How do I start freelancing?

Photo by Andrea Piacquadio

You can start freelancing any time by simply accepting payment to complete a job for someone else. Most freelancers will want to go a step further though and formally incorporate their company, open a bank account, and create an online presence for their freelance business. There are three main paths to making money as a freelancer:

Working with clients directly

Working client direct entails locating and communicating with clients using your own resources. Networking, existing partnerships, or word-of-mouth recommendations are all possibilities. Because there are no middlemen in the transaction, this is one of the most difficult ways to take, but it also offers the largest margins. If you plan to freelance for a long time, freelancing client direct establishes more resilient partnerships.

Subcontracting

Finding and engaging with individual clients is a challenge for some freelancers. Another alternative for those freelancers is to work as a subcontractor for another company or agency. The model is straightforward. Typically, an agency sells a huge project to a client, then divides it into "subcontracts" that are handled by other agencies or freelancers.

A web development agency, for example, might sell a complete website project but subcontract the copywriting to a freelance copywriter outside the agency. Many companies only hire a small number of full-time employees and typically outsource specialized aspects of projects to freelancers. This is beneficial in terms of keeping your plate full, but it also eliminates some control. If the agencies for which you subcontract run out of work, you run out of job as well.

Jobs websites

Another popular method for finding client work is through a freelance marketplace like Upwork, Fiverr, FlexJobs, or SolidGigs. These marketplaces serve as the middleman by aggregating freelance jobs on one side of the marketplace and freelance talent on the other. This can be really efficient for finding new work, but come with their own tradeoffs.

Marketplaces like Upwork and Fiverr have a lot of competition, and it may be tough to build an initial profile or get paid what you’re worth. And they will keep a small percentage of each job as a transaction fee. But over time, if you build a strong reputation, you can reliably find work without having to prospect too hard.