What Is A Freelancer? A Deep Dive Into This Side Hustle

You might be looking for a side hustle and have come across the freelancing concept. That’s why you might be searching what is a freelancer.

Well, let me tell you, if you choose to become a freelancer, this will be one of your life’s best decisions. Whether you aspire to take control of your own work, explore a new career path, or pursue a side gig that revolves around your passion project, freelancing offers a promising avenue.

Now, it’s time to step into the realm of the solopreneur! You should keep in mind that freelancing brings with it some fantastic advantages as well as a few hurdles to overcome.

In today’s article, I am going to share the complete guide on what is a freelancer, how they work, types, and how you can become a successful freelancer.

Let’s start!

Key Takeaways

• A freelancer is a self-employed expert who offers their services or expertise to clients or businesses on a project-by-project basis without entering into extended employment contracts.

• Freelancers work for themselves and are not tied to a specific employer or company. They have the autonomy to choose their projects and clients.

• Freelancers often work with multiple clients simultaneously or over time, which helps them gain exposure to various industries and projects.

• They are often experts or specialists in their respective fields who offer a high level of expertise in areas writing, design, programming, consulting, and more.

• Many freelancers work remotely, which allows them to collaborate with clients and teams from around the world.

• They have the freedom to make decisions about their work, pricing, and the types of projects they accept.

• Build a professional website or portfolio that showcases your previous work, skills, and contact information.

• Register on freelance websites like Upwork, Freelancer, Fiverr, and Guru. Complete your profile with relevant details, skills, and work samples. Browse and apply for projects that match your skills and interests.

• Attend local business events, chamber of commerce meetings, or workshops to connect with potential clients in your area.

• Before starting a freelancing journey, building a client base is advantageous. This proactive approach ensures a steady stream of work, even during quieter periods of the year.

• Many freelance contract templates are available online, often free of charge, & can be tailored to suit your business needs.

• Freelancers are subject to the self-employment tax as mandated by the Internal Revenue Service (IRS).

What Is a Freelancer?

I have seen many people ask me what is a freelancer. 

A freelancer is an independent professional who provides their services or knowledge to clients or businesses on a project-by-project basis without committing to long-term employment agreements.

Companies do not classify freelancers as “employees” but rather as “contractors” when engaging in their services.

Freelancers have the liberty to select their clients, projects, and working hours. They operate in diverse domains like writing, graphic design, web development, consulting, and beyond.

Freelancers frequently relish the independence of self-employment and have the flexibility to engage in numerous clients or projects concurrently.

A freelance position entails an individual working independently rather than being employed by a specific company. Freelancers undertake contractual assignments for various companies and entities but maintain self-employment status.

Now, you are aware of what is a freelancer. So, let us look at a freelancer’s characteristics in the next section.

What Is Freelancing?

Freelancing is a work type in which individuals, commonly known as freelancers or independent contractors, provide their services to clients or companies on a project-to-project basis.

Freelancers have diverse skill sets and can offer various services, such as writing, graphic design, web development, consulting, marketing, and more. They often engage in contract negotiations, set their own rates, and may simultaneously collaborate with multiple clients.

Freelancing offers flexibility & allows you to work on a wide range of projects. However, it also comes with the responsibility of managing aspects like self-employment taxes, promoting their services, & overseeing their business affairs.

Characteristics Of A Freelancer

There are many characteristics of a freelancer that can help you identify them. Here are they:

• Freelancers work for themselves and are not tied to a specific employer or company. They have the autonomy to choose their projects and clients.

• Freelancers are considered self-employed individuals. They manage their own taxes, insurance, and other business-related matters.

• Freelancers have the flexibility to set their own work schedules and choose when and where they work. This flexibility can be a significant advantage.

• Freelancers often work with multiple clients simultaneously or over time, which helps them gain exposure to various industries and projects.

• Freelancers are hired on a per-project basis. They complete specific assignments or tasks for their clients.

• Freelancers are often experts or specialists in their respective fields who offer a high level of expertise in writing, design, programming, consulting, and more.

• Building & maintaining a network of clients and contacts is important for freelancers to secure ongoing work opportunities.

• Freelancers are responsible for managing all aspects of their freelance business, including finances, marketing, and client relationships.

