Many people dream of becoming an independent contractor, a freelancer, capable of choosing their own clients and enjoying an almost unlimited earning ceiling. But freelancing can be both difficult to initiate and challenging to maintain. Before you decide to quit your full-time job and make a career out of your freelancing specialty, you should thoroughly understand the pros and cons of being a freelancer.
The Advantages of Freelancing
If you’re freelancing full-time, these are the qualities you’ll likely appreciate the most:
- Location flexibility. In many roles, you’ll be able to work wherever you want as a freelancer. For many freelancers, that means working from the comfort of your own home rather than trucking it to the office every day (and dealing with the traffic of rush hour). For others, it means finding a comfortable coworking space nearby, so they can enjoy the benefits of a traditional office environment while shortening their commute. The point is, you’re in control, so you can decide what type of environment is best for you.
- Hours flexibility. You can also set and adjust your own hours, which isn’t a perk most full-time workers have. If you need some extra money, you can step up your efforts, burn the midnight oil, and put in 60 or more hours a week until you reach your goals. If you feel like taking a break, and you’re okay with a bit less income in the meantime, you can ratchet down to 20 hours a week, or even less. You can also choose when to work those hours, breaking out of the 9-to-5 mold.
- Client control. Clients are vital to your business, but some clients can be difficult, to the point of compromising your work. As a freelancer, you’ll have near-total control over who you take on (and who you keep) as a client. If someone is especially demanding, and you’re not making much money from them anyway, you can fire them and spend more time on the clients who benefit you most.
- Unlimited growth potential. You can grow in many different directions as a freelancer, and grow as much as you’d like. You can take on new clients and increase your skill set to improve your earnings, and if you want to steer the business in a new direction, you can. That said, budgeting is an important part of the process. When it comes to your budget as a freelancer, you’ll want to keep track of your income and expenses, plan for taxes, and also create a budget for investments in yourself—things like new software, continuing education courses, or any other resources that help you do better work. You can also hire employees and/or subcontractors to help you, allowing you to build a high-level workflow that works for you.
The Disadvantages of Freelancing
Full-time freelancing also comes with some disadvantages:
- Lack of benefits. Full-time employers often grant their employees health insurance and similar benefits, but as a freelancer in the gig economy, you probably won’t have access to these benefits. This represents additional costs you’ll need to pay as a freelancer, and can add stress to your life.
- Lack of direction. Working for a company usually means having a boss, supervisor, or even mentor guiding you. They’ll provide you with feedback on your work, motivate you to achieve more, and be available to answer all your questions. As a freelancer, this direction won’t be immediately available to you; you’ll need to find it on your own.
- Inconsistency (and/or instability). In most industries, there are busy periods and dry periods. You may also struggle with an inconsistent rate, based on demand and competition. This can make freelancing a highly inconsistent, or even unstable position from a financial perspective.
- Tax responsibilities. Freelancers are generally subject to a self-employment tax, on top of other federal- , state-, and local-taxes they owe. Freelancers are required to manage and pay their own taxes (typically on a quarterly basis, throughout the year) rather than relying on an employer to simply withhold them from their paychecks.
- Work environmental issues. Working from home is appealing on the surface, but for some, it gets lonely. For others, it’s too distracting to support their best work.
The Differences Between Industries
You should also be aware that not all freelancers are going to have the same experiences. Freelancing as a writer, for example, might allow you to work in the same spot every day while working as a photographer might require you to travel all over your city for new opportunities. Despite both qualifyings as freelancing, each of these scenarios will come with its unique benefits and challenges. It’s important to realize these industry-specific perks and drawbacks before choosing a path.
There’s one more advantage of freelancing; if you’re thinking about pursuing it full-time, you can begin with baby steps. Rather than quitting your job and embracing freelancing as a complete career, you can pick up a side gig and begin freelancing a few hours a week. Then, and only then, will you understand what freelancing is like firsthand—and from there you’ll be able to make the best decision for yourself.