CPP Client Management & Freelance Business 3 — Questions and Answers
Question 1: A client wants to pay per page rather than per hour. What is a key consideration before agreeing to per-page pricing?
- Per-page rates always earn more than hourly rates
- Page density, font size, and error frequency can significantly affect per-page profitability (Correct answer)
- Per-page pricing eliminates the need for a contract
- Clients who prefer per-page rates are typically less experienced
Correct answer: Page density, font size, and error frequency can significantly affect per-page profitability
A dense, heavily marked-up page may take far longer than a clean page, so per-page rates must account for likely document complexity.
Question 2: What is the primary purpose of a non-disclosure agreement (NDA) in freelance proofreading?
- To prevent the proofreader from working for competing clients
- To protect the client's confidential or unpublished content from being shared (Correct answer)
- To set the payment schedule
- To define the revision policy
Correct answer: To protect the client's confidential or unpublished content from being shared
An NDA obligates the proofreader to keep the client's manuscript and business information confidential.
Question 3: A long-term client frequently pays invoices 60+ days late despite net-30 terms. What is the most constructive response?
- Continue accepting late payments to preserve the relationship
- Add a late-payment fee clause to future contracts and communicate it clearly (Correct answer)
- Report the client to a collections agency immediately
- Stop all communication until payment is received
Correct answer: Add a late-payment fee clause to future contracts and communicate it clearly
Adding a formally stated late-payment fee incentivizes timely payment while keeping the professional relationship intact.
Question 4: Which practice best helps a freelance proofreader track business income for tax purposes?
- Keeping all client emails in a single folder
- Maintaining a separate business bank account and detailed income ledger (Correct answer)
- Storing paper invoices in a filing cabinet
- Relying on PayPal transaction history alone
Correct answer: Maintaining a separate business bank account and detailed income ledger
A dedicated business account and income ledger simplify tax preparation and demonstrate professional financial record-keeping.
Question 5: A client requests unlimited revisions after delivery. What is the professional way to handle this expectation upfront?
- Agree verbally to unlimited revisions at no extra charge
- Define a specific number of revision rounds in the contract with additional fees beyond that (Correct answer)
- Decline any revision requests after delivery
- Perform revisions free of charge for the first 90 days
Correct answer: Define a specific number of revision rounds in the contract with additional fees beyond that
Specifying revision rounds in the contract sets clear boundaries and ensures extra work beyond scope is compensated.
Question 6: What does 'word-of-mouth referral' represent in the context of a freelance proofreading business?
- A formal marketing campaign on social media
- Organic new business generated when satisfied clients recommend you to others (Correct answer)
- A testimonial posted on a professional website
- An agreement between two proofreaders to share clients
Correct answer: Organic new business generated when satisfied clients recommend you to others
Word-of-mouth referrals are unpaid endorsements from satisfied clients and are among the most powerful sources of new freelance business.
Question 7: When calculating your freelance hourly rate, which factor should you include that salaried employees do not pay directly?
- Federal income tax
- Self-employment tax (Social Security and Medicare contributions) (Correct answer)
- Health insurance premiums paid by the employer
- Paid vacation days
Correct answer: Self-employment tax (Social Security and Medicare contributions)
Freelancers owe self-employment tax (currently 15.3%) in addition to income tax, which must be factored into the hourly rate to avoid underpayment.
CPP Client Management & Freelance Business 3
A client wants to pay per page rather than per hour.
What is a key consideration before agreeing to per-page pricing?