• They have the freedom to make decisions about their work, pricing, and the types of projects they accept.

• Freelancers’ income can vary from month to month, depending on the number and size of projects they take on.

• Many freelancers work remotely, which allows them to collaborate with clients and teams from around the world.

So, now you know what is a freelancer and its characteristics. Now, let us know about the things you require to become a freelancer.

Things You Need To Become A Freelancer

There are certain things you need to become a freelancer. Here are they:

• First of all, you need to make clear decisions regarding the services you intend to provide, the types of clients you’ll target, & your strategy for connecting with them. Create a work schedule, determine your billing methods, and set your operational hours.

• Inquire with your local city or country authorities about the business license for your freelance work and gain a basic understanding of how taxes apply to freelancers.

• Some freelancers specialize in a single service they excel in or are passionate about. On the other hand, others choose to offer a variety of services. So, it’s important to create a service menu that outlines the services you provide, what falls outside your scope, & the rates associated with each service.

• Every freelancer should have a website or an online presence to inform potential clients about their availability. Your website should include an introduction about yourself, an overview of your services, a portfolio showcasing your work, and testimonials from satisfied clients.

• Many freelancers maintain profiles on social networking platforms like LinkedIn and freelancing platforms such as Upwork, Freelancer.com, WriterAccess, or Guru.

Now, let us look at the skills required for becoming a freelancer.

Skill You Need As A Freelancer

If you want to become a freelancer, you need to have certain skills. Here are they:

• Freelancers often juggle multiple projects with different deadlines. So, you need good time management skills to meet client expectations & deliver quality work.

• You need good communication skills to communicate with clients. Also, you need to understand their requirements, provide updates on your work, and address any concerns or questions promptly.

• Working independently requires self-discipline. You must stay motivated, avoid procrastination, & manage your work hours effectively.

• For many freelance projects, you’ll need to conduct research to gather information or stay updated with industry trends.

• Freelancers often encounter unexpected challenges. So, you should be able to solve problems & be ready to adapt to changing circumstances.

• You need strong organizational skills to track projects & deadlines. You can use project management tools or software to assist in this.

• You need technical skills and be proficient with specific software or tools related to your work.

• You should have good writing skills for client communication, project proposals, and contracts.

• Freelancers are responsible for their finances. So, you must manage income, expenses, and taxes and potentially set up a retirement plan or savings account.

• Building & maintaining strong client relationships is key to long-term success. This involves being responsive, understanding their needs, and providing excellent customer service.

• You will need to market your services to attract clients. This includes creating a personal brand, networking, and using various marketing techniques.

• Negotiating project terms, fees, and contracts is part of the freelancing process. Strong negotiation skills can help you secure favorable deals.

• If you handle sensitive client data, understanding data security and privacy regulations is important to protect both your clients and yourself.

In the end, you should provide excellent customer service that can lead to client satisfaction and repeat business. This includes being responsive and addressing client concerns professionally.

Now, it’s time to disclose how you can become a freelancer.

Steps To Become A Freelancer

If you want to become a freelancer, you need to follow the following steps:

• Identify your skills, strengths, and areas of expertise, & consider what services you can offer being a freelancer.

• Decide on the specific field or niche in which you want to offer your services. This can make you more competitive.

• Research your chosen niche to understand the demand for your services, your potential competition, & the pricing in the market.

• Create or update a portfolio that showcases your work, skills, and previous projects. This is vital for attracting clients.

• Determine your pricing strategy. You can research industry standards and consider your level of expertise when setting your rates.

• Build a professional website or create profiles on freelancing platforms like Upwork, Freelancer, or Fiverr. Make sure your online presence highlights your skills and portfolio.

• Continuously promote your services through various marketing channels. This includes social media, content marketing, & paid advertising.

• Start networking within your niche. You can attend industry events, join online forums, and connect with potential clients or collaborators.

• Now, start reaching out to potential clients. This can be through online job platforms, cold emails, referrals, or other means.

Now, let us know how freelancers help the brands in the next section.

How Do Freelancers Help Brands?

Freelancers help brands in a number of ways. They provide a lot of advantages over employees:

• Freelancers are self-employed, which means the brands are not accountable for these responsibilities. Instead, clients can pay for work on an as-needed basis by reducing costs without compromising the work quality.

