If you’re reading this, the odds are pretty high that you’re a freelancer.
In fact, about 15% of American workers nearly 57 million people are doing freelance work at least part-time, according to “Freelancing in America: 2017,” an annual survey by Upwork and Freelancers Union.
The number of full-time freelancers is also growing fast, with many people going solo to pursue their passions or simply out of necessity. But while more people than ever are embracing the freelance life, they don’t have the support they need from employers or policymakers.
To learn more about what it means to be a freelancer in America today and how we can start treating them like the professionals they are I interviewed Sara Horowitz, founder and executive director of the Freelancers Union.
Founded in 1995 as a nonprofit organization on a mission to change work for good, Freelancers Union has grown into an influential policy and advocacy group representing over 300,000 members across all 50 states who work independently in nearly every sector of the economy.
| Takeaways |
|---|
| 1. Freelancing is reshaping the job market and work dynamics, yet it remains an underrated topic of discussion in mainstream media. |
| 2. The rise of platforms like Upwork and Fiverr has provided freelancers with new opportunities and challenges in the gig economy. |
| 3. Generation Z is embracing freelancing as a viable career option, challenging traditional notions of work and employment. |
| 4. Freelancing offers flexibility and autonomy, but it requires self-discipline and financial planning to maintain stability. |
| 5. Understanding the pros and cons of freelancing can help individuals make informed decisions about pursuing a freelance career path. |
Freelancers Are The New White-Collar Workers
If you’ve ever freelanced, you know what I’m talking about. Even if you haven’t, it’s worth being aware of the growing trend of freelancing and its implications for the future of work.
Freelancers are the new white-collar workers and as more people become independent contractors, they will continue to change both our professional lives and our personal lives.
Freelancing is becoming a mainstream option for those seeking flexible schedules, and greater control over their careers and businesses.
Or simply the chance to pursue something new without having to leave their current job behind altogether or commit to years-long contracts with a single employer.
But why do we need such drastic changes in how we work?
Are you considering freelancing but not sure whether Upwork or Fiverr is the right platform for you? Our comprehensive guide on Is Upwork or Fiverr Right for You? will help you make an informed decision and kickstart your freelance journey.
“We Have This Idea That Freelancers Are People Who Made A Choice”
We have this idea that freelancers are people who made a choice.
But the reality is that they’ve been forced into self-employment by the lack of jobs, and freelancing has become a default option for many people in their 20s and 30s.
The majority of freelancers are women, people of color, and people with disabilities all groups who already face systemic discrimination in the job market.
The myth that freelancing is similar to entrepreneurship also needs to be debunked: it’s not about starting your own company; it’s about selling your services to different clients.
There’s A Myth That Freelancing Is The Same Thing As Entrepreneurship
The term “entrepreneur” is often used interchangeably with the term “freelancer,” but don’t be fooled they have very different meanings.
Entrepreneurship is a career: it’s a business that provides you with income and opportunity for growth and learning, while also allowing you to contribute to society in some way. Freelancing is simply a job where you work on projects for clients or organizations.
It doesn’t require any long-term commitment or obligation beyond the scope of your current project(s).
Entrepreneurship requires more thought than simply walking into an office each day; it requires business skills such as accounting, marketing, and sales strategies, customer relations management (CRM) software use/implementation strategies, etc.,
All of which is not necessary when working from home or at coffee shops because they aren’t part of your profession (unless perhaps those skills were developed over time).
‘Expectations Don’t Match Reality
I think the reason we aren’t talking about freelancing more is because of the way we think about it. We’re used to thinking about someone who works for herself as an entrepreneur, and that’s been true for a long time but I’m not convinced it’s always going to be true.
When we talk about freelancers choosing to work independently, we’re assuming they have a choice in the first place: when you can’t find anything else, sometimes working for yourself is the only option left.
It’s hard enough to find consistent employment with benefits; if you do manage that feat and then lose your job due to something beyond your control (like downsizing or automation), finding another one seems nearly impossible.
That leaves some people no other choice but self-employment and while being an entrepreneur is great if they want it, having two options isn’t always ideal either!
Want to achieve freelance success on Upwork? Discover the secrets from the Best Upwork Profiles for Freelance Success and learn how to optimize your profile, attract clients, and increase your earning potential.
‘The Public Sector Isn’t Prepared For The Future Of Work’
Of course, governments are not the only ones who need to be better prepared for this changing work environment.
The private sector is also behind the curve when it comes to recognizing the importance of freelancing, but we can all agree that governments have a higher responsibility to provide their citizens with accessible services.
As governments start recognizing freelancers as an important part of our economy and society, they need to change their policies to ensure that they can accommodate this growing segment of workers.
The public sector isn’t prepared for the future of work because it doesn’t understand how disruptive technologies like AI will affect employees and our economy at large.
And while many experts believe AI will be beneficial overall by automating routine tasks and freeing up humans for more creative jobs (like those involving face-to-face interaction or emotional intelligence), there’s some concern that we could end up losing jobs along with them.
To prepare yourselves properly for this coming shift in employment trends:
‘It’s Harder For Freelancers To Network’
Networking is a challenge for freelancers in general, but it’s even harder to bring your professional life together as a freelancer.
You have to deal with both the difficulty of finding new clients and colleagues that match your skill set, as well as the challenges posed by having no office to go to during the day.
The good news? It’s possible! Freelancing is growing in popularity, and there are plenty of other people who can help you find work.
Whether through social media or in-person networking events (more on those later), there are plenty of ways for freelancers to build their professional network.
If you’re looking for some tips on how best to network effectively, check out this article from HubSpot: https://blog.hubspot.com/marketing/social-media-marketing-tips
‘Freelancers Don’t Get Benefits’
One of the most common misconceptions about freelancers is that they don’t get benefits. This is not true! While it’s true that some freelancers are not eligible for health insurance or other benefits, many do have access to these perks.
How? Because freelance workers are often self-employed, they can purchase their insurance at a lower cost than what employers pay for them.
However, there are other reasons why freelancers might not receive benefits:
Freelancers aren’t employees – they’re contractors or consultants (and therefore aren’t eligible for employer-provided insurance).
They’re part-time and therefore don’t meet the full-time employee threshold that makes companies provide employee benefits to stay competitive in their industries.
A problem exacerbated by technological advances like automation and AI which will continue to replace human labor with machines unless we find ways around it!
Curious about the freelancing world and what to expect on this journey? Explore our insightful article on What Freelancing Is Like and What to Expect to gain valuable insights and tips from experienced freelancers.
‘Self-Employment Has Always Been High In The U.S., But It’s Now Outpacing Growth In Traditional Employment’
You might be surprised to learn that the number of self-employed Americans has grown faster than any other group over the past few decades.
According to U.S. Bureau of Labor Statistics data, the number of self-employed people in America has more than doubled since 1997, from 10 million to 23 million today (for comparison, there are about 15 million employees).
In fact, according to one study by Intuit Inc., an estimated 42% of all workers will be freelancers by 2020!
It’s worth noting that this doesn’t mean that everyone who is self-employed is a freelancer; many self-employed people contribute to multiple entities (e.g., a graphic designer could work for several companies without being considered a “freelancer”).
This also doesn’t include independent contractors, who have been increasing rapidly as well but given how many professionals are now choosing this path and some companies’ reluctance toward hiring them full time instead of hiring more employees or outsourcing their work entirely overseas where it can be done cheaper and less responsibly…
Discover the reasons why the future of work is moving towards freelancing and how it impacts career choices in our thought-provoking piece on The Future of Work Will Be Freelance: Reasons. Stay ahead of the curve and explore the possibilities of this evolving work landscape.
‘Gig Platforms Like Uber And Airbnb Don’t Help’
They’re not good for freelancers because they’re not a solution to the problem of freelancing. Gig platforms make it harder for freelancers to find work and make money.
Gig workers are often considered independent contractors and therefore aren’t protected by labor laws or any other safety net provided by an employer.
They have no access to unemployment benefits or health insurance, nor can they contribute to retirement accounts or take time off from work without losing pay (or worse).
Worse yet, many gig economy companies impose set schedules and minimum hours on their workers:
If you want your job as an Uber driver or Deliveroo courier (a delivery service), you have to drive whenever they tell you to even if there are no passengers who need rides today!
Sometimes this means working six days a week with little sleep just so that you can earn enough money each month before taxes come out.*
Millions Of Americans Work Freelance At Least Part-Time
According to a report by Upwork, the largest freelancing platform in the world, 36% of Americans have freelanced at least once. That’s nearly 60 million people who have taken on some kind of freelance project for money at one point or another in their lives.
The same report indicates that millennials are three times more likely than baby boomers to freelance today.
I was surprised to learn how prevalent freelancing has become outside our borders as well:
According to a survey conducted by Europe-based think tank Eurofound in 2017 and 2018, roughly 50% of European workers (which includes both full-time employees and part-timers) said they had worked in self-employment at some point during the past year. It seems like everyone is doing it!
Embracing the freelance revolution in the business landscape can lead to new opportunities and growth. Learn how freelancing is reshaping the traditional work environment in our article on How Freelancing Is Changing the Face of Business.
Conclusion
Freelancing is changing, and I think these are the most important changes to keep in mind. For example, some freelancers will tell you that it’s a good idea to form a corporation before you start working because of potential tax benefits.
Others say that corporations aren’t worth the hassle because there are too many fees involved with maintaining them.
The truth is somewhere in between: while forming a corporation may not be right for everyone, there are certain circumstances under which doing so would make sense (for instance, if you’re planning on expanding your business into multiple areas).
Further Reading
Hayden Brown: The Journey of Upwork’s CEO: A fascinating interview with Hayden Brown, Upwork’s CEO, sharing insights into her leadership journey and the future of freelancing.
Pros and Cons of Freelancing: Explore the advantages and disadvantages of freelancing as a career path, helping you make an informed decision about pursuing freelancing.
5 Ways Freelancing Is Changing the World: Discover how the rise of freelancing is impacting the global workforce and economy, and its implications for the future.
FAQs
What are the key benefits of freelancing?
Freelancing offers flexibility in work hours, autonomy in choosing projects, and the potential to earn more based on individual performance and skills.
How can I handle financial stability as a freelancer?
Maintaining a stable income as a freelancer involves budgeting, saving for lean periods, diversifying clients, and offering additional services to enhance earnings.
Is freelancing suitable for beginners without experience?
Yes, freelancing can be a viable option for beginners with the right skills. Start by building a portfolio and offering competitive rates to attract initial clients.
What challenges do freelancers commonly face?
Freelancers may encounter irregular income, difficulty in client acquisition, and the need for self-discipline to manage their work schedule effectively.
How can I build a strong client base as a freelancer?
Networking, building a professional online presence, delivering high-quality work, and seeking referrals from satisfied clients are effective ways to grow a strong client base.
Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.
