| Pages in topic: [1 2] > | Income security and working with big agencies Thread poster: Dylan J Hartmann
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I have a fear.
For the past 3-4 months I have been doing 80-90% of my translation work with one of the big agencies. This has been a perfect match, as this agency has offices located all around the world and I have been being fully loaded with work at a rate that I felt was deserved. While earning a thousand dollars per week from this one agency, I was forced to refuse a lot of work from previous agencies and clients, as their work wasn't worth spending my time on while this agency... See more I have a fear.
For the past 3-4 months I have been doing 80-90% of my translation work with one of the big agencies. This has been a perfect match, as this agency has offices located all around the world and I have been being fully loaded with work at a rate that I felt was deserved. While earning a thousand dollars per week from this one agency, I was forced to refuse a lot of work from previous agencies and clients, as their work wasn't worth spending my time on while this agency was almost giving me more than I could handle alone.
This stayed constant until mid last month when I received a 35,000 word job from this agency. I accepted it and worked diligently for the following two weeks (deadline at end of month). During this time I had zero work requests from the agency, which was strange after receiving at least 1 request per day during the lead up to this big job. This is where my fear began.
Since the beginning of the month I have had 1-2 small jobs sent from this agency. My fear is that I'd projected a level of income that was grounded on steady work from this big agency and I am now dreading what will happen if they've found someone cheaper while I was working on that big job. One positive of working with 30-45 payment periods is that for the next month or two I'll be okay, but January is looking bleak!
So I question, how can we maintain a level of income security while working with big agencies, if at their discretion they can find someone else (I hope this isn't the case) and cease sending working to someone that they had been using solely and regularly up until that point.
Thanks for your opinions. ▲ Collapse
| | | | Salam Alrawi 
United States
Local time: 03:49
English to Arabic
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| Stay professional | Nov 11, 2014 |
Update your calendar, that's all. No need to worry.
If a job was meant for you, it will be for you
| | | | | It's a real dilemma | Nov 11, 2014 |
It's a real dilemma for freelance translators, the same case occurs to me sometime, and I don't know how to deal with it.
May be the best way for us it to cooperate with other reliable translators, but the precondition is that they are really liable, although suitable translators are really hard to find.
| | | | 564354352 (X)
Denmark
Local time: 10:49
Danish to English
+ ...
| It's all a gamble | Nov 11, 2014 |
You can't have that kind of security as an independent translator, unless, of course, you actually make agreements with your clients to send you a steady stream of work. And in my view (and experience), it is very dangerous to stake as much as 80-90 % of your income on just one client.
However, in your particular situation here and now, might it just be that this client knows that you are working on a big job for them and that therefore, they think it unlikely that you would be inte... See more You can't have that kind of security as an independent translator, unless, of course, you actually make agreements with your clients to send you a steady stream of work. And in my view (and experience), it is very dangerous to stake as much as 80-90 % of your income on just one client.
However, in your particular situation here and now, might it just be that this client knows that you are working on a big job for them and that therefore, they think it unlikely that you would be interested in / have the time for any number of smaller jobs until you complete the big job? Maybe you just need to let them know that you are capable of fitting in smaller jobs while still working on the big one towards the agreed deadline. ▲ Collapse
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Heinrich Pesch
Finland
Local time: 11:49
Member (2003)
Finnish to German
+ ...
Translation business is like this. Sometimes you sit and look at a blank screen (or do something that pleases you) and the next time you work too hard. But it is wise not to put all eggs in one basket, always keep a group of customers.
In the meantime you might update your marketing.
| | | | | It's all about risk management | Nov 11, 2014 |
I started out as an in-house translator in a manufacturing company. If there's one thing I learned during that time with them, it's that you just cannot put all your eggs in one basket. There is NO security of income as a freelance and that is why you should protect yourself and not work with just one client, except for the case when they can provide you with some sort of block booking agreement (which may actually mean they need to pay you more to work exclusively for them). There is a very vo... See more I started out as an in-house translator in a manufacturing company. If there's one thing I learned during that time with them, it's that you just cannot put all your eggs in one basket. There is NO security of income as a freelance and that is why you should protect yourself and not work with just one client, except for the case when they can provide you with some sort of block booking agreement (which may actually mean they need to pay you more to work exclusively for them). There is a very volatile balance here... kudos to those who can strike any balance in this economy. ▲ Collapse
| | | | | You are still on time | Nov 11, 2014 |
DJHartmann wrote:
For the past 3-4 months I have been doing 80-90% of my translation work with one of the big agencies. This has been a perfect match, as this agency has offices located all around the world and I have been being fully loaded with work at a rate that I felt was deserved. While earning a thousand dollars per week from this one agency, I was forced to refuse a lot of work from previous agencies and clients, as their work wasn't worth spending my time on while this agency was almost giving me more than I could handle alone.
Customers basically return to those who serve them or make an effort to fit their requests in a busy schedule. If you cease to serve them for a couple of months, you are out.