• Freelancers typically accept new projects and clients on a case-by-case basis. This flexibility means they don’t face the same scheduling constraints as full-time employees.

• Freelancers often have diverse & extensive experience that is driven by their passion for what they do. This dedication results in the delivery of high-quality work.

• When brands outsource work to freelancers, it eliminates many of the risks associated with traditional employment. It provides access to top-tier work quality, and you can establish an ongoing working relationship without a long-term commitment.

• Freelancers offer immediate access to a fresh perspective, particularly when brands hire creative professionals. The right freelancers can introduce innovative solutions to problems, creative branding approaches, and effective methods for engaging with brand customers.

• Brands can find talented and experienced freelancers easily through various freelance platforms. The onboarding process is also simple, as contracts are typically on a project-by-project basis.

Now, let us know how brands can search for freelancers in the next section.

How Can Brands Search For Freelancers?

Brands can find freelance on popular freelance platforms. Here are the famous freelance platforms:

Upwork

Upwork is one of the largest & most popular freelance platforms. It provides various job categories, from web development & design to writing and marketing.

CHECK UPWORK

Freelancer

Freelancer.com is known for its global reach. It allows freelancers to bid on projects from all over the world. You can find a broad spectrum of job categories.

CHECK FREELANCER

Fiverr

Fiverr is a platform that emphasizes “gigs,” which are specific services offered by freelancers. It’s known for its user-friendly interface & a variety of services.

CHECK FIVERR

Guru

Guru offers a platform for freelancers in fields like web development, design, writing, & administrative work. It also provides a payment system and workroom for collaboration.

CHECK GURU

PeoplePerHour

PeoplePerHour is a platform for finding freelancers in areas like web development, design, writing, and marketing. It’s known for hourly-based project offerings.

CHECK PEOPLEPERHOUR

99designs

99designs specializes in design work, including logos, graphics, and other creative projects. It allows clients to run design contests or hire individual designers.

CHECK 99DESIGNS

Craigslist

Craigslist has a “Gigs” section where individuals can find short-term freelance opportunities in their local areas.

CHECK CRAIGSLIST

Let us have a look at what’s the difference between freelancing and full-time jobs.

Difference Between Freelancing And Full-time Job

Here are the differences between what is a freelancer work and a full-time job. Let us look at them one by one:

Now, you know what is a freelancer, its characteristics, and how it differs from a full-time job. Let us have a look at how freelancing works in the next section.

How Does Freelancing Work?

If you want to start your freelance journey, you need to register your business with your local government.

After that, decide your legal entity, whether you want to go for a Sole Proprietorship or Limited Liability Company. Your decision will have an impact on the payment of taxes, your personal liability, and the volume of paperwork you’ll encounter.

Once your business is officially registered, you’ll be legally obligated to file tax returns and fulfill your tax responsibilities.

You need to establish a strong invoicing and expense tracking system to avoid chaos at the end of the financial year.

You’ll be happy to know that even as a freelancer, you can enjoy a level of security and peace of mind similar to that of traditional employment.

While it’s optional for freelancers to open a dedicated bank account, many freelancers choose to do so.

The separation of personal and business finances simplified expense claims and profit calculations at the end of the fiscal year.

Before starting a freelancing journey, building a client base is advantageous. This proactive approach ensures a steady stream of work, even during quieter periods of the year.

You need to establish a freelance contract that is a legally binding document that both you and your client should sign. 

Many freelance contract templates are available online, often free of charge, & can be tailored to suit your business needs.

Demanding Freelance Jobs In 2023

Here are the high-demand freelance jobs in 2023. Let us have a look at them one by one:

Design & Creativity

Freelance creative professionals specialize in crafting visual elements, content, and products to captivate the audience.

• Graphic designer – You need to help clients create captivating logos, corporate literature, or elements that define their website’s brand.

• Website designer – As a freelance website designer, your primary role involves crafting and maintaining top-notch websites. You can assist clients in making informed choices, be it selecting themes, incorporating plugins, or opting for the most suitable content management systems.

• Video editor – Your work ranges from fundamental adjustments to editing tasks. Your duties include the integration of graphics, audio enhancements, and special effects to guarantee the creation of a captivating final product.

