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The Ultimate Guide to Freelancing


Freelancing is an attractive way of life. The independence, autonomy, flexibility, and unlimited financial potential are all incredibly inviting, especially for employees who are tired of their mundane work environment. But, there’s still some mystery surrounding the enigmatic career choice.

As a freelancer, how do you make money? Where do you find work or jobs? How do you figure out what to do? What about insurance and benefits?

These questions are what typically stop people from pursuing a full-time freelance career. And these questions are the ones we’ll answer in this guide.

I was a freelancer before joining HubSpot — AKA the best career decision I’ve ever made. Starting my freelance business was a very intentional choice made in the midst of working a very unfavorable job. Freelancing was the most difficult 18 months of my life, but it completely rerouted my profession and led me to where I am today. It was more than worth it to take the leap into the unknown and pave my own career path.

Whether freelancing is your lifelong dream or a means to an end, we’re going to walk through each element of starting your own business, making your own schedule, and managing your own clients. By the end of this guide, you’ll know exactly what’s expected of you as a freelancer.

Over 57 million Americans freelance, including almost 50% of millennials — more than any other generation. Also, based on economic trends, the majority of the workforce is projected to be freelancing by 2027.

Types of Freelancing

The freelance gig economy has expanded to offer millions of talented people the ability to build their own businesses and have a bit more freedom in their day-to-day careers. Let’s review the different types of freelancing and the roles that exist in today’s marketplace.

Administrative

Small businesses — and even other freelancers — always need help with administrative tasks. These organizations often hire any or all of these freelance administrative services.

App Development

In today’s day and age, mobile apps are almost as important as websites. Because of that, multiple freelance app development opportunities have arisen and thrived.

Consulting

Some businesses require help with strategy and planning (instead of creating deliverables). That’s where these freelance consulting roles come into play.

E-Learning

E-learning has rapidly grown in both popularity and business impact (as we can see with HubSpot Academy). Companies that want to offer an e-learning aspect but can’t afford or aren’t interested in building a dedicated elearning team may benefit from e-learning freelancers.

Graphic Design

Graphic design is a critical piece of every organization’s branding. Many companies choose to hire some of these freelance graphic design services to help develop their brand or marketing assets.

Miscellaneous

New freelance opportunities pop up almost daily. These types of freelancing don’t quite fall into any of the other categories on this list.

Photography

Whether for a business, newspaper, or wedding, photography is always needed. Photography freelancers typically specialize in one of the following photography niches.

Videography

Alongside photography, videography is just as important when capturing and delivering a highly visual experience for an audience. Because videography is such a specialized field, many companies and organizations opt to outsource the following freelance videography services.

Web Design

Web designers specialize in the parts of your website design that your audience sees and interacts with. Here are some of the common freelance web design roles.

Web Development

On the other hand, web developers work with the behind-the-scenes coding and structure that supports the web design. Here are some freelance web development roles.

Writing

The (arguably) original freelance gig has grown exponentially in the last few years. Today, some organizations outsource their entire content roles, including some of these freelance writing roles.

Lastly, let’s take a look at freelance marketing.

With so many components and specializations under the marketing “umbrella”, it’s no surprise that freelance marketing is a popular gig. Here are some common freelance marketing roles.

Self-Evaluation: Is Freelancing for You?

Before moving forward, let’s take a breather and do a little self-analysis. Is freelancing right for you? Here are a few questions to ask yourself to evaluate whether or not you’re ready for a freelance career.

Why do you want to freelance?

Are you looking for a more flexible schedule, or are you merely trying to escape your dreaded commute? Do you want to expand your professional horizon, or are you simply bored at work? You might’ve heard it before, but the grass isn’t always greener on the other side. Pursuing freelancing for the wrong reasons will make it hard to keep going when the going gets tough.

I want to emphasize here that there are no right or wrong answers, simply what’s best for you, your family, and your career goals. To give you some perspective, here are a few answers from fellow freelancers on why they decided to take the leap:

Can you afford to freelance?

A freelance career holds the promise of a higher salary and unlimited income potential. After all, as a freelancer, you’re the one deciding what you make and when you make it. But you’ll likely not see that income right away. The first few months (or years) of freelancing typically involves sacrificing income while setting up your business, establishing yourself, and finding clients.

Are you comfortable with being uncomfortable?

Freelancing can be majorly uncomfortable. You won’t always know where your next paycheck is coming from, you’ll probably be rejected more times than you can count, and you’ll definitely experience a few days where you think, “Why the heck did I do this? That commute doesn’t sound too bad right about now!” All of these thoughts and feelings are normal; I’ve always referred to them as growing pains. After all, if it’s not challenging you, it’s not changing you.

