is looking for another corporate handout. Rather, he is a very competent professional who can hit the boards running. Clients like this in a consultant.

The site includes testimonials from past clients that emphasize how Bob has helped them. Bob's Web site has a separate section for three separate areas of expertise. Each section has a simple form where clients can request additional information. Bob even makes it easy for his clients to pay him by credit card!

Notice, also, that all the content is short and sweet, well organized, and that it emphasizes Bob's credentials as well as his ability to work with others.

A search in Google for <Bob Watkins> shows that Bob has written 21 articles for Tech Republic. You can read his profile and browse his articles at http://techrepublic.com.com/5171-22-1031068.html. You will also find Bob's profile posted at http://fait.typepad.com/about.html on his blog.

This is a good start, but Bob's home page has a Google importance rating of only 1 on a scale of 10. This would indicate that Google and the other search engines may not be generating a lot of traffic to his site, resulting in less than optimum exposure.


Draw traffic to your site

Further scrolling through the Google results for <Bob Watkins> uncovers another Bob Watkins, but this time it's Robert D. Watkins, and the Web site is at http://www.contractmcse.com. This site is absolutely crammed with resources, press releases, citations for contributions to books, and project descriptions. Clearly, more content is not only impressive, but it increases a Web site's importance. Robert D. Watkins' site, with more content, and lots of links, has a Google importance rating of 4.

Add desirable content

What constitutes desirable content for a consultant's Web site?

  • Add a glossary of skill-set-specific terminology. Create your own unique descriptions, crafted in the context of what you do for your clients. These terms are keywords that, when indexed by the search engines, will draw traffic to your site. The unique descriptions will illustrate how much you understand your area of expertise.

  • Write articles for posting on sites hosted by your industry's associations, on news and resource sites such as Tech Republic, and on your own Web site. Let visitors download your articles at no cost. Include copies of, or links to, your articles in cover letters to potential clients and in your skills profile (functional resume). What can you write about? Write about your last project. Describe a problem, discuss your options, explain how you analyzed the options, describe your actual approach, and how you were able to "save the day." If you were part of a team, explain your critical role on the team and describe how the team addressed the problem. Clients like team players.

  • Include extensive links to relevant resources. Annotate the links with brief descriptions of their usefulness so they add keyword strength to your Web pages. Of course, these annotated links will further reinforce your breadth of knowledge. Encourage other sites to link to you.

  • Sell expert advice. Write an E-book that is relevant to your skill set. If you ever thought that you understood your skill set, writing a short book or pamphlet that explains it to others will prove your mettle. Are you an expert accountant? Create an active Excel template to create pro forma budgets. Include blank fields for actual data, and base the template on real profit and loss statements. Are you a software developer? Create a specialized tool kit, and sell it to other developers. Are you a technical writer? Write a style manual with templates for different styles of documentation. And the list goes on…

    Don't be shy about pricing. If the product is good, and it does what you say it will, then people who need it will buy it. Could you sell ten downloadable items a month (worldwide!) over the Internet for $39 each? Could you sell 30 a month? Could you sell 300 (10 a day)? Do the arithmetic.

Generate a modest revenue stream

Most ISPs and Web hosts offer a shopping cart service, or you can sell your product using any number of third-party fulfillment services. One that I like is Kagi at www.kagi.com. Even a modest income stream of a few hundred dollars a month will go a long way toward creating a financial safety net, relieving the stress of extended periods of downtime between contracts.

Even if you don't earn much from the online sales, your enhanced credibility will translate into less downtime and higher billing rates. And, there is an added bonus: Your personal project of promoting your consulting business, if it accomplishes anything, will productively fill those hours in the evening when the only other options are watching prime time TV and playing solitaire.

Good luck!

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News and Views

Sobering News From a Reporter Who "Gets It"

The ITAA is a lobby for the tech industry. For the past year, and in the face of this nation's largest white collar job slump since the Great Depression, the ITAA has been selling the line that the U.S. is experiencing a severe shortage of skilled professionals (read: cheap, underpaid, skilled professionals). The media, for the most part, has bought this misinformation hook, line, and sinker. But the tide is changing. With columnist and TV host Lou Dobbs taking the lead, the media is beginning to come around to a more critical analysis of the jobs issue.

An excellent column by Frank Hayes, in Computerworld exposes a recent ITAA report as being seriously flawed, and uses the report's own data to show that offshore outsourcing will cause the U.S. to lose even more skilled IT jobs and gain primarily low-paying, unskilled jobs in construction and transportation. This is the polar opposite conclusion of the ITAA report. Read Hayes' article at:
www.computerworld.com/careertopics/careers/story/0,10801,91892,00.html

Below is a link to a detailed critique of the ITAA report by Norm Matloff, a Computer Sciences professor at the University of California, Davis. Matloff is a long-time critic of the L-1 and H1-B visa programs, and of offshoring skilled American jobs. Read Matloff's article at:
http://heather.cs.ucdavis.edu/Archive/ITAAOffshore.txt

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Kudos and Testimonials

What People Are Saying About The Contract Employee's Project

When I found P.A.C.E., it seemed ideal, but I had a few concerns that basically all boiled down to one thing: Could I rely on the services they provide, or was I just going to cause myself even more headaches later?
There are two overriding factors that has really put me at ease in dealing with them:

  1. I deal with real people. I know their names. Not just the P.A.C.E. staff itself, but I've even spoke to the insurance agent who has set up their health benefits program. They're real people, with names, phone numbers, and E-mail addresses. I've almost never had to leave a message for someone--I can reach them right away. I had looked at other services and they seemed to be behind walls of voice-mail systems.