• Photographer – As a freelance photographer, you need to collaborate with organizations to produce outstanding photos for marketing, website content, and various business needs and events.

Writing & Translation

Freelance writers specialize in freelance writing, editing, and translation.

• Copywriter – As a freelance copywriter, your role includes crafting newsletters, website text, social media updates, and various other content types. Your primary responsibility is to compose engaging content that educates and motivates readers.

• Translator/Interpreter – You skillfully convert text from one language into another. The translated material may find its place on websites, promotional materials, and product manuals.

• Editor – As a freelance editor, your world revolves around reviewing content to spot typos, correct grammatical errors, and align with the content brief and style guide. Additionally, you’re tasked with fact-checking before delivering the final documents to clients.

Finance & Accounting

You can encounter potential clients to assist them in organizing financial records, making informed financial choices, and handling tax matters, including the administration of payroll tax payments & filing business income tax returns.

• Financial Adviser – As a freelance financial adviser, you’ll engage closely with clients to help them manage their personal or business finances. Clients rely on you to provide sound advice and ensure compliance based on your expertise and continuous research.

• Accountant – You prepare financial records, manage financial data, and create budgets. Many projects also involve the preparation of tax returns, particularly for startups.

• Investor – As a freelance investor, you analyze a target company’s equity to evaluate its financial health and subsequently offer recommendations to the client.

IT & Development

IT & Development categories include various technical occupations, programming, UX design, and web development. Some professionals also specialize in quality assurance and other technical support roles.

• UX Designer – As a freelance User Experience (UX) designer, you craft user-friendly elements for websites, software, or mobile apps.

• Web Developer – You write code to create website layouts that result in fully operational websites. You are in charge of building, maintaining, and scaling clients’ websites in accordance with specific requirements.

• Programmer – As a freelance programmer, your world revolves around working with computers and software development. If you have a keen interest in coding, this highly technical domain is an excellent choice for a career.

Sales & Marketing

Today, there is a substantial demand for freelance sales and marketing professionals.

• Marketing Strategist – As a freelance marketing strategist, you can craft customer engagement initiatives and advertising campaigns that yield tangible results. Collaborating with an experienced freelance marketing expert can simplify the attainment of sales objectives.

• Outreach Coordinator – Your task is to devise strategies for promoting your clients’ products and services. You may also be responsible for producing high-quality marketing materials and overseeing a campaign budget.

• Customer Contact Manager – As a freelance customer contact manager, you need to ensure that the service quality aligns with customers’ expectations. Additionally, you need to establish customer service targets and formulate a staff development plan.

Engineering & Architecture

Opportunities in architecture and engineering are also open to independent professionals. There are available projects for architects, interior designers, and remote mechanical engineers.

• Interior Designer – As a freelance interior designer, your role typically involves providing clients with advice on furniture arrangements and material choices. You may also utilize digital tools for virtual visualization to bring your design concepts to life.

• Architect – You need to choose projects that align with your experience and expertise, whether they involve structural or civil designs.

• Remote Mechanical Engineer – As a freelance mechanical engineer, you must assist clients in designing and developing machines, sensors, and tools. Some projects may require troubleshooting mechanical issues and conducting repairs as well.

Human Resources

The Human resource category has a range of specialized roles, including payroll manager, recruiter, and general HR expert.

• Recruiter – As a freelance recruiter, your duties include screening job applicants and devising recruitment strategies. You have the flexibility to collaborate with multiple clients concurrently to help them find their ideal candidates.

• Payroll Manager – You need to provide assistance to clients in managing payroll operations by ensuring smooth and precise processing.

• General HR Expert – As a freelance general HR expert, you need to support clients in overseeing employee development. Some projects may also entail the establishment of HR policies and procedures.

Legal

There are many job opportunities in the legal field, including freelance paralegals, remote secretaries, and attorney roles.

• Remote Secretary – As a freelance remote secretary, your responsibilities may involve various administrative tasks such as scheduling appointments, issuing invoices, and managing correspondence.

• Lawyer – You need to collaborate with companies, individuals, and law firms. Depending on your specialization, you might assist clients with corporate or family law matters.

