Everyone knows what it means to be a freelancer these days. Even though freelancing is freeing, it can be scary if you have yet to make it a stable job.
Yes, people often think that being a freelancer means you can sit at home, and work will come to you. No It’s not. Freelancing is more than that. It would help if you kept working hard to grow and do well in freelancing.
You can set your hours when you work as a freelancer. Also, you can work whenever and wherever you want. Perks like these are why the freelancing industry is overgrowing.
But is it possible to stay in business for a long time? How can someone become a successful freelancer?
If you want to start freelancing but don’t know what it takes to be successful, you’ve come to the right place.
This guide is all you need because it tells you everything you need to know about freelancing, such as what it is, how to become a freelancer, how to manage your money, and so on.
Let’s find out without further ado!
Table of Contents
What is Freelancing?
Freelancing is contract-based work that people do on their own instead of being hired by a company. A freelancer uses his education, skills, and experience to work for a client.
In a nutshell, companies hire freelancers for short-term or part-time jobs, but they are not the company’s employees and don’t get the same pay as full-time workers.
Also, freelancers can work for more than one client simultaneously. But the amount of work they can do depends on how well they can do what is asked of them.
People often mix up freelancing and WFH (work-from-home) jobs. They don’t realize that the two are very different in how they work and how much they pay:
When you work for yourself (WFH), you have a contract with the one client who pays you a salary. When you freelance, you don’t have a contract with anyone.
Freelancing doesn’t mean you have to work from home all the time. That’s because it all depends on what your client wants, and if they want you to work from their office, you have to.
What’s the best? Using the internet, freelancers can talk to their employers and turn in their work without being at the company.
Also, almost 13% more work gets done when you work from home.
Who is a Freelancer?
An independent contractor or freelancer is a person who works for themself and makes money by doing work for several different clients. So, what do they mean by “services”?
Services are the skills that freelancers use to make money, and they aren’t limited to businesses.
But can it keep going? What do they do for a living? Since almost 36% of the U.S. population works as freelancers, there must be some great things in the freelancing industry.
Freelancers usually use third-party platforms like Upwork, 99designs, PPH (people per hour), Fiverr, etc., to find work. They can also use their network or LinkedIn to see more work and offer their services directly to clients.
Also, it is expected that by 2027, most U.S. people will be freelancers. This is because freelancers think their careers will be more stable if they work for several clients instead of just one.
Is Freelancing Career a Good Option?
Did you know what caused the “gig economy” to grow? You’re right; I agree! The rise of the freelancing industry led to the creation of a new idea called the “Uberization of Work” or the “Gig Economy.”
What is the gig economy, then? In the gig economy, people only have part-time jobs with fixed salaries. Instead, they work for different clients on their terms and conditions.
Interesting, huh? Freelancing is an attractive way to make a living because it solves almost all of the typical service-class person’s problems.
Also, freelancing has “countless” benefits, such as being able to work at any time and from anywhere, keeping all the money you make, running your business for less money, being your boss, etc. Many people choose to work as freelancers because of these perks.
Even though it has a lot of potential, many people want to do something other than freelance work as their full-time job. How come? Well, it has to do with the way people think.
As people, we want a job that guarantees something. We often look for a regular job that pays a set amount every month.
You are also given the plan to follow. Regular jobs also have guaranteed benefits like retirement, provident funds, insurance, and pay raises if you do a good job.
Nothing is guaranteed when you work as a freelancer. There is no guarantee that people will buy from you again. Plus, you may be able to keep living this way until retirement or if your salary will ever goes up.
Aside from that, you are the only one who needs to worry about insurance, tax deductions, and other money matters.
Advantages of Freelancing
Other cons come with freelancing, like:
Difficult Clients
You can encounter some difficult-to-manage clients. They might need to give you the details and instructions to finish the task before the deadline. This can be a time waste and harm your profile because the client might give you a poor review.
Work-life Balance
One of the biggest cons is that you need to improve your skills over time to do well in the freelancing industry. If you can separate your work and personal life, freelancing can be easy to handle.
No Job-like Benefits
Self-employment has perks, but you won’t get paid for vacations, sick days, etc. So, you should know how to handle your time and money well.
