What is a freelance job? & How much I can earn from freelancing?

What is a freelance job?

If you’re interested in having a bit more control and freedom in your professional life, freelancing is an attractive option.

Upwork’s recent annual report on freelancing in the U.S. found that 56.7 million Americans freelanced in 2018—an increase of 3.7 million people from 2014.

The freelance community is certainly growing. Statista, a business data platform, predicts that by 2028 that number will increase to over 86 million.

With these large numbers, it’s imperative to prepare yourself to freelance and freelance well. Use this guide to understand what freelancing is, how to find companies and jobs hiring, and the characteristics needed to succeed as a freelancer.

The Complete Guide to Freelance Success

What Is Freelancing? A Basic Definition

Essentially, a freelance job is one where a person works for themselves, rather than for a company. While freelancers do take on contract work for companies and organizations, they are ultimately self-employed.

Freelancers are responsible for all sorts of things that traditional employees are not, such as setting their work hours, keeping track of time spent on different projects, billing clients, and paying their own employment and business taxes. Freelancers are not considered “employees” by the companies they work for, but rather “contractors.”

Ways to Say “Freelance Jobs”

When you’re searching for freelance jobs, there are a number of different terms to be aware of. These can be used to help you find freelance job openings, and they’re also useful when describing yourself and the work you do to potential clients.

Freelance job: A widely-used term to find freelance jobs.

Contract work: Jobs where you’re a temporary contract worker, rather than a permanent employee.

Contract job: Same as contract work.

Independent contractor: Another common way to say, freelancer. Your work terms are specified by a contract with another company or individual. This is how the IRS classifies this type of work.

1099: Used to describe the type of job. For example, “This is a 1099 contract position.” Refers to the IRS form an independent contractor fills out: form 1099-MISC.

Contract consultant: Someone who is hired for temporary consultations for specific issues within a company.

Contract-to-hire: A job that begins as a freelance, independent contractor position but has the potential to become a regular employee position if things go well.

How to Find Freelance Work

Focusing on companies that are known to hire freelancers can be a great way to start your search for freelance work. Recently, FlexJobs created a list of the top 30 companies for freelance jobs, meaning they posted the most freelance openings on our site. Here’s the top 10:

Kelly Services

Real Staffing

Kforce

AFIRM

Onward Search

Dahl Consulting

Ajilon

Computer Futures

Paladin

Addison Group

Most Common Freelance Career Fields

As you can see from the freelance job listings on FlexJobs, a variety of companies, organizations, and government agencies hire freelancers. You’ll find work in almost every career imaginable, and the freelance jobs vary from small, temporary projects to long-term, full-time projects.

In 2018, FlexJobs determined the career fields that had the most freelance openings on our site are:

Computer & IT

Accounting & Finance

HR & Recruiting

Editing, Proofreading, and Writing

Administrative

Project Management

Data Entry

Analyst

Software Development

Technical Support

Pros and Cons of Freelancing

Every job has pros and cons, and freelancing is no different. Being aware of challenges ahead can ensure you’re prepared and dealing with reality.

Pros of Freelancing

Having control over your workload, the clients you work with, and your income is a big benefit of freelancing. When you freelance, you’re in the driver’s seat. You determine what jobs to take on, which clients you want to work for, and your pay rate. Depending on your level of expertise, it could be possible to work part-time hours but make full-time pay.

Flexibility and remote work are also a perk. Most of the time, working on freelance projects will involve working at your home office and working the hours you so choose. You’ll absolutely have deadlines to meet, but you will decide when and where you work.

Cons of Freelancing

With the ultimate in control, comes additional responsibilities. As a freelancer, you are a business owner, and you need to stay on top of taxes, invoices, payments received, finding your own health insurance, and buying every piece of software and technology you need to complete your work.

Feast or famine syndrome is another real downside to freelancing. Some months you’ll be full to the brim with work, while the next month may be a ghost town. You may be relying on a consistent contract with one client, only to find they don’t need you anymore suddenly. Freelancing requires good money management and constant sourcing of new clients.

Traits and Characteristics Needed as a Freelancer

There are a few qualities you should possess to set yourself up for freelance success. While not an all-encompassing list, these important characteristics will give you an idea of where you should focus.

Discipline

There’s no boss watching you out of the corner of their eye or colleagues to judge you when you spend an hour online shopping instead of working. Discipline is necessary to stay on track.

Persistence

Persistence is always important, but particularly when you’re just getting started as a freelancer and desperately trying to track down work.

Resilience

There’s one word you’ll hear more than anything as a freelancer: no. Rejection is the name of the game, and you’re going to need to let it roll off your back.

Organization

You’re responsible for a lot of different tasks. You need to keep track of your income and expenses. You need to promptly reply back to client emails and stay on top of your deadlines. You need to keep your files sorted and your workload streamlined.

Outgoing

You don’t necessarily need to be outgoing in the traditional sense, but you do need to be able to be a little aggressive in order to land new clients. If you want to grow your business, you’re going to have to be comfortable networking and approaching strangers, whether you’re doing it in person or digitally.

