How To Become a Freelancer and Promote Yourself Successfully
November 5th, 2024
It’s tempting to become a freelancer – work for yourself, set your hours, and not worry about being bossed around. That’s the beauty of freelancing.
There are an estimated 76.4 million freelancers in the U.S., and almost 50% of the global workforce is self-employed.
Do you want to join them? Learn how to kickstart your freelancing career with this guide. Discover tips for building a strong portfolio, setting rates, and finding clients while navigating the benefits and challenges of freelance work.
Benefits of freelancing
If you’re looking to become a freelancer, you’ll likely enjoy the many benefits that come with it. Below are some top advantages.
- Flexibility
Freelancing allows you to create your own schedule. You can work at your own pace, from any location, which helps you balance work and personal life.
Plus, you have autonomy in shaping your work schedules, which means you can work at your most productive times.
- Work choice
Freelancing allows you to choose projects that match your interests and skills, unlike a full-time job, which limits your choices.
Freelancing also presents unique opportunities to focus on niche expertise. That means you have access to projects that help you set yourself apart from generalists.
You can focus on a specialized field, such as content marketing for startups or UX design for healthcare apps. This expertise allows you to offer deeper insights and more tailored solutions to clients, which increases your value and enables you to charge premium rates.
- High earning potential
Freelancing allows you to charge higher rates based on your skills and experience, while traditional employees have to wait for their company to give out a raise.
Full-time workers have no control over their salaries. Freelancers have more control because they can accept or decline jobs if the pay doesn’t match their worth. They have greater flexibility in setting their rates and negotiating compensation based on the value they bring to a project.
- Control over workload
Have you ever experienced a workload at a typical 9-to-5 job that was so heavy that you contemplated quitting? You wouldn’t be alone — 70% of burned-out employees would leave their jobs.
When freelancing, you have the autonomy to manage your projects and maintain a healthier work-life balance. You can accept new clients based on capacity and the freedom to take time off as needed. This means better time management.
Disadvantages of freelancing
Freelancing offers many incredible opportunities, but be prepared also for the challenges.
- Taxes
Unlike traditional employment, freelancers are responsible for their income taxes, must save for them, and pay them quarterly or annually. This can be a challenge for anyone who is used to automatic tax withdrawals.
And that’s not even the worst part. On top of paying the regular income tax, freelancers must pay the self-employment tax, which is 15.3% of your pay. So, it’s always a good idea to set aside at least 30% of your taxes if you’re freelancing.
You might also consider forming an LLC to conduct your freelancing business. This will create a separation to shield your personal assets from liability and provide some financial benefits regarding taxes. An LLC can reduce your tax obligations and allow you to choose either pass-through taxation (business taxes “pass-through” to your personal tax return) or corporate taxation.
These benefits can be even more pronounced depending on the state. For instance, an LLC in Florida has to pay notoriously low taxes, and the state generally has a low cost of living.
- Consistency
You’ve heard the term drought, right? That’s one thing many freelancers experience when there’s a shortage of work.
This makes it hard to meet consistent income goals and needs, especially if you’re new to freelancing. So, how do you survive the “feast or famine cycle”?
The first step is to be familiar with the typical slow months. These include December and January, when many people are off during the holidays. July and August are also some of the slowest months because many people go on vacation during these times.
Here are some tips for getting through freelance droughts:
- Set up retainers: A retainer model ensures steady income by offering regular work for a fixed monthly fee. At the same time, volume-based discounts encourage repeat business by rewarding clients who commit to larger projects. These strategies help you create loyal client bases early in your career without a complex system.
- Consider subscriptions: You can also set up a subscription model that uses a tiered pricing structure based on your service. For example, if you’re a freelance writer, you might provide different writing packages. You may deliver two 1,500 blog posts per month for $500, five 1,500-word blog posts per month for $1,200, and ten 1,500-word blog posts per month for $2,000.
- Have multiple income streams: Beyond freelancing, you might want to diversify your income streams. Consider getting a side hustle, starting a consulting service, or even building a course to help other freelancers succeed in their industry. You might also explore passive income opportunities like selling digital products (e.g., templates, books, etc.) or affiliate marketing.
