How To Become A Successful Freelancer: 8 Lessons You Need To Know

Introduction

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Freelancing, the practice of offering your skills and services as an independent contractor rather than a traditional employee, has experienced explosive growth in recent years. According to a 2019 study by Upwork and the Freelancers Union, the freelance workforce in the United States has reached 57 million, representing 35% of the country‘s total workforce. This number is expected to surpass 50% by 2027.

As a freelancer with over a decade of experience, I‘ve witnessed this growth firsthand and have navigated the challenges and opportunities that come with being your own boss. In this ultimate guide, I‘ll share eight essential lessons I‘ve learned along the way to help you build a thriving freelance career.

Lesson 1: Raise Your Rates Annually

One of the most common mistakes freelancers make is failing to adjust their rates as they gain experience and expertise. Your skills become more valuable over time, and your pricing should reflect that. Make it a habit to evaluate and increase your rates at the beginning of each year.

When setting your prices, consider the following factors:

  • Your level of experience and specialized skills
  • The value you provide to clients (e.g., increased revenue, time savings)
  • Industry benchmarks for your services
  • Your business expenses and desired profit margin

According to a 2020 report by Payoneer, the average hourly rate for freelancers worldwide is $21. However, rates vary significantly by industry, skill level, and location. For example, the average hourly rate for freelance web developers in North America is $81, while the average rate for graphic designers is $41.

Industry Average Hourly Rate (Global)
Web Development $51
IT & Programming $49
Design & Creative $36
Writing & Translation $27
Sales & Marketing $34

Source: Payoneer‘s Freelancer Income Report 2020

To determine your optimal rates, start by researching industry benchmarks using resources like Glassdoor, PayScale, and the Freelancer Income Report. Then, adjust based on your unique value proposition and target market.

Lesson 2: Stand Firm on Your Prices

Once you‘ve established your rates, it‘s crucial to stand firm and resist the temptation to lower your prices to win clients. Accepting projects that don‘t meet your pricing standards can lead to a host of problems, including:

  1. Resentment and burnout from being underpaid
  2. Difficulty raising your rates in the future
  3. Attracting more low-paying clients

When a potential client asks you to lower your rates, politely explain the value you bring to the table and why your prices are set where they are. If they insist on a lower rate, be prepared to walk away. In my experience, saying no to low-paying work often opens the door to higher-quality clients who value your expertise.

Lesson 3: Maximize Cost Savings

As a freelancer, you are responsible for expenses that would typically be covered by an employer, such as equipment, software, and self-employment taxes. To maximize your profitability, it‘s essential to take advantage of every cost-saving opportunity available.

One of the most significant ways to reduce your tax liability is by claiming deductions for business expenses. According to the IRS, freelancers can deduct the following expenses (among others):

  • Home office expenses
  • Equipment and supplies
  • Software and subscriptions
  • Travel expenses
  • Marketing and advertising costs
  • Health insurance premiums

To simplify expense tracking and maximize deductions, use a tool like QuickBooks Self-Employed or FreshBooks. These platforms allow you to easily categorize expenses, generate reports, and even track mileage for travel deductions.

Another way to save money is by going paperless and leveraging digital tools. Instead of investing in a printer and physical office supplies, use e-signature software like HelloSign or Adobe Sign to sign contracts electronically. Request that clients pay invoices online through your accounting software or platforms like PayPal or Stripe.

Finally, take advantage of free software trials before committing to a paid subscription. Many companies offer 14- or 30-day trials, giving you ample time to evaluate the tool‘s relevance to your business. If a free trial isn‘t advertised, reach out to the company and ask—more often than not, they‘ll be happy to accommodate your request.

Lesson 4: Outsource Financial Management

While it may be tempting to handle your finances yourself to save money, working with experienced professionals can actually save you time and money in the long run. Two key financial roles to consider outsourcing are:

  1. Certified Public Accountant (CPA): A CPA can help you navigate the complexities of taxes, including estimating quarterly payments, maximizing deductions, and ensuring compliance with federal and state regulations. According to a survey by the National Society of Accountants, the average cost for a CPA to prepare a Form 1040 with a Schedule C (for self-employed individuals) is $457.

  2. Bookkeeper: A bookkeeper can handle day-to-day financial tasks such as invoicing, expense tracking, and financial reporting. This frees up your time to focus on revenue-generating activities. The average hourly rate for a freelance bookkeeper in the United States is $22, according to PayScale.

While hiring financial professionals may seem like an added expense, the peace of mind and time savings they provide can be invaluable. By delegating these tasks to experts, you can focus on delivering high-quality work to your clients and growing your business.

Lesson 5: Diversify Your Client Portfolio

Relying on a single client for the majority of your income can be risky. If that client experiences budget cuts, changes direction, or decides to work with someone else, you could find yourself in a precarious financial situation.

To mitigate this risk, aim to build a diverse portfolio of clients across different industries and project types. A good rule of thumb is to ensure that no single client accounts for more than 25% of your total revenue.

To attract a mix of clients, consider the following strategies:

  1. Develop a strong online presence: Showcase your expertise and attract potential clients through a professional website, blog, and social media profiles.

