Writing as business


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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An assault in Congress on freelance writers

Previously I’d written about California’s AB-5, which put heavy restrictions on the number of articles freelance writers could sell. That was ultimately amended, after some major companies stopped using freelancers.

A bill now in Congress is raising similar concerns. It’s different from AB-5 in important respects but is still disturbing. The “PRO Act” has passed the House of Representatives and gone to the Senate. It would require clients to treat freelance writers as employees, but only in certain respects. To be exempt, writers would have to pass all three requirements of the “ABC test”:
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Alert to writers who use Audible

An article on File 770 reports that Audible has been encouraging readers to return audiobooks for refunds. They can return them as much as a year later, after reading the entire book. Surely it should take less time and reading than that to decided that you hate a book and wish you hadn’t spent the money on it.

The return counts as a revoked sale. The author gets no royalties, even though the reader got a year’s worth of use out of the book.
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California governor signs bill exempting freelance writers from AB-5

Governor Gavin Newsom of California has signed a bill exempting freelance writers and some other businesses from the draconian restrictions which state bill AB-5 had placed on contract work. Previously, AB-5 had limited writers to 35 articles a year to the same customer. That made it impossible, for instance, to contract for a weekly column.

California may be an insane place, but sanity prevails now and then.


Is Constant Content stiffing its foreign writers?

The news for Constant Content’s foreign writers doesn’t look good. This Reddit discussion, as of the time I’m writing this post, suggests that no one is getting paid. (The company is based in Canada, but it doesn’t treat US writers as foreign, and at least some of them are getting paid.)

Constant Content is months behind in paying these writers. Its website still doesn’t acknowledge the existence of a payment problem. Its FAQ contains blatantly false information, still claiming “Payments are made through Paypal.” It’s hard to escape the conclusion that the company’s only guiding principle is what it can get away with.


Update #2 on Constant Content

The situation with Constant Content remains the same. Payments to writers are long past due, and I’ve seen no indication anyone has been paid recently. Some people have received an email instructing them to set up payments through Stripe. Others say they haven’t received it. They can’t find this information on the website. I used my old account to log in and couldn’t find any information indicating a change of ownership or payment method.

The writers’ FAQ says, “Payment is made the first week of the beginning of each month.” It doesn’t say the first full week, so I take that to mean writers should have been paid last week. Comments on Reddit and elsewhere indicate that’s been their past practice. I let the following Monday go by to be generous, but I’m still seeing no reports of people getting paid.
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Update on Constant Content

There’s a tiny but important change to constant-content.com: The page footer now says it’s “A Division of Moresby Media Inc.” As I mentioned in my earlier post, the footer previously identified RevenueWire as the parent company. The FTC fined RevenueWire for helping shady “tech support” companies to scam people.

Writers are saying that Constant Content has sent out an email telling them they will soon be getting payment through Stripe. Others say they didn’t get the email. It’s plausible that the mail had trouble with spam filters; bulk email promising payment tends to be viewed as spam. Alternatively, CC may be sending the mail out in batches.

Setting up to receive payments by Stripe is straightforward; payments can go to a bank account or a debit card. However, it’s not available in all countries, and that could be an issue for some writers.
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Is Constant Content imploding?

A content mill that writers have never thought much of may be imploding. In May, the FTC fined Constant Content’s parent company, RevenueWire, for participation in scams. Writers for Constant Content are now reporting that they aren’t getting paid.

A Reddit post dated July 8 says:

I joined Constant Content this year and sold my first 2 articles in April. I didn’t get payment on the 1 May for the articles and contacted support on 16 May to query this. I received a response a few days later and was asked to verify my PayPal address. I did this on the same day but didn’t receive any response or payment.

I sold another article in May and still didn’t receive any payment by 1st June. I sent emails on 6th June and 1st July with no response to date.

The user is brand-new on Reddit and has no track record, so take it for what it’s worth, but a reply from a very experienced user says:

Yep, they’ve missed the last two payouts apparently for losing their payment processor. I’ve been there since 2009 and this is the first time it’s happened. It’s disappointing. I stopped uploading to them until they fix it but someone dug up that they got fined by the FTC for allowing their payment processor to be used by Indian call center scammers so idk what’s going to happen.

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Constitutional challenge filed against California AB-5

The ride-sharing service Uber and the courier services company Postmates have filed a lawsuit to keep California’s AB-5 from going into effect. The complaint says that the legislation is “irrational and unconstitutional statute designed to target and stifle workers and companies in the on-demand economy.” The impact on contractors “irreparably harms network companies and app-based independent service providers by denying their constitutional rights to be treated the same as others to whom they are similarly situated.”

As I noted last week, this legislation is very bad news for freelance writers in California. Hopefully the courts will strike it down.