Freelancing: What Every

Freelancer Should Know

Freelancing can be a great way to make extra money or build a business,
but there are a few things you should know before getting started.

9 tips for freelancers

When you’re a freelancer, your responsibilities will be different from those of full-time
employees. Freelancing gives you greater freedom over when and how you complete your
work, but it also means you’ll have to manage all your affairs without the support of a bigger
company. Don’t worry, though; with a bit of preparation, this can be easier than it might sound
at first

1. Establish ongoing client relationships.

In the past, freelancers were often considered short-term or temporary employees,

designed to complete a one-off project or fill a gap for a company until it could find part-
time or full-time help. That’s not the case any longer, as more companies rely
on independent contractors to support their ongoing operations.

“Modern businesses are choosing to run in a very lean fashion,” said Nikolas
Badminton, chief futurist at Futurist.com. “Sometimes there are solopreneurs that build
everything they need using freelancers and they run the business on their own. Even
large businesses are using freelancers as part of their contingent workforce.”

Rich Pearson, former senior vice president of marketing and categories at Upwork, said
he has observed a similar pattern, noting that some freelance positions are for projects
extending as long as six months. Freelancers should pay attention to this trend if they
are looking for steady work.

2. Think beyond local businesses.

College graduates and laid-off employees who have difficulty securing full-time positions near
their homes frequently turn to remote freelancing to support themselves.

“From a business standpoint, companies hiring freelancers can get better talent by escaping the
local economy,” Pearson said. “It helps freelancers too in areas where there’s not much local
work.”

Though competing with a national pool of applicants might be intimidating, you may be more
qualified for a job than someone who’s geographically closer to the company. Freelancing
ensures that you won’t lose a job because of your location.
3. Accept rejection as part of the job.

Generating new business means constantly networking and pitching your services, but not
everyone will be ready to work with you at any given moment. Don’t view rejection as a failure
on your part; keep pounding the pavement. Eventually, some of the people you met may come
back and work with you in the future when their business budgets expand or their needs
change. Even if they don’t, keep trying to find clients that are a good fit for what you offer.

“Get cozy with rejection,” said freelance content writer Minda Honey. “Don’t get discouraged,
just keep grinding. If you do good work, people will talk and more people will want to work with
you.”

4. Find a community of other freelancers.

It’s important to have a small business community to fall back on for support, accountability
and resources. There are local chapters of Freelancers Union in major cities, but if you can’t find
the right group to join, don’t be afraid to start your own.

“Build a community of other freelancers to stay motivated and keep you going,” Honey advised.
“I get so much energy and motivation through my friends’ successes, and we learn from each
other’s missteps too.”

5. Build your sales pipeline and seek new business opportunities.

Honey stresses that the freelance industry is often “a numbers game” of sending out persistent
letters of introductions, pitches and cold calls.

“You have to always be adding to your pipeline, even when times are good and
your schedule is full,” she said.

When you work as a freelancer, it’s important to constantly conduct outreach to potential
clients. Schedule and plan work for the future so you’re never left without any work to do. Your
freelance projects are your income, so it’s important to fill your calendar months in advance, if
possible.

This also means consistently marketing your services across social media and on your website,
as well as networking with professionals offline, no matter how much work you already have
piled up.
Key Takeaway

Building a professional network is one of the most important keys to success for freelancers.
Most people prefer to work with those they know personally, so if cold calls and emails aren’t
landing the business you need, consider joining networking groups and trade associations to
meet people face to face.

6. Highlight your skills and promote yourself.

Pearson said most companies that hire freelancers use them to fill specific skill gaps in their
staff. If a job description lists a highly specialized combination of skills and you have them, make
sure you focus on that when contacting the employer.

“Make sure you highlight your unique skill set, some success stories, and why you are the best
freelancer for the employer’s job,” Badminton added.