  2. Attend industry events and conferences: Network with potential clients and collaborators at events in your target industries.

  3. Leverage referrals: Encourage satisfied clients to refer you to their colleagues and contacts.

  4. Collaborate with other freelancers: Partner with freelancers in complementary fields to expand your service offerings and tap into new client networks.

By continuously marketing yourself and building relationships with potential clients, you‘ll be better positioned to weather any unexpected changes in your client roster.

Lesson 6: Prioritize In-Person Networking

While online networking can be effective, nothing beats the power of face-to-face interaction when it comes to building relationships and securing new clients. In-person networking allows you to:

  • Establish a personal connection with potential clients and collaborators
  • Demonstrate your expertise and value through conversations
  • Learn about upcoming opportunities and industry trends

To make the most of in-person networking, consider the following strategies:

  1. Attend industry-specific events: Identify conferences, trade shows, and meetups that align with your target industries and attend regularly.

  2. Join professional organizations: Become a member of professional associations in your field to access exclusive events and resources.

  3. Volunteer your skills: Offer your services to local nonprofits or community organizations to expand your network and build your portfolio.

  4. Follow up after events: Send personalized follow-up messages to the people you meet, reinforcing your connection and exploring potential opportunities.

If the thought of networking makes you anxious, start small and gradually push yourself out of your comfort zone. Set a goal to attend one event per month and focus on making genuine connections rather than pitching your services.

Lesson 7: Communicate Effectively and Set Boundaries

Effective communication is essential to building strong, long-lasting relationships with your clients. Respond promptly to client inquiries, provide regular progress updates, and be transparent about any challenges or delays.

However, it‘s equally important to set clear boundaries around your availability and workload. Burnout is a real risk for freelancers, with a 2019 study by the Mental Health Foundation finding that 55% of freelancers have experienced depression or anxiety.

To maintain a healthy work-life balance, consider implementing the following strategies:

  1. Set office hours: Establish clear start and end times for your workday and communicate these to your clients.

  2. Use an email autoresponder: Set up an autoresponder outside of your office hours to manage client expectations and provide peace of mind.

  3. Take breaks and prioritize self-care: Schedule regular breaks throughout the day and prioritize activities that promote physical and mental well-being, such as exercise, meditation, and hobbies.

  4. Learn to say no: Be selective about the projects you take on and don‘t be afraid to decline work that doesn‘t align with your goals or values.

By setting boundaries and communicating them clearly to your clients, you‘ll be better equipped to deliver high-quality work and maintain a sustainable freelance career.

Lesson 8: Optimize Your Website for Lead Generation

In today‘s digital age, your website is often the first point of contact between you and potential clients. To attract high-quality leads and establish your expertise, it‘s essential to optimize your website for both users and search engines.

Some key elements of an effective freelance website include:

  1. A clear value proposition: Communicate the unique value you offer and the problems you solve for your clients.

  2. Detailed service pages: Provide in-depth information about your services, including your process, deliverables, and pricing.

  3. A portfolio of your work: Showcase your best projects and case studies to demonstrate your skills and results.

  4. Client testimonials: Include quotes and feedback from satisfied clients to build trust and credibility.

  5. A blog: Share your insights and expertise through regular blog posts, establishing yourself as a thought leader in your industry.

To drive targeted traffic to your website, focus on search engine optimization (SEO) and content marketing. Research the keywords and phrases your ideal clients are searching for and optimize your website‘s structure, content, and metadata accordingly.

According to a 2021 study by Content Marketing Institute, 73% of B2B marketers use content marketing to generate leads and 64% use it to build credibility and trust. By consistently publishing high-quality, keyword-rich content on your blog, you can attract potential clients who are searching for the solutions you provide.

Conclusion

Building a successful freelance career takes time, dedication, and a willingness to continuously learn and adapt. By implementing these eight lessons, you‘ll be well-equipped to navigate the challenges and opportunities of freelancing:

  1. Raise your rates annually to reflect your growing expertise
  2. Stand firm on your prices and resist the temptation to lower your rates
  3. Maximize cost savings through tax deductions, digital tools, and free trials
  4. Outsource financial management to save time and ensure compliance
  5. Diversify your client portfolio to mitigate risk
  6. Prioritize in-person networking to build relationships and secure new clients
  7. Communicate effectively and set clear boundaries to maintain work-life balance
  8. Optimize your website for lead generation through SEO and content marketing

Remember, success as a freelancer is not just about the quality of your work, but also the strength of your business acumen. By treating your freelance career as a business and continuously investing in your professional development, you‘ll be well on your way to achieving your goals.

For more resources and support on your freelance journey, check out the following:

  • Freelancers Union: A membership organization offering resources, advocacy, and insurance for freelancers
  • The Freelancer‘s Bible: A comprehensive guide to building and sustaining a successful freelance career
  • The Freelance Way: A community and resource hub for freelancers, offering courses, templates, and support

With dedication, perseverance, and a commitment to continuous learning, you can build a fulfilling and profitable freelance career on your own terms.