Choosing to work as a freelancer is a personal decision. Consider the following pros and cons to help you design a roadmap for career success.
There’s no denying the overwhelming growth of freelancing. According to the “Freelancing in America” poll conducted by Upwork, 56.7 million Americans freelanced in 2018 – up 3.7 million from 2014. That’s one-third of the population working as freelancers!
Younger generations are more likely to freelance than older generations. In 2018, 42% of 18-34-year-olds freelanced, up to 38% in 2014. In 2018, the freelancing rate among people aged 35 to 44 grew to 35%, up from 34% in 2014. In fact, freelancing declined little among the older age groups.
If you wish to join the rising group of freelancers, consider the following pros and cons of freelance jobs to see if it’s something you might want to consider.
Pros of freelancing
#1 Freedom of client choice
Freelancers have the distinct advantage of picking and choosing which clients they work with. They can also deal with a large number of clients or just a few select ones. According to a FlexJobs poll of over 1,000 freelancers, the two most popular ways freelancers get clients are networking (56%) and job sites (47%).
#2 Workload management
The option to choose their own workload is another advantage that freelancers have. They’re free to work as much or as little as they choose. This gives them a chance to work on projects they’re passionate about. Freelancers have enough freedom to deliver high-quality work without the distractions of full-time employment, like meetings, office politics, office drama, and so on.
#3 Flexibility
Freelancers enjoy the flexibility that most people desire due to the fact that they get to choose who to work with and how much freelance work they can take in. They can work full-time most of the year and only part-time during the summer.
#4 Independence
Freelance work allows you to be more independent. You’re not only free of the cubicle and the 9-to-5 workday, but you also have the option of working alone and where you’re most comfortable (most of the time).
#5 Exposure
Many occupations offer employees variety; freelancers, however, can work on a wide range of projects and themes. Working in-house for one organization may not provide experience in other industries or fields which can hinder expanding one’s horizons. This variety can help stimulate creativity and increase financial as well as professional growth.
Cons of freelancing
#1 taxes
Uncle Sam gets will always get a cut of your earnings regardless of whether you are a freelancer or employee. However, freelancers are responsible for paying self-employment taxes and ensuring that they’re paid on a quarterly basis.
That said, freelancers are eligible for deductions that employees aren’t. Taxes can be a freelancing disadvantage, so keep regulations and laws in mind when you’re setting your rates.
#2 Lack of benefits
Unlike employees, who are often qualified for benefits, freelancers don’t receive any benefits. Because freelancers are self-employed, they must often source and pay for their own insurance.
#3 Infrequent work
Finding consistent work is a major freelancing disadvantage. Projects can start only to be abandoned later for one reason or another. Clients can end a contract earlier than agreed upon. After completing a project, you may find it challenging to locate new work. According to a recent survey, 65% of freelancers stated that the largest problem they encountered was finding clients.
But it’s also safe to say that most freelancers lack the business knowledge necessary for sustainable growth. (Which is kind of an advantage?)
#4 Ultimate responsibility
Freelancers are in charge of their own business. They’re in charge of business development, client acquisition, client management, billing/collection, and tax payment. They have to make a lot of decisions, including how to track and accept payments (QuickBooks, PayPal, check, etc. ); which softwares and apps they need to buy (Adobe Suite, Microsoft Office, subscription platforms, etc. ); and what marketing tools they need (business cards, a website, and even a logo).
Not everyone is ready or capable of completing these responsibilities. You’re the master of your brand, and you must treat your freelance business as such.
#5 Cash flow problems
When assessing the pros and cons of freelancing, one of the most concerning problems is cash flow. While freelancers can set their own rates to fulfill their own (and their clients’) financial demands, they must also collect money. Unfortunately, some freelancers have had to deal with clients that refuse to pay.
Plus, freelancers should inquire about prospective customers’ expectations for the role and whether it’s project-based, seasonal, or recurring.
#6 Isolation
Another freelance disadvantage is team isolation. Oftentimes, freelancers operate alone unless they have someone close to collaborate with. (However, for some, this is a blessing in disguise!)
Ready to embark on your freelancing journey?
Now that you’ve learned about the pros and cons of freelancing, it’s time to learn how to excel as a freelancer. You should be dedicated, have strong time management skills, and have the ability to run a small, personal business. Guemmah.com is an excellent resource for freelance work if you’re ready to become a freelancer or already are. We publish daily articles, free resources, and special offers in our newsletter. So, be sure to subscribe.