Next, let’s talk about what kind of work you’d do as a freelancer. This step is another common roadblock for folks who want to freelance … they’re simply not sure what to do. The answer is simple, though. It might just take a couple questions to draw it out.

What are your talents?

This four-word question can determine a lot for you. What are you skilled at? What do others ask you to do for them? Notice that I didn’t ask, “What are you an expert at?” Experts are few and far between — all you need to decide right now is at what you’re willing to become an expert. The above list of freelancing types may help you get started.

What brings you joy?

This question isn’t always applicable. There will be days and times that you simply don’t want to work or might be sick of your chosen field. That’s life. But, above all, there’s usually one skill set or profession that brings you joy. What makes you feel good to accomplish? What are you proud to share with friends and family? This is probably what you’ll excel at as a freelancer.

The Pros and Cons of Freelancing

Now, let’s pull the spotlight back and look at freelancing as a whole. Regardless of fit or type of work, there are definite benefits and drawbacks to a career as a freelancer. Let’s look at a few.

Advantages of Freelancing

Disadvantages of Freelancing

According to an UpWork study, the biggest drivers to freelance are flexibility, freedom, and earning potential, and the biggest barriers are income predictability, finding work, and benefits. If these things are motivating or demotivating you, you’re not alone.

Everything You Need to Know About Freelancing

In the following sections, we’ll touch on everything you need to know to start a freelance career, from branding to clients to making and managing your money. We want to minimize the unknowns and equip you with plenty of knowledge as you pursue freelancing.

The information and recommendations in this article were collected from real freelancers across the world (including some from HubSpot employees who previously freelanced). I’ve also included real anecdotes and examples that will shed some light on what it’s actually like to be self-employed.

Any pressing questions you might have about becoming a freelancer? Consider them answered.

Getting Started as a Freelancer

Before you dive into completing jobs and making money, you need to set up your business. You need to know exactly what you’re doing and how you’re branding yourself. This will not only attract clients, but it’ll also provide direction when you feel stumped or at a loss for why you’re freelancing. Here are a few things you should know to make sure your freelance business survives in the long-run.

Building a Brand

A personal brand is valuable when establishing authority as a freelancer and creating a long-lasting impression with clients. Whether you use a design tool like Canva or outsource your branding to an agency, personal branding should be one of the first things on your to-do list.

Along with a memorable logo, your personal brand should also include a business name. You can brand your business after your own name or a third-party name.

Another element of your personal brand is your online identity. This typically includes a dedicated website and social media accounts where you can display your logo and business name, portfolio, testimonials, and services. Nowadays, every freelancer should have a website, especially if they work with clients remotely.

It’s good practice to match your website domain and social media handles to the name of your business. For example, if you were a freelance photographer, and your business was named Phoebe Photography, your website could be phoebephotography.com and social media handles could be @phoebephotography. Congruity makes it easier for potential clients to search and find you online.

As for a website, platforms like Squarespace, WordPress, and Wix make it easier than ever to create and design a professional-looking site. These platforms also offer templates that you can use to display your work, like writing or design samples. If you opt out of a dedicated portfolio site (which we’ll discuss below), these themes make it easy to integrate your sampled works into your website.

Your social media accounts should also reflect your personal branding. Every platform has its own benefits and purpose, so don’t fret that you’ll need to be active on all of them. Twitter is good for sharing your portfolio and connecting with peers and potential clients. LinkedIn is great for publishing a live resume and making valuable professional connections. Facebook is handy for joining groups of like-minded people, and Instagram is valuable for publishing pieces of your portfolio — if you dabble in visual work, like photography or design.

There are other places that should reflect your personal brand, too. If you do local work or attend network events, business cards are a great tool to carry with you. Sites like Vistaprint or Moo help you easily create gorgeous print material. Your brand should also be on your proposals, invoices, contracts, and any other materials that go to clients.

Why is personal branding so important? A clean, consistent brand communicates authority and professionalism to anyone looking at your business and will help you establish yourself as a trustworthy freelancer.

Creating a Portfolio

Whether you’re a freelance writer, designer, or web developer, a portfolio of your work speaks volumes to potential clients. Strong copy and testimonials can help sell your services, but portfolios feature your work in action, helping your clients envision your skills working for them. Portfolios also save you precious time by weeding out bad-fit clients before they book an initial call.

Should you include all your work in your portfolio? No. The work in your portfolio should be your very best and show diversity in your skills and clientele.

