New data from Hnry – Australasia’s digital accounting service for the self-employed – reveals freelance creatives are doing it particularly tough, citing poor financial performance and security, as inflation and cost of living concerns continue to prevail.
Freelance creatives, a cohort that includes writers, designers, photographers and marketing consultants, are anxious, despite the Government’s multimillion-dollar investment into the creative sector last year, as many businesses continue to economise and prioritise creative work in-house.
The latest Hnry Sole Trader Pulse – a nationwide survey of self-employed people in Australia – shows:
- 42% of self-employed creatives have seen revenue fall in Q1, compared to an average of 38%
- less than half (46%) feel positive about their financial security, and
- only 27% feel good about the health of the economy.
Despite such discouraging statistics, the accounting service has seen an increase in sign-ups by Gen Z creative sole traders (aged 26 and under), with the intake skyrocketing by 133% over the last 12 months.
Still, some optimism!
Despite economic pressures, Australian creatives are still feeling resilient:
- many freelance creatives are happy with their job security – with 57% feeling good about this, mirroring the average across all sole traders, which is 56%
- optimism for the future, while not overwhelming, shows promise – with 56% of freelance creatives saying their business will perform well financially in the next quarter, and
- 63% of freelance creatives have a good work-life balance, while 56% feel positive about their current wellbeing.
Case study
ArtsHub reached out to Nicholas Battushig, a videographer and photographer from Sydney, to share his experience of the current climate. ‘Overall, work has been relatively consistent, thankfully. It was quiet from December to March, as companies and individuals looked to save on spending after the Christmas splurge, but things are starting to pick up again,’ he says.
‘As a photographer and videographer, incoming B2C [business to consumer] work has seen a reduction, but B2B [business to business] is on an upward trajectory again, which is great after a slower first quarter. I tend to work on a lot of music videos and, given the uptick in government grants in this space, music producers and artists (such as Jet City Sports Club and Trophy Eyes) have been more active in seeking out my services, which has been positive for my bottom line.’
Battushig agrees that, in the present economic environment, business budgets are getting tighter and, for him in particular, the number of commercial jobs coming through agencies have slowed down. ‘There was more consumer knowledge-focused marketing happening, as opposed to ads being created – similar to how it was during COVID times, but definitely not as slow as it was then. I’m signed to two agencies and commercial work has been picking up, so I’m feeling pretty positive about the outlook ahead.’
Being flexible and scoping other opportunities is how Battushig is trying to cope with income uncertainty. ‘I signed to a second agency to cover my bases, but I’ve also been working with a photographer friend of mine, creating a condensed, cost-effective, production base for clients to make the most of our collective services – for things like modelling portfolio shoots, product imagery shoots and business headshots,’ he tells ArtsHub.
‘Recently, we’ve started hiring out studios for a full day at a time, having clients book time slots to come in for us to work on their different projects and jobs, as opposed to us booking studios for sessions sporadically for each individual client. Typically, a 45-minute session with a photographer and a videographer can cost a client upwards of $500 to accommodate the rate the studios charge for the session. By booking a studio for an entire day and having clients fit into this schedule, we can provide our services to them for reduced prices, around $200 a session. It saves our clients money and gives us more time to take/work on other projects.’
Any advice for sole creatives doing it tough at the moment?
‘Being a creative, you still have to operate and think as a business and consider ways you can be more efficient or save time. For example, I use accounting software to take over all my financial and tax admin – so that I’m not distracted by this and completely focused on my business,’ says Battushig.
‘Another way is to pivot and diversify your offering. Some local pubs in my area are lacking event photographers at the moment…
‘I also recommend reaching out to your peers – even though we’re sole traders, we’re all in this together and having support from those who understand is great for productivity and morale. Plus, they may need a hand with a big project and could use your expertise and skills.’
Source: Freelance creatives struggling in cost of living crisis
