How to Become a Successful Freelancer
So you’re reading this because you want to become a freelancer. You’ve thought about what you want to freelance in, you’ve got a couple of useful email addresses and you’ve even bought yourself some sweatpants that will look great with your slippers.
So you’re ready to dump that job and get cracking on your first assignment, right?
Wrong.
One of the biggest misconceptions about freelancing is that you sit at home and work comes to you. When the reality is you have to fight for it, and fight hard.
What the Experts Say“Going out on your own isn’t always a deliberate choice,” says Sara Horowitz, head of the Freelancers Union and author of The Freelancer’s Bible. Some people do make the switch consciously in order to capitalize on their unique skills and networks, earn more money directly, escape the corporate grind, and have more work-life flexibility. Others end up as their own bosses because they’ve left jobs and are trying to figure out what’s next, or they start doing a few projects on the side and realize the work is enough to be their main gig. Sumeet Goel, who founded HighPoint Associates, a professional advisory firm that staffs independent consultants at companies ranging from midsize ones to the Fortune 500, agrees that many freelancers often happen into it: “I’d say 90% go down this path because of circumstance. It’s not so much that they decide to do it; it’s more that they wake up one day and they’re an independent consultant.” Whether you chose freelancing or it chose you, you’ll only be successful if you follow some important steps.
Determine your free
Knowing how much to charge is one of the things your network can help you with right away. Horowitz suggests asking your fellow freelancers what the market is like for your skills and what their rates are. Don’t make the mistake of basing your fees on what you need to earn. “This isn’t about your expenses,” says Horowitz, “so don’t add up your mortgage payment and your other costs of livings to figure out your hourly rate.” If you’re moving from a full-time job, suggests this calculation: Take your cash compensation and divide by 250 (which is the number of billable days after factoring in vacations, sick time, and typical downtime) and then add 25%–50%. Then take that figure, compare it with the rates you’ve gotten from your network, and find a middle-ground number you can float as an experiment and then adjust based on feedback from potential clients. You may have to quote a lower rate at the beginning, while you’re still figuring how much you’re worth and trying to win work. But plan to raise your prices sooner rather than later. Horowitz says you’ll know when you’ve hit the right level: “When you’re reliable and good and you charge a fair rate, people rehire you.”
Make new connections
It’s important to have a few fellow freelancers you can turn to for advice and support in your network. Sure, they may be “the competition,” says Horowitz, but they are also a great source of information. Look for professional associations in your field, search LinkedIn for people who are in the same business, and attend conferences in your areas of expertise. Horowitz’s organization hosts monthly meet-up events for independent workers in 18 cities across the U.S. “It’s a great way to get to know people in the context of building your business,” she says. If you’re concerned about the networking aspect of being out on your own, you’re not alone. The Freelancers Union has a host of resources, including an “Authentic Networking Guide” that, according to Horowitz, “outlines some best practices for new or nervous net workers.”
Get the word out
Be prepared for the dry spells
“Seasoned freelancers learn that income is very episodic,” says Horowitz. “They plan around the troughs instead of the peaks.” This means stashing away money so that you’re prepared for the inevitable valleys — “it’s not if, it’s when.” You can employ a few coping strategies to help make those spells less frequent. In particular, Horowitz suggests building a “a social safety net through your friends.” When you have too much work to do, pass on the gigs you can’t take to people in your network, and hopefully “when you’re in a dry spell you can ask them if they have any extra work.”
You might also consider signing up with a company like Goel’s, which matches clients with independent consultants. They can help you find work when you’re not able to. Goel suggests getting “directly introduced by a common connection” so that someone vouches for your skills and you know the company is a reputable one. And if you don’t have as much work as you want, don’t get despondent, especially at the beginning. “It takes time to get a consistent cash flow going. It could take six months to a year to get everything in place, to be comfortable with your rates, and to build a pipeline,”
“Seasoned freelancers learn that income is very episodic,” says Horowitz. “They plan around the troughs instead of the peaks.” This means stashing away money so that you’re prepared for the inevitable valleys — “it’s not if, it’s when.” You can employ a few coping strategies to help make those spells less frequent. In particular, Horowitz suggests building a “a social safety net through your friends.” When you have too much work to do, pass on the gigs you can’t take to people in your network, and hopefully “when you’re in a dry spell you can ask them if they have any extra work.”
You might also consider signing up with a company like Goel’s, which matches clients with independent consultants. They can help you find work when you’re not able to. Goel suggests getting “directly introduced by a common connection” so that someone vouches for your skills and you know the company is a reputable one. And if you don’t have as much work as you want, don’t get despondent, especially at the beginning. “It takes time to get a consistent cash flow going. It could take six months to a year to get everything in place, to be comfortable with your rates, and to build a pipeline,”