Common ways of showcasing your portfolio are Dropbox, Google Drive, or links on your website. Here are some third-party portfolio sites you can also leverage to feature your work:

Establishing Your Freelance Business

So, you’ve got a brand and a book of work to show potential clients. What else do you need to legitimize your business? Keep reading to learn more about establishing your business and setting yourself up for success.

Registering Your Business

Freelancers have some flexibility around the legal and financial structure of their business. Some freelancers remain sole proprietors and opt to receive 1099s and work from a personal bank account. Others register their business as an LLC to open a bank account and further protect their assets.

The decision is completely up to you. The only difference is that registering your business will likely cost you a fee. This article by UpWork dives into the specifics of how and why to register your freelance business as a Limited Liability Company (LLC).

Setting Up Your Workspace

You’re set up online, now where are you going to set up to work? Your physical workspace can massively impact your productivity, focus, and motivation, so you should keep this top-of-mind when considering your jump to freelancing.

Many freelancers choose to work out of their homes, whether for convenience, cost, or to be closer to family. A home office is ideal for work-life balance, but the dinner table, bed, and couch are also options. This article from Contently dives into how to create a home office that works.

If it’s not realistic for you to work at home, don’t fret. Today’s working environments are fortunately much more conducive to remote and freelance workers. Between coworking spaces, coffee shops, and public libraries, freelancers of all kinds can find makeshift workplaces outside the house, even if just for the day.

If you’re interested in co-working space, WeWork is a very popular choice for remote workers and freelance workers alike. Many cities have local co-working spaces that allow you to leverage shared desks, studios, and kitchens as well as network with other creatives and potential clients. If you don’t have the budget for co-working space, Google your nearest coffee shop, cafe, or university library. Whatever space you choose, ensure it’s free of distractions and provides favorable work conditions.

Getting Freelance Work

You’ve established the foundation of your business in the form of a website, portfolio, and workspace. Now this section will equip you to build the bones of your business — setting rates and getting work. This is perhaps the most important section in this guide and will provide insight into ensuring you become a successful and impactful freelancer in your chosen field.

Setting Rates

The process of setting rates and determining fees is perhaps the hardest part of freelancing. Not only can it be awkward to talk about money, but setting rates for your services is essentially putting a dollar sign on your forehead. What are you worth? What if your clients don’t agree?

Setting and negotiating rates can feel very personal, but the key to discussing money comfortably is to take feelings and opinions out of it. Instead, use an economic approach to determine your rates, similar to how a business owner might price their products. Do you think they feel bad when they quote their prices? No, and you shouldn’t either.

Here are a few popular strategies freelancers use to set their rates. You can also use a combination of the three.

Cost-Plus Pricing

Cost-plus pricing is determining how much it’ll cost you to complete a project and tacking on 10-30% as profit. This pricing model is best for artists and freelancers who use physical material and know the cost of completing a project or service. For writers, designers, and developers, this model might be tough to calculate, unless you’re counting your time as the primary cost.

Market Rate Pricing

Market rate pricing involves taking a look at market averages and deciding your rates based on those around you. To calculate your prices based on market rates, take a look at your industry, location, and competitors with similar experience. (As a novice freelance designer, you can’t quite compare your rates to a designer with 10+ years’ experience, even if they live in the same area.)

Here’s a list of average rates per industry:

Value-Based Pricing

Another pricing approach is to base your rates on what you believe your work is worth. This means that your pricing will differ slightly depending on what client you’re working with and what kind of work you’re creating. For example, creating a commercial for a Fortune 500 company will hold a little more value than that for a local coffee shop, right? Right, so you’d likely charge more for the former. Now, that’s not to say one company has more value than the other; you’re just taking into consideration what they can afford and the overall impact of your project.

Finding Jobs & Marketing Your Freelance Business

When you start your freelance career, the majority of your day-to-day will involve looking for jobs and marketing yourself. Until you establish your skills and services and become well-known by clients, you’ll need to put a ton of work into applying to gigs, reaching out to potential clients, and simply getting your name out there.

When seeking freelance work, the first thing you should do is establish profiles on common freelance job sites. Not only does this give you access to open jobs and projects posted by clients, but it also bolsters your name and business name’s SEO by giving you another link to your website.

Here are some common job sites on which you can establish a presence and check out some open gigs:

Join some industry or location-specific freelance communities. This will help you create a network of “colleagues” and freelancer friends as well as expose you to open gigs and potential clients. It might seem counterintuitive to make nice with your competition, but it can actually help your business. In fact, three out of my first five jobs were passed on from another freelancer who couldn’t complete them all herself.