I strongly advise you to avoid the "comfort" of dealing with one main customer as in your current situation. Never allow a customer to gulp more than 25% of your overall capacity or represent more than 25% of your income. There several compelling reasons:
- Indeed, they can change suppliers in a flash with no concerns on their side
- Whenever they want to reduce your rates, you will accept it because you need them to survive
- If they run into financial difficulty or change their payment practices, you are automatically in trouble as well
I think you have already figured out the risks of having this kind of huge customer, despite the momentary comfort and reduced administrative hassle. If I were you, and even if it means some stretching at times, I would start taking work from other customers so that in a couple of years you have a customer base where nobody represents more than 25% of your income. By keeping a more diverse customer base, you enjoy more freedom of choice and better rates in the long run, added to a lower financial risk.
One additional suggestion: from your list of invoices and your job records, make statistics at least twice a year about where the work comes from and what real average rate per word (considering CAT matches etc.) each customer is paying you in the end. Achieving the goal of a balanced and diverse customer base can take years, so start now!
| | | | EvaVer (X)
Local time: 10:49
Czech to French
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| 80-90% with one client is crazy! | Nov 11, 2014 |
This is a very dangerous situation. My advice is to start looking for other clients at once, and even if the big client returns, limit what you do for them - big agencies always have several translators for each language pair, so that you will not create a problem for them. And you are certainly working with a lot of PMs all over the world, so that you won't immediately create the impression that you systematically reject their requests.
In industry, a supplier is considered "unsafe" if t... See more This is a very dangerous situation. My advice is to start looking for other clients at once, and even if the big client returns, limit what you do for them - big agencies always have several translators for each language pair, so that you will not create a problem for them. And you are certainly working with a lot of PMs all over the world, so that you won't immediately create the impression that you systematically reject their requests.
In industry, a supplier is considered "unsafe" if they make more than 30% of their revenue with the same customer. This is not practicable for us, as our capacity is limited in a more definite manner than for an industrial company. I faced a similar situation (but it was about 70 %) with a direct client, where I could not very well refuse - the criterion I set for myself is, I must earn enough from other clients to get by if this one disappears tomorrow. 2 years later, I am there - the company still represents between 40 and 50 % of my revenue, but I am now sure I could live without them. I recommend you do the same! ▲ Collapse
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Tom in London
United Kingdom
Local time: 09:49
Member (2008)
Italian to English
Make a spreadsheet of your income over the year. It if averages out at a monthly income that meets your needs, then don't worry about it. Depending on the kind of translations you do, and the country/countries with which you deal, there are certain periods of the year when the translations don't come. But they pass.
In my case (Italy) because of the fields in which I tend to work, there is absolutely no translating work for the whole of August and September, but it gets really hecti... See more Make a spreadsheet of your income over the year. It if averages out at a monthly income that meets your needs, then don't worry about it. Depending on the kind of translations you do, and the country/countries with which you deal, there are certain periods of the year when the translations don't come. But they pass.
In my case (Italy) because of the fields in which I tend to work, there is absolutely no translating work for the whole of August and September, but it gets really hectic at other times (working day and night, including weekends) so over the year, my monthly income is OK.
But it isn't a good thing to put all your eggs in one basket. Diversify! Start finding the time to fit in some small jobs from other agencies.
Off topic: I know a shaggy dog story that ends with the punch line "Don't put all your Basques in one Exit". It's a rather harrowing story about a cinema fire in northern Spain. You can work out the rest yourselves
[Edited at 2014-11-11 07:43 GMT] ▲ Collapse
| | | | Sheila Wilson
Spain
Local time: 09:49
Member (2007)
English
+ ...
| No. 1 rule: a solid client base | Nov 11, 2014 |
2-3 principal clients, regular volumes
5+ others who pop up from time to time
That's really the minimum, IMHO. But others have already spoken of the dangers. What now for you? You say you're financially OK until January but you don't have any work at the moment. So you're free to market your services. You really ought to work full-time on that. If you don't have holiday plans for the end of the year you have an ideal reason for contacting past clients nearer the time to talk o... See more 2-3 principal clients, regular volumes
5+ others who pop up from time to time
That's really the minimum, IMHO. But others have already spoken of the dangers. What now for you? You say you're financially OK until January but you don't have any work at the moment. So you're free to market your services. You really ought to work full-time on that. If you don't have holiday plans for the end of the year you have an ideal reason for contacting past clients nearer the time to talk of your availability. Review your CV, website, etc. Find ways to get yourself noticed. Cold-call those direct clients and outsourcers you most want to work with. Apply for every suitable job. Do everything you can think of.
Do NOT fall into the trap of lowering your rate to get work: you'll end up in a spiral of more work for less pay and no time to look for better.
Do NOT accept a big project from your current client that will take up more than 50% of your time.
