Should you freelance? How to navigate the gig economy

Freelancing isn’t a one-size-fits-all proposition. People freelance in many different ways and for all sorts of reasons. People even think about it differently. Some call it freelancing, while others call the work their side hustle or their business. Often the work is similar to work they’ve been paid by a boss to do. In other situations, people offer an unusual service.

Some of the ways that people are taking part in freelancing and the gig economy:

• As consultants in their area of expertise
• As delivery drivers or personal shoppers through platforms like DoorDash and Instacart
• By becoming a personal coach
• Working for agencies who hire freelancers
• Through freelance platforms like Upwork and Fiverr
• By working for previous bosses on a contract basis
• By finding part-time work but controlling their schedule

Some of the reasons people freelance:

• Extra income in addition to their full-time job. Some people need the income to make ends meet, some are trying to get out of debt, and some are saving up for something.
• They need to have control of their schedule because of their personal obligations such as raising kids, being a caregiver, or supporting a partner in their career
• They like the flexibility of working for themselves
• They want to segue from freelancing to owning their own business
• They were laid off and need to make money while they look for a new job
• To pursue work where they have a passion or deep interest

Working as a freelancer offers many benefits. Topping the list for many is having the flexibility in determining their work schedule. Another is the sheer feeling of freedom that comes from being your own boss.

Other potential benefits:

• You can work on a wide variety of projects
• You have some choice in which projects you want to pursue
• You can take the day off without having to ask your boss
• All profits go to you and your business
• You learn to take the lead and accept the responsibility for all your decisions. No more blaming the boss—you are the boss!
• Freelancing can be a good way to transition back to the workforce after time away from it. Recruiters are more likely to see you as a viable candidate if you’ve been working, even if that work isn’t tied to a full-time job.

As wonderful as it is to be your own boss as a freelancer, there are downsides to running the show on your own. The biggest one is that the income isn’t steady. You can be ready and willing to work but not have any work.

Here are some, but by no means all, of the challenges that you face as a freelancer:

• You have to find work. Always needing to hustle for paying gigs can make you feel like you’re on a perpetual job search.
• Freelancers have to decide on their own rates. Some people find it very hard to price their projects. Often people undervalue the work they provide to others and struggle financially as a result.
• Once you find someone interested in your services, you need to sell them on hiring you. Again, this isn’t everyone’s strength.
• Having no co-workers can feel lonely
• You need to learn how to effectively market yourself while still leaving time to do client work
• You wear all the hats—CEO, COO, and CFO. That can be a lot to juggle.

Despite the challenges of freelancing, it’s possible to make it work well for you and your situation. Before taking the plunge, think about how you enjoy working. Be honest about what you find difficult. Ask yourself these questions:

• Are you able to be self-directed, or do you need direction from other people to be productive?
• Are you confident in the skills you have? Confident enough to sell those skills to others?
• Can you create a weekly routine that allows you to 1) market your skills, 2) work on client assignments, and 3) manage the administrative tasks that come with working on your own?
• Do you feel comfortable working mostly on your own?
• Can you tolerate having an unsteady income and an unsteady workload? (Many freelancers experience “feast or famine” cycles with client work.)

Your answers will give you insight into whether freelancing is right for you.

To give yourself the best shot as a freelancer:

• Tap your network to find leads and referrals for your services
• Learn how to market your services
• Use freelancing platforms where people are looking for freelancer services, such as Upwork or People per Hour
• Research the going rate for the types of services you offer. Use what you find as a guide, but ultimately, you decide what meets your needs the best.
• Learn how to price your services to account for the “unseen” parts of your work—marketing, administrative tasks, accounting, etc.—that aren’t technically a part of the services you offer. Most clients understand they have to pay a higher rate per hour to someone who’s not on their payroll.
• Be prepared to “spend money to make money.” Early on, you may have to spend money to set up your website, join a freelance platform, or attend training that will help you navigate life as a freelancer.
• Network with other freelancers. These are your new coworkers. Use social media to join freelancer groups and start meeting people.

Keep in mind that you don’t need to be without a job before you try your hand at freelancing. You can do a freelance project for a friend or join a platform and take on small projects. Give it a whirl. You never know where freelancing will take you.