With unemployment increasing and job opportunities limited, freelancing is on the rise.
Between April and June 2020, job openings in the freelance sector increased by up to 25%, when compared to the first quarter of the same year.
Most people agree that freelancing is here to stay. But what exactly is it? And how can you do it effectively?
A freelancer works for themselves instead of working for a company.
While a freelancer may take contract work for a company, they are not considered an ‘employee’ of the company, but rather a ‘contractor’.
A 2015 report, published by the U.S. Government Accountability Office, estimated that around 40% of Americans freelanced.
This figure includes temporary workers, consultants, day labourers and other self-employed individuals. And could well be higher now.
The founder and executive director of the Freelancer’s Union, Sara Horowitz, labels freelancing as ‘the new normal’.
“..as the stability of traditional work wanes, so does its appeal. Leaving the rat race behind is incredibly liberating”.
Freelancing Top Soft Skills
Organizational Skills
Persuasiveness
Freelancing: Top Hard Skills
Project Management
Finance
So why have companies stopped employing full-time workers?
Hiring freelancers allows companies to obtain the specialized skills and expertise they require, in a cost-effective way.
It’s also often the favored option for small businesses and startups that do not need permanent full-time employees.
Studies suggest that both freelancers and corporate executives predict an increase in demand for freelance work once the pandemic is under control.
The increase in remote working could accelerate the global growth of freelancing as companies increasingly access the global talent pool online.
So, how much can you earn?
Obviously, your rates are dependent on different factors.
These will be discussed in more detail a little later.
But let’s say you are at the top of your game, the sky’s the limit. Top freelance writers can earn as much as $10,000 for writing a webpage and app developers can earn tens of thousands for contracts.
Why Freelance?
Freelancing really is what you make it. The autonomy you have over your own work schedule is unparalleled.
Freelancing is a form of employment that can help you achieve your ideal work-life balance.
Having said that, it’s not always sunshine and rainbows. It’s a form of employment that has positive aspects to it as well as negatives. Below is a clear list of the pros and cons of freelancing.
PROS
- Freedom to dictate your own schedule
- Great earning potential
- Choosing who you work with
- Getting to pursue what you’re passionate about
- No office politics or annual performance reviews
- Running every business aspect (sales, marketing, invoicing, contracts, troubleshooting, taxes). You’re very much in control of your career.
CONS
- The constant hustle for gigs can be hard
- Can often be lonely
- Inconsistent work and cash flow
- Juggling multiple clients
- No paid time off or sick days
- Running every business aspect (sales, marketing, invoicing, contracts, troubleshooting, taxes).
What You Need to Get Started
1. Work out what skill you can offer.
Looking for inspiration? Here’s a list of the best-paid freelance careers:
- Web Developer
- Programmer
- Internet Marketer
- Translator
- Security Specialist
- Legal Advisor
- Video Editor
- Writer
2. Get your first client
We’ve all heard the saying ‘it’s not about what you know, but who you know’. So get networking. Websites such as LinkedIn allow you to connect and strike up a conversation with anyone.
Michael Burns, a successful freelance copywriter (and speaker at a Start Me Up Career Kickstarter event), initially found clients by ‘listing companies [he] wanted to work for [and] knocking on their office doors’ with his CV.
While times have changed, and personally delivering a hardcopy of your CV to potential employers is impossible during these circumstances, LinkedIn can allow you to virtually replicate this method.
LinkedIn Top Tips
Make your profile stand out
You don’t get a second chance to make a first impression. Ensure that every section on your profile is complete. There must be no gaps.
Use keywords in your headline, summary and experience sections. This allows potential employers to find you. And always upload a profile picture.
Connect with people… and interact with them
It’s easy to just request connections on LinkedIn. But it’s what you do with these connections that counts.
When you’re sending connection requests, always send personalized notes with them.
A little introduction to yourself and explaining why you want to connect will help start a proper relationship instead of just bumping up your numbers.
