Study Hall’s 2020 State of Freelance Report Part 3: Multiple Jobs, Still Broke

Media workers are taking on multiple forms of work without seeing a meaningful increase in their income or spending power.

As Study Hall prepares to publish the findings of our 2020 State of Freelance survey, we wanted to give our subscribers an exclusive peek into the forthcoming report. Over the next several weeks, we’ll publish snippets and musings from our ongoing research, and even pose some larger questions that the survey project is meant to illuminate. For this week’s dispatch, Development Director Evan Kleekamp looks at mixed-income media workers who draw income from freelance work in addition to having a full- or part-time job. Previously, they wrote about about freelancers making $100,000 or more as well as freelancers earning less than $55,000. 

Please note that all income data reported below is anecdotal and based on pre-tax income. Out of the 888 Study Hall subscribers who took the survey, 551 provided complete answers to our individual income question set. Of these 551, 349 qualified as mixed-income media workers. For the purposes of this report, we are only counting respondents who reported both freelance and employment income, not just those who identified as both. 

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ONE JOB IS NEVER ENOUGH

It turns out that for many media workers, one job is not enough. More than half (63.33 percent) of the survey’s respondents who provided economic data reported income from both employment and freelance work in 2020, but — as the data shows — not necessarily because it improved their livelihood. 

Of the 349 mixed-income respondents, only 35 (10.02 percent) reported combined incomes more than $100,000. But once their incomes are separated back into their respective employment and freelance streams, it becomes clear that employment provides most of that compensation. Of those 35, 17 (48.57 percent) received at least $100,000 from their employer. Meanwhile, among mixed-income respondents, only four (1.14 percent) reported $100,000 or more in freelance income. In fact, only 12 (3.43 percent) reported freelance incomes greater than or equivalent to $65,000.

Breaking the combined incomes into $10,000 ranges starting at $5,000 reveals the most common (13.33 percent) income range for a mixed-income respondent was $25,000 to $35,000. When limited to freelance income, the most common (30.95 percent) income range was less than $5,000; when limited to employment, the most common (20.34 percent) income range was $15,000 to $25,000. And while there are mixed-income workers who reported earning more than $75,000 in combined income, they represent less than 20 percent (19.49 percent) of the total mixed-income population. That means a whopping 80 percent of mixed-income respondents combined employment and freelancing to earn the equivalent of a full-time salary — though not necessarily a competitive or adequate one. 

Mixed-income media workers reported on average $52,105.44 in income, a slightly higher figure than the survey-wide average ($52,044.37) and with a lesser degree of deviation (±$36,803.98 compared to ±$40,507.14). Similarly, the median reported income was $43,000, negligibly higher than the survey-wide median ($42,000) or the other medians reported for other groups. The mode remains fixed at $30,000, suggesting that many workers are taking on multiple forms of work without seeing a meaningful increase in their income and therefore their spending power. Following this trend, it should be startling that the average, median, and mode incomes did not show significant change when compared to the larger survey, but the reality is that mixed-income media workers make up a majority of the survey respondents. As a result, the survey-wide trends are probably more reflective of the conditions this group experiences than any of the groups I’ve recently analyzed. 

To put it succinctly, having extra work doesn’t necessarily change your circumstances. As the anecdotal responses sourced from mixed-income media workers below demonstrate, the pursuit of better work sometimes supersedes the quest for more money. Whether they take on freelance assignments to supplement their income or to keep their portfolio fresh, these media workers all increased their workload to change or improve certain aspects of their work life. Two of the media workers I spoke with even have day jobs that pay them at least $100,000, but the primary reason each provided for seeking extra work wasn’t extra cash — instead, they sought better quality projects and work that felt meaningful to them. 

According to these workers, there are also advantages media employees hold over media freelancers when pursuing freelance assignments, namely their affiliations with employers who possess visibility and clout that they confer to their employees. While full-time freelancers must develop a clientele over time, lest they spend hours each day self-promoting and desperately begging editors for work, employees can leverage their industry connections and visibility to attract freelance assignments; some even complete assignments while clocked in. From this perspective, employment begets assignments, assignments beget income, income begets employment, and then the cycle repeats. I might even argue that mixed-income media workers are simply taking advantage of the lulls in the workday that much full-time media work affords. Stuck at a desk waiting for edits, having already consumed the stories, newsletters, and tweets of the day, why not shoot out a few pitches as well? 

