According to a survey in America, almost every third person is a freelancer.

That’s how popular freelancer is as a career choice.

More and more people find it more attractive to work individually than to work in a company. What makes freelancing so appealing and whether it’s really worth it are some of the questions we explore in our blog.

Have you ever wondered why the youth are so interested in freelancers? What exactly does it mean to be a freelancer?

A freelancer is a self-employed person who earns wages from short-term jobs or assignments. Instead of having a 9-to-5 job with one employer, freelancers can work with multiple clients at the same time.

You can usually find freelance jobs on sites like UpWork and Freelancer. Some popular freelance job categories are design, marketing, social media, write contentand many more.

Freelancing as a term was introduced in the early 2000s when the popularity poll for working independently was at a peak. Today, large organizations like Google have more freelancers than permanent employees.

Many organizations hire freelancers for their work. However, sometimes they prefer to hire virtual assistants over freelancers. As the name suggests, virtual assistants are people who help you with smaller tasks. For more information, see our blog Freelancers vs. Virtual Assistants.

Working as a virtual assistant might give you the same benefits as a freelancer but with the stability of a job.

As tempting as it may sound, freelancing comes with a lot of risks and struggles. However, if you want to improve your career or be free from the corporate world, freelancing could be just the solution for you.

If you’re looking to join the growing freelance community or are considering starting your career as a freelancer, we’ve put together a list of pros and cons that might help you make the right choice.

Let’s get straight into it!

10 ADVANTAGES AND DISADVANTAGES of freelancing

ADVANTAGES

Ways to control and increase your income

There have been some unjustified myths about freelancers in relation to their income, or rather the lack of it. People assume that freelancers are usually tight on cash. That may be true early in their careers, but there are freelancers who, with experience and practice, have established themselves as a brand and offer their services at a reasonable, if not higher, price.

Freelancing allows you to work from home in your comfort zone. This can save you all the money you spend on commuting. Additionally, it helps freelancers to effectively use the cost and time spent on commuting, resulting in a better work-life balance.

In the beginning you may find it difficult to find clients due to your lack of experience, but once you have the right expertise and skills, you will be able to create your brand and offer your services at a certain price. For example, some freelancers charge by the time they spend on the project.

Working remotely doesn’t mean working from home

As a freelancer, you decide where and how you work. You could be sitting in your bed in your pajamas or at your local coffee shop. It doesn’t matter as long as you get the job done. Most office workers feel stuck in a cubicle for hours at a time. But as a freelancer, you don’t have to worry about that.

You might wake up and choose to work on a personal project before working for your client and vice versa. It saves you a lot of time investing in fitness or similar activities.

Many freelancers like to work remotely and travel at the same time. For example, you could be on a trip to the Bahamas while you work, or you could be sitting under a tree at your local park to work. So you can enjoy life to the fullest without sacrificing much.

Independence to work and grow

As a freelancer, you get what most employees don’t get; Independence. As mentioned, you won’t be stuck in a booth for hours. In addition, you can choose when you want to work. part-time or full-time. For example, you could work part-time in the summer and full-time throughout the year. Or you could do it the other way around.

You can choose which clients you want to work with as a freelancer. Also, there is no limit to the number of clients you can work with at the same time. You can work on multiple projects at the same time. You decide for yourself which services you want to offer and at what price. All of this means that you would be given complete control and independence in your work.

You can easily control your workload

If you work for a company or someone else, you don’t get to choose our customers. Instead, you’re usually handed a customer who you have to deal with, no matter how rude or unprofessional the customer is.

You can’t say that about freelancers. Freelancers can choose who they want to work with and what they want to work on.

Being a freelancer means you can work on a project you love or are passionate about. Freelancing also gives you flexibility in how much work can be done. For example, you could work on a project for 4 hours in the morning and do another task for 3 hours in the evening. This will help you build a balanced work life. People who love to travel tend to be freelancers. Certain people freelance while working for a company.

A full-time freelancer can work on the projects they love without distractions like meetings, office politics, etc. They do it when they like the job; they don’t have to justify it with any documents or presentations.

You are your boss

Right, you are your boss. So you can work from anywhere, wear what you like and nobody will ask you about it because you are your boss. But that’s not the important thing.

It is important that you can choose your customers. You can choose what you do and how you do it. You don’t have to report your work to a manager or worry about getting it approved. You don’t have to worry about not getting enough credit for the job. All you have to worry about is picking up a project and doing your best.

You will be the sole head of your company. You can control it however you like and reap all the profits.

DISADVANTAGE

Tax returns can be a complicated process

As a corporate employee, all you have to do is take your paycheck home. Your company covers all taxes while you receive the balance.

But as a freelancer you are on your own. Your client doesn’t send you a paycheck with taxes deducted; you have to do it yourself. Freelancers are usually responsible for paying self-employment taxes on a quarterly basis.

However, freelancers or the self-employed are entitled to deductions that employees are not. Being a freelancer means knowing how to file your taxes, something they don’t teach in school. Taxes can sound scary and difficult to manage, but you can get started if you read the regulations carefully as you set your tax rates.

No paid vacation or benefits

Most employees receive paid time off, sick days, holidays, and even company benefits like reimbursements, rebates, and insurance. Unfortunately not freelancers. They must rely solely on their income to receive these benefits.

A freelancer also has to pay insurance bills and arrange for retirement. So you would be self-employed, but not have paid or sick leave.

Lack of stability in your work

Most research shows that companies fail within two years. The same could be said about freelancing. Today you may have tons of customers on your doorstep, but tomorrow you may not have any. Freelancing is all about keeping your work fresh. It’s not just about working from home. It’s about growing while working from home.

Sometimes you may not have any customers at all. Your contract can be terminated abruptly. Your customer can ghost you. Freelancers are exempt from insurance. You have no assurance that you will always succeed. Therefore, you need to work on something that you like or are passionate about. Freelancing does not offer you any financial security, but promises a lot of experience.

Lots of sporadic work

Being a freelancer means running a one-person business. An employee only has to submit their offers in good time, but as a freelancer you have to plan, schedule and market everything yourself. And after doing all this, you may still find inconsistencies in your work.

Surveys show that finding clients is the most common struggle among freelancers. Sometimes you will be deferred or your contact will end abruptly. You may also experience customers not paying at all. Today you might have three jobs, but in a week you might not even get one.

Freelance work is best described as sporadic work. Sometimes it’s inconsistent and erratic. In order to have a successful freelance career, one may have to work hard to build a reputation or profile that guarantees the client the best quality.

You are your boss

Although being a boss sounds exciting, it can be difficult. For starters, you don’t have anyone responsible for depositing a paycheck into your account. You have to do it yourself. Sure, you can slack off a little since you don’t have a manager to report to, but doing the same can end up hurting you even more.

Just because you don’t have a boss doesn’t mean you can slack off a lot; because unlike your boss, you have to report to someone more demanding – your customers. And maybe you could refuse a rude customer or show him the door but you have to think twice as you depend on them for your livelihood.

Freelancing has its share of advantages and disadvantages.

Now you know the pros and cons of freelancing. It’s a double-edged sword. Freelancing gives you freedom of choice and flexibility, but it comes with risks of failure and no insurance.

So, those looking for a more stable career and compensation may consider becoming a virtual assistant instead.