Finance Management for Freelancers
Rapid growth in the number of freelancers around the world came with the 2008 Economic Crises, as the full time employment figures decreased. Number of orders on oDesk, one of the leading freelance marketplaces online, nearly tripled during this period.
Although some experts predicted that this figures are going to last only until the recession ends, in last 12 months number of freelancers is still on the constant rise despite the number of steady employed workers is growing together with the economy of the Western World.
Freelance industry increase is definitely going to introduce some changes in the regular work practices, for companies, steadily employed people and freelancers themselves. This means a tougher competition and a lot of new challenges and it requires much better financial planning if you wish to make more money in the future.
How Much Money to Expect?
Freelance market is much more transparent than people think. There are almost fixed prices for each skilled job depending on freelancer’s expertise. Some of the more popular online marketplaces display their web site statistics which are very helpful when setting your prices. On these pages you can also see overall skill trends. These can be useful when planning to learn new skills and expand your business.
Feast and Famine
One of the biggest challenges of this kind of work is the ebb and flow of client orders. Feast and famine cycles are common phenomenon and there are several ways to overcome these hardships.
You can always put some money on the side for hard times, but recurring revenue is by far the best way to deal with this problem. For this you will need to establish a healthy relationship with your best clients, offer them service packages and ask them for a regular monthly pay.
This will enable you to work only on things you are good at and not to take any job you find online, which will drastically improve your credentials.
Importance of Steady Clients
Although most of the freelance workers have wanderlust spirit, steady income is definitely not one of the things they would say “no” to. Finding your clients on online marketplaces is fun, but only for some time. After a year or two if you don’t have one or several steady clients it’s definitely time to reassess your strategy.
Steady client needs to be someone who pays on time and gives you the fair price for the work you’ve done. If you are good at your work, soon you will have several steady clients, and the pay you were only dreaming about, while working from 9 to 5.
Learn From More Experienced Freelancers
“…Wise people learn from other people’s mistakes”. This pro-verb definitely applies for freelancing industry. You should take some time to hear what more experienced freelancers have to say.
There are entrepreneurs who earned millions of dollars from this business and you can also become a millionaire one day by listening to their advice and combining them with your talents and hard work. Take at least half an hour each day to relax with the cup of tea and an article written by a good influencer and road to financial success will be much shorter than you can imagine.
Category: Business