Every job has pros and cons, and it’s up to you to find the right way to do the work. So, if you’re serious about freelancing and the cons don’t bother you, keep reading to learn more about the pros and cons of the industry.
How to Become a Freelancer?
Self-employment gives you the freedom to do what you want. It’s easy to start freelancing if you wish to do it as a side job or make it your full-time job.
It’s more like ordering something online. Freelancing platforms let you sign up for an account and start offering clients your services immediately.
Here is a list of some of the best sites for freelance work:
- Upwork – Upwork can help you find work if you are looking for a platform that can help you grow in the freelance industry and has more professional clients.
- Freelancer.com – It is likely one of the oldest markets you can try if you are new to freelancing and need more experience.
- Fiverr – It is one of the largest markets in the world and can help you do well in the freelance business. All you have to do to start making money is make an account on the platform, make a gig about what you can do, and add a few links to your portfolio.
- 99design – Are you a graphic designer? If so, 99design is a great place to start your career as a graphic designer if you want to work for yourself.
Aside from that, some of the best sites for freelancing are PPH (people per hour), Guru.com, Legitt.com, etc., which can take your freelancing to a new level.
Some Best Tips to become a Brand in the Freelance Industry.
Working on a few jobs from these marketplaces can help you get the hang of freelancing as a job and learn how it works.
But you need to make a freelance image before going to any of these platforms. Need to learn how to make a name for yourself as a freelancer? Follow these tips and tricks to find your place in the freelance business:
- Write down all the services you will offer.
- Choose which market you want to go after.
- Find the freelance sites where you will offer your services and look around them. Use the same name on all of these sites as well. This is because it will help you figure out who you are.
- Set the prices for the services you will offer.
- Build a portfolio that focuses on your niche. For example, Behance is geared toward graphic designers, while GitHub is more for developers. P.S. We suggest you make a personal portfolio website that shows off your skills and talents.
- Last but not least, remember to use social media to promote your services. You can also start by giving away or charging less for your assistance. This will help you get more customers and build a name for yourself. Once you know what you’re doing, you can charge more.
We are not suggesting that you quit your job and start freelancing immediately.
Take your time and plan how everything will work, whether you want to work full-time or try it out part-time first.
If you’re happy with how things are going, it’s time to move on.
What is the Next Step
Once you know you can work this way and make enough money to live on, the next step is to get more jobs, so you have more ways to make money. This should include jobs you found using the above methods and assignments on other freelancing sites.
Also, you could do it as your full-time job. You can make money in different ways when you work as a freelancer full-time. Here are some suggestions:
- Promoting yourself is essential. So, it would help if you always enabled yourself straight.
- Try making referral programs that give customers rewards for sending you, new customers.
- Pay attention to monthly retainers.
- Try negotiating a commission on projects that involve sales.
Take Care of Your Finances
When you have a regular job, your boss takes care of most of your financial worries. Your employer takes care of your steady paycheck, taxes that are taken out automatically, and insurance.
When you work as a freelancer, you are on your own and are responsible for the following:
Insurance and Other Benefits – as well as other perks. Be careful when you choose your insurance and retirement plan. Always pick the one that will help you the most.
Getting Paid – It is one of the most complex parts of freelancing for newcomers and people who have been doing it for a long time. It is tough to talk to and negotiate with clients in a way that will get them to pay for your service on time. If you can do this well, you’ll be well on your way to being a successful freelancer.
Taxes – Your personal and business tax issues are up to you to handle on your own.
All of this comes down to the fact that if you work in the gig economy or as a freelancer, you have a lot of financial responsibilities, like paying taxes, finding high-paying clients, and getting insurance.
Still, if you like the freedom, flexibility, and potential income of being self-employed, freelancing could be your best choice.
Final Verdict
There are both good and bad things about being a freelancer. It’s up to you to decide if you’re willing to take the risk that comes with it or not.
Yes, freelancing gives you professional freedom, but you must recognize the risk of failure and the fact that it’s hard to plan. And you may want something other than that to be a part of your career.
But if you’re willing to take a chance on something that fits your goals better than a traditional job, you have a good chance of building your identity and reputation while also reaching your professional goals.
