UPDATE: Independent Contractors for Media

I’ve been writing about the inevitability of media companies moving to independent contractors for over a decade, and the signs continue to point in that direction. As revenues slow, cost‐cutting becomes the only way to maintain margins, and the one‐to‐many need to wrap employees into one super brand will become less important in the profit‐driven minds of managers. Besides, the Net — which is where everything’s going — is more receptive to personal brands than those of industry. So‐called “social” media is where you’ll find the people formerly known as the audience, and big brands don’t belong there.

INSEAD’s Knowledge blog uses the Dutch model to make the statement: The Future for Labour Is Self‐Employment, validating the ideas expressed in an essay that I published five years ago.

nonemployerIn 2005, we crossed a milestone in this country when the number of people self‐employed went over 20 million. Data from the Small Business Administration put that figure over 21 million in the latest year for which the information was reported, 2008. By now, we expect that number is approaching 23 million, as more and more people — especially older people — set up eBay stores or find other ways to support themselves and their families online. These people are well‐educated in the ways of the Web and don’t spend their marketing money in traditional ways. This figure bears watching, for while they live and work in our communities and neighborhoods, the money they earn comes from everywhere. They are a part of a new subset of our economy, and…it’s actually growing.

The economy is better than it was in 2008, and much of that has been due to the continued rise of self‐employment. A Business Week article in 2011 put the number at 40 million and offered the advice that “To boost the economy, help the self‐employed.” As an optimist, I believe this is an issue that Congress will have to address sooner than later. The article notes “By 2019, the self‐employed will account for 40 percent of all American workers, according to the U.S. Bureau of Labor Statistics.” How can such a staggering number not include reporters, photographers and other practitioners of “the news” downstream?

Another Bureau of Labor Statistics article  published last year offers the below graph. Note that writers and photographers are already two careers with high self‐employment rates.

Screen Shot 2015-04-11 at 10.18.49 AM

Comments

  1. http://DKnight says

    Terry, once again you are right on the money. Great post. http://www.knowdigitalnow.com

  2. http://Terry%20Heaton says

    Thank you, David. This is high praise, coming from you.

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