When we start our freelancing journey, we meet many other freelancers. Although it seems that everyone says the same thing about freelancing but at times we notice that each one of us has a different interpretation of its freedom. We make mistakes and some of us take risks but we fumble to find our way to freelancing.

The freedom of living a life on one’s own terms makes freelancing appealing but there are also some downsides to this profession as well. There is freedom and flexibility in freelancing but there is a lack of job security and affordable health care.

Some of the pros and cons of freelancing are as follows:

The Pros of being a freelancer

Compensation:

There isn’t a ton of information related to how much freelancers make but on average, freelancers make 45% more than a normal worker. Freelance wages are higher than non-freelance wages in many countries. According to an estimate, 75% of remote workers earn around $65,000 per year. There are three categories of earnings among freelancers

49% of the freelancers earn $20-$59 per hour.

21% of the freelancers earn $70+ per hour.

15% of the freelancers earn $100+ per hour.

Work-life balance:

Online work activity among freelancers is very much demanding. The freedom to work from home has the flexibility to go on a vacation when they want to. According to survey reports, only 29% of American freelancers work 40+ hours a week. 65.5% of the freelancers work full time, 5.7% work full time with a part-time job, 15% work part-time as freelancers with no job during the day, and 13.7% of the people work as freelancers part-time.

25% of freelancers regard the freedom and flexibility of freelancing as the most appealing thing.

Location:

Freelancers are not bound to work from any location. Most freelancers work as telecommuters and work on projects which are contract based. This rate is estimated to go up by 30%-50% in the coming years.

Optimism:

The freedom and work-life balance allow freelancers to build their life around their own expectations and unique circumstances. This reality makes them develop a positive attitude towards life and work.

It is estimated that 79% of freelancers are happier while freelancing as compared to their previous work. 85% of freelancers are optimistic about business in the approaching years.

Recession Proof:

The economic ups and down do not affect the freelancer’s community and 49% of the freelancers felt little or no impact from the recession.

Entrepreneurs of the future:

71.7% of freelancers consider themselves as entrepreneurs because they are the sole owners and managers of their work. They do their work, sell their product themselves, and manage all the financial issues on their own.

Cons of freelancing:

When people think about freelancing they think of a business away from the traditional chaos and rat race. But it has its downsides as well,

Pessimism:

21% of the freelancers claim that even with all the benefits of working on their own, the freelancing does not make them as happy and satisfied as their traditional job.

The profession of freelancing is not a veritable paradise:

• 8% of freelancers find it extremely hard to locate clients for workers who pay them a good amount. 16.3% of the freelancers acclaim freelancing as overcrowded by women.
• 1% find it difficult to maintain a healthy work-life balance while working from home.

Low productivity:

Among all the freelancers, 6.8% of them regard freelancing with low productivity. The flexibility of working from home and choosing one’s own hours makes a person lazy and he/she starts taking the work for granted which results in low productivity.

Better Reward:

Around 4.4% of freelancers find clients who do not pay well for their work which discourages most of the remote workers to keep on finding better clients which wastes their time and energy.

No health security:

Freelancers are not given any coverage when it comes to health insurance options. Around 4.4% of freelancers think no health insurance is a drawback when it comes to adopting freelancing as a full-time career.

Stability:

Stability in freelancing is a question among 21% of the freelancers; they regard it as not a proper way of earning a stable income. 21.9% believe in the fact that their traditional jobs provide them better security as compared to freelancing full-time.

Affected by economic ups and downs:

According to estimates 50.7% of freelancers say that the economic situation does affect freelancers although indirectly.

Over the past several years, freelancing has changed a lot. It does have some downfalls but now freelancers are given more protections and they could even qualify for a tax credit to subsidize the cost of coverage.

Bottom line is, if done correctly and offered value proposition to the clients, the freedom of freelancing, and the financial independence is unmatched. After all, who would the mind be their own boss?