Freelancers will often tout the benefits of freelancing. Just as much as people working full-time might do the same (It’s true! Some people love their jobs!) Startup entrepreneurs will rant and rave about the benefits of starting companies and working at startups. Assuming we like what we’re doing, we’ll promote it as “the way to go” and happily list numerous reasons to support our argument.
So what are the pros of going freelance?
Freelancers will rattle off a number of them as “accepted truths” – but let’s look at things a bit further.
The Pros of Freelancing
- You get to be your own boss. This is 100% the case…until you land your first client. Then say a big happy hello to your new boss! Many freelancers do have more control over their work lives than people with day jobs, and this certainly can be a pro to freelancing, but oftentimes this argument is taken a few steps too far. Clients are bosses (regardless of how badly you want to call them “partners”) and they can be as, or more demanding than anyone else.
If possible, freelancers will gain the ability to set their own work schedule, determine their workload, and have more control over their careers. So there is a certain element of “being your own boss” that’s attainable through freelancing.
- The money is better. Many people choose to freelance in order to work less hours, in which case it’s very hard to argue that the money is better. For those that are planning to freelance full-time they’ll often cite this as a significant pro to freelancing.
Your hourly rate should be higher as a freelancer. And if you were doing billable work 100% of the time, you should be making more money. But this is where you may run into issues. I always think about cab drivers in this circumstance. Cab drivers (in Montreal) make somewhere around $40-$70/hour based on the rate per minute or kilometer. That’s not too shabby…except for the fact that cab drivers aren’t collecting fares 100% of the time.
As a freelancer, you can’t possibly bill for 100% of your time. You’ll be doing sales (unless it all comes in as referrals, in which case you still have to do a certain amount of negotiation, pre-project legwork), administrative work, etc. Keep that in mind when you’re thinking about the bags of money you envision hauling to the bank vault.
- You get to work on a variety of projects. This is very often the case. And for many this is an exciting prospect. Even more exciting is the possibility of choosing what projects you get to work on, as opposed to having a boss handing them to you. Just remember: With variety comes uncertainty. Will the new client be reasonable? Will they pay? Will you be stretching yourself too thin? For some, uncertainty is the spice of life (or at least one of them), but it’s important to realize its potential impact.
If you get to the point where you can pick & choose projects, this can be a huge advantage. But it takes time to get there. When first starting out, you may be accepting projects that are less worthwhile, interesting or rewarding (personally and cashflow-wise.)
- You get to work from anywhere. For many freelancers, the appeal of working from home (or the cafe nearby) is too hard to resist. And I certainly see the appeal. But working from home is not without its challenges. You need a good office setup. You need to minimize distractions. You may get roped into doing chores around the house which you previously escaped from since you weren’t around! And you might become isolated. Oftentimes when people return to the world of day jobs from their freelance careers they point to a need for more camaraderie, and a greater opportunity to work with, and socialize with others.
If you are working at a day job and having the freedom to work anywhere (or at least from home) is important to you, I’d suggest you negotiate telecommuting time. More and more employers are amenable to this type of work setup.
My goal isn’t to burst any bubbles, only provide a perspective that may differ from what many freelancers espouse. Let’s take a look at some of the cons of freelancing…
The Cons of Freelancing
- You do less of what you really like doing. That’s a pretty broad statement, and certainly won’t apply to everyone. In your day job you may be doing very little of what you really enjoy. But, when it comes to freelancing, there’s no doubt that you’ll do a fair amount of work outside of your expertise, in order to maintain and build your business. Think: Business setup, taxes, accounting, bookkeeping, sales, marketing, contract negotiations, project management, etc. Even worse, wait till a client doesn’t pay on time and you have to hound them — collections is miserable.
- You have to manage yourself. Some might consider this a pro, but freelancers will often talk about the need for a ton of self-discipline. More than that, freelancers have a huge amount of responsibility resting on their shoulders. The buck stops with you. There’s nowhere to hide. You can’t blame office politics, bad bosses or co-workers, or anything else. It’s much more difficult to have a bad day or even take time off (ask freelancers if it’s harder to go on vacation…) because of the responsibility to keep things chugging along.