Once your requests have been accepted, you must continue to build these relationships. Interact with the content your connections post by liking and commenting on it.
Post engaging content
While interacting with other peoples’ content is good, it is great to post your own content too. It helps to present yourself as an expert in your industry.
There are two main ways to do this: posting an interesting article you have read on the internet, or writing your own.
Join LinkedIn groups
This will help you connect with relevant people in your industry. For this strategy to work, you need to interact with people in the group.
Get involved with the discussions that are taking place and answer questions. This will allow you to showcase your expertise.
3. Build your portfolio
This is essential. You want to show your clients examples of your work so that they understand why they should hire you over someone else.
You don’t need previous employment to create one. Use your own initiative and create ‘dummy’ pieces of work. Get started by creating a piece of work (a video, an article, whatever it is you are going to be offering clients) for one of your favorite brands.
4. Figure out your pricing strategy
What are you worth? This is very much an individual question to answer. Deciding on pricing can appear daunting, but it is something that needs to be seriously considered if you want to freelance. Go too low and you risk underselling yourself. Go too high and you risk not getting any clients.
Ultimately, how much you charge for you services comes down to three things:
- Your industry
→ How much you earn is very much dependent on your industry. For example: a freelance photographer will, on average, earn less than a freelance software developer - Your experience
→ Just like in other forms of employment, how much experience you have will dictate how much you can charge. But, it’s recommended that you add on an extra third to cover the costs of taxes and other business costs.
Your location
→ Companies in some locations sometimes pay more than others. Pay rates for companies located in the US tend to be higher, for example.
Check out these useful websites for freelancers
- Upwork – no matter what type of freelancer you are, Upwork has you covered.
- LinkedIn – gives you the opportunity to post examples of your work and connect with the pros in your industry directly.
- Toptal – finds the top 3% of freelance talent. They have a very rigorous screening process so you might need to skill up in order to be accepted.
- TheDots – a great space to find creative freelance gigs with specific job postings and the ability to connect with employers and other creatives.
- Designhill – aimed at helping employers find designers specifically.
Where to Work
While working at home can be productive for some, it’s not for everyone.
Of course, there’s often the option to work in a coffee shop. But again, this doesn’t always provide the optimal working environment for everyone.
Over the past few years, there’s been a rise in the number of co-working spaces to provide offices for those who are choosing to freelance. Co-working spaces offer spaces to ‘hot desk’ from and can be affordable for those just starting out.
Co-working spaces are great for freelancers. Not only do they help maintain your motivation and productivity levels, but they can also dispel the loneliness that can come with being self-employed. They are a great place to meet like-minded people and can help provide in-person networking opportunities.
Structuring You Day Is Important
Working for yourself is hard. You’re constantly the one keeping yourself in check. This means that your motivation and productivity can fluctuate. Accept that this is part of the job and find ways to combat it.
Structure into your day.
It may also be worth sectioning your day. This depends on what kind of work you are doing. But, say you are a designer. Spend the morning doing your creative tasks and then split the afternoon into admin and networking tasks.
How to Make Freelancing Work for You
Maintaining your reputation is one of the most important things to keep you in business. Reputation is everything in the world of freelancing. Without a good one, you won’t be able to gain repeat custom from your clients or find new ones.
Once you’re established, the perks of the job become more apparent.
One of these being that you have the power to pick the clients you work for and with. Michael Burns focuses his efforts on taking jobs that provide a ‘win-win’ opportunity for you and your clients.
That is, they are a win for the client’s business, they are a personal win for him as he feels valued, and they are also a win for the customer as they are happy with the product.
In order to make freelancing a sustainable and enjoyable form of employment, you must continue to network. This will allow you to diversify your clientele. Not only will this help build your reputation, but it will also keep the job interesting and worth waking up for.
About the author
Rebecca Emery
Content Creator and Producer @ Start Me Up.