Still, mixed-income workers with precarious work and income streams are no doubt in a less comfortable position to reflect on their economic position. They are also less likely to share personal information about their work life and finances. While their stories aren’t represented here, the data clearly indicates they are the majority, so I encourage you to read the anecdotes below in a comparative light. (You can also email me your takes.)

RESISTING THE MASTER 

With all this in mind, it seems important to acknowledge the power structure at the heart of employment: the employer holds the lion’s share of the responsibility and power, in part because they control how money flows in and out of the company. 

If the workers I spoke with are any indication, the decision to freelance marks an important power grab meant to thwart this dynamic: less dependent on their employers, these mixed-income workers all spoke about using their supplementary work to maximize their autonomy. But even if having a side gig has positive aspects, does it mean we should make it a normal part of media work? If overworking becomes the norm, can media employees and freelancers alike expect compensation that keeps pace with the demands placed on them?

While employees have recourse to work strikes and other bargaining tactics when negotiating for fairer working conditions, freelancers are typically lone proprietors with no legal obligation beyond their contract and standard compliance with government regulation like paying taxes. Platforms like Study Hall exist in part because freelancers have found it particularly difficult to organize without employee status, and if the spats that took place last spring on our forums in response to the introduction of the ProAct are any indication, many would like freelancers and workers to remain divided. (To use a relevant example, IGN is only able to pay contractors $20 per article because those freelancers are not employees.)

In short, freelance media workers have few avenues aside from holding down multiple gigs if they need to increase their income. To accrue savings, reinvest in their own practice, or even squirrel away funds for future trips and leisure activities, they have to take on more work, but more work doesn’t guarantee meaningful gains in income. Mixed-income media workers are caught in a similar form of hell where, in addition to being strapped for cash, they must take on more work to make the work they already have more useful to the larger career and life goals. 

WHAT THE EXPERTS SAY

For the employed worker who also takes on freelance work, the terminology that defines their labor, like the laws meant to protect it, are also lagging behind. “We used to call that moonlighting,” says media lawyer Quinn Heraty, noting the term has fallen out of popular use — probably because application-based sales platforms such as Uber and Taskrabbit have created gig workers, freelance writers chief among them. But Heraty also suggests against using terms like “freelance” to refer to workers. “I helped the Association of Independents in Radio update their ethics guidelines,’ she says. “One of the things I removed was the word ‘freelancer’ and put in ‘independent audio professional.’ Because freelance can mean anything. But it also implies that you are working on someone else’s project or behalf, that you are a freelancer for somebody else. Whereas if you’re an independent audio or media professional, that would imply that you are working on your own projects. It doesn’t imply the existence of someone else. If you’re a professional or running a small business, that identity isn’t contingent on working for someone else.” 

Echoing Heraty, Josh Zimmelman, an accountant based in New York, says that freelancers, also known as independent contractors, “work for themselves and typically do temporary contract jobs or projects for various businesses or employers.” He cites the tests the Internal Revenue Service (IRS) uses when differentiating freelancers from employees. These tests assess the relationship between a person performing services and the person or business paying to receive those services. 

Zimmelman says three factors typically determine whether you are a freelancer or an employee in the eyes of the IRS. But, in essence, the more the worker has control over these factors, the more likely they are to be a freelancer, independent contractor, or small business owner. “The term ‘freelancer’ typically refers to an individual, but both freelance individuals and small business owners are considered to be self-employed according to the IRS,” Zimmelman says. “While employees typically have taxes withheld from their paychecks, independent contractors, sole proprietors, and small businesses do not. They are responsible for paying their taxes at the end of their year when they file their return or paying estimated taxes every quarter. During tax season, employees receive a W-2 and independent contractors receive form 1099-NEC.”

