Pros and Cons of Freelancing

Pros and Cons of Freelancing

Do you find yourself daydreaming about working on your own terms? If you’re nodding, this fantasy can become a reality should you choose to become a Freelancer.

But before making such a big career decision, it’s important you understand the pros and cons of dipping your toes into the creative jobs freelance pool. Here we share the key benefits and drawbacks, as well as some interesting stats and what constitutes freelancing in Australia.

Eye-Opening Freelance Stats

The view of freelancing in Australia has shifted from one of scepticism and uncertainty to that of acceptance and recognition. It used to be viewed as a less secure and even less legitimate form of employment, but it has become increasingly recognised as a viable and valuable option for workers, particularly those in Digital, Marketing, Creative and Communications jobs.

Companies now see the benefits Freelancers bring, from greater flexibility, to access to highly specialised skills and expertise, not to mention reduced overheads. This demand for Freelancers is reflected in global statistics. The worldwide gig economy is projected to reach $455 billion by 2023, while here on home soil, close to 3 million people sit in the self-employed category. According to Parpera, almost 40% of online Freelancers in Australia identify as female, with 56.7% working in the creative and multimedia sector, and 55.6% in professional services.

When it comes to Freelancer pay, Australia is right up there. A survey of 1,200 freelance writers and journalists across the APAC region found those in Australia and Singapore charge the most for a 500 word piece at $100 to $300 USD.

What Are The Advantages Of Freelancing?

Let’s now turn to some of the perks of freelance work.

• Flexibility and autonomy

       As highlighted above, freelancing offers you a high degree of flexibility when it comes to your work hours, location and         the type of projects you take on. You have full autonomy over how you do the actual work, which is empowering and             motivating.

• Diverse experience

         Freelancing offers the opportunity to work on a variety of projects and with a range of clients, rather than the ‘same old, same old’               you sometimes get in a permanent position. For instance, as a Freelance Copywriter you might find yourself simultaneously                          curating copy for a tech start-up’s new website, writing a series of social media marketing funnels

         for a beauty company,

         and producing an annual report for a corporate.

         As the saying goes, variety is the spice of life and if that’s something you enjoy, you’ll have it in abundance!

• High earning potential

       If you have a specialised skillset and are great at what you do, you can command significantly

       higher rates then working in a salaried position. In addition, you get to decide when it’s time for a promotion or a pay     

       rise.

       Most companies understand your rates have to account for the costs involved in managing your business, so will                 naturally be a little higher. This is often offset by the fact that you come with a lower overhead cost as you don’t need         an office space or equipment.

• A bespoke work-life balance

         Perhaps the biggest benefit of freelance work is the chance to set your work-life balance scales. You have full rein over controlling your                 scheduling and workload. This perk is reflected in a recent survey of over 550 of Australian Freelancers.
         Almost one in four said the number one reason they choose freelancing is that it allows them to spend more time with family or better                   manage their parenting responsibilities (22%). This was closely followed by the feeling of freedom and commanding my own destiny (20%)

          that freelancing offers.

• Personal and professional growth

          Working as a Freelancer allows you to challenge yourself creatively and along the way, develop new skills. But your professional growth               can extend into other areas besides the creative.
         You’ll develop financial literacy, time management, project management, customer service and resilience skills as you navigate running a             business. You’ll build up your networking skills as you connect with a variety of clients and their stakeholders, other Freelancers and                         industry professionals.
        On the personal side, doing work you enjoy brings a great sense of fulfilment, which is incredibly motivating. As you pick the projects, you              can also choose those that have meaning and impact, something that’s imperative for healthy mental wellbeing.

What Are The Disadvantages Of Freelancing?

Like all things in life, there are a few negatives that come along with the positives. Here are some when it comes to freelancin

• Income instability

         A constantly evolving and sometimes unpredictable workflow often equates to a fluctuating pay packet. While you can set your own fees             to meet your income needs, it’s a little harder to control what’s in your pipeline. It’s also quite the hustle.
         Examples that may affect your income flow include projects suddenly placed on hold or cancelled due to a change in the client’s working             conditions, business priorities or marketing budget. Other clients may not pay on time or in the worst case, at all. Seasonality can also                     have  an impact, especially towards the end of the year when many clients take extended leave.
         One way to negate the consequences of income instability is to consider freelancing with a recruitment agency, like us here                                       at Macpeople. You’ll have a steady flow of work, as well as getting paid regularly.

• You have to do it all

          As a Freelancer, you’re responsible for all aspects of your business. This includes but is not limited to:
          AccountingInvoicing and possible debt collection
         Taxes superannuation Insurance Marketing Project management 

          If you don’t have skills in these areas, it can be quite challenging and time consuming to perform these essential business duties – not to              mention a little boring!

• No employee benefits

         As a Freelancer, you don’t get paid leave, sick leave or superannuation. If you fall ill or have a personal issue that warrants a significant time           off, you won’t get paid for this. This may significantly impact your lifestyle.

• Limited job security

         Due to the ebb and flow nature of freelance work, you won’t have the same level of job security as a ‘traditional’ employee. It’s quite                           common to experience periods of heavy workload and then a dry spell, which is not just challenging to manage but can create a                               substantial amount of stress.

• Isolation

          As many Freelancers work independently, you might experience feelings of isolation or loneliness. This is especially the case if you’re                    used to working in an office where you can catch up with colleagues in the break room, or head out for lunch together. It can be tricky                   transitioning to being on your own.

         Freelancers don’t typically get an annual review where they can receive feedback about their work. Recognition for work well done does               wonders to keep you engaged and mentally well, and you don’t tend to get many of these opportunities when freelancing. This can also               contribute to a feeling of isolation, like you’re working in a silo with not much space for praise or personal improvement.

• Increased competition

          The last potential disadvantage of freelancing is the increase in competition. With the rise of the gig economy and the ability to work                         remotely a standard, there are more Freelancers than ever before. This can make it more challenging to find work, as well as stand out                   and succeed in a crowded market.

To Freelance Or Not to Freelance?

That gives you an overview of the main freelancing pros and cons. It is worth noting, however, that many of the disadvantages of freelancing can be overcome by partnering with a specialist creative industries recruitment agency.

If you’re interested in hearing more about the freelance digital, marketing, creative and communications jobs we have on offer, or would simply like some advice about moving into the freelance world – be it about pay rates or project work – please feel free to connect with one of our experts in our Sydney office.