The Benefits of Being an Independent Contractor in the Doula World

Becoming business savvy is an important part of building a successful postpartum doula business. The majority of doulas are independent contractors, and this blog is going to address what it means to both work for an agency and be a business owner– aka an independent contractor (IC). 

Benefits of Being an Independent Contractor:

When you work for an agency, you often get the perks and benefits of working with a group, but, simultaneously, the autonomy of running your own business. These are some of the reasons we love this business model:

• Doulas have a great deal of independence. From scheduling to relationship building with clients to deciding which extra trainings, you have a lot of say in how you want to grow your skills and business. You may also work for an agency AND take on your own private practice clients.

• Make your own schedule. Take vacations when you want to. Work specific days and times. Take on the number of clients that feels like a good fit for you.

• Prioritize client relationship/fit vs. just being placed with a family. Employees may not have a say in whether they work with a family or not. As an IC, agencies typically want both the client and the doula to agree to work together after a consultation or trial. 

• The agency does marketing and client leads for you. Some of the backend elements of running a business will be the responsibility of the agency. This leaves you with more energy for working with the clients.

Recommendations for Independent Contractors:

If you are working as an IC with an agency or feel curious about this possibility, I have a few suggestions for you:

• Start an LLC for personal protection. In the rare case of a lawsuit, your personal property will have more protection when you have establish a Limited Liability Company.

• Open a business bank account. Keep your finances clear by funneling all business money in and out through its own account.

• Work for an agency you align with. Take the time to find an agency that shares your values and represents postpartum doula work in a way that resonates with you.

• Have a plan for health insurance and other benefits. As an IC, you won’t be offered the benefits of an employee. Thus, you will want to have a plan for how you will get these needs met, whether it through a partner, the marketplace, or working with an insurance agent to find an applicable group policy.

• Prepare for paying taxes. One downside of being an independent contractor is the high tax rate you will pay. It’s helpful to set aside part of your income each month in order to prepare for your quarterly tax payments. It is usually recommended to set aside 20-30% towards taxes. 

• Start planning for the future. Setting aside even a small percentage of your earnings in an investment account of some type will help you prepare for retirement. 

Find our previous blog all about agency work here! I also recently chatted with Ciarra Morgan, on Birth, Baby! Podcast about the difference between employees and independent contractors in doula work. Take a listen and follow her work here!

Join Us for Postpartum Doula Training

ABG offers both online (self-paced) and in-person training for folks who are interested in becoming postpartum doulas. We’d love to support you in growing your skills as a postpartum doula!

Photo credit: Christin Hume on Unsplash