What is a Freelancer?

A freelancer is a professional who works for themselves and does work for different industries, usually on a project-by-project basis. 

While the term is currently associated with online workers, the idea of a freelancer has been around since the 1800s. Nowadays, becoming a freelancer is an option strongly considered as an alternative to traditional employment.

How Freelancing is Shaping the Gig Economy

A freelancer is a professional who offers their services to clients without committing to a full-time contract and is usually performed on a project-by-project basis.

This is a form of self-employment that gives the professional the freedom to choose their clients and hours.

Freelancing is not a new concept; while many people think freelancers are solely online workers, a freelancer is simply someone who offers their services in exchange for payment.

In fact, the term "freelancer" has been used as early as the 1800s, referring to any medieval mercenary who would fight for whoever was willing to pay him the most.

Online technology has just made it easier for professionals to offer their services, especially with the rise of freelancing platforms like Fiverr and UpWork.

How Does Freelancing Work?

While freelancers are considered independent workers, they operate much the same as traditional employees do in that they usually require a contract to work on their clients' projects. 

Some freelancers take on projects without contracts, but due to the nature of the industry, it is much safer for them, legally, to cover the scope of the project with the needed documentation.

The key difference between freelancers and traditional employees is that freelancers are free to pick and choose the clients and projects that they take on, giving them a lot of freedom over their employment and hours.

Freelancers are available in the most popular industries, such as tech, design, and marketing, but there is no limit to the types of services that freelancers can provide. 

Even niche industries have their fair share of freelancers, including music production, the hobby industry, and translation, to name a few.

When a client is in need of a freelancer's services, both parties usually come to an agreement about:

• The terms of the project

• The client's expectations for the project

• The expected time frame

• Milestones

• Deliverables

• Payment

As soon as the project is completed by the professional within the terms of the contract and the client is satisfied with the work done, both parties end their working relationship. 

The length of a project can vary widely, with some projects lasting as little as a few hours and others lasting several months.

What Are the Advantages of Freelancing?

Choosing to become a freelancer means taking control of your career and reaping the benefits of being your own boss.

Some of the advantages of this career path include:

1. You Have Complete Flexibility Over Your Work

One of the best ways to control your working environment is through freelancing.

You can work wherever you want, so if you get tired of sitting in an office all day, you can go freelance and work in any environment where you feel productive.

This could be at a nearby coffee shop, a beach, or a co-working space.

This is an excellent method for achieving an ideal work-life balance.

2. You Set the Tone For Your Work

You can pick and choose which clients to work with as a freelancer. 

This gives you control over the type of work you do and gives you the option to select clients who share your values and professional aspirations. 

This can help you stay more motivated and focused during the course of a project.

3. You Control Your Earnings

In terms of earning potential as a freelancer, the sky's the limit.

You determine the value of your services, and you can always negotiate a higher rate if you believe your skills are worth it. 

Freelancers charge by the hour or on a per-project basis, so it's entirely up to you to decide how to set your rates.

4. A Wider Professional Reach

Many professionals are discovering that freelancing gives them the opportunity to make connections and form relationships with other professionals in their field in unlimited ways. 

In fact, some professionals are finding clients all the way on the other side of the world.

This gives you the opportunity to widen your reach and expand your professional horizons.

What Are the Drawbacks of Freelancing?

While freelancing has many advantages, you should be aware of its downsides.

Understanding both sides of the coin will help you determine whether freelancing is right for you.

1. You're On Your Own For Everything

One of the biggest drawbacks of being a freelancer is that everything about your work is left to you. 

You're responsible for finding your own clients, managing your own projects, handling your own taxes and documentation, and any other administrative tasks that come with the "self-employed" tag.

2. It Can be Lonely

If you enjoy being around other people, freelancing can be a significant change in environment for you. 

Being a self-employed professional can mean spending your entire day working from home, away from people, which can be very isolating. 

However, there are ways to deal with this, such as working in a co-working space or joining a local freelancer group that meets regularly to work together.

3. You Don't Get the Benefits of a Corporate Gig

In addition to having to handle all of the administrative tasks of a self-employed professional, you also have to figure out all of the benefits that typically come with a traditional corporate job.

This includes your health insurance and 401k.

Working from home as a freelancer requires spending more on overhead costs.

These costs are usually reduced when you work in an office.

Examples of such costs include utilities and Internet plans.

4. It Isn't as Stable as a Corporate Job

The biggest thing that you sacrifice when you go freelance is the stability that a corporate job provides. 

While you have the potential to earn much more as a freelancer, there is also the risk that you earn less, or even nothing during some months, if demand for your services is low.

In addition, there is the risk of working with clients who refuse to pay even after services have been rendered. 

This is why it's crucial to cover your legal bases and establish clear project milestones when negotiating a project, to ensure that you are protected and compensated for your work.

Considering Freelancing as a Career Path

The great thing about choosing to go freelance as a career path is that you don't have to sacrifice your full-time corporate job to get into it. 

Freelancers often start their careers by taking on side gigs to supplement their current income.

Additionally, side gigs can be a way to safely explore freelancing while having a fallback in case it doesn't work out.

If you're looking for potential side hustles to start your freelancing journey, we have a helpful guide on different side hustles that can kickstart your self-employment journey.

If you want to be a freelancer, you need to be able to adapt to the industry's ups and downs and learn the hard and soft skills you need to be successful in your chosen niche. 

But if you can do that and make the necessary sacrifices, freelancing could be a great way for you to pursue a career that is both financially and professionally rewarding.

If you're just starting out as a freelancer, there are numerous platforms available to help you find your first client.

Two of the most well-known platforms are Fiverr and Upwork.

Fiverr is a platform where freelancers can showcase their services and rates to clients who are ready to hire them.

In contrast, Upwork operates on a bidding system where freelancers compete with each other for projects.

There are many freelancing platforms available, but starting with these two can be helpful.

They can provide you with a sense of how freelancing operates.

Moreover, they can help you understand how to market and price your services.

Additionally, they can help you understand what clients are looking for in a freelancer.

Wrapping Up: Freelancing As a Way to Take Control of Your Professional Life 

If you're looking for a new way to approach your career, consider freelancing.

Here's an overview of what freelancing is and how it differs from traditional employment:

• Freelancing is a form of self-employment: A freelancer is a professional who works for themselves and offers their services to clients, typically on a project basis.

• A freelancer arrangement is strictly between the freelancer and the client: Freelancers have greater autonomy over their work arrangements than corporate employees because they personally negotiate rates and service terms with clients.

• Freelancers operate differently from traditionally employed professionals: Becoming a freelancer comes with certain advantages, such as having control over your work, rates, and hours. However, it also means giving up the company of co-workers and employee benefits that come with a corporate job. Additionally, the freelance lifestyle can be insecure and unpredictable. 

Starting a freelance career can begin with taking on small side hustles from online platforms before transitioning to full-time work.