Pros and Cons of Freelancing

What’s great about freelancing

• Higher income potential. Some argue that freelancers earn more than other people on average. There are definitely arguments to the contrary as well. But since you’re setting your own rates and selling clients on them, the potential is there to charge whatever you want.
• Lifestyle flexibility. I currently work 25 hours per week for other people. The rest of my time is spent exercising, traveling, socializing, writing and otherwise managing my life. In other words, really living (as opposed to just working). I also can work from anywhere.
• Variety of projects. The cool thing about not “settling down” at a job is that you can date a whole lot. I tend to keep my projects limited to 1-2 months at a time. Which gives me the ability to work with different clients and different technologies. If you do this early on in your career, you can try a bunch of things before you settle at a job (or realize you don’t want to).
• Constant learning. Each project requires something different, so you constantly get to learn new frameworks and technologies.
• Staying sharp. Not only are you learning new things, you get faster and better at the tools you already know since you use them in so many new environments. This creates a more well-rounded and honed expertise than if you’re working on the same project all the time.
• Broader network. Each team you work with introduces you to new people – each one is another LinkedIn contact or twitter follower who may get you more work in the future, teach you something valuable or save your ass when you need it.

What sucks about freelancing

• Paying taxes.

  This can be a royal pain. Since no taxes get taken out of your paycheck, you’ll have do store away a chunk of your earnings and pay the government at the end of the year. You get used to it, but nobody likes seeing a big-ass bill every year.

• Getting paid.

  With a  regular job, you don’t often have to chase down your boss to cut you a check. With clients, you do. With the lazier ones, you have to do it repeatedly.

• Being picky.

  It takes a bit of practice to get confident enough to turn down clients that don’t suit you. When you need cash you want to take on any project that comes along, but this can be a recipe for disaster.

• Getting sued.

  Knock on wood, this has never happened to me. I want to say that I’ve heard of it happening to colleagues, but I can’t recall honestly. But it’s always a possibility if something bad happens on the project – and when it comes down to it, you’ve got to be responsible for everything. Make sure you get incorporated, for this reason – which leads me to the next bullet…

• Paperwork.

  LLC filings, SOW contracts and invoices are things you never have to do with a normal job. Now that you’re running a business, you do.

• Constantly proving yourself.

  Every time you take on a new project, you’ll have to your clients and their employees that you’re worth the money you’re charging, especially if it’s a high rate. You have to demonstrate your skills right away along with being confident and communicative as a practice so clients know they’re getting their money’s worth.

Is freelancing worth the trouble?