Orrrr you’re in the same industry as I am and need some pointers. It doesn’t matter what side you are on, I have some tips to share with you.
First, let’s clear up a few things when it comes to outsourcing and what my fellow 1099 Contractors need to remember.
If you’re a Virtual Assistant, Social Media Manager, Website Designer, etc, we are considered 1099 contractors. What does this mean? We are entrepreneurs and/or business owners that work WITH other entrepreneurs and/or business owners.
I emphasized the “with” because people tend to get this part confused. 1099 contractors are not employees. I’m going to say this again. 1099 Contractors are NOT EMPLOYEES.
Also, there is no such thing as a 1099 Employee. You will see this from time to time. While some don’t mean harm when saying this, others tend to take advantage.
When I hear 1099 Employee, I hear that they want an employee, but they want to work around the employee benefits and rights. This is very illegal and people can get into a lot of trouble when caught.
As a 1099 Contractor, you are in control. You are the business owner. While you can agree to certain conditions, just remember you have the right to decline projects and negotiate pay. Unless you are working through a third party website like Fiverr, then you have a say so. Please remember to have a contract in place. If you need help with places to look, visit my other post on contracts.
The Process of Outsourcing
Now that we all have a better understanding of a 1099 Contractor, there are some other things that need to be set in place.
Figure out what you want to outsource and your budget
You could outsource a small one-time project, or you could be looking for continuous work. Whatever the reason, figure out how much you are wanting to spend and write the exact need out. This will save time on both ends. I find it helpful to do a bit of market research to see the average people charge for the services you seek.
When you’re ready, I have a checklist for guidance on writing out your outsourcing plan. You can grab it here.
Once you found a contractor, this is the portion where you both sign off on contracts. Normally, the Contractor has one where you sign off on. While a good contract normally has an NDA disclosure, if you want to supply one yourself, please do! This is the start of a business relationship.
If one party doesn’t want to sign a contract and/or NDA, then I suggest going elsewhere. These are in place to protect both parties.They should outline the scope of the project, length, pay, and more. You have the choice of working with someone without any form of written agreement, but it’s strongly advised you do not.
Once contracts have been signed and invoices have been paid, there may be other forms to fill out. These are project dependent and are there to help the contractor get a better understanding of how you want your project.
For my 1099 Contractors, please make sure to give the business owner a W-9 form. This is helpful for when the business owner fills out the 1099 form during tax season. You can find and download the W-9 here.
Let the Games Begin!
Once everything is signed, filled, and paid, it’s time to begin your new business relationship! I wish you the best!