How to Run a Freelance Writing Business

If you’ve been freelancing for a minute and you want to grow your business, this is your spot. This three-step guide will help you expand your income potential and build a sustainable business. Read on for the steps you need to take to run a freelance writing business.

Let’s get started!

Table of Contents

Why Treat Freelance Writing as a Business?

Freelancing isn’t just about writing—it’s about managing your time, clients, and income like a business owner. Adopting a business-first approach to writing helps you create financial stability. (Who doesn’t want that?) Plus you attract better paying opportunities and set yourself up for long-term success.

3-Step Guide to Running a Freelance Writing Business

Step 1: Learn a Few Business Skills (it’s not hard!)

You don’t need an MBA to run a writing business. You just need a few basic skills. From contracts to taxes, learning a few essentials will help you keep things on track as you grow your income. For the record: I’m not a legal or tax expert! But, I’ve found these skills valuable in 20 years of freelancing. I’ll link to professional resources and recommend you consult with legal and tax experts where appropriate.

Key skills to learn:

Freelance writing contracts – protect yourself and set clear expectations with clients. (See the article below for details.) Get familiar with different contract terms like “net 30” (that means they pay you 30 days after invoice). Publishers will also have you sign contracts when writing for publications, so get to know what they look like.
Invoicing and payment tracking – use software to make sure you get paid on time. Try tools like FreshBooks, QuickBooks, or Square (my favorite) to easily manage clients, invoices, and payments. I’ve used all of them. I prefer the free Square account, but there are benefits to all three.
Taxes and bookkeeping, including:
- self-employment taxation vs incorporating
- paying estimated taxes (for example, setting up quarterly payments)
- rules around taking deductions
- tracking income and expenses (pro tip: QuickBooks integrates with tax software, and many accountants will set up and manage your system for you)

Where can you get these skills?

Take a couple of hours each week to explore these topics. Free entrepreneurship courses are available on platforms like Coursera. And don’t forget to learn from others! Attend business events. Lots of entrepreneurs and small business owners started as freelancers, and many are glad to offer advice. Each month, attend a local Chamber of Commerce event, a freelancing meet-up, or an association meeting in your niche.

Read this next: How to create freelance writing contracts
Pro Tip: Many states have free or low-cost legal and accounting services for creatives. In Texas, reach out to Texas Accountants and Lawyers for the Arts for tax and contract advice. Other states have similar groups, or check with the Freelancers Union.
Free Resource: SCORE is a national network of business workshops and mentors. And it’s free! I’ve connected with other freelancers and met clients at SCORE events. I even had a mentor early in my career. Even if they don’t have writing-specific mentors in your area, they host useful workshops. It’s a good way to connect with other business owners.

Step 2: Increase Your Income Streams

Let’s say you land a great client and everything is going well. You’re so focused on their success that you stop looking for other work. (Danger!) One day you get a phone call saying they have to end the contract. Or worse, you stop hearing from them and you’re ghosted. It’s every freelancer’s nightmare, but don’t panic! Try not to take it personally. Often it’s because they can’t afford a writer anymore. Or the company could be in bankruptcy. Anything’s possible.

The most important takeaway is: it happens. It’s part of the gig. But relying on a single income source puts you at financial risk. At some point, you will find yourself suddenly losing a client. And the way to hedge your bets and avoid a financial mess is:

Always keep a month or two of expenses set aside in savings. (More if you can!)
Diversify your income streams!

How can you generate different income streams?

Here are just a few ideas:

Create workshops or webinars to share your skills. (Don’t limit this to writing! Is there a hobby you’d love to teach?)
Create digital products like eBooks or templates. (Been working on a novel? Self-publish!)
Secure retainer agreements with larger companies. (No company is immune from layoffs, but larger organizations typically have larger budgets and steadier contracts.)

When thinking through this step, look for ways to add income without taking time away from existing clients. For example, a few years ago I created some print-on-demand books during my down time. Specifically, adult coloring books and journal templates. Did it bring in a ton of cash? No! But for the time investment of a few afternoons, they still bring in monthly coffee money. And I do love coffee. Who doesn’t like seeing regular deposits in their accounts?

Read this next: 7 Ways to Diversify Your Freelance Writing Income
Free Resource: Check out Payhip’s comprehensive guide to selling eBooks. It covers pretty much all you need to know. And I’ve known several writers who use and love Payhip.
Pro tip: Leverage freelancing platforms that are free to use. I’ve never paid for “freelance opportunities” or to get gigs. There are plenty of free places to market your skills and reach potential clients. Create profiles on platforms like Reedsy, Upwork, Contently, and Fiverr. Some platforms take a pretty big cut of your earnings. But if you’re in a pinch, freelancing platforms can bring in some extra dough.

Step 3: Build Long-Term Client Relationships

Guess how much of my work comes from referrals and long-term clients? Here’s some context: I’ve been freelancing for about 20 years. And guess what? Almost 100% of new work comes through longtime contacts. Why does that matter? Because developing long-term relationships reduces marketing efforts, stabilizes income, and guarantees you work with people you enjoy. You have the power to build strong client relationships whether you’ve been freelancing for six months, six years or longer!