- You have a lack of security. This is one of the most common “cons” people will point out about freelancing. There are three issues when it comes to security: job security, income security and.
Personally, I don’t believe in job security. Unless you’re part of a union, you don’t have a lot of job security. And to rely on job security as a means of keeping your job is a good way of finding yourself unemployed in a hurry.
So I don’t consider the “security” offered at day jobs to be much of a pro versus freelancing except when it comes to the steadiness of the income generated. Freelancers need to plan for uneven income. And this goes beyond having some money saved. Think about when your prospects set their budgets and spend their money. Map out month-to-month your busy and slow times, so in following years you’ll be more prepared.
Freelancers also have a lack of security when it comes to health benefits. Simply put, freelancers are at a disadvantage when it comes to benefits, pensions, and other rights given to full-time employees. Recently in Quebec (and perhaps in all of Canada), they changed the rules governing maternity and paternity leave, so that freelancers could take paid leaves just as employees can. But in most places around the world, those types of benefits are not given to freelancers.
- You don’t own your work. This is the biggest con of being a freelancer. You’re doing work for someone else, and when you’re done, it’s handed over and that’s that. You retain the knowledge gained, and you may even be given some rights to reuse work you produce for a client, but ultimately you don’t own it. You will most likely not gain any future value from the work (although there are opportunities to negotiate equity deals for work, etc.) Still, it’s not really yours any longer.
As a result, you’re not building up any equity or long-term value as a freelancer. Your rates might go up. You might get more work. You might earn more money. But at the end of the day you’re still a mercenary going from contract to contract, hand-to-mouth.
This is why I’m an entrepreneur more than a freelancer or consultant. By starting a company I’m creating the opportunity to build value in something beyond just myself. I want to own what I do (or at least a piece of it) so that there’s something more tangible to hold onto at the end.
Deciding to go freelance is a major step. It has personal and financial implications that go beyond “simple” benefits like working from home, or setting your own schedule. You need to go into freelancing with your eyes open, aware that it’s not the panacea some claim it to be.
The pros of freelancing are attainable, but they’re goals not givens. If you succeed, then you will be working on projects you’re passionate about, you will be setting your own schedule, you will be making more money. Those opportunities exist, but like starting a new company, the amount of personal, emotional and financial investment can be extremely high and needs serious thought.
photo by FlyingFox
[...] pros and cons of freelancing are fairly well known. And freelancers have no shortage of stories about bad clients. But what [...]
I’ve worked from home since 1989, and in almost 19 years, I’ve amassed quite a few tales of woe and success stories alike. Chasing bad debt, and being here when the kids get home. Suffering slow cash flow and cutting loose on a Friday to take a mini-vacay with the family. The stories – on both sides of the coin – are abundant. But though we want to become chief home officers and work for ourselves, like someone already said, unless you hire a virtual assistant to handle the ‘business’ of business (like accounting, bookkeeping, marketing, prospecting, etc.), then the business end must be handled. These are among the pros and cons of freelancing. But I gotta tell you, cashing that client check never gets old. Nor does being there when the kids get home. And man, at 2pm, that hammock strung beneath the two shade trees in the front yard sure looks good…
@Jeff: I wish I could have a hammock near my place, but the 4 feet of snow outside my window say otherwise…damn weather.
Anyway, the pros and cons are clear, as long as people go into it with their eyes open I think they’ll end up alright.
The pros of freelancing are obvious, having the automomy of being your own boss that everyone craves.
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[...] Exposed: The Pros and Cons of Freelancing The good and bad of the freelancing [...]
Keep beating the anti-freelance writing drum, Ben! I need some help knocking off the competition. I try to “go negative” as much as possible, warning people that food stamps, welfare and a home foreclosure or car repo is in their future. It’s bad out there, man!