- Have backup plans in case of emergencies: Disasters can strike even the most well-thought-out strategies and business plans. This is why you must have emergency plans. Keep a savings account with at least six months of living and business expenses. Find out the how to get a business credit card so you have one on hand for unexpected expenses like replacing a large piece of equipment (your computer) or emergency travel. The key is to never leave your financial fate to chance.
- Everything is up to you
As a freelancer, everything concerning the business is your responsibility, from operation to admin to taxes. So, be prepared to wear many hats, especially in the beginning stages of business ownership.
But as you progress, you can hire a virtual assistant (VA) or other contractions to help with admin and repetitive tasks. That way, you can lighten the load and be able to focus on high-value tasks.
- Higher risk for burnout
Freelancers are often prone to overwork. The average freelancer works 43 hours per week. Because you’ll likely be running a one-man show, you can burn out more easily.
Excessive workloads, lack of support, and the pressure to make money and perform without adequate resources can make you feel like you’ve had enough.
The key is to know when you’ve reached that point. There are a few telltale signs, such as emotional exhaustion and a drop in performance. If you notice these signs, intervene early to prevent significant issues in the future.
The beauty of freelancing is that you can set your schedule, decide what work to take on, and take time off if it gets to be too much. So, use this to your advantage to avoid burnout.
How to become a freelancer step-by-step
Follow these steps to begin your freelance career and deliver high-quality services to clients.
1. Decide what service you’ll offer
What services do you plan to offer? What skills do you have that allow you to continuously deliver top-notch work to clients?
Don’t have any skills? Consider your experience and passions to identify your niche. Once you’ve chosen a service, make sure you fully grasp the range of expertise and value you can offer. This ensures you can meet diverse client needs.
2. Create a portfolio website
Create a portfolio website with an engaging homepage, an “About” page detailing your skills and experience, a “Services” page with descriptions, and a portfolio showcasing your best work.
Optimize your website for search engines to gain visibility in the search engine results pages (SERPs), make sure it’s mobile-friendly, and include client testimonials as your business grows.
Choose one of the free website templates to build your portfolio site quickly.
3. Research and set your price point
Research your niche and analyze the market to set a competitive price point for your freelance services. Understanding client goals, the value of your work, and your skill set can guide your pricing strategy. As a result, you won’t undervalue yourself or overcharge.
4. Build brand awareness
Put your services out there by engaging with your audience on social media and networking with industry peers. Show that you consistently deliver quality work that exceeds client expectations.
LinkedIn offers potential clients and peers a space to actively seek talent and collaboration opportunities. Build trust and credibility by engaging with your professional network, sharing case studies, and showcasing your achievements.
5. Join freelancing platforms
If you don’t know where to look for clients, use a freelancing platform like Upwork, Fiverr, or Freelancer.
Getting your first job on these platforms can be challenging due to the high competition. However, once you get your first job, the possibilities are endless. Be sure you build a strong reputation and aim for five-star reviews to stand out from the crowd.
6. Network
Network with other professionals, including industry peers and potential clients, to expand your client connections and referral opportunities. Focus on building genuine relationships instead of cold pitching. These connections can lead to sustainable business and client retention in the long run.
Collaborate with other freelancers and leverage existing contacts to enhance network growth.
7. Work on lead generation
To generate new leads, get to know your audience. Learn what online platforms they spend the most time on. Understand their pain points, goals, and motivations.
Use multiple channels, such as social media, email marketing, and content marketing, to engage your audience. And no matter what channel you use, point all leads toward your portfolio or your freelance website.
8. Build your skills continuously
Continue to build your skills to enhance the quality of your service, stay competitive in the market, and open up new opportunities. Use different online learning resources like Udemy or Coursera, where you can find courses tailored to your industry and areas of expertise.
Aside from technical skills, you must adapt your business management capabilities to succeed. Master essential areas like time management, client communication, financial planning, and marketing.
Conclusion
The journey to freelancing is challenging but can be very rewarding if you do it the right way. Building a stable client base, creating a buffer, and paying taxes are just some of the things you need to do to become a successful freelancer.
To become a freelancer, you also need a solid online presence, which will ensure your visibility to potential clients and allow you to keep them engaged.
Author Bio:
Kelly Moser is the co-founder and editor at Home & Jet, a digital magazine for the modern era. She’s also the content manager at Login Lockdown, covering the latest trends in tech, business and security. Kelly is an expert in freelance writing and content marketing for SaaS, Fintech, and ecommerce startups.