Here’s how to do it:

Be great to work with! Always meet deadlines, communicate clearly, and make sure you understand and deliver what clients need. When in doubt, ask questions!
Stay in touch. You don’t need to be besties with your clients. But share articles or social media posts related to their work, when appropriate. Be genuinely thoughtful, and congratulate them on work events if you’re connected on LinkedIn.
Ask for referrals. Don’t be afraid to let clients know you’re available for new projects. I only do this when a project is wrapping up or the contract has ended.
Add value. Make sure you know the assignment and deliver on your promises. If you can make things easier and more organized for them, they’ll remember and share your info with others!
Develop thick skin and clear thinking. Sometimes misalignment happens. Handle any issues with patience and grace and try to make things right.

What’s the next step?

There isn’t one, you’re perfect! Just kidding. You are perfect, but there’s always more to learn! Each of us is constantly evolving, and that’s what makes freelancing fun.

Check out these resources to continue your journey:

Paid course – Scale and Thrive: Build a Profitable Freelance Writing Business (coming soon! I’m filming videos now.)
1:1 coaching package with me – Scale and Thrive
- Let’s build your strategy! This one-on-one coaching program gives you four (4) 60-minute structured coaching sessions.
- We’ll define your goals, streamline your systems, discuss client management, and uncover new income streams you want to pursue.
- You’ll create a custom, personalized map to achieve your goals over the next 6-12 months.
- Get all the details and pricing here.

Frequently Asked Questions

Q: How can I manage multiple clients and projects without feeling overwhelmed?

A: It’s all about your systems. Use project management software like Trello or Asana or go the old-school route with a calendar and sticky notes! Try different organization techniques to find what works for you. It’s also important to set clear boundaries with clients. If your work hours are 9 a.m. to 5 p.m., then only answer emails or respond to texts during those hours. It’s going to mean being more organized with your time during the workday. And setting hard boundaries during your down time. But it’s worth it when you’ve got peace of mind!

These are the books and techniques I used to create my own system:

Getting Things Done by David Allen (book). No, I’ve never gotten to a zero inbox. 😀 But I still use a lot of his timeless advice to manage day-to-day work.
The 7 Habits of Highly Effective People by Stephen R. Covey (book). Don’t be scared away because it’s been in print for over 30 years. It’s a classic for a reason! Taught me how to balance work, family, and personal priorities. (And I’ve used Franklin Covey planners for ages.)
The Pomodoro Technique (yes, I use todoist and have a timer on my desk)
Atomic Habits by James Clear (book). Love it, love it, love it. My income took off after absorbing this book.

Q: How do I manage taxes as a freelance writer?

A: Most importantly: I’m not a financial expert! But a good rule of thumb is to set aside 25-30% of your income for taxes. In all honesty, talk with an accountant or CPA who specializes in working with freelancers. They’re going to have the most up to date tax information. Most will offer a one-time consultation for a flat fee to discuss your situation. I know plenty of freelancers who hire a CPA for their taxes and it’s a one-time annual fee. Other people have an accounting firm on retainer. (Usually those people hire subcontractors and have complex taxes.) And others have their taxes done once or twice, then start doing it themselves. By then they’ve got the hang of it. And usually they have simple, predictable income and expenses. It’s all individual!

Q: How can I negotiate higher rates with existing clients?

A: This one requires some planning on your part. Before you approach a client, start by listing the value you’ve already provided. Include metrics and specific outcomes like increased traffic, conversions, or sales generated by your content. If you’re not tracking metrics, now’s the time to start. How are they gaining value by working with you? Have that info in your back pocket if you get resistance. Frame the rate increase as a natural part of doing business. (Which it is!) Rates don’t stay the same forever. Once you’ve determined how you add value, it’s time to schedule a chat.

Some freelancers let clients know up front that they have an automatic 3-5% increase each January. Personally, that hasn’t been part of my workflow. But I know people who make that part of their standard contract. I typically won’t approach a rate increase until a contract is up for renewal.

Here’s a sample email I might send:

Thank you for letting me be a part of your success over the last year! Can you believe it’s already time for our contract renewal? (Can’t believe how fast it went by.) I’ve had a great time working with your team on X, Y, Z projects! And I hope to continue working together in the year to come. My rate for this year is $XX. The attached contract renewal reflects this rate and extends the contract for a year. Please let me know if you want to schedule a chat, or if you’d like to make any changes. Glad to jump on a call or meet up at your office!

In my experience, a client will either accept or let me know it’s not in their budget. At that point, we cut back the hours or reduce the scope of work. I’ve only had one client completely nope out, but it was a small project. They had already started training an intern to replace me, so I saw it coming. The goal is to be open, professional, and friendly. Help them feel comfortable being honest about their budget so you can work together to find a compromise. (And sometimes it’s okay to let low-paying clients go.)