Tomorrow is the first clamorate! webinar. Ah yeah! We’re jumping right into the deep-end with a topic that’s a hot one: Getting Paid.

On Tuesday (June 28, 2011) from 10:00am – 10:45am (PST) Corwin Hiebert will present insights and action-steps specific to freelancers and sole proprietors. Being creative is one thing, getting paid is another. Starting a creative small business is tough and the hardest part for most entrepreneurs is generating a cash flow. We’ll discuss the challenges and solutions to getting paid. Living the dream does not have to mean life as a starving artist or scrambling from project to project.

Webinars on clamorate! are live Web-meetings and communication is a two-way street through the cunning use of text-chat, VoIP, and screen sharing – so you can have your specific questions answered.

This web event is exclusive to members and space is available on a first-come, first-served basis. Learn more on the webinar page. Get the scoop on becoming a clamorate! member on the Join Us page.

Starting a small business is tough and the hardest part for most entrepreneurs is managing their cash flow. One thing I’ve learned in starting my own event management company is that when it comes to cash flow you need cash, without it there’s no flow. I’m hilarious – almost as funny as showing a random picture of the Las Vegas strip.

The trick is getting paid! If you’re not a small business owner you might not find that statement all that profound but for those of us who “live the dream” and are making a living one contract at a time it’s epic.

Here’s some advice with respect to getting paid:

Don’t work for free. Don’t do it. Ever. FREE is a four letter word that should be removed from your vocabulary. What you do is valuable. I’m convinced that the most offensive word in small business is “FREE”, especially to those in the creative sector. Unless you’re new to capitalism, I think you’d agree that the word “free,” more often than not, communicates a lack of value. Whether or not you can manage with a non-billable project is beside the point. When no monetary value is associated with work effort it creates an unstable environment for the sole proprietor, and client alike. Money is the single most commonly used method of assigning commitment and when it’s relinquished it makes for a strained relationship because it lowers everyone’s expectations. If you’re trying to grow your business then charge something, something is better than nothing. The growth potential of your career will depend on your reputation and if your reputation is that you work for free then you’re not building on a very good foundation.

I realize why sole proprietors work for free, they do it for practice, to build their resumes, and they believe it helps them get their foot in the door. The first two reasons make sense but I think that honing your skills and developing report is better served by doing personal or independent projects. However, in the attempt to score a new client you offer your services for free then their first impression of working with you is that you’re free: Client “1”, small business owner “0”. If you’re working for someone else then they’re a client and they should ante up, period. The exchange of money helps communicate a professional level of commitment and you need that.

When it comes to budget constraints, if a potential client says they have no budget know this: They’re wrong. Everyone has some budget. It may be only a few dollars but it’s something. If you’re in the creative industries, your creative and technical contribution should always be associated with monetary value. At minimum make sure that if you’re working for free that it’s truly just your time that is free and that you have zero expenses (gas, parking, meals, rentals, phone calls, whatever).

Don’t be so quick to discount. Discounts are dangerous business. I understand that fear, that some money is better than no money and in order secure a gig you feel you have to provide a discount on your services. Well, first of all, I’m assuming that you’ve appropriate priced your services – discounts on over inflated rates will only work for so long, eventually the bubble will burst. Secondly, if a discount is the only way you’ll be able to land a shoot then try this, request non-financial benefits. If it’s for a charity, request sponsor recognition. If it’s for a business, ask to receive a gift card towards their products. If it’s a service company ask to be added to their marketing material as a preferred supplier.

If you’re looking for some inspiration as to how to set your prices and understand your value I’d recommend Alan Weiss’s Value-Based Fees: How to Charge and Get What You’re Worth. It’s an intense book and I guarantee it will push your paradigm with respect to earning money but sometimes it takes an extreme perspective to get things on the right track.

Bill on time. This is the important business building strategy: bill on time. First of all I have to say that too many small business owners don’t send bills, I don’t get that. I’m a huge fan of sending bills. When you send bills you get paid. If you’ve already received your payment then sending a bill after the fact shows your professionalism. Always send a bill, even if it’s for $1. And send it before you do the work, or as early as possible in the project. It’s a great way to make sure they take you seriously and the quicker you invoice the quicker you get paid.

Use an online invoicing system – l prefer Freshbooks.com. Why you ask? Because its users get paid on average 14 days faster; my business is living proof of that fact. It’s a secure, online service that is free to use if you have three clients or less (if you have more clients there’s a nominal monthly fee). It does more than just make you look organized, you ARE organized. Invoices can be sent by email (links to a PDF, or you can have FreshBooks send them via regular mail). At your discretion your clients can have online access to their invoices and account history – very cool. You can generate invoices based on time, expenses, and fixed cost services/items or any combination thereof. And, they’ve got a great desktop widget and iPhone app.

Post also found on CorwinHiebert.com.

Corwin Hiebert is a management and marketing consultant to creative entrepreneurs (like world-renowned photographer and author David duChemin). He’s the co-publisher of Clamorate, and is the co-producer of CREATIVEMIX (Vancouver’s Ideation Conference). As an educator, speaker, and author, Corwin is an avid supporter of creative risk-takers. Corwin is passionate about helping creative people take action towards their goals and their dreams. You can learn more about working with Corwin on his blog or you can follow him on Twitter. He lives in Vancouver, Canada and drinks very unhealthy amounts of expensive coffee.