Communicative

Being a freelancer involves a lot of communication. You need to be willing to have hard conversations—like negotiating a higher rate of breaking up with a client—and handle them tactfully and professionally. There’s no boss or another colleague to take care of that dirty work for you.

What is freelance work?

Freelance work is a type of self-employment that is carried out on a flexible basis, and provided to a variety of different businesses.

Freelancers could work on big or small projects, both short-term and long-term – depending on what suits their skills, availability, and the employer’s needs.

Typical tasks could include anything from building a website or designing a logo, to writing a weekly blog post or shooting and editing a video.

How does freelancing work?

Usually, employers will get the ball rolling by posting a job or project on a freelance website.

This allows freelancers to contact them, explaining the reasons their skills and abilities make them suitable for this particular role – also stating how much they’d charge.

The employer is then able to choose from a number of proposals to find the best fit, discuss next steps, and come to a mutual agreement on how and when the work will be done. After it’s completed to the required standard, payment will be made.

What jobs can I do freelance?

Almost every service an employer needs can be outsourced to a freelancer.

However, there are certain fields and industries where freelance work is particularly common. These include:

• Graphic design
• Marketing, media & PR
• Financial support (e.g. bookkeeping)
• Writing, editing & proofreading
• Fashion
• Photography
• Videography
• Data entry
• Programming

What are the benefits of working freelance?

There are many benefits to becoming a freelancer. These include:

• It’s quick and easy to get started
• You can choose the work you want to do
• You can choose when you want to work
• It’s affordable
• The work is varied

Because of these perks, it’s a particularly common choice amongst students or recent graduates, those who have lost their jobs, working parents, or people trying to pursue a particular passion or career path that they can’t easily find in a regular role.

How much do freelancers get paid?

Freelancers are typically paid hourly, or at a fixed rate.

They’ll usually set their rates themselves – which will depend on the type of service they’re offering, the value of the product, how qualified/experienced they are, and how long the project will take to complete.

Pay can often be negotiated if necessary, and will vary from job to job.

What do I need to become a freelancer?

Although freelance work has many perks, it’s not for everyone.

Aside from a high level of self-motivation (see also: objectivity), you’ll also need to be extremely adaptable, personable, and a great communicator. Specific skills and knowledge within the industry you’re offering work in is also vital – as most freelancers are up against a high level of competition.

Employers looking to hire freelancers will usually expect to see examples of their work, meaning an extensive portfolio that shows off your expertise and skills is essential.

Qualifications may be preferred, but this will depend entirely on your line of work, and the employer’s needs.

Where can I find freelance work?

Freelance work can be found on a range of job sites, including reed.co.uk.

However, there are also a number of websites dedicated solely to freelancers and the businesses and individuals looking to hire them.

Upwork, Freelancer, and Peopleperhour are just a few sites you could choose from.

How to start freelancing:

Here are some of our top tips to help you get started as a freelancer:

• Choose a craft that’s in demand. Not only should you find something you enjoy (and are good at), you should also do your research to make sure your skill is marketable.
• Build a reputable brand. Even though you’re going it alone, you still have to sell yourself as a brand – meaning an impressive online presence (e.g. through blogs and social media) is key.
• Put together a portfolio. Employers are primarily concerned with your previous experience – so choose your jobs wisely to gain the best reputation, even if it means working for free when you first start out.
• Pitch properly. Similar to job applications, employers don’t like it when you don’t tailor your proposal to their job. Focus on how your skills could meet their needs, and you’re far more likely to impress.

What skills are required for freelancing?

Gone are the days that freelancing is synonymous with the unemployed. Skilled workers are choosing the flexibility associated with self-employment and employers are embracing the addition of contractors in traditional working environments around the world.

It’s no surprise that hiring managers are tapping highly-skilled workers from freelance marketplaces, such as Upwork (recently IPO’ed) and Moonlighting, to meet skills gaps in emerging technologies and traditional local employment needs.

While many freelance marketplaces specialize in a single vertical of skills, Moonlighting allows you to hire anyone from blockchain consultants to pet sitters to graphic designers, all in one place. See what skills are in-demand on Moonlighting, the fastest-growing freelance marketplace:

1. Marketing

Marketing is a widely recognized necessity for every business — 63% of business owners say marketing is the most important expense to grow their business. An effective marketing strategy will comprise of a holistic multi-channel approach including email, content, social media, automation, and search engine optimization (SEO). Freelance marketers are often skilled in most or all of these channels, are often more efficient than in-house marketing teams, and at times even for a lower cost.

2. Blockchain

Already leveraged by several major enterprises including IBM and Samsung, blockchain’s digitized, distributed, and secure ledger is said to be reshaping the future of tech.

3. Writing & Editing

The writing profession is largely romanticized as the starving artist or creative hermits, holed away from society while working on the next Great American Novel. That may be true for some fiction writers. But there’s also a massive world of commercial writing that includes everything from web content to technical manuals to journalism, grant writing, and advertising copywriting. And all of this has to be arranged and corrected by editors.

