Key Takeaways. Freelancers don't get employee benefits such as health insurance, paid time off, or a 401(k) account. Self-employment income can be inconsistent and unpredictable. Getting clients as a new freelancer can be difficult.
Unstable Income
If you're planning to become a freelancer, you have to be willing to tolerate risk and financial instability. Even experienced freelancers who have been in the business for several years sometimes find themselves struggling financially. To mitigate this risk, start out by freelancing as a side hustle.
Freelancing is equal parts positive and negative. You just have to decide if you're willing to take the risk that almost always accompanies it. Freelancing means professional freedom, but it also means instability and the risk of failure. And that may not be what you need in your professional life.
There are several reasons why freelancers may fail: Poor Time Management: Freelancers who struggle with time management may miss deadlines, produce low-quality work, or overcommit themselves, leading to burnout. Lack of Marketing Skills: Many freelancers struggle to find clients or promote themselves effectively.
Launching Your Business without Enough Savings
One of the biggest – and most costly – freelance mistakes you could ever make is not considering the expenses that your new business venture might face. Going freelance might not generate an immediate, steady, and substantial income.
Freelancer Stress Is Common (But Doesn't Have to Be)
But as you start to ramp up your freelance career, you may find yourself experiencing the same, or more, stress as your 9-5. Maybe you're up late at night, having anxious thoughts about… Saying “yes” to too many projects at once and feeling overwhelmed.
As an additional issue, freelancers often face concerns over potential burnout. Over time, an inconsistent schedule, odd hours, and the constantly shifting job market can cause considerable mental stress. The need for a strong and consistent drive can cause freelance work to be more difficult for some than for others.
Uncertainty. It takes time to build a successful freelance career, but the reward makes the road worth it. Keeping track of finances and battling with the stigma that your art is not valuable or worth much money to a client! The constant pressure to win more work and the need to manage your time effectively.
You can decide how you want to fire a freelancer, but it's essential to at least give them a courtesy call or email to let them know. Ideally, discontinue their service in the way you usually communicate with them. A phone call or email is fine if they are a remote worker.
Even freelancers who take great care to prevent lawsuit can end up getting sued. Life is unpredictable like that, which is why most professionals carry small business insurance to reduce the likelihood that a rogue legal problem or accident will ruin them financially.
With a freelance career, professionals can accept projects for a variety of clients. This can enhance stability for many, as the loss of one client doesn't equate to the loss of their entire income. Of course, building a freelance career can present many challenges that make some professionals feel uncertain.
Freelancing can be a great career, since it allows you to work from anywhere, at any time, as long as you have a reliable Internet connection. There are a few different benefits to freelancing, but the most important is the freedom of working whenever and however much you want.
Sixty-six percent of freelancers say they feel more stimulated and 68% say they feel happier by the freelance work they do compared to a traditional job. Other benefits include more headspace to devote to physical health, mental health, and overall well-being.
A freelancer business might work for you if:
You crave more freedom and flexibility than you can get working for a single company. As a freelancer, you set your own hours and can choose which assignments to accept and reject. You also decide where you'll work and what equipment you'll use for your jobs.
Whether or not you're an anxious person, freelancing can bring up a lot of anxiety, in various ways. As freelancers, we have pretty much zero job security (clients can use us, or not, at will), our incomes can be unpredictable, and we don't get regular performance reviews.
Freelancers are self-employed and have to take on a lot of responsibility, which translates into more freedom. When working as an employee, you tend to have more stability and financial security, but you will often have less flexibility in your day-to-day activities.
Every entrepreneur and freelancer deals with fear: fear of not making enough money, fear of not doing enough, fear of not being successful, fear of imposter syndrome, and fear of overcommitting. The fear is real.
Further stats show that 44% of freelancers have experienced not getting paid by clients. Don't let this happen to you.
No two freelancers or entrepreneurs are the same, but the best and most successful do share some similar characteristics. The ability to work hard, professionalism, communication skills, persistence, passion, self-discipline and initiative are some of the most important characteristics.
Plus, if you find a good niche, you can make large amounts of money in short amounts of time. That means it's possible to become a millionaire. A possible negative or con to managing yourself is that you have to be a self-starter. Once you secure a project, you have a timeline you will have to meet it by.
You're reliable. Your clients will need to know they can rely on you to meet deadlines and submit fantastic work. If your personality doesn't scream “I'm reliable!” it may be tough to get work as a freelancer.
It's a fact—you make more money as a freelancer
According to a 2020 survey by Upwork, the popular freelance jobs platform—75% of freelancers earn as much, or more, than they did when working full-time.