Freelancer

Freelancers are independent workers—people who hire their services out to clients rather than working full-time for an employer.

Legally speaking, freelancers are classified as “independent contractors,” although in practice, the terms are often used slightly differently. In particular, people who call themselves freelancers often juggle more than one client at a time, whereas contractors are more likely to work for just one.

Types of freelance work

There are hundreds of types of freelance work. Anything that can be done at a traditional job can also be done on a freelance basis.

However, many freelancers work in the following fields:

• Accounting/bookkeeping
• Consulting (various fields)
• Customer service
• Data entry
• Design
• Editing/proofreading
• Marketing
• Photography
• Search engine optimization (SEO)
• Software development / programming
• Teaching/tutoring
• Transcription
• Translation
• Virtual assistance
• Writing

Where freelancers usually find work

Many experienced freelancers find their jobs by leveraging their professional connections or directly contacting potential clients.

There are also dozens of online job boards (called “marketplaces”) that exist to connect independent service providers with companies and individuals that want to hire them. The most popular general-purpose marketplaces include:

• Fiverr
• Freelancer.com
• Guru
• Upwork

In addition, many popular fields (such as freelance writing, graphic design, etc.) have job boards dedicated specifically to them that you can use to search for clients and gigs.

Follow these tips if you want to make a go of freelancing:

Create a strong portfolio

Succeeding as a freelancer means convincing potential clients that you’re capable of doing the work they need. In most industries, the best way to do this is to show them that you’ve done similar work in the past.

Your experience matters when you apply to traditional jobs, too, but in freelancing, your track record is particularly important. Create a personal website that showcases your past work and link to it when you pitch your services to clients.

If you don’t have any work to point to yet—or if you aren’t able to showcase it for some reason, such as it being confidential—spend a few days or weeks creating samples. The point is to have something concrete on display so that clients will be willing to take a chance on you and won’t see you as a totally unknown quantity.

Don’t undervalue your time

In many fields, there will be pressure to set your rates very low when you’re just starting out. That’s because when you can’t compete on experience, you can still compete on price.

To some extent, as a novice freelancer, you may have to participate in this race to the bottom, but there’s a limit to how low you should go. Undercutting yourself too much can actually be counterproductive, making you look less legitimate and consequently making clients less inclined to trust you.

When you’re first embarking on your freelance career, do a little market research and see what other independent workers with comparable levels of experience are charging for the kind of service you want to offer. It’s okay to set your initial rates on the lower end of the range you see, but don’t go any lower, and remember to revisit your rates after a few months and adjust them upward.

Try to take your clients off-platform (but be careful)

When you land work through an online platform, such as Upwork, the website itself will usually take a cut of your profits. Marketplaces like this are convenient tools, but they come at a cost, which is why experienced freelancers often prefer to work with clients directly.

If you can, look for opportunities to take your relationships with your clients off of these websites. You can pitch this to them as a mutually beneficial move—after all, when you cut out the middleman, you can charge them less and still take home more money.

With all that said, be careful about how you approach this. Many websites see taking clients off-platform as “poaching” and will penalize or even ban you if they catch you, so when you propose this, be discreet about it.

Freelancing has both advantages and disadvantages when compared with traditional employment. We’ve listed the main ones below:

Pros

• Independence: As a freelancer, you’re essentially self-employed. You have to keep your clients happy, but ultimately, you answer only to yourself. This is a big perk if you’re a self-starter and you prefer to be responsible for your own time and workflow.
• Flexibility: Similarly, when you work independently, you can take on exactly as much work as you want (and no more). You may sometimes have to adhere to deadlines or meet with clients at set times, but by and large, you’ll probably be able to pick your own schedule. Notably, many freelance jobs can also be done remotely.
• Higher pay: All other things being equal, freelancers usually earn more than traditional employees who do the same kind of work, regardless of whether they invoice their clients on an hourly or per-project basis.
• Scalability: Many independent workers eventually grow their freelance gigs into fully fledged businesses. If yours really takes off, you may be able to turn it into your new career and even hire other employees (if you’re interested in that).

Cons

• Lack of benefits: Unfortunately, in contrast to a traditional job, you won’t be eligible for any employee benefits as a freelancer, such as health insurance.
• Expenses: Freelancers are also responsible for all of their own expenses, such as taxes and the cost of whatever equipment you need to keep your operation running smoothly. This is a big part of why freelancers earn more than traditional employees—they also have much higher overhead.
• Competition: Unless you’re a very well-known name in your field, freelance jobs won’t just fall into your lap. You’ll have to hustle to land work, and you may have to compete with workers from overseas, as well as AI (which is increasingly encroaching on the job market in many fields). You’ll need a solid strategy and a lot of dedication to stay ahead.

As you’re probably gathering, running a freelance operation is a lot of work. However, if you manage to do it successfully, the rewards can be great, regardless of whether it’s a part-time side hustle or your primary career.