@Matt Keegan: Ha! I’m happy to help … don’t forget my commission checks though…
Right on with the pros and cons of freelance. I think that depending on the individual that is considering going the freelance route it’s definitely important to consider the cons because they need just as much attention as the pros. The cons of freelance could sink your freelance career real quick if your not aware and prepared for them. For someone considering a freelance career I’d ease into slowly before going all out as you might discover that you actually like having a traditional job and doing the freelance stuff part time!
I agree with the general spirit of this post – however, I think what constitutes a downside or problem varies by the individual.
There is a whole industry targeted to people for who “too much self-discipline” is precisely the problem. People who are highly motivated to work and feel as if they spend most work hours twiddling their thumbs and being perplexed as to why their coworkers are crying busy.
I know several people who have a nominally full-time job, a consulting practice, and a side business running all at once. They typical complaint – the “full-time” job is about 50% face-time and forces them to work at a slow, unproductive pace.
People like this often end up “freelancing” out of necessity – the job is a bottleneck. Likewise, I will never get the “isolation” thing. My freelance work has me interacting with a huge variety of people all over the world, including the kindly folks at my neighborhood coffee shop.
In my opinion, jobs have only one advantage for a person like me – benefits – and that’s a logistical problem I hope to solve soon!
@Barbara: Thanks for the comment. To each their own of course – if everyone was the same, and had the same experiences, life would sure be boring, eh? I’m glad things are working out for you in the freelance world!
Now that’s a realistic take. I’ve hired and fired a few that wanted to do data entry at home over the years. The ones that lasted (some for 10+ years) had a realistic view. The others wanted a check but didn’t want to work.
Interesting!
I think working in an organization makes one more disciplined. As mentioned by you, there is no certainty of projects in freelancing business. It all depends on what kind of freelancing job a person is doing.
I've worked as a freelance writer and feel there is pressure of deliverables even if you are your own BOSS. Ultimately what you get in return counts depending on your expectations.
I think working in an organization makes one more disciplined. As mentioned by you, there is no certainty of projects in freelancing business. It all depends on what kind of freelancing job a person is doing.
Too much of stress involved in day to day work. It is great to be a freelancer only if the services you are providing are in DEMAND.
There is nothing absolute in the world. Change according to the changing times.
I've worked as a freelance writer and feel there is pressure of deliverables even if you are your own BOSS. Ultimately what you get in return counts depending on your expectations.
I LOVE this post. I’ve been working as a freelance writer for… well, forever… and this really hit the nail on the head.
@Dina: Thanks! Glad you enjoyed the post, thank you for stopping by and commenting.
What I like about being a freelancer is that you basically have the potential of making as much money as you want to. The thing is, you will have to put in the work, the hours, and the frustration it takes to get there. As a freelancer, the extra work you do is reflected in the amount of money that you make, the client list that you build, and your own success. When you have the necessary skills, talent, and passion it takes to make it in this business, then it is not impossible to become a successful freelancer.
What I like about being a freelancer is that you basically have the potential of making as much money as you want to. The thing is, you will have to put in the work, the hours, and the frustration it takes to get there. As a freelancer, the extra work you do is reflected in the amount of money that you make, the client list that you build, and your own success. When you have the necessary skills, talent, and passion it takes to make it in this business, then it is not impossible to become a successful freelancer.
[...] Exposed: The Pros and Cons of Freelancing by Ben Yoskovitz [...]
thanks
[...] Ben Yoskovitz (2007) Instigator Blog http://www.instigatorblog.com/exposed-the-pros-and-cons-of-freelancing/2007/10/31/ Accessed November 7th [...]
So true about freelancing. You must learn how to manage and discipline yourself.
So true about freelancing. You must learn how to manage and discipline yourself.
[...] blog published an excellent list of not-so-fancy aspects of freelancing, so I thought since blogging, and especially problogging, is a freelance activity, I’ll list [...]