If you work as a freelancer or other type of solopreneur where you market your products and services based on your name (rather than a company name), your name is your brand. What people think when they see or hear your name will influence whether or not they do business with you. That’s why independent professionals need to be aware of brand marketing as it applies not just to products or corporate images, but as it applies to them. We call it “personal branding.”

Why is Personal Branding Important?

Personal branding is especially important for the solopreneurs of the world because their name conjures up a certain image with customers or prospective customers. That means every time you post to a blog, interact with others on a social network, contribute to a forum, or even send an email, people are going to form an opinion about you and associate your name with that image. If you fall into that group, you want your name to convey a positive image — to generate immediate trust. Does yours? Let’s look at an example.

Let’s say you’re a writer and you specialize in writing online sales letters. How you choose to promote your brand (your name) can have serious implications for your career. For example, you might decide to charge $50 per sales letter (knowing that good sales letter writers usually charge several hundred to several thousand). You’ve basically chosen to market your services primarily on price (never a good idea for service marketing, but that’s another topic for another time).

By promoting your services in that way, your personal brand becomes one of “the cheap guy.” That’s not a great image to build in any kind of business writing. “Cheap” in that market comes with a built in lack of trust (not to mention that it hinders your ability to earn anywhere near an industry standard income).

Becoming “the cheap guy” could lead to worse branding issues down the road. People who undercharge for services generally take on a lot of projects. They have to if they want to earn enough to get by comfortably. That, in turn, often leads to burnout. The person (in this case a writer) has to overload their schedule. If that’s done consistently for a while, they’ll start to miss all of their deadlines, forget about projects altogether, or run into other problems. That “cheap guy” brand image might just become “the unreliable guy.” Remember, word spreads.

On the other hand, you could build an image for yourself (and your name) as a responsible and respectable professional who commands higher rates. Ask yourself “if I could afford to hire any copywriter to write my sales letter, who would it be?” The name you answered (assuming you’ve heard of any sales copywriters) has a strong personal brand. How did they build it?

Brand Marketing Tips for Building a Strong Personal Brand

That writer you thought of is probably pretty successful. Most of the top sales letter writers probably don’t even have an opening to take on new work right away because the demand is so great. Wouldn’t you love to be in their shoes, able to pick and choose your projects, have waiting lists, be able to turn down work regularly, etc.? It’s a nice feeling. But how do you get there?

You build your personal brand, and you become a trusted name in your industry!

In this example, the writer may have done any number of things. Chances are good that they have their own website (after all, if they can’t sell themselves online, why would anyone hire them to sell their products and services for them?). Maybe they have a blog where they position themselves as a thought leader in the copywriting field. It’s also likely that they’ve published at least one book. They probably have one or more mailing lists and newsletters. They might even have a subscription site, speak at seminars, or offer online courses.

They go beyond practicing their craft — they also teach it. They become authorities in the field.

Education as a Personal Brand Builder

People love it when you share your knowledge and teach them more about what you do. It shows them that you know what you’re talking about. It gives them a better feel for your style. It also makes them respect your work a little more. Let me explain.

I used to be a PR consultant before becoming a full-time writer. I specialized in online PR. A service with a quickly growing demand at the time was press release writing for online syndication (combining good old PR with SEO benefits). While demand was growing, I found that a lot of online business owners really didn’t understand news releases and how to use them. So I taught them. When they had questions, I answered them. I blogged about them. I wrote and sold an e-book teaching them how to write their own.

Over time I released another version of that e-book — this time for free. It included a marketing message (similar to marketing white papers) promoting my services. Essentially, I was teaching my prospective clients the basics of doing what I do for them. People downloaded it, and better yet they put it to use.

“Why is that good?” you might be wondering. “Didn’t you lose money?” Actually I made more money! Here’s why:

Credit: BigStockPhoto.com

The people who downloaded my e-book broke into three primary categories: those who wrote their own press releases and were satisfied, those who wrote their own press releases but weren’t satisfied, and those who either tried or just read about writing their own press releases but decided there was more to it than they originally thought.

Members of group one may not have ultimately hired me to write their press releases. But they did remember me when they needed other PR consulting or writing work done. They also passed my name along to others who did hire me (referrals are the lifeblood of many successful solopreneurs).

Several people in group two decided that since they weren’t happy with the results from their own press release, they’d hire a pro next time (me in this case) and compare the results. Several of them have turned into long-term clients.

Those in group three should be your favorite. They’re the ones who originally might have thought your work was easy. After they learn more about it, they have a new appreciation for what you do, and that’s a great start to any business relationship. They’ll be the most likely group to hire you. Basically, your free information reminds them that time is money and that their time is better spent on something other than trying to master your job.