But Zimmelman cautions that the IRS has no formal definition of moonlighting. “Generally, it refers to any time you spend working on the side outside of your normal working hours at your usual job. This could be a second job or just a small side gig and you could be an employee or independent contractor.”  

“Moonlighting itself doesn’t affect how you’re taxed. It’s more about whether you’re classified as an employee or an independent contractor. Employees typically have taxes withheld from their paychecks, but independent contractors, sole proprietors, and small businesses do not and must pay self-employment taxes at the end of the year or quarterly. In the past, moonlighting often meant working a day job and then a second job at night. However, now a lot of people have more than one job at any time of the day, so the term ‘moonlighting’ is used less often. Today you might call it a ‘side gig.’” 

AUTHOR IN CHICAGO

“I didn’t realize I wanted to be a writer until much later in my life,” says author Rae Nudson. She started freelancing to break into writing sometime in 2016, six years after accepting her full-time job, where she edits reports for a financial analysis company. She says her job nets her a yearly $110,000 salary, which she supplements with about $10,000 of freelance income each year.

Already settled in a career path and with more than a decade of experience, she says she now views her job as her anchor client. She spends about 35 to 40 hours of her available working hours on her job and about 10 hours per week completing freelance assignments — except when she was working on her book, which increased the hours she spent working for herself. (She notes she received an $8,000 advance for writing her book and freelanced significantly less during that time.) 

Nudson says at one point she was publishing anywhere between 20 and 30 pieces a year. But after pausing to write a book and have a baby, that number has shrunk to 10 to 20 pieces per year, especially because she is working on larger proposals and projects that take up more time. 

So with a proven track record, why stay at her job? Attractive pay and flexibility with how she spends her time, she says. “My job allows me to only focus on the writing projects that I want to do and build my ideal writing career. I have limited time to write, so I make sure it’s what I want to be doing and aligned with my longer term goals. Essentially, every piece I work on is for the  byline.”

With other paid work taking care of her bills, reinvesting back into herself and her work is chief among her priorities. She keeps her freelancing income and expenses separate from her salary, but using the money from her job, she was able to write a book proposal, pay her freelancing expenses exclusively out of the money she earned from writing, and put away savings.

On the topic of moonlighting, Nudson says she thinks of herself as having two jobs. “My day job knows I write and they are generally supportive. I put more care and effort into freelancing, but I do have to make sure I stay employed for now, so I can’t ignore my day job entirely. I just focus on getting by.” 

Nudson says her ideal scenario is to go part-time at her job and increase her freelance work. “My goal isn’t just to write full-time, it’s to build a writing career where I get to tell the stories I want to tell and hopefully own most of them. I’d like to write another book, but the odds of an advance making up for what I make at my job is slim to none.”

For now, the biggest obstacle to this goal is limited time. “I can’t keep up with news in the same way as a full-time writer could. I’m never going to get the breaking stories. But that isn’t the kind of writing I’m hoping to do anyway, so it works for me.”

In the meantime, she’s quite satisfied with the support employer offers. “My job provides great benefits, including paying for fertility treatments, so I don’t see myself leaving before trying to have another kid and taking advantage of paid maternity leave.”

FREELANCE JOURNALIST AND NONPROFIT WORKER IN CHICAGO

Sam, who provided information about their income and work on the condition of anonymity, says in the four years they have worked as a writer, they have drawn most of their income from employment but also have maintained a steady freelance practice. They currently work full-time at a Chicago journalism nonprofit, where their salary is just above $60,000. Over the last few years, they say they made an additional $8,000 to $12,000 per year freelancing, but they intend to take on fewer assignments. “I often juggle one or two assignments beyond my job at any given time,” they say. “Though the last six months have been quieter for me, by choice.” 

What fuels this choice? “I don’t want to have to struggle that much,” they say. “My job is the priority. I want to continue to live in my own apartment solo. I want to go on international vacations. I want to buy the expensive butter at the grocery store or the jewelry off Instagram without worrying if these indulgences will put me in the red. That’s why I have almost always worked full-time jobs. Even when they’re not personally interesting or prestigious. Freelancing alone is too precarious for me.”

