Dynamics World

Welcome to our guest article, this week it is written by Erik Ernst.

How to become a Dynamics freelancer?

I have done a lot over the years. Basically I have done almost everything within the Navision world that can be done since I had my first job in the industry in 1991. Phone support, training, implementing, programming, installing, sales and marketing, project management, analysis and design. And I've worked for solution centers and end-users and I've also had my own solution center.

After my last job with an end-user I wasn't really sure what I wanted to do. I didn't really feel like going back to work for a partner. And finding a different end-users, but in the same size as my previous two companies would be really hard. If it should still be in Denmark.

So instead I decided to go back to be a self-employed Navision freelancer, as I was 6 years ago before I worked for one of the world’s largest Navision installations GN – Great Nordic – with about 3000 users globally.

The plan was really to start a company with two people from my network, but both decided to do differently before we were even started. So my company website may sound like a much bigger company than what it is. But I hope that I can find the right partner(s) to do this with later. But for right now I'm fully dedicated freelancing.

What is a Dynamics freelancer?

A Dynamics freelancer is a person who sells Dynamics services to different clients without a long-term commitment to any of them, rather than being employed by them.

In the Dynamics world many freelancers find their projects using recruiters or via the Microsoft Dynamics Partners, rather than working directly for the end-users.

But most freelancers will be more than happy to work directly for the end-users, and this way save the fees or percentages the partners and/or recruiters is getting. This can sometimes be as much as 50% of the end user price, if via a partner and recruiter.

Some people in the community think that it’s important to split the freelancers into “real” freelancers and contractors. The difference between the two types of freelancing is that while freelancers have different clients without a long-term commitment or contract, then the contractors usually have only one and often long-term (6 months to 1 year or more) contract. It doesn’t really matter that much to me and I believe that most freelancers are somewhere between the “100% clean” freelancer and a contractor.

Why you should become a freelancer?

I think that the most important reason to become a Dynamics freelancer is that you are dedicated and enthusiastic about Dynamics, you love what you’re doing and you think that you’re very good at it.

You should not be afraid of working alone. And you must have a good network to old co-workers, bosses, old customers etc. If you’re one of those who is easily getting tired of working for the same company and with the same co-workers, sometimes even after a short time, then freelancing might for you.

Why you should not become a freelancer?

If you don’t have the support from your family then forget it. Sometimes there will be periods where you’re making almost no salary. And if you just bought a new house then this could be very stressful without their support.

You will never have a real base, even if you’re working on long projects for a client, then you’re never going to be “one of them”. You’re not invited to the Christmas party, the company out-things and all the other fun things companies are doing for their employees. I’m not saying that you will not have fun, but sometimes it can be rather hard.

And finally you should not become a freelancer because you think that you will be able to become rich! Yes you will most likely be able to make a better monthly income than working for a normal employer. But remember that you have to pay all costs also, and that might easily be 20-30% of your
revenue.

How to find your Dynamics freelancing project?

Unless you got started because you where offered a big freelancing project, then getting started can be difficult. It is now that your network is important. It’s time for expanding that personal brand of yours. You need to let your network know that you’re now freelancing and that you’re
looking for a contract.

You already have a good network (otherwise you didn’t start freelancing). But it’s not enough that you have a long list of friends and contacts on LinkedIn, Plaxo or Facebook. You need to qualify your network. Write down a list of who can help you find a contract. Often the best are old co-workers and old customers. With customers just remember that you’re often not allowed to contact your old customers directly. Sometimes this is written in your contract and might be period of between 1 and 3 years after the termination of your contact. But while you cannot contact the company, then it’s important to watch when your contacts are starting to work for other companies, because then you’re allowed to contact them.

Personal branding is also important. By participating in the community, in the different forum websites like the Dynamics User Group, by writing your own blog (but don’t forget to let people know about it). Participate in all the Dynamics conference you can, not only to learn, but more important to hang out with the rest of the community. Being online is important, but
offline is priceless.

You should also consider to specialize. The freelancers who are really specializing in a single area, such as performance optimization, manufacturing, international accounting are in general doing much better than those not specializing. It’s a lot easier to get known as an expert on a single topic, instead of as a generalist who knows it all.

But start to get active in the Dynamics communities, if you aren’t already. Even if you’re not consider becoming a freelancer now, then it will surely also not hurt you when applying for your next permanent job.

How much should you charge?

One of the first questions you will get when talking to a potential customer, is what’s your hourly/daily rate?

The clear answer to this is: As much as you can get! And as much as you
think you’re worth.

My normal recommendation is that you should charge the same rate per hour as the Microsoft partners are charging. If you’re selling via recruiters and/or partners, then you also need to consider that they also need to be able to make a living. But I don’t think that it’s fair that you get less than 50% of the end-user price.

Lately I have heard from freelancers that they have been offered only 40-50 EURs per hour in countries where the normal end-user rates are 120-150 EUR. That’s a joke! 40 EUR per hour might be fine in low cost countries, but with 40 EUR per hour in the Northern Europe, then you would be much better of taking a permanent full time job. When you consider a cost of 15-30 EUR per hour. Remember as a freelancer you have to pay your gas to our car, computer, phone, retirement plan, insurance and in some countries not unimportantly health insurance. And in a country like I’m from over 50% in income tax.

Networking with other Dynamics Freelancers

A good way to find out how much you should charge is to talk to other Dynamics freelancers. You could eventually sign up to the closed “Dynamics Freelancers” group (http://dynamicsuser.net/groups/freelancers/default.aspx) at the Dynamics User Group. Here you will be able to discuss this with other freelancers, without the risk of your customer to be watching.

Remember that although the other freelancers are your competition, then they are more importantly you closest allies. And the closest you can come to real co-workers.

I know many freelancers who are helping each other a lot getting jobs. That works especially good if you’re specialized and the other freelancers know your specialty. Then the other freelancers are less afraid of you, and wouldn’t mind taking you in on their projects.

As with everything else in life. Don’t expect to get, if you’re not giving!

If another freelancer is taking you in on a project and they say that they don’t’ want you to pay a percentage (10% – 20% would have be ok), then you should really do all you can to pay back this favor, by helping the other freelancer getting a job of similar value later. Otherwise don’t expect to get another project from this freelancer. And know that the other freelancers will be talking when they meet.

And never cheat the people who have helped you. It will come back to you.

And now you’re a freelancer!

Now you have your first project. Maybe even more projects. Now the difficult part is actually starting. Some people think to know that being a freelancer means that you’re free, that you can just take vacation when you want and just take the projects you fancy. And they also think that when you are in between projects then you can relax and travel. But for most of us, this is not the case. As a freelancer you are working whenever you are wanted for projects, and if you don’t have a project then you need to work even harder, just to find a new project.

But taking a break, going away on vacation with your family is something you MUST DO. Especially if you have been working hard and long hours for a long time, then you need it.

Being a freelancer is much harder than it sounds. If the market is going down, then it’s often the freelancers who is hurt the most. And during the last years financial crisis I have heard from many that they have been giving up being a freelancer and back to the safer permanent jobs.

Freelancing is not for everyone, but you’re welcome to contact me if you’re deciding to give it a try!

Comments