How to freelance in the new gig economy

Freelancing is a popular career choice that has grown significantly in recent years due to the rise of the gig economy and the increasing availability of remote work opportunities. The freelance market is made up of self-employed individuals who work independently and provide their services to clients on a project-by-project basis. 

This type of work provides a great deal of flexibility and control over one's own schedule, workload, and earning potential. However, like any career choice, freelancing has both ups and downs. Below we explore what a freelance career might look like, and provide tips on how to be your own boss and a successful freelancer.

What is the gig economy?

The gig economy is a labor market where temporary or flexible jobs are common, and independent workers work on a project or task basis rather than being employed by a company or traditional employer on a long-term basis. 

This type of work is often conducted through digital platforms or apps that connect workers with clients who need their services. Freelance platforms include the likes of Upwork, Fiverr, and Freelancer.com for instance. 

Gig economy jobs can range from driving for ride-hailing services to performing freelance writing or design work. The freelance business allows individuals to work when and where they want, providing them with a great deal of flexibility and control over their work schedules, essentially making them their own boss. 

However, it also comes with challenges such as a lack of job security, no benefits or protections, and potential fluctuations in income. While freelance work sounds attractive, it’s important to consider the skill set needed and whether the ups outweigh the downs in relation to your specific needs and wants. 

Being realistic about freelancing

The freelance business has gained a reputation for offering a very attractive lifestyle, but it still takes work and requires a number of skills and commitments that you, and you alone, will need to front. 

Organization skills

For a successful freelancer, being organized and managing your time effectively is crucial. This means staying on top of your tax obligations, keeping your documents in order, and ensuring that you meet all deadlines. 

Multitasking

In addition, multitasking is a necessary skill for most freelance workers, as you'll likely have to juggle multiple projects simultaneously. This requires effective task prioritization and the ability to switch between different topics seamlessly. 

Strong communication 

Good communication skills are also essential for success, as you'll need to handle difficult clients and know how to ask for guidance when needed. Effective communication is also crucial to a successful freelance career as you will likely need to take the initiative and approach potential clients for work. Promoting your skills and putting yourself out there also requires courage and self-confidence. 

Self-discipline

Perhaps the most crucial for a freelancer freelancing in this day and age is self-discipline. No matter what line of work you pursue, you'll need to stay focused and avoid distractions while working independently, whether it's the temptation of a nap or a social interaction.

The freelance lifestyle may sound flexible, but in reality (more often than not) it is still a full-time job as you are essentially running your own business.

Handle criticism 

Being able to handle constructive criticism is an important trait for freelancers, as you'll often need to accept and respond to feedback that isn't always positive. Remember, even talented freelancers producing high-quality work receive negative feedback.

Self-motivation

Being self-motivated is key when working as a freelancer, as you'll be responsible for managing your own work schedule and meeting deadlines without the guidance of a manager. If you prefer a more social work environment, freelancing may not be the best fit for you as it often involves working independently. 

Financial resilience

Finally, new freelancers should be prepared to have a certain level of financial resilience as there can be uncertainty about when their next paycheck will arrive. When they start freelancing, quiet periods of contract work can be anxiety-inducing for some people.

The upside of freelancing

On the positive side, freelancing allows individuals to work from anywhere, giving them the flexibility and autonomy to balance work and personal life. 

One of the primary advantages of freelancing is the ability to take control of your work schedule. You have the freedom to choose when and where you work, making it much easier to balance your professional and personal commitments. 

Freelancers having the freedom to select their own projects means that they have a great deal of control over the type of work they do, far more than a regular job. You can choose to work on projects you enjoy and are passionate about, and have the ability to set your own rates and choose clients that align with their values. 

Additionally, freelancers have the potential to earn more money than traditional full-time employees as they have the ability to work with multiple clients simultaneously and charge higher rates for their specialized skills.

Another benefit is that your earnings are directly related to your effort and the quality of your work, which gives you a real sense of achievement that you might not feel working in a traditional office environment.

When done right, freelancing can offer a great deal of professional and personal fulfillment. Before you start full-time freelancing, however, be sure to understand the bigger picture of what is required.

The downside of freelancing

One of the most significant challenges for many freelancers is that it can be financially unpredictable, as one's income can fluctuate from month to month, paired with a lack of job security. Additionally, there are no paid vacation days, sick leave, or other benefits that traditional employees enjoy. 

As a freelancer, you'll need to ensure that you're always available to communicate with your clients, which can require a certain level of flexibility. On top of that, freelancers might also need to continuously search for new clients and projects on online marketplaces to maintain their income. 

If you venture into the world of freelancing, it’s important to note that you will also be responsible for all administrative tasks, including accounting, invoicing, tax obligations, and chasing payments, which can be time-consuming and require a great deal of attention to detail. 

Another issue is the isolation that can come with working independently, as freelancers often work from home or their local coffee shop and may not have the same social connections as traditional employees.

Overall, freelancing can be a rewarding career choice, but it requires a significant amount of self-discipline, motivation, and business acumen to be successful. It's important for individuals considering freelancing to weigh the benefits and drawbacks carefully before making the leap.