That's my advice, anyway. ▲ Collapse
| | | | | There must be other clients who also pay well | Nov 11, 2014 |
You really should spread your risk.
Accept offers from other clients anyway, if they look attractive, and turn down one or two from the global company if you have to. Don't worry too much about whether you are the cheapest. Global companies will find someone else when you are not available whatever happens.
I find the small to medium sized agencies the best, and I work for a lot of them. Obviously, then I can't work for any one agency all the time, but many do not alway... See more You really should spread your risk.
Accept offers from other clients anyway, if they look attractive, and turn down one or two from the global company if you have to. Don't worry too much about whether you are the cheapest. Global companies will find someone else when you are not available whatever happens.
I find the small to medium sized agencies the best, and I work for a lot of them. Obviously, then I can't work for any one agency all the time, but many do not always have work in my languages or subject areas either.
They pay at least as well as the big ones, and they compete on quality. They know their clients and match translators to particular jobs. They negotiate good deadlines if at all possible, and after a while I can even negotiate rates with them.
They run small, efficient offices, with low overhead costs, and compete quite well on rates.
They can help or find a contact with the end client if you have questions about terminlogy or anything else.
Work up some clients like that. They don't know too many translators, so they come back to you, and if their end clients like your work, they will send you work for years. Send them a 'postcard' or Christmas greeting two or three times a year - before and after holidays, when you have been to a training day and improved your skills, any excuse to remind them you are there (or not there for a week, but you will be back...).
Spread your risks, but concentrate on doing one or two things really well. Then you can negotiate rates upwards - they are not carved in stone! You are never indispensable as a freelancer, but you will end up with just as much income and greater security.
Best of luck! ▲ Collapse
| | | | Dan Lucas
United Kingdom
Local time: 09:49
Member (2014)
Japanese to English
| This is a classic error | Nov 11, 2014 |
DJHartmann wrote:
For the past 3-4 months I have been doing 80-90% of my translation work with one of the big agencies.
You are setting yourself up for pain. However tempting it is, if you're this dependent on one customer you are in trouble. For one thing, this customer has far more negotiating power with you than multiple customers would have.
For another, if they make a strategic move to de-emphasise the field of the language pair in which you are working, or to increase the number of translators, or if they get into financial trouble, you'll end up with no income.
At times when you have no other work, taking work from this agency makes no difference; your opportunity cost is zero. But even while working for this customer you should continue to search for other agencies or clients and cultivate them.
I have seen many cases in which companies relied on a single customer for X% of their revenues (where X is some arbitrary but large number) and got hurt when the customer diverted orders to other suppliers. You're no different, just working on a smaller scale.
TL;DR: don't worry about losing money from this one customer, worry about not having enough customers.
Regards
Dan
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| You have to have a list of your "always-yes-customers" | Nov 11, 2014 |
As Sheila pointed out, you absolutely need a number of customers (you determine this number) you will NEVER say "no" to. The criteria to select those customers is also entirely up to you.
What happens if you have steady work from those "always-yes-customers" and got an offer from a "large" agency for a "large" job? You have several options:
1. You try to renegotiate the deadline (most of the time, possible for a large job).
2. If that does not work and you... See more As Sheila pointed out, you absolutely need a number of customers (you determine this number) you will NEVER say "no" to. The criteria to select those customers is also entirely up to you.
What happens if you have steady work from those "always-yes-customers" and got an offer from a "large" agency for a "large" job? You have several options:
1. You try to renegotiate the deadline (most of the time, possible for a large job).
2. If that does not work and you still think you could kind of handle it, you accept the job and have a couple of sleepless or almost nights (not recommended, unless sharply occasional).
3. You outsource part of the job to your trusted fellow translators (make sure you are allowed to do this, based on the PO / agreement with the client).
If all what I said is worth nothing, please, at least, take this advice: never say "no" to your "always-yes-customers", no matter what. The main reason being that:
1. These are good customers
2. And there is a number of them
Put it like this; if you had 100 million EUR, would you put it in one bank?
[Edited at 2014-11-11 09:39 GMT] ▲ Collapse
| | | | | Unfortunately, I don't think there is any income security in the translation field, | Nov 11, 2014 |
just like in most other fields. Sometimes, no matter how good a translator you are, and how big the translation company you work with is, there simply is no work in some language pairs, or specialties for some time.
It might be wise to keep in touch with many of the clients you thought reasonable and nice at one time of another, and also do other things, in addition to transaltion.
[Edited at 2014-11-11 10:14 GMT]
| | | | Thayenga
Germany
Local time: 10:49
Member (2009)
English to German
+ ...
| Spread your "sources" | Nov 11, 2014 |
To have - and rely on! - only 1 client is dangerous. You never know whether the client - or perhaps even you - change their mind about working with you, for whatever reason.
As our colleagues have already pointed out, it's adviceable to have a certain number of client to work with, always trying your best to accommodate their requirements. Vlients can come and go, just like their translators.
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