4. Graphic Design

If you are in the freelance design business, you can feel good knowing that the growth predictions are bright. Jobs for graphic designers are estimated to grow 13% by 2020, with the digital segment set to grow by an incredible 61%. Much of this growth will be specifically targeted at freelance designers with companies and startups looking for strong, reliable talent that is willing to work on-demand.

5. Web Designer

Web designers create the look and layout of web pages. Their skills are in-demand in many types of organizations, from charities to startups, giving you the flexibility to work on high-impact projects.

6. Photographer

Sure, everyone has a camera on their phones. And even though the demand for photographers in traditional media has declined, there’s still a high demand for commercial and portrait photographers. In fact, there’s been a 37.2% increase since 2014.

7. Accountant

While there is plenty of accounting software available, tax codes and deductions remain complicated and incomprehensible for most, keeping accounting an in-demand skill.

8. Customer Service

Customer support jobs are naturally suited to remote work and moonlighting in the gig economy since the work is primarily completed via computer and phone, and many opportunities are available for off-peak working hours.

9. Excel

While most people are familiar with this Microsoft software staple, manipulating data beyond simple SUM formulas often requires the work of a professional. If PIVOT Tables and VLOOKUPs are your jam, you have a great opportunity to get hired to tutor or crunch, analyze and glean fruitful results from complex queries for clients.

10. Virtual Assistant

Business owners, managers, and entrepreneurs are using virtual assistants to help them handle tasks like responding to emails and scheduling appointments from a remote location.

11. Bookkeeper

For many small and medium-sized businesses, the decision to relieve themselves of their bookkeeping tasks is a major milestone. Allowing for a qualified professional to step in and take over these tasks gives the management team an opportunity to focus more on the day-to-day activities, and more importantly, how to take their business to the next level.

12. Sales

For many brands, utilizing independent sales reps is a key part of their sales strategy. For some, it’s not cost-effective to employ in-house reps, or they simply need to get feet on the ground quickly without having to put resources into establishing a salaried team. Others recognize the depth of the existing networks and relationships an independent rep may provide, which can open up new business opportunities in existing markets, and provide access to new territories. Whatever the reason, businesses often look to hiring independent sales representatives as an alternative to way to build a sales force.

13. Career Coach

Career coaching is going through a “great awakening.” As more and more people are searching to balance work they love with a healthy lifestyle, we are seeing an increase in the demand for professional advice to help professionals find their next job or switch fields, and provide guidance through job searches, interviews, resumes, promotions, and everything in between.

14. Courier

Local independent on-demand couriers offer a number of benefits when it comes to their services including providing the freedom to have tasks done to your specifications rather than following guidelines of big name carriers.

15. Web Developer

The world of web development experiences demands constant transformation every year, whether it’s related to tools, services, coding, languages, or designs. And with every year, new trends and technologies emerge to evolve the way developers work. Independent web developers are far more likely to re-skill and provide expertise in emerging development trends including artificial intelligence, voice search integration, and chatbots.

How much I can earn from freelancing?

Want to start a freelance career but afraid you won’t be able to earn enough money? Business News Daily and Payoneer have some new statistics that might assuage your fears about what you can earn for freelance work.

Let’s start with the big question: how much can freelancers expect to earn? Although individual freelancing income differs from person to person, a recent Payoneer survey reveals that the average freelancer can expect to take home about $21 an hour. To quote Business News Daily:

“According to Payoneer’s data, the average freelancer works 36 hours a week at a rate of $21 per hour, giving them an annual pretax salary of more than $39,000.”

Freelancers earn more than traditional workers

Here’s another fascinating fact from Payoneer: in most countries, freelancers earn more than average workers working traditional jobs.  Add in the fact that freelancing for multiple clients means that you can lose one client without losing your entire income stream, and freelancing starts to look like a pretty good career move, right?

Of course, for some of us, a $21 per-hour wage doesn’t sound like a lot, even if it’s more than you might get at an entry-level job. In fact, Payoneer reports that only 46 percent of freelancers are satisfied with their current income. That’s why it’s it’s important to learn how to earn better freelance rates and negotiate for higher pay. The secret to beating that $21 per-hour average is probably a mix of negotiating rates and promoting your work.

The catch: while traditional employers take taxes out of workers’ hourly wage, freelancers have to monitor their income to account for tax payments down the road.

Clients value freelancer experience over education

Another surprising statistic reveals that clients prefer freelancers with experience over freelancers with education. As Business News Daily explains:

“Jonny Steel, vice president of marketing at Payoneer, said one of the most surprising data points uncovered by the survey was that freelancers with a college degree typically earn $20 an hour, less than the $22 an hour earned by those whose highest education level is high school. This, he said, suggests that companies who hire freelancers favor experience and client reviews over formal education.”

We’ve written before about the benefits of starting your freelance career while you’re in college, and add this benefit to your list: the more freelancing experience you rack up before you graduate, the better you’ll look to potential clients.

If you want to be a freelancer, this study proves that the earning opportunities are out there. Learn how to market yourself, how to pitch a client and how to negotiate a competitive rate and you’ll be on your way to a satisfying and well-paying freelance career.