If you’re unsure whether freelancing is for you, consider slowly taking on one or two freelancing jobs while still working your traditional 9-5. This way you can test the waters with first-hand experience and see if this is something you would like to pursue full-time. 

10 steps to kickstart your successful freelancer career

If you’ve decided to take on a slow transition or full-time shift to freelancing, we’ve put together these 10 steps for you to take in order to build up your portfolio. From finding work on freelancing websites to managing the workload and establishing pricing, here are the tools you’ll need to build your freelance business. 

Step 1: Find your first job

Freelance work can be found through online freelancing platforms, which are a popular option for both freelancers and clients, with recent data showing that 75% of freelancers find work this way. Explore the various freelancing platforms and find which one best caters to your needs. 

Step 2: Build a portfolio of freelance work

To create a successful freelance profile, it needs to make a strong impression and showcase your skills, experience, and personality to potential clients. Consider taking on smaller projects in the beginning that will display your skill set to gain experience. The more you can show, the more interest you can attract. 

Knowing which freelance projects to take on and how to write a winning proposal can be crucial in securing steady work and building a reputation in the industry.

Step 3: Establish your pricing formula

One of the most common questions that freelancers have is how to price their work, as it can be challenging to balance fair compensation with the risk of losing clients to competitors.

There is a fine line between overcharging and scaring away potential business and selling yourself short. Use trial and error to figure out specifically where your skill set lies, and don’t be afraid to check out what other freelancers offering similar skills are charging. 

Remember: Your work is valuable, and your expertise, experience, and dedication deserve to be rewarded.

Step 4: Discuss the job parameters with the client before beginning

Before starting work on a project, it's important to discuss and agree on details with the client, including deadlines, the scope of work, and payment terms. This step is vital and should never be skipped.

Be sure to understand what the client wants and effectively communicate your requirements before spending any time on the project you’ve just landed on. 

Step 5: Manage client expectations

Freelancers need to manage client expectations and maintain a positive working relationship through effective communication and a clear contract. Always start on the right foot by being polite, assertive, and transparent.

Each client will be different so ensure that you navigate these relationships in a tailor-made manner. Ideally, you want to establish a strong client relationship and meet (or hopefully exceed) their expectations. 

Step 6: Manage your time effectively 

You’ve landed the job, now it's time to do the work. Time management is key to productivity and success as a freelancer. Ensure that you are scheduling work during productive hours, using time-tracking software if necessary, and effectively using your time to balance the workload of multiple projects.

Take the time to explore various tips and tricks for managing your time between projects, and build a winning formula that works specifically to your needs. The primary goal here is to maximize your productivity. 

Step 7: Get paid

Getting paid as a freelancer can involve choosing the right payment options, dealing with fees and invoicing, and learning the best course of action for receiving international payments. Tap provides a winning formula that caters to both crypto and top fiat currency payments. 

Unfortunately, this is also the time to learn how to address and handle non-payment issues.

Step 8: Manage your finances

Freelancers need to manage their finances carefully, as income can vary and benefits and tax obligations are the sole responsibility of the freelancer.

Be sure to stay up to date with policies like health and disability insurance, and learn about investing and passive income solutions for retirement and other savings goals. 

Step 9: Level up your freelance career

As a freelancer, there are many opportunities to grow your career and income, such as becoming an agency with other people working under you or teaching others your skills and experience through online courses. 

Step 10: If in doubt, start small

It's possible to balance freelancing with a day job, but it takes planning, determination, and persistence to make it work. This is also a great way to test the market and see if the freelancing life is for you. 

How to navigate the freelance business as a newbie

Now that you have a clear understanding of what freelancing entails, and a to-do list of steps to take to pave your new career path, below are some tips for anyone starting out or looking to become a freelancer. These will come in handy as you navigate the space and ensure that you don’t sell yourself short. 

Be selective about what jobs you take

To showcase your skills and present yourself as an expert, it's important to choose freelance projects that align with your skills and interests, rather than accepting every job that comes your way.

Establish a good pricing formula

Finding the right pricing balance can be tricky - charging too little can make you appear less experienced while overcharging can lead clients to seek out more affordable options. Researching market rates can help you find the right pricing balance.

Keep checking in with clients

Following up with clients after completing a project can lead to more work and strengthen your professional relationship. Consider suggesting additional projects that could benefit the client's business and make a note to check in again in a few months.

Always get a signed contract before starting

Before starting work on a project, always ensure you have a signed contract that outlines the obligations on both sides, including payment terms. Although it may feel awkward to request a contract, it can save time and hassle down the line.

Outsource administrative tasks if necessary

Administrative tasks such as invoicing, accounting, and tax management are important but can be time-consuming.

Consider delegating or automating these tasks to free up more time for paid work. Several millionaires interviewed in a study said that one of their keys to success was recognizing their weaknesses and delegating accordingly. 

Structure your day

To manage your time effectively, create a routine that allows you to balance work and other commitments. Scheduling work during your most productive hours and avoiding leaving work until the last minute can help you maximize productivity.

Stay motivated

Freelancing can be challenging at the beginning, but it's important to persevere and not give up. With experience, you'll gain more confidence and find it easier to secure work and manage your business.

Best of luck with your new venture if you decide to start freelancing.