For a bolder, more direct approach, consider reaching out to managers, directors, and editors at the companies you’d want to work with. Simply communicating your availability and sharing your website keeps you top-of-mind when work does arise. Connecting directly also shows clients that you’re proactive and take initiative when needed.

Lastly, the best way to consistently attract work is to market yourself and your services. Marketing yourself extends beyond applying for specific gigs or reaching out to clients. It’s more so promoting your business as a whole and establishing a presence on social media, publications, search engines, and more. Most of this work happens with little to no pay but more than pays off in the long-run.

Here are some strategies to market yourself and attract more work.

Managing Freelance Jobs and Clients

Freelancing means that you’re in charge. You create your schedule, you set your deadlines, and you pick up the slack when things go wrong. The best way to prevent problems (and impress your clients while you’re at it) is to have a solid project management process in place. Not only will this help you approach each project with assurance and organization, but it’ll also communicate professionalism to your clients.

The first step to managing your projects with ease is establishing a place to record deadlines, meetings, events, and important dates. This could be on your Google Calendar, iCal, or even a paper planner. There’s no right or wrong answer here — you should choose what works best for you.

Beyond your calendar, it helps to use a project management or to-do list tool (or a combination of some) to help you stay on track and hit deadlines. From a HubSpot poll of over 80 freelancers, here’s a list of the top five platforms they use to manage their freelance work:

Lastly, figure out how you’d like to communicate project information and updates to your clients. (As for how often you’ll communicate with them, that’s also up to you and will likely take some time and practice to figure out.) Remember, as a freelancer you not only need to create amazing work but also please your clients, as clients lead to referrals … which lead to more work! I’ve compiled a list of tips for working with clients below.

Getting Paid for Freelance Work

Money, money, money. We all need it, but not everyone has to manage it as meticulously as freelancers do. When you run your own business, you must have a hand in everything, from how you invoice to what tools are managing your money.

And when it comes to money, setting your rates is merely half the battle. The other half involves billing, getting paid, and managing your freelancing financials.

The process of billing and receiving money can be uncomfortable, but getting paid is quite literally what keeps your business alive and allows you to maintain your freelance lifestyle. Thankfully, technology has made it easier than ever for today’s independent workers to manage their financials within a single platform.

Here’s a list of the top five financial management tools per recommendations from over 80 freelancers:

These tools can help you upgrade from the old school word-processor-plus-spreadsheet system and build gorgeous invoices, process payment in multiple ways (by bank card, direct deposit, etc.), include any necessary taxes and fees, and even handle reminders for clients who are delayed in payment.

Let’s take a moment and dive into invoicing and billing. One important thing to acknowledge about freelancing is that sometimes clients don’t want to pay (or they don’t pay at all). There are some measures that can help if this happens, but there are also some invoicing best practices that you can follow to minimize this risk overall.

When invoicing…

The Not-So-Fun Freelance Stuff

As attractive and enticing as the freelance lifestyle seems, it can be equally as complicated. Working for an employer might mean long, boring hours and commutes, but they also take care of a lot of stuff behind the scenes — including taxes, benefits, and retirement funds. And these are things you cannot take for granted.

Thankfully, freelancers can set up and manage their own benefits and taxes, but it does take a little extra research and work. We’ve spelled out the need-to-know details below.

Paying Taxes

Everyone loves tax season, right? Well, if you’ve been used to a big return each April, it’s time you change your expectations of tax season. Since freelancers don’t pay taxes with each invoice or paycheck, they’re expected to pay in full each tax season. This can mean thousands and thousands out-of-pocket, which can really mess up your cash flow if you’re not careful.

This is one of the necessary evils of the freelance lifestyle. Thankfully, there are a few steps you can take throughout the year to lessen the impact of tax season on your freelance business.

Setting Up Insurance

Another sacrifice of freelancing is forgoing company-sponsored benefits. And let me be the first to say that those are super important, especially for folks with families and chronic health issues. If benefits and insurance pose a major question of whether the freelance lifestyle is right for you, you’re not alone.

If you have a spouse or domestic partner, take a look at their insurance options. This is the most ideal avenue as company-sponsored benefits are usually less expensive than direct options through insurance providers. Even if your partner has to pay a little more to upgrade to an employee plus partner or employee plus family plan, it’s worth it.

If you don’t have a partner or he or she doesn’t have the option to include you in their benefits package, don’t fret. There are some insurance plans and providers that cater to freelancers and self-employed people, such as the Affordable Care Act’s SHOP coverage. Organizations like Freelancers’ Union also organize health insurance resources to make any research and decisions less intimidating.

