business


“Writer Beware” blog

This is still, at least officially, a blog by a writer for writers. This week I came across a blog that will interest anyone who writes for money: Writer Beware. It presents worthwhile information on scams that writers may encounter, as well as advice on dealing with publishers, agents, and so on.

I encourage people to use RSS feeds rather than social media sites when possible to follow blogs and news sites, so here’s the RSS link, which should work with any RSS reader (I’ve subscribed to it with Leaf).


Is PayPal a danger to writers?

A change in PayPal’s policies has blown up in its face. PayPal claimed the right to debit accounts $2,500 for “misinformation.” It would be the sole judge of what constitutes misinformation. In the face of widespread user fury, PayPal backed down, claiming “the language was never intended to be inserted into our policy.” Even with the removal of that language, it still has language financially penalizing some forms of expression.

People often disagree on facts. Some people make claims which others say are false. Non-fiction writers are in the business of asserting facts, and sometimes they claim that what’s “common knowledge” is wrong. Many writers get paid through PayPal, and sometimes it’s the only option the customer offers. If PayPal decides your article is wrong, it could take away a large fraction of a month’s income.
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Can freelance writers work in Lakeway, TX?

The Institute for Justice has launched a lawsuit against the city of Lakeway, Texas, over its heavy restrictions on home-based businesses. The business at the center of the controversy is a daycare center, but it got me wondering how freelance writers are affected. The city had nineteen criteria to be met, recently reduced to ten. I can’t find a full list, but the hints I’ve seen suggest that writers are OK in principle. Freelance writers don’t normally have customers come to their homes, make lots of noise, or emit clouds of toxic fumes.
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The state of business licensing for writers

Most writers are freelancers. In many places in the United States, you need the government’s permission, in the form of a business license, to be a freelance writer. Convincing the government to let you earn money writing generally requires paying money. This is a direct violation of the First Amendment’s guarantee of freedom of the press. You aren’t free if you need to pay for permission to earn a living. Don’t count on the courts to agree with you, though.

If you choose to incorporate, that’s a separate issue; this article applies only to sole proprietorships. By definition, incorporation involves registration with a government office.

Zoning can be another concern. In some places, people aren’t allowed to operate a business from their home, even if it has no impact on anything beyond its walls. You can try to stay under the radar, but a neighbor could snitch on you. I don’t cover zoning issues here.

Some states require a license to operate any kind of business, but freelance writing may or may not be considered a “business” for that purpose. To a large extent, governments realize it would be bad publicity to ban people from writing or fine them for lack of permission, but it can happen. I’ve seen people say on freelancer boards that their state required them to get a license.

Corrections and additional information in the comments are welcome.
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Sunk costs and opportunity costs for writers

Economics is more personal than most people realize. Every choice about how to allocate your resources is an economic decision, and time is your most basic resource as a writer. You expend time on your work in order to get income. Sometimes you know exactly what you’re going to do today and what you’ll get in return. A lot of the time you face choices. Which of your customers should get your attention first? Should you put them aside for a while and look for new income opportunities? Should you keep working on a time-consuming project or give it up as a lost cause?

Two economic concepts are useful in making these decisions: sunk cost and opportunity cost.
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