Consider launching a website that displays your portfolio and includes testimonials from your
satisfied clients. Show off your skills by treating your own site like a client. For example, if
you’re a content marketer, your website should reflect that by incorporating a great blog and
sound web development principles that would be effective for any of your clients’ projects.

7. Document everything from projects to finances.

When you’re self-employed, you’re not only providing services to clients, but you’re also
completely responsible for bookkeeping. Staying organized will help you dodge any mistakes
and mishaps along the way, especially when tax season comes around.

“I just use an Excel spreadsheet to keep track of pieces after they’ve been accepted, and color-
code them to know where in the process I am with them — if they need to be written, if they’ve
been published, if I’ve been paid for them,” said Sulagna Misra, a freelance writer and editor.

Did You Know?

Freelancers don’t pay taxes the same way employees do. Instead, at the end of the year, their
clients send them a Form 1099, which includes their income from that client. The 1099 is then
filed with the IRS and the freelancer must pay taxes on that amount. It’s best to save money
from each paid invoice for taxes, and to pay quarterly estimated taxes if you earn enough from
freelancing each year.

8. Proactively communicate with clients and partners.

Although freelancing means you work for yourself, it’s critical that your clients are satisfied.
Part of that means proactively communicating and setting realistic expectations around
deadlines. If something goes wrong or there is a delay, get ahead of the issue by telling the
client. If someone isn’t responding about a particular project and you need their reply to move
forward, follow up and let them know it’s important. Don’t wait around for someone to contact
you first.

“Use IM, video chat and email to talk with potential employers, ask questions, and connect on a
deeper level,” Badminton said.

>> Learn More: Communication Tools for Small Business

9. Embrace feedback and constructive criticism.

Once you submit a project, be open to feedback and willing to make changes if the employer
wants something different. Receiving critical feedback can be difficult, but it’s an important part
of learning about a client’s perspective and expectations. As you continue to work with a client,
you can adjust to meet their needs and ensure they’re satisfied.

Remember, clients are hiring you for your expertise, so if their feedback doesn’t jibe with what
you know to be effective, gently offer your insight. Explain that you understand their feedback
and are willing to implement it, but that in your experience an alternative may be the better
option. That way, you’ve given them the choice and explained your rationale. If they still prefer
to do things their way, that is their prerogative and you should carry out their directives — after
all, they’re the ones paying your invoices.

Other resources for freelancers

The tips in this guide serve as a great jumping off point, but there’s a lot more to know about
being a freelancer. If you’re looking for more guidance, check out our other content on
freelancing, which covers subjects such as landing new business and paying your taxes.

 Taxes: As a freelancer, it’s important to understand how to pay taxes. Our guide will
walk you through the basics. Most freelancers overpay their taxes, too, so it’s wise to
closely track what you owe to avoid doing so.
 Collecting overdue payments: Most freelancers will, at some point, work for a late-
paying or non-paying client. Cash flow is critical, so we created this guide on how
freelancers can collect unpaid balances. You can also use some of the best accounting
software to keep tabs on what you’re owed and when you’re paid.
 Benefits: There are benefits forqats self-employed workers, such as healthcare and
retirement benefits much like the ones offered to full-time employees. If you freelance
full-time, consider choosing some of these benefits.
 Employees vs. freelancers: Recent changes to employee classification rules have
changed who is considered an employee and who is an independent contractor. Be sure
you understand how you’re classified under the law.
Tip

Freelancing can be a lot of work, especially with its administrative requirements. If you’re
considering outsourcing human resource functions, read our guide to working with a PEO.

Freelancing can be lucrative and rewarding when done right

Being a freelancer brings unique challenges, but also great opportunities. While you will have to
do a bit of extra work when it comes to generating leads, satisfying clients, collecting payments
and managing your taxes, freelancing enables independence that a full time job does not. The
best freelancers can go on to build successful businesses with their services, sometimes even
expanding into agencies and hiring other professionals to get more done. If you’re interested in
freelancing, consider the tips above when starting out — you can be sure they’ll pay off in a big
way.