If you’re leaving a full-time job, you might be able to tap into the Consolidated Omnibus Budget Reconciliation Act (COBRA), which allows you to keep your health insurance for up to 18 months after employment ends. You’d have to pay 100% of the premiums (including your former employer’s share), but this option might buy you some time until you make a permanent decision regarding benefits.

Investing in Retirement

Retirement planning isn’t reserved for the “officially” employed, and you definitely don’t need an employer to set up a 401(k) or IRA. Freelancers and self-employed folks have many of the same options as those who work for a company, such as the Roth IRA, SEP IRA, or self-employed 401(k). This article by Fidelity breaks down which account might be best for you and how to get started.

As a freelancer, I started a Roth IRA and set up direct deposits into the account. I did this directly through my personal wealth manager, but there are plenty of tools and platforms that can help you.

Regardless of how you plan to invest in retirement, always start as early as possible and stay consistent with your deposits. Your future self will thank you.

Staying Connected as a Freelancer

Freelancing is a lonely career choice. In fact, when I talked in-depth with over 20 freelancers, most of them said the most difficult part of being a freelancer is how lonely and isolating it can be. But this shouldn’t stop you from pursuing a freelance career — it should simply prepare you to put in a little more work socially.

As a freelancer, since you’re not going into an office anymore, you’ll likely find yourself spending more and more time alone. You might also find that you talk to yourself more often … or that may just be me. Regardless, freelancing requires stepping outside your comfort zone and working hard to build relationships and joining communities — just like you’d do at work.

Meeting others can help you not only stay connected and up-to-date on new jobs and freelancing trends but also refine your skills and learn new ones. Here are a few ways you can stay connected and keep learning as a freelancer.

Take an Online Course

Taking an online course is a fantastic way to inexpensively master a new skill while being exposed to a new network of people. Better yet, some courses are free, and some allow you to become certified so you can increase your credibility. Online courses are a great asset to a budding freelance business and are much, much more manageable than going back to college.

Here’s a list of courses recommended by the 80+ real freelancers I surveyed and spoke with:

Along with these courses, you can also check out dedicated course websites. Platforms like Udemy, Lynda.com, and Treehouse provide hundreds of free and paid courses that cover a multitude of topics and specialties.

Hire a Mentor

When I started freelancing in October of 2016, hiring a mentor was the very best thing I did for my business. I didn’t need help writing — I needed help figuring out how to write for other people … and make money doing it.

My mentor showed me exactly how to be a freelancer, including how to find business, pitch myself, set my rates, and more. Without her, I wouldn’t have started out so strongly with my freelance business. Not only did she equip me with all the tools and confidence I needed to dive in, but she also passed along a few jobs that she couldn’t take herself.

The process of hiring a mentor, coach, or consultant isn’t the same for everyone. Depending on your budget, industry, expertise, and location, you might fare better with a coaching course or a local consultant. Some of the above-mentioned courses teach how to freelance, too.

Join a Freelance Community

Whether you’re working from the heart of New York City or middle-of-nowhere New Mexico, today’s technology makes it incredibly easy to stay connected to other freelancers. From social media to dedicated forums, there are plenty of ways to join communities, build a network, and make friends.

Sites like Freelancers Union and American Writers and Artists Inc. offer memberships that provide resources and access to elite communities of freelancers and creatives around the world. As for social media, there are plenty of freelancer Facebook groups you can join and engage with. Some groups provide work, while others simply provide a place to chat and ask questions. If you’re on Slack, you can also hop into a Freelancer Slack community.

Lastly, don’t shy away from your local freelance network. Nothing quite beats a face-to-face meeting or conversation over a cup of coffee. Organizations like Creative Mornings or local co-working spaces put on networking events and get-togethers that allow you to meet other freelancers in your area. These opportunities provide human interaction in an otherwise majorly digital lifestyle.

Over To You

This ultimate guide to freelancing is long for a reason — there’s a lot that goes into this massive career move. But that’s not to say you shouldn’t or can’t do it.

In fact, freelancing is a pretty straightforward process. After addressing any questions and concerns regarding how to establish your personal brand, where to work, where to find jobs, and how to stay connected, the only unknown that remains should be: Are you willing to take the leap?

Editor’s note: This post was originally published in July 2018 and has been updated for comprehensiveness.

how to hire freelancers

Originally published Oct 29, 2019 11:28:00 AM, updated October 29 2019



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