The growth of online freelancing and work-from-home income has been dramatic recently. The reasons for this are mostly win-win for the freelancer and their employer or buyer of services. The buyer saves money on the expenses related to hiring employees, while the freelancer takes more control over their work days, hours, and income.
The huge volume of business conducted between buyers and freelancers has spawned major websites that match up services with buyers for them. These sites provide a marketplace for freelancers to offer their products and services to buyers who shop for them. The sites handle the match-up, billing, payment, and any disputes.
The Opportunity for Freelancers
One website, FreelancingHacks, shared some stunning statistics about the popularity and profitability of freelancing. These included:
- By 2020, 43% of the U.S. workforce will be freelancers.
- Freelancers contribute $1.4 trillion to the economy each year in the U.S.
- Freelance coders and software developers can earn up to $1,000 per hour.
- Working from home improves work performance by 13%.
Those are just a few stats, but they clearly show the value of freelancing and the opportunity for anyone who wants to earn money from home and control their work environment and hours.
The Overhead Expense for Freelancing
One assumption