Freelance Confidential - Amanda Hackwith [4]
In the last three years we're seeing a significant shift from major population centers to medium and small cities, though the number of freelancers in extreme rural areas remains about the same. It's tempting to take this result and interpret it as a reflection of the job market in cities, but only 327 of our roughly 3,200 respondents (about 10%) cited "failed to find full-time employment" as a factor in their decision to freelance.
The more likely factor is the lower cost of living in smaller communities and the spread of online resources for freelancing. It's become a lot easier to work from anywhere, no matter how near or far you are from the home office.
TIP: SURVEY SAYS...
Location, location, location. Consider the cost of living when developing your rates and your business plan. The expectations of local markets will vary widely depending on where you and your clients are located.
For many industries, freelancing is not a location-dependent trade anymore. Check out the many online resources (listed at the end of this book) for non-local clients, projects, communites, and new opportunities to grow your business.
While the number of freelancers in an area may not be tied directly to unemployment, in a slow economic environment, companies may be hiring for more freelance work. If working for larger companies interests you, reach out to companies you've worked for in the past to let them know you're available for contract jobs.
Career and Income
Freelancing, for most respondents, was a career choice made in order to improve their work environment (with more creative control) or increased control over their time (for more flexibility and time with family).
Why did you decide to freelance?
Only 327 of our respondents listed a negative or reactive reason, like unemployment, as a factor, although 1,635 indicated they chose to freelance to make more money. It is interesting that these reasons do not appear to change according to any other common factors:
Full-time or part-time
Experience
Age, Gender or Location
Profession or Industry
Do you freelance full time?
Overall, freelancers appear to choose their career based on pro-active motivations to change or improve their situation.
Nearly half of freelancers are full-time freelancers, with an additional 13% planning to transition. That is an increase in full-time freelancers since 2007, which supports claims by organizations like Monster and Elance that freelance work has drastically increased. We do not have the numbers to indicate how many of these new freelancers are actually "permalancers" working for a single employer in their previously full-time roles.
† Values have been rounded to the nearest dollar.
‡ No persons submitted information in this category.
With the exception of one Project Manager who skewed the high end of the scale with an impressive income of more than $320,000, most freelance professions followed a general development path that grew into mid to upper income ($50,000 to $100,000) by ten years in the business. However, as you can see from the results, income can vary wildly. Ultimately, your income will rely on several key factors:
Your rate and method for charging your clients.
Your overhead and business expenses.
The number of hours worked and jobs you can complete in a given time.
Additional income sources like other jobs or passive income products.
Your experience and years of business (allowing time for rate increases).
TIP: SURVEY SAYS...
Know what other professionals in your industry are charging. If you target local clients, make sure to account for local variations in the market.
Develop a plan that will allow you to raise your rates as you gain experience and reputation. Frequently, this will mean juggling multiple rates if you immediately raise rates for new clients while phasing out lower rates for existing clients.
Experience and Education
Whether you're sizing up rival freelancers or deciding whether to go back to school, your education, training,