According to a study by Upwork a large freelance platform provider some 57 million Americans were freelancing in 2019 and if this trend continues more than half of Americans will be freelancing in the future. Some of these workers are full-time freelancers; others still hold A 9-to-5 job but a side hustle in your free time. This proliferation of part-time and freelance jobs has people talking about a new kind of labor market: the gig economy. If you are interested in joining the gig economy and earning money outside of a full-time job you will The many advantages and disadvantages of this method of generating income must be understood. Your taxes will vary; you may need some basic accounting skills; you’ll need to rearrange your lifestyle to accommodate working this way. What is freelancing? Freelancers are Self-employed individuals who provide services to clients. These services are often (but not necessarily) provided to businesses through the proliferation of sharing economy platforms such as TaskRabbit Mechanical Turk or Upwork. However individuals can provide services directly to customers without Third-party sources often cut compensation. Almost all types of services a business needs can be provided by freelancers. Some of the most common freelance opportunities include: Accounting/Bookkeeping Graphic Design Marketing Project Management Social Media Manager Teaching/Tutoring Virtual Assistant Web Design/Development Writing/Editing Some freelancers specialize in general areas while others specialize in specific industries like real estate assistants or niche skills like pay-per-click (PPC) copywriting. Freelance income depends on the skill experience you provide and your target market. Generally freelancers can earn anywhere from $10 to $75 an hour. Skills that require more education or experience such as accounting or website coding usually cost more than skills that don’t require that much. Advantages of Freelancing The BalanceFreelancing Can be a quick and affordable way to start your own boss job often from the comfort of your home. Freelancing has many advantages. Setting your own time Freelancing is flexible. You can usually work on a project of your choice full-time or part-time at a convenient time you. As the saying goes time is money. Time saved by not commuting is time that can be used to earn money. Work Where You Want If you want to be location independent in your career freelancing is a great portable option for those who want to work from anywhere. If you like Travel You can work and travel at the same time. Becoming an Independent Contractor While clients can (and often do) set specifications for the work they want to get done freelancers are still independent contractors rather than employees. You have the freedom to control how your work is done. However if your customers don’t like the final product you may find yourself out of a job opportunity. Get paid for your value Freelancing allows you to set your own price for your services which is often higher than what you would pay as an employee to do the same work. Make sure you charge enough Pay your expenses and fairly compensate you for the time it takes to get your work done. Affordable If you can afford a service chances are you already have the equipment or software needed to deliver that service. You shouldn’t face a steep start Unless you are very new to the process and require equipment training and experience the cost will be high. Despite the fierce competition in the freelance market the demand for quality freelancers is growing. Today many businesses have no employees and instead rely on a team but freelancers. This trend is currently growing as freelancers cost businesses less than employees even if they pay higher rates — because they don’t have payroll fees or benefits. you can pick and choose your clients you may want to accept any client who will hire you When you’re just starting out but you can also choose not to accept tough clients especially as you grow. You can even tell clients that you no longer wish to work for them. You might pay less in taxes The IRS treats employees and independent contractors very differently. Thanks for the recent tax law Employees can no longer deduct unreimbursed work-related expenses but independent contractors can. You can deduct business expenses from your IRS Schedule C income to reduce your taxable income. Taxes can be difficult to understand and you may not want to worry too much about them as a livelihood. Many freelancers hire accountants or tax professionals to help them. Increased work/life balance You will feel more balanced and happier when you can choose what you do when you do it and what you get paid and who you work with Freelancing Freelancing isn’t for everyone and it’s not for everyone. Here are some of the disadvantages of working for yourself. Your clients also have schedules. Yes you can set most of your time but if clients can only see you at dawn on Tuesday you will need to get up with rooster. You may also need to work within deadlines. Depending on the service you provide you may only be able to work late afternoons and evenings or you may have clients in different time zones who work at different hours. You need to be very good at management your time. The work isn’t always consistent especially if you’re offering a one-off service (such as creating a certain product). You hand the finished product to your customer and that’s it – you have to find a new customer who wants your product so you Another one can be created and paid for. At first you may have to do a lot of self-marketing and promotion to find customers. You might get a hundred nos before you get affirmed thank you. Experienced freelancers can avoid this problem by looking for clients with a large number of consistent Work and deliver results so they become regular suppliers or service providers. For example a freelance writer might have a client who needs to consistently publish articles twice a week. You may not succeed in acquiring enough clients overnight to support yourself and your family Freelancing can take a while and many freelancers experience ups and downs in their work. You have to plan your time and be prepared to work hard to deliver your work on time when there is plenty. Breaking in at a lower cost may be necessary but find customers willing to pay for quality Managing multiple clients and projects as quickly as possible can be a challenge. While some people enjoy the variety of working on multiple projects at the same time others may find it difficult to keep track of deadlines. You have to pace yourself to produce and deliver high-quality work on time. find a way If you work for multiple clients managing time is important. You may end up working a lot more hours than you hoped. You are responsible for all aspects of your freelance career. Invoices bookkeeping and marketing are all part of freelancing. Essentially you need more skills than Just the ability to do the job. Unless you can hire people to handle these tasks you need to take care of them while providing the service. You will have to pay your own benefits and you will lose benefits like employer-sponsored health care and retirement plans. depending on The work you do may have professional associations you can join to get group health insurance rates. You have to pay self-employment tax which is the flip side of paying tax on income reduction. Your employer pays half of your Medicare and Social Security taxes when you work for someone else But when you’re freelance you’re your employer – which means you have to pay both halves. This is often called the self-employment tax. Getting started as a freelancer Getting started as a freelancer is as easy as visiting a freelancer website to find a job or network Find your first customer within your current sphere of influence. Consider using a freelancer site like Freelancer.com or Upwork to find a job. They might pay less than you want but it can be a great way to get your name out there and get referrals and referrals. In addition to using freelancers Before you start you need to determine many factors. Note some clients on large freelance sites. Make sure you follow the rules set on your website for communicating with customers and receiving your payments – sites like Upwork strive to prevent Identity theft but someone uses the platform for criminal activity. Decide which services you will provide. Will you be a generalist or a specialist in your area? For example you might offer social media management across many platforms or focus on one platform such as dedicated management Pinterest Marketing. To determine your target market you have to see if there is a demand for what you want to do. This is also the time to decide on your brand and unique selling proposition. You may have the skills and experience to sell yourself to big companies or just want to work For small businesses. Deciding Your Rates Setting the right rate is the balance of being attractive to customers while getting your value. If you’re undercharging it could be a sign that your work isn’t worthwhile and you may not be able to attract clients. If you ask too much you may not find Be willing to pay your customers. When you decide on a rate use the platforms available to see what other freelancers charge. This can help you make yourself competitive in terms of skill level and ability. Determine acceptable fees for each project as many freelance projects can be one-off ( A single time-limited project) where the client will require an estimate of the total work. Other freelancers have ongoing clients who pay a flat rate or a flat fee. For example a freelance writer might write 8 new articles for a blog for $400 a month or a virtual assistant could provide 10 hours $200 monthly workload. Create an online portfolio Build a profile that promotes what you have to offer. Ultimately you’ll want to invest in business building tools like a website that gives you more customization and flexibility but LinkedIn is free and it’s a great online resume This can help you promote your services. You can also consider Portfoliobox SquareSpace and Journo Portfolio. Marketing Your Services There are many low-cost and free ways to market your freelancers and attract clients. Some options include networking on social media offering free consultations Ask for referrals and email marketing.