Sam says in the years after college, when they began writing, they worked as a media planner at an ad agency. Later, they took a staff writing position where they wrote service journalism pieces for various personal finance sites, and stayed in that role until 2021. “That job wasn’t challenging or intellectually exciting to me, but I was good at it and it paid the bills,” they say. “It also helped me to learn that I am not interested in writing if the story or project is not exciting or meaningful or important to me.”

While they have become pickier about freelance assignments – in part because they’re only supplemental income, in part because their job takes up a lot of their time — they have also noticed that they feel more empowered to advocate for themselves. “I have walked away from opportunities when they were not serving me or my career. I care less about not burning bridges than I did before my current job. I allow myself more leeway to be opinionated online because I am not as accountable to any particular person or organization in the industry.”

But this freedom also has some disadvantages. “Because I am not attached to a newsroom, many legacy journalists with staff positions don’t see me as legitimate. For example, I have applied for beat reporter positions at a local legacy media outlet multiple times with relevant clips and good cover letters. Yet I have never been given the time of day. I’ve definitely called them out online before. I wouldn’t be surprised if that affected my application.”

Sam says they see themself as a journalist first and a nonprofit worker second, so freelancing is a part of their long-term plan. But they would like to eventually land a full-time reporter role. “In the meantime, I like my job and I could see myself staying there for a while or hopping to a similar organization for more money.”

In the meantime, they worry that their current portfolio might suffer under the pressure. “I don’t have a ton of time or energy to write. I keep myself busy enough that I don’t think anyone notices or cares about lulls in what I publish, but I know that’s difficult for some friends who may go several months or even years between publishing because of their job, life, or family demands. That affects your sense of self and identity as a writer. Like, who am I if I’m not constantly producing work?”

TECH JOURNALIST IN NEW YORK

Jordan (also an alias) is an investigative journalist who holds a full-time job at a consumer technology company, where they write reports about using the internet safely. Jordan says they draw most of their income from employment, making about $120,000 from their job. In 2021, they say they made an additional $32,000 from freelance work. 

Before taking their current job, they had freelanced full-time for more than a decade. Initially starting as a contractor for their current employer, that work was a large portion of their income. “Eventually I had to decide between diversifying my client base as a freelancer or trying to work there full-time,” they say. “Once I started the job, I significantly cut back on my freelancing.” Jordan says they’ve also enjoyed having health insurance and other benefits.

Jordan says their job also has some freelancer-friendly perks. For example, they work 35 hours per week rather than the traditional 40. And, because they spend a lot of time waiting on edits or for copy to be approved, they sometimes can work on freelance projects during the workday. 

“Somedays days at work I run out of things to do because I’m waiting on edits or outlines to be approved, so my freelance work bleeds into my day job, too. But I do work for my day job on weekends sometimes. I don’t respond to emails and edits on weekends, but I do look at them, think of outlines, end up watching videos, reading reports I cite in my work, or stay up at night panicking about an editor-introduced error or some other issue at work. So this definitely all evens out.”   

Jordan says they felt like they hit a ceiling with what they could earn as a freelancer, especially considering how much experience they have. They say they realized most publications could not pay competitive wages for their work. “I actually stopped freelancing full-time and switched to a full-time job because I got tired of chasing pay and dealing with the ghosting and gaslighting of problematic editors. Now, I am dealing with bad editing and delays and gaslighting at a day job, but while getting paid six figures for it.”  

It’s these kinds of net-zero tradeoffs that make journalism feel like journalism is a dying industry, Jordan says. “I would like to switch to a non-editorial department at my job and then work on freelancing and publishing projects on the side. This will also give me a way to transition to another full-time job in the future if I can’t get a media job. In general, I’m happy having one or maybe two freelance projects simmering each month. I also have a published manual that I update every year and I get royalties for that.”

Ultimately, Jordan feels like their supplementary freelancing will help them land a better job in the future and allow them to work on things their current employer might not allow or deem necessary. “Freelancing gives me money I can use for professional development,” she says. “And it’s building great connections I can use if I ever lose my job, whether in a freelancing capacity or as an employee.”

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