As reported by Pew Research Center, around 16% of Americans participate in the gig economy as a source of additional income. But three out of ten individuals report pursuing gigs on a full-time basis. The onset of COVID-19 brought about testing times in the labor market, with news of layoffs dominating headlines for numerous weeks. This led to the simultaneous rise of online gigs. In the months that followed, even with the job market stabilizing, workers have found a way to capitalize on being freelancers and earn a reliable source of income.
A prominent benefit of undertaking gigs is the low barrier to entry. Unlike full-time jobs which have rigid requirements with regards to experience, work hours, and earning potential, landing a gig is much faster and easier. As long as you have a particular skill a client needs, you can provide a quote and have a high chance of securing a contract. If you’re looking to become a freelancer, this article by Diamond Ethical will provide you with a comprehensive guide relating to the ins and outs of the gig economy.
Identify Your Skills
Before looking for gigs, you need to hone in on what type of service you can provide to clients. Often gigs have simple requirements such as designing social media graphics, creating a website design, writing a blog, etc. Focusing on your work experience, list down 3-5 skills you can use to land gigs. Your skills can be as follows:
● Graphic Design
● Website Development
● WordPress Content Management
● Data Analytics
Next, create a portfolio of your work as most clients will ask for work samples as part of the hiring process.Find Prospective Clients
To be a successful freelancer you need to land clients frequently. As someone who is just starting, here are two ways to find your first gig:
● Reach Out to Your Network: As reported by LinkedIn, getting referred for a job increases the probability of you getting hired. Hence, utilize your network of family, friends, and colleagues as an active part of your gig search. Even if they cannot refer you to their employer, they could point you towards other opportunities they know.
● Use Freelance Marketplaces: Websites such as Fiverr, Upwork, Guru, and more receive hundreds of jobs postings daily from all industries. All you have to do is design a great profile, search for jobs based on your skills and reach out to clients. While these websites make it easier to find gigs, they do charge a fee on the compensation you receive.
Beware of Scams
When browsing through freelancing jobs, apply the logic of - if it’s too good to be true, it probably isn’t. There are some common red flags you should look out for:
● A job that mentions you can have unlimited earning potential.
● Job applications that ask for personal details such as a home address, financial documents, or social security number.
● A request of payment to apply for the position.
To avoid falling for scams, always research the company before applying. This can include visiting their website, searching for their LinkedIn profile, going through company reviews on Indeed or Glassdoor, and reviewing their social media handles.Protect Yourself from Liabilities
When you enter into a contract as an individual, you undertake the risk of being held personally liable if there is a dispute with a client. To protect your assets (home, car, etc.), and personal finances from coming under the purview of litigation, it’s best to establish a Limited Liability Company (LLC) and sell your services as a business.
Remember to Pay Taxes
As reported by the IRS, self-employed individuals are subjected to pay 15.3% of their earnings as self-employment tax. The breakup includes 12.4% towards social security and 2.9% towards Medicare. Additionally, you will be responsible for keeping track of your income and filing your taxes at the end of the year.
While there are online tools that can assist you in this process, you can also opt to work with a financial advisor.
Now that you know how to navigate the freelance market, it's time to work towards finding your first client and start earning.