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I’ve worked reasonably paid (by Western standards) for 15 years.
I'm wondering whether there is any point me trying to crack the online freelance market.
I compete against thousands of people with a markedly lower sense of "reasonable pay".
I have no publicly available work to show. Why would anyone give me my first contract?
It seems like a lot of hard work. Is it worth it, and how should I go about it?
I believe that being a 'Westerner' definitely works to your advantage for many reasons. Let me share part of my experience on the subject, as a freelance developer who started in London, then moved on to other 'western' countries. I had no portfolio, having done only bar work since I left Uni, but I was really motivated.
First, as you said, the market is flooded by low-rates developers, asking as little as $3/hour. But the quality of the work they provide, and the heart they put in it reflects the rate they offer. Think about it, if they were skilled enough to ask 10 times the rate they offer, they probably would.
Most of the time, when you put an ad on Elance (now known as Upwork), you receive instantly a dozen of generic replies, often in broken English, and obviously copypasted from a defined set, maybe triggered by a keyword like 'WordPress' or similar. Here's how to take advantage of that:
1. Choose the proposals carefully, and personalize your reply.
Take some time to read the proposal, and start thinking about how you'll solve the client's problem, instead of copypasting a list of your 'skills' that he/she doesn't know anything about. Find something you're interested in doing, and be enthusiastic in your reply. At the beginning, I used to choose only challenging proposals, that I knew I could fix, but didn't know exactly how. I was doing a bit of research on Google, then explained my 'plan' to the client. Often, the actual solution I ended up using was different than the original plan, but it didn't matter, I had made a difference by showing some 'care' in my answer.
2. Emphasize the fact that you do speak English perfectly.
This is a bit controversial, but once the client will have struggled his way through 10 replies full of spelling/grammar mistakes, your proposal will be a breeze of fresh air to him. Remind them of that discreetly in your answer. I usually use almost informal language, to further distance myself from the 'Dear Sir, ...' answers, and I always mention the fact that I do speak good English.
TL;DR: Make your answer pleasant to read, and you'll score more points.
3. Your rate shows your worth, so don't undervalue yourself.
Once again, you want to set yourself aside from the pack. There always will be clients who will choose Price over Quality, but my advice is that you should avoid them, or your hours and stress levels are going to skyrocket, and you'll be back behind your office in no time. If I'm unsure what the client is looking for, I don't give a rate right away, and ask him to clearly to pick 2 out of these 3 things: speed, quality or price (Project Management Triangle). Be daring, and it will pay off, you'll make strong relationships with good people, who will reward you fairly and value your work. That's what I appreciate the most about freelancing, you're not stuck with a nasty boss, ever. That being said, you can set your rate a little bit lower at the start, if you want to build a portfolio quickly. Remember however that you will most likely build long-lasting relationships with your clients, so it'll be harder to up your rate later.
If you do all those things, your portfolio and feedback will quickly match your big mouth (which remains your best asset as it shows confidence), and you'll learn which proposals to answer, and which to avoid. By being 'different' in your approach, you'll become the go-to guy for all your previous clients, and there will be no more competition for you. If you have it in you, it is definitely worth it.
1) I compete against thousands of people with a markedly lower sense of "reasonable pay"
It always like that. Welcome to the world of freelancers. The only way to get some work as the Western contractor is to provide quality, on-site presence and warranty. There are many clients who either want a local or US contractor or clients who want US-type warranty. They are your target clients.
Also, if I am not mistaken, I think that I read that Elance has large amount of US contractors. You may check Elance and see how other work, their hourly rate, etc.
2) I have no publicly available work to show. Why would anyone give me my first contract?
Do you need it after 15 years in the industry? I am sure you can put a few best projects in your portfolio and during the interview you can talk to the client about them. I highly doubt that there isn't any project that you cannot show them. I know other contractors who worked for the large companies and they put the large CMS' into their portfolio stating that they did not code them but they took part in them.
It seems like a lot of hard work. Is it worth it, and how should I go about it?
Yes, a lot and lot of hard work, a lot of thinking and a lot of other things you never faced sitting by the desk of the large company. That is why we say "you are either a freelancer or not". It's not easy at all, but for me it was harder to sit by the desk 9 to 5 then to be 1 month without any project.
No one can answer should you do it. You should start part-time freelancing on per project basis. Then after some time you will realize whether you will go back to your current work or you will drop it and become a freelancer.
Freelancing and being an employee are two different worlds. You are right that no one will contact you and contract you.
My advice speaking from personal experience:
There are larger IT/software house/web/digital/marketing companies (contractors) who are looking for independent subcontractors because they have too much work or lack of talent and want to outsource. You should contact them and only them. Your 15 years of experience does matter to them. Do some work as a sole proprietor and ask for legal rights to include this work on your public portfolio.
At this point do not waste your time trying to contract non-IT clients directly offering your freelance software development services. To these non-computer savvy people you are a joke. A desperate guy looking for work. Being in mid 30s doubles that image. The non-IT clients do not usually hire freelance software developers. If they do, probably it is because they have extremely low budgets and are not worth attention.
When you finally have a portfolio to show - INCORPORATE, hire an accountant. Everyone will take you 500% more seriously. Now you can start offering services to regular folks because you have become a proper business with some cred (the portfolio). Do not burn bridges with IT-companies you have been subcontracted by in the past. Now, as you are incorporated, they will love you even more, just promise them that you will not run away with they clients. Form partnerships with other businesses instead.
Be specific in your services, know exactly want you want to do and pass over anything else to your partners. If you are a company of one - do not offer to build skyscrapers because no one will take you seriously.
Avoid bidding sites, "contests", free work and such. because after 15 years you probably do not need to "prove yourself".
I wondered the same thing when I started out: how to set myself apart and make a livable wage, but applying what I've listed below has almost got me there! But it has been a slog - two years and counting - as my existing skills didn't really match with online freelancing.
Good luck! Nothing beats the range of challenges you get thrown from all around the world - and you get paid for it :)