Giving away knowledge doesn’t make you less marketable. If anything, the opposite is true. And it works for any type of independent professional! Give it a try. Share your knowledge openly in online communities or in consultations. Release informational products in your niche or industry (free or paid). Show people that they can trust you, that you’re worth hiring, and that you can get the job done!  Those are the things you want associated with your personal brand as a solopreneur. If you need help coming up with specific ideas for how you can showcase your industry knowledge when marketing your personal brand, check out our article on how business freebies can help you land more sales for more examples of information-sharing tactics.

Beyond the Basics of Personal Branding

Personal branding goes far beyond your selling points. It’s not just about putting information out there that you want to be associated with your professional brand. It’s also about keeping other, less appropriate, information at bay. Remember that your name is probably associated with more than just your business on the Web.

If you have personal social networking accounts, you might want to consider keeping that information private if the personal information you talk about could tarnish your personal brand (for instance, if you like to brag about your drunken flings on Facebook, you probably don’t want your potential clients seeing that).

Think about personal branding this way: When someone searches for you online, what will they find? What does it say about you? By all means, be authentic. It’s a part of building trust with your target market. But there’s a difference between being authentic and leaving yourself completely exposed. Know your limits. Know your comfort level. And most importantly, know what is and isn’t “TMI” for your own target market.

Now get out there and start building your personal brand!

If someone is self employed in the United States, they’re subject to a tax called the US Self Employment Tax. Here are some details about what the self employment tax is, why it exists, and how it is paid:

Why Does the US Self Employment Tax Exist?

The Self Employment Tax is a social security and Medicare tax on the net earnings of self employed individuals in the United States. Wage earners (people who work for someone else and have taxes automatically withheld from their paychecks) also pay social security and Medicate taxes. However, those taxes are generally paid in part by the wage earner and in part by their employer. The self employed are responsible for paying the entire tax, as they essentially serve as both employer and employee.

What is the Self Employment Tax Rate?

As of 2007, the US Self Employment Tax rate is 15.3% of net self employment earnings, with 12.4% allocated to social security taxes and 2.9% towards Medicare taxes. The social security tax portion is only applied to the first $94,200 in net earnings.

How is the Self Employment Tax paid?

The self employed don’t pay their self employment taxes when they file their yearly tax return. Instead, they file what are called “estimated tax payments” every quarter. Essentially, past income is used to estimate what the total yearly tax will be, and payments are broken down as a substitute for the automatic withholding that wage earners are subjected to. As with wage earners, taxes can be over or underpaid, meaning a refund or tax due could result at the end of the year.

Who Pays the Self Employment Tax?

The IRS has simple guidelines for who is required to pay the US Self Employment Tax. That includes non-church employees who earned $400 or more from self employment activities, and church employees earning at least $108.28.

The Self Employment Tax and Income Taxes

The Self Employment Tax is not a substitute for income taxes, and entrepreneurs and freelancers are subjected to the same income taxes as wage earners, in addition to the Self Employment Tax. However, the self employed have a benefit of being able to take half of their Self Employment Tax payment as a deduction for income tax purposes.

In its most basic sense, self employment simply means that someone works for themselves. People often refer to the self employed as either entrepreneurs or business owners. However, there are several types of self employment that can be pursued by anyone wanting to work for themselves. Here are some of the various types of self employment opportunities available:

Entrepreneurs / Small Business Owners – Generally the term “entrepreneur” is used when talking about small business owners of traditional businesses, although the term does have broader connotations, and is used to describe other types of self employed individuals more now than in the past.

Online Business Owners – Also known sometimes as Webpreneurs, these online entrepreneurs work for themselves earning all of their income online, through online advertising, online retailing, online services, or in other ways.

Home Business Owners – Home business owners are another niche of entrepreneurs. In this case, they officially run a legal business, but their business location is within their home.

Freelancers – Freelancers don’t officially or legally run a business entity, but they’re still self employed. Freelancers generally work under contracts with clients to provide various services, sometimes working at home, and sometimes working on a temporary basis from the client’s business location.

Independent Consultants – Independent consultants usually work as independent contractors on a per-project basis consulting clients on various business matters. While essentially freelancers, independent consultants often manage their freelance efforts in a manner more similar to running an official business (and some independent consultants can be sole proprietors, partners, or other types of business owners as opposed to freelancing at all).

Investors – Some individuals enjoy a self employed life by earning their incomes strictly through investing in other businesses, projects, or stock markets.

Partnerships – It’s not necessary for a business owner to actually own a business exclusively to be considered self employed. May self employed people own a business with one or more partners.

Owner / President / CEO / Stockholders – This group is a sort of combination of several of the other types of self employment, only targeting larger corporations or organizations. There may be one owner in a large private company, several owners at various executive levels, or simply a group of stockholders owning the company (some of whom may be earning their entire income based on the success of their investment in that company).