  2. Since I haven't been to California lately, I was a little concerned that I hadn't seen and judged their operation first-hand, but then I found out that all of the services they provide are handled by the biggest and best-known firms: From payroll (which is handled by ADP), to the 401K (which is handled by Schwab), to the health coverage (Blue Cross/Blue Shield), it's not possible to have bigger names rendering the core services.

Those two things put me totally at ease.

Since signing up, I've been very pleased with all the services. I love their detailed statements (I'm really into details), and they've delivered exactly what they've promised. I find myself discovering new ways to get value out of their services, too. For example, I just bought a new laptop (Apple PowerBook G4 Titanium) and I'll probably set things up in a lease-back arrangement. Between that, and being able to direct 25% of my billing into a 401K, I feel like the cost of their service is easily offset by the tax savings and freedom from paperwork hassles."

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Business Basics

Do You Know About SCORE (Counselors to America's Small Business)?

The SCORE Association, Counselors to America's Small Business, www.score.org, headquartered in Washington, D.C., is a nonprofit association dedicated to entrepreneurial education and the formation, growth and success of small businesses (including self-employed, independent contractors) nationwide. SCORE’s 10,500 retired and working volunteers provide free business counseling and advice as a public service. SCORE is a resource partner with the U.S. Small Business Administration, www.sba.gov.

  • SCORE offers Ask SCORE E-mail advice online.
  • Face-to-face business counseling at 389 chapters.
  • Low-cost workshops at 389 chapters nationwide.
  • Free and confidential small business counseling.

From marketing advice to finances, sales and operations, SCORE counselors will help you find the answers. Just as important, counselors will help you develop and think through your business plan to make sure you’re asking the right questions.

When you seek help from a SCORE business counselor, you get the benefit of all his or her ideas, and the continuity of knowing that someone who knows and understands your small business is available for ongoing support. Seeking advice from a SCORE counselor provides a distinct advantage as you go forward.

Is there a local chapter of SCORE near you? Enter your zip code to get a map and contact information of the closest chapters: www.score.org/findscore/chapter_maps.html.

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Contract Employee's Glossary

Terminology For Contract Professionals

Term: Hero
Context: Project management
Definition: A person distinguished by exceptional courage, nobility, and strength, who is celebrated for bold exploits, and who is often the offspring of a mortal and a god. Someone who routinely saves the day or, indeed the world, with amazing feats of skill, daring, and intellectual dexterity. Also, one who inspires through manners and actions. An individual who leads through personal example and accomplishments requiring bravery, skill, determination, and other admirable qualities. A guru. Someone who walks on water. In other words, your typical Contract Professional.

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P.A.C.E. News

Online Capabilities Greatly Enhance P.A.C.E. Employer of Record Service

Online time sheet

P.A.C.E. Contractors use an intuitive online wizard to build a separate time sheet template for each client. When they need to enter their hours, they just go to the secure Member's Site, enter a unique login name and password, and fill in the blanks. The online time sheet has a text box for entering notes and explanations.

At the end of the billing cycle, the contractor simply clicks a button and an E-mail is sent to the contractor's supervisor requesting a digital sign-off. If the supervisor has a question about the time sheet, he or she adds a comment and sends it back.

When the contractor's supervisor signs-off, the approved hours are automatically entered in PACE Base, P.A.C.E.'s proprietary database and report generating software.

Time sheets, per diem claims, and expense reports are processed entirely online.

Online Revenue and Payout Reports

P.A.C.E. contractors may view current and past Division Reports online by entering their unique login name and password to access their own area of the secure Members Site.

Each online Division Report shows precisely how every penny of the revenues generated by your consulting services are allocated to cover your Division's pretax expenses and taxable gross wage.

Revenues include:

  • Payments received from your client(s)
  • Referral rebates (in 1% increments)

Expenses include:

  • ProTrac's 5% service fee
  • Your Division's share of payroll taxes
  • Tax-deferred contributions to your retirement savings account
  • Tax-exempt payments for group insurance
  • Tax-exempt reimbursements for out-of-pocket, work-related expenses
  • Tax-exempt per diem and auto allowance payments while on temporary, remote assignments

Your taxable gross wage is what's left over after your Division pays its other expenses. Thus, your Division is a profit center where the profit is distributed to you, the Division's sole employee, as a taxable gross wage. This is exactly analogous to a sole proprietorship, or a limited liability company, or a one-person corporation. In other words, your Division operates just like an independent contractor.

You can enter your own private area of the secure Member's Site at any time to view current and past online Division Reports.

 

What Types of Contract Professionals Use P.A.C.E.?

