With more than 17% of the self-employed workers in America classifying themselves as independent contractors or freelancers, the number of individuals who earn a living off of freelance work is on the rise.
|Infographics: Freelance Revolution © CreditDonkey|
Many people question the decision to transition from traditional employment to freelance work. They wonder if they will be able to secure enough consistent work to meet their monthly bills. Their personal life is also on the line – will work stretch into the weeknights and weekends, extinguishing their ability to socialize with their families and friends?
Thankfully, the vast majority of those workers who have already transitioned into freelance work find they are satisfied with their decision; fewer than 1 in 10 independent contractors state they would prefer a more traditional work arrangement. This is thanks to the benefits they have found from freelancing.
How freelancers benefit
- It pays off: Many people mistakenly believe that freelancers have to struggle to get by but this stat shows it’s often the opposite – in 2010, the average freelance salary was $68,000; that’s 45% more than the national salary average. While it can take some time to get your freelance business off the ground, it often will pay off. This helps free you from your dependence on credit cards, making it so you can pay off your debt and credit cards each month while still having money left over for fun and savings.
- Set your own hours: Who isn’t tired of the 9 am to 5 pm (make that 7 am to 7 pm!) grind? Freelancers are able to set their own schedule, taking more or less projects, as it fits their personal schedule.
- Ability to be picky: When you work in a traditional office environment, you typically don’t get much say in which projects you work on. But as a freelancer, you’re able to pick and choose from projects that appeal to you.
Get in on the freelance revolution
Freelancing sounds like a great opportunity for many professionals, but they’re often uncertain where to start. Thankfully, with the help of the internet, it’s easier than ever to find freelance opportunities. Individuals are turning to the following resources to find work:
- Freelance websites: Several websites have been created in recent years to help facilitate the freelance process. These sites bring together businesses and independent contractors on a project-to-project basis. Businesses post projects and then independent contractors bid on the projects.
These sites are often a great way for individuals to build their freelance portfolio and resume. However, there is one drawback to these sites – they often have clauses preventing contractors and employers making arrangements outside of the site. And because there is typically a fee to the employer based on a percentage of the pay to the freelancer, individuals often find they earn less on jobs obtained through the website as opposed to those they secure on their own.
- Non-specialized job sites: Individuals can also utilize “traditional” employment websites to find freelance work. And because they typically just charge a flat fee for advertising the job on their site, there often is the opportunity to negotiate a higher rate with these employers than with freelance-oriented sites.
One thing to note is that the freelance opportunities found on regular job sites tend to be for longer projects, so you will want to take extra time to weigh the opportunity to ensure it will work well with your current personal and professional schedule.
- Professional network: Individuals looking to get into freelancing can also call upon past employers and other professional contacts. With a couple of quick emails, they can get into contact with their professional contact to see if there are any opportunities available to them. And because they are familiar with the individuals, it helps to eliminate some of the unknowns that are involved with working with a new-to-you company.
No matter how you find your first freelance opportunities, you will want to ask the employers if you can use samples of your work to build your professional portfolio. By building a strong portfolio, you will increase the likelihood of securing more jobs in the future at a higher rate so you can take advantage of setting your own schedule and increasing your earning potential.
(Infographic by Marco; Additional Writing by Meghan)
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Emma A is a contributing writer at CreditDonkey, a credit card comparison and financial education website. Our data-driven analysis has been recognized by major news outlets across the country and has helped young adults make savvy financial and lifestyle decisions.