Many people dream of eventually becoming self employed, whether their dreams revolve around starting their own business or launching a freelance career. Some people have what it takes to be self employed, and other simply don’t. But when deciding if entrepreneurship is the right option, it’s a good idea to turn to some of the most common qualities of successful entrepreneurs to see if the odds are in your favor. Here are several common qualities of the successfully self employed:

Hard-working – Entrepreneurs can’t afford to be lazy. They need to be go-getters, and willing to put in more hours, not less, than they would if they were working for someone else.

Confident – The chances of entrepreneurial success are slim if the business owner or freelancer constantly doubts their ability to succeed or lacks confidence.

Creative – A huge part of being an entrepreneur is to keep a constant flow of ideas coming in, but more importantly there needs to be some creativity to help set one entrepreneur’s business, products, or services apart from their competition. The entrepreneurs breaking new ground with creativity tend to be the most successful in the end.

Independent – If someone constantly needs someone else to tell them what to do before they can act, they won’t likely succeed as an entrepreneur. Entrepreneurs are independent thinkers who come up with their own ideas and plans, and act on them.

Leadership Ability / Delegation – Many businesses can’t be run by just one person, at least if they’re going to demonstrate strong growth potential. A key to growing a business is knowing how to lead others, and knowing how to delegate responsibilities rather than taking on every menial task alone. This doesn’t have to mean hiring employees, but can involve working with independent contractors when the workload is heavy.

Risk-Takers – To be a successful entrepreneur, someone has to be willing to take enough of a risk to leave the comfort of a traditional nine-to-five job in favor of a less certain income source. However, being a risk-taker doesn’t mean successful entrepreneurs are willing to gamble with their success. Instead, their risks are carefully calculated and planned.

Despite the many benefits of working for one’s self, self employment isn’t all fun and games. Just like working for someone else, there are downsides or drawbacks of self employment or entrepreneurship. Here are some problems or stress factors faced by the self employed, and sometimes overlooked when deciding whether or not to jump into entrepreneurship or freelancing:

1. Being self employed often involves a heavy workload, and it can be time consuming. Many entrepreneurs find themselves working more hours when self employed, than they were working under a full-time employer.

2. Entrepreneurship and freelance careers put a lot of responsibility and general stress on someone who’s self employed, so they have to have the ability to prioritize, delegate, and cope.

3. If an entrepreneur runs a service-oriented business where they deal with clients on a regular basis, and it’s a one-person business, taking vacation time can be very difficult, especially without a great deal of advanced planning.

4. Clients and customers almost take over the role of employer. There’s always someone else to answer to, even when the entrepreneur is running the show. If customers and clients aren’t kept happy, the business can easily fail.

5. The self employed rarely have the benefit of a steady stream of income. There are no regular paychecks for a lot of entrepreneurs, and there can be times when business is booming, and times where business is incredibly slow. Entrepreneurs and freelancers have to recognize those fluctuations and handle their financial planning accordingly.

6. The more relaxed work environment often accompanying self employment can lend itself to a great deal of distractions, especially because there isn’t a supervisor making sure they’re staying on track.

7. Entrepreneurs sometimes fall into a trap of neglecting their home life, from family and friends to home projects and basic errands, because they can simply be too busy with work on a regular basis.

Before deciding if self employment is a good option in any specific case, it’s important to not only look at the benefits of self employment, but to also understand these, and other, downsides to make the best decisions.

People dream of working for themselves for good reason. There are a lot of perks associated with being self employed, whether it’s through a freelance career or starting a business. Here are some of the benefits of self employment:

1. To at least some degree, the self employed can set their own hours.

2. There’s often more freedom in taking vacation time or sick time, as long as arrangements are made (depending on the type of business and client needs).

3. The self employed can often avoid getting stuck in rush hour traffic, by either working at home, or adapting their commute time to a different schedule.

4. Entrepreneurs don’t have to directly answer to a boss or supervisor.

5. Business owners and freelancers have a direct impact on the success or failure of the business, and how much income they make.

6. Entrepreneurs get to make the rules, rather than following someone else’s.

7. The self employed essentially have an unlimited earning potential rather than a set salary, all dependent on the work they put in.

8. Entrepreneurs have the opportunity to be trailblazers in their industry.

9. The self-employed (other than freelancers or service providers looking for clients) don’t have to worry about actually searching for a job.

10. Entrepreneurs can decide on their own benefits, depending on what they’re willing to pay.

11. Business owners and freelancers get to create their own work environment that’s as comfortable for them as possible.

12. Entrepreneurs sometimes have an easier time building their own reputation and name recognition.

13. If a business owner or freelancer doesn’t choose to set up a formal office to regularly interact with clients or customers face to face, they can often be more casual in their dress, from business casual clothes to working in their pajamas.

14. Entrepreneurs have the ability to directly determine the value of their work or products, by setting their own fees, rates, and prices.

15. The self employed can generally choose what types of projects they want to work on, as opposed to having to complete any project dictated by a superior, which can lead to better job satisfaction.