• Paralegal – As a freelance paralegal, you must help clients draft legal documents for litigation and manage electronic filings. Additional tasks may include patent-related work, document organization, and e-discovery involving digital investigation.

Admin & Customer Support

The Admin & Customer Support category provides job opportunities across various functional areas. Examples of freelance positions within this category include customer service coordinators, database managers, and e-commerce managers.

• Database Manager – As a freelance database manager, your role oversees customer data databases. Your primary responsibility is to maintain the security and efficient organization of sensitive information.

• Customer Service Coordinator – Your tasks may involve ensuring customers receive exceptional service, conducting quality surveys, and addressing customer complaints.

• E-commerce Manager – As a freelance e-commerce manager, your responsibilities would include inventory management, supervising site maintenance, and optimizing marketing strategies.

Now, let us see the process by which you can find freelance work.

How Can You Find Freelance Work?

Finding freelance work requires a proactive approach and a combination of online and offline strategies. Here’s a step-by-step guide on how to find freelance work:

• Determine your area of expertise & the services you can offer as a freelancer.

• Build a professional website or portfolio that showcases your previous work, skills, and contact information. Make sure it’s visually appealing & easy to navigate.

• Register on freelance websites like Upwork, Freelancer, Fiverr, and Guru. Complete your profile with relevant details, skills, and work samples. Browse and apply for projects that match your skills and interests.

• Use social media sites, like LinkedIn, Twitter, & Facebook to promote your freelance services. Join relevant groups and communities, share your work, and network with potential clients.

• Attend industry-related events, conferences, and meetups both online and offline.

• Check job boards like Indeed, Craigslist, and ProBlogger for freelance job listings. Many companies post freelance opportunities on these platforms.

• Research companies or individuals in your niche & contact them via email or social media. You can offer your services & explain how you can add value to their projects.

• Start a blog or create valuable content related to your niche. Share your expertise through articles, videos, or podcasts to establish yourself as an authority in your field.

• List your services on freelance directories and marketplaces specific to your industry. Examples include Behance for creatives and GitHub for developers.

• You can ask your clients for referrals or testimonials if you’ve completed projects successfully. Positive feedback can attract new clients.

• Attend local business events, chamber of commerce meetings, or workshops to connect with potential clients in your area.

• Some agencies specialize in connecting freelancers with clients. Consider joining one that matches your skills.

• Research the market to find out competitive pricing for your services. Be transparent about your rates on your website or when discussing projects with clients.

Now let us look at some real-life examples on what is a freelancer.

Real-Life Examples On What Is A Freelancer

Let us have a look at the real-life examples of a freelancer:

Akshita K. is a freelance graphic and web designer on Freelancer. She has 12 years of experience in the IT sector.

Akshita is highly skilled in designing, app development, coding, website development, and web design. She has received the Preferred Freelancer Program SLA 1 certification.

Akshita has received 23 recommendations and 4.9 out of 5 ratings with 428 reviews. She charges $40 / hour for freelance work.

Haroon A. is a top-rated freelance seasoned designer on Upwork. He has 17+ years of experience in Branding and Graphic Design, proficient in both Print and Web Media.

Haroon is highly skilled in banner design, web design & development (CMS, shopping cart, or custom solutions), e-commerce development, and web project consultancy.

Haroon has worked on 10,993 projects and has received 7,500+ reviews from more than 5,000 esteemed clients. He charges $25 / hour for freelance work.

Adam L. is a freelance PHP developer on Freelancer. He has 15 years of experience as a site admin(Linux/windows/apach/nginx expert).

Adam is highly skilled in PHP(OOP conceptions). He has been working on vast, challenging tech projects, fixing 1800 php websites error-free and maintaining client websites.

Adam has received 1 recommendation and 5.0 out of 5 ratings with 72 reviews. He charges $89 / hour for freelance work.

Milton N. is a freelance Audio-Video Editor/3D-2D Animation/Pro Voice Over on Freelancer. He has 10+ years of experience in video editing, 3D & 2D Explainer animation, and 3D modeling.

Milton is highly skilled in Adobe Effect, Premier Pro, AU, Filmora, canvas, and Vyond. He has great experience in voice-over recording with a Pro Home Studio with 8 + years of experience.

Milton has received 2 recommendations and 5.0 out of 5 ratings with 30 reviews. He charges $25 / hour for freelance work.

Taxes Incurred In Freelancing

The Internal Revenue Service (IRS) classifies freelancers as self-employed individuals. When you’re working with a company, a self-employed individual doesn’t have their taxes automatically deducted from their earnings.

Freelancers bear the full responsibility for paying their income taxes, and they are required to make estimated tax payments quarterly.

Additionally, freelancers are subject to the self-employment tax as mandated by the IRS. Since the IRS believes freelancers are business owners, they are obligated to pay the self-employment tax in both the employer and employee capacities.

In 2023, the Social Security tax is levied at a rate of 6.2% for employers & 6.2% for employees. It means a total tax of 6.2% + 6.2%, equal to 12.4%, as they are considered both employers and employees.

You’ll be happy to know that freelancers might be eligible for specific tax deductions that are applicable to business owners. According to the IRS, these deductions must pertain to ordinary and necessary expenses related to their business operation.

In the United States, freelancers do not receive W-2 forms for income tax reporting purposes. Instead, they receive a 1099-MISC tax form from their clients, typically without any tax withholdings.

If a freelancer provides services to multiple clients within a given tax year, they will receive 1099-MISC forms from each of those clients.

Now, let us look at the pros and cons of freelancing in the next section.

Pros And Cons Of Being A Freelancer

Here are the pros and cons of being a freelancer. Let us look at them:

Strategies To Implement For Freelancing

There are many strategies to implement for building a successful freelancing career. Here are the tips:

• Creating a website marks one of the initial steps in building your freelancing venture. If you have the financial resources, you can engage a website designer to handle this task on your behalf.

• You can enhance your social media profiles by including relevant information about your freelancing niche and specialization.

• The internet provides a lot of freelance platforms that connect businesses with suitable freelancers. You must create a profile, search for freelance opportunities in your chosen field, and submit proposals for projects that align with your interests and skills.

• Leverage your professional network, including past collaborators, acquaintances, and family, to spread the word about your freelancing services. You can request previous employers to provide endorsements by highlighting your competencies and work quality.

• Formulate both weekly and daily schedules to allocate sufficient time for project execution and timely completion of critical tasks.

• As a freelancer, you need to bear the responsibility for various financial aspects, such as taxes, healthcare, and retirement plans, given your self-employed status.

• Freelancers can boost their earning potential and secure more projects by specializing in a particular niche.

• You need to have effective communication skills to engage with diverse companies and individuals regularly.

Now, let us have a look at some FAQs on what is a freelancer.

FAQs (Frequently Asked Questions) On What Is A Freelancer

1. What exactly does a freelancer do?

A freelancer is a self-employed individual who earns income based on individual projects or tasks, often of short duration. Freelancing allows you to work remotely, whether from home or workspaces. It allows you to set flexible working hours and an improved equilibrium between work and personal life.

2. What qualifies you as a freelancer?

A freelancer is a self-employed worker who offer services to one or more companies without holding a W-2 employee status. They have the freedom to accept assignments from various businesses and maintain complete control over their career & workload.

3. Does a freelancer get paid?

Freelancers receive compensation based on the tasks they accomplish. They are remunerated for their work on an hourly basis at a pre-established rate. They don’t receive a regular paycheck when they’re not actively working.

4. How do I start freelancing?

You can start freelancing in the following steps:

• Identify your niche
• Establish an online presence
• Create your portfolio
• Engage in Networking with fellow freelancers & industry experts
• Initiate direct contact with prospective clients.

Final Thoughts On What Is A Freelancer

A freelancer is an independent professional who provides their services to clients or companies on a project-by-project basis. They are not traditional employees and are typically free to choose their projects, work remotely, and set their own schedules.

Freelancers play a vital role in various industries & offer a wide range of specialized skills & expertise to meet clients’ diverse needs.

The freelance lifestyle can offer flexibility and autonomy but also comes with its unique challenges, including managing finances, marketing oneself, and maintaining a consistent workload.

Overall, freelancers are a dynamic and integral part of today’s workforce, contributing their talents to a global marketplace of opportunities.

I hope this article on what is a freelancer sounds helpful! Do share your thoughts in the comments section!