Approximately 53 million American workers, or more than 34%, are freelancing. That’s according to a report by the Freelancers Union and Elance-oDesk. By 2020, that number will rise to 40% of the working population.
The growing freelance economy can be attributed to many things including the rise in telecommuting, an increased use of smartphones and apps for everyday procurement of goods and services, and a reduced supply of permanent full-time jobs.
Where you stand on it has a lot to do with why you’re freelancing. For many, it’s out of necessity rather than choice. Traditional jobs that were once regarded as solid full-time employment positions are increasingly being offered on a contract basis. This includes jobs in mining, oil and gas extraction, utilities, finance and administrative fields.
On the bright side, the 1099 economy offers the unprecedented flexibility of choosing your own hours and projects, something that is especially attractive to new parents, millennials and those working in creative fields.
Whether you’ve decided to freelance out of necessity or by choice, here are some tips that can make your life easier as an independent contractor.
Think of Yourself as a Business
You’re no longer just an employee; you are self-employed. Better yet, you are the CEO of your own company. Although you don’t necessarily want to refer to yourself as a CEO, you should think of yourself as one – that is someone who has the best interests of their company in mind.
Know what it is you’re selling. Who are your consumers/clients and how should you market to them. Since you no longer have a human resources office doing it for you, understand the tax implications of being self-employed and, if necessary, laws governing your industry. You many need to hire an accountant to help.
Most importantly, have a strategy! Know the ultimate goals for your business.
Understand What You’re Selling
Yes, perhaps you’re a graphic designer. But what kind of graphic designer are you? Is your style witty and minimalist or lush and evocative? Do you excel at a particular industry? Although you don’t want to pigeonhole yourself into any particular category, clients should generally understand what to expect from you.
Set Your Fees at Market Rates
If you’re a beginning photographer, for instance, “market rates” aren’t what a professional photographer at Sports Illustrated or National Geographic would make. So it helps to know what the going rates are for all levels. These rates can vary according to city and industry. Many industries, especially in creative fields, offer guides on line as a reference point for setting rates.
This article offers some great advice on how to set and negotiate freelance rates.
Market Your Brand
It’s not enough to simply list your services on job boards and hope for the best. With such a high level of competition theses days, you really need to stand out from the crowd with a brand that captures your unique identity. And with sites like WordPress and Squarespace it’s never been easier to create your own website and portfolio. Social media can also be a useful tool to market your brand. For more ideas, check out this article.
Take Your Brand on the Road
Ok, not literally. At least, not like some traveling medicine show or vaudeville revue. But you can’t just wait around at home, hoping for new contacts to find you. You need to be out, making connections. Everyone is a potential contact and reference. Remember, the more people like your brand, i.e. you, the more people will want to recommend it. After all, the most effective means of advertising for any business is “word of mouth.”