Here's a partial list:

  • Computer Professionals, Software Developers
  • Electrical, Mechanical, and Other Types of Engineers
  • Trainers, Developers, Teachers, Educators
  • Project Managers and Team Leaders
  • Business, Economic, and Financial Analysts
  • Human Resources Professionals
  • Marketing and PR Consultants
  • High-ticket Sales Professionals
  • Writers, Documentation Specialists, and Graphic Artists
  • Fine Artists, Actors, Dancers, and Musicians
  • Legal and Healthcare Professionals… In fact, virtually any type of skilled, Independent Professional.

Are you a match for P.A.C.E.?

Did you know that you can convert your current contract to P.A.C.E., even if your current agency got you the gig? P.A.C.E. simply subcontracts through your current agency. Your total compensation generally will be as high or higher as before, AND, as a P.A.C.E. employee, you will qualify for the superb benefits available only through the P.A.C.E. business model.

P.A.C.E. is a Win - Win - Win - Win Solution for Downsized Employees, Contract Employees, Independent Contractors, and Client Companies. Check out P.A.C.E. for the best benefits package available to ANY Contract Professional ANYWHERE in the USA.

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Contract Employee's Handbook

Coming Soon: A Major Expansion of The Contract Employee's Handbook

I am currently working on a major expansion of the Contract Employee's Handbook. Admittedly, the existing site is getting a little stale (though still very informative), but it will soon bristle with new information in many areas of interest to Contract Professionals.

The first phase of the expansion will be the addition of a huge glossary of terminology for Contract Professionals. We have identified eleven areas in our exhaustive search for glossary terms. The eleven areas are:

  • Business and Money
  • Contracts and Legal
  • Training and Development
  • Sales and Marketing
  • Infrastructure
  • Project Management
  • Intellectual Property
  • Immigration
  • Employment and Human Resources
  • Benefits
  • Staffing

When completed, the searchable, cross-referenced glossary will contain approximately 5000 terms, most with comprehensive definitions. The content will be the equivalent of approximately 1000 pages of text. The glossary will be available at no cost as an online HTML reference.

The second phase of the expansion will involve a complete rewrite of the Contract Employee's Handbook around the eleven areas of interest identified above. I am focusing on these topics with the idea of creating a conceptual context for technical and professional contractors, both independent contractors (1099 and corp) and contract employees (W-2). The entire contents of the enhanced Contract Employee's Handbook will be available at no cost as an online HTML reference. It will also be available for a modest price as a printable download and as hard copy.

In phase three, I will aggregate the most important online and print resources in each of the eleven areas of interest. This annotated directory of resources for Contract Professionals will be the equivalent of several hundred pages of text. It, also, will be available at no cost as an online HTML reference.

The Contract Employee's Handbook currently has a Google Importance Rating of 7 on a scale of 10. I hope with these enhancements to push it to 8. Contract Professionals need to know this information so they can operate on a level playing field when dealing with clients, staffing vendors, and their bank account.

Look for the new glossary by mid summer, and the new CEHandbook in the fourth quarter of this year.

Read the current version at The Contract Employee's Handbook.

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The Contract Employee's Project

The Contract Employee's Project is the larger context under which the following interrelated vehicles operate to promote and defend the interests of Contract Professionals:

  • The Contract Employee's Handbook
  • The Contract Employee's Newsletter
  • The Contract Employee's Workshop
  • Professional Association for Contract Employment (P.A.C.E.)

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Copyright and Publication Info

Copyright (c) 2004, James R. Ziegler. All rights reserved.

You may copy or forward this free publication provided it is left intact with all links and this notice unchanged. Any unauthorized duplication, including republication in part or in full for commercial use, is an infringement of copyright. We encourage you to freely distribute hyperlinks to this issue of the Contract Employee's Newsletter.

Published by:
P.A.C.E. - Professional Association for Contract Employment
1355 Willow Way, Suite 244
Concord, CA 94520
USA
http://www.pacepros.com/

Editor:
James R. Ziegler, Ph.D.
Executive Director
P.A.C.E. -- Professional Association for Contract Employment
(925) 680-0200
CENewsletters@pacepros.com

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Disclaimer

The Contract Employee's Newsletter is designed to provide information in regard to the subject matter covered. Use is granted with the understanding that the publisher and authors are not engaged in rendering legal or financial advice. If expert assistance is required you should seek the services of a competent professional.

The purpose of this information is to educate and entertain. The publisher and contributors shall have neither liability nor responsibility to any person or entity with respect to any loss or damage caused, or alleged to be caused, directly or indirectly, by the information contained in this Newsletter or by information contained in any web site or resource referenced by citation or hypertext link within the pages of this Newsletter.

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Sign-off

I hope you have found the information in this newsletter to be interesting, informative, and provocative. I encourage you to share the CENewsletter with your friends, colleagues, coworkers, clients, and agency recruiters.

Why clients? Because you need every ally you can get. Why agency recruiters? Because they need to know the jig is up.

Wishing you success in your contracting career,

James R. Ziegler, Ph.D.
Executive Director
P.A.C.E. -- Professional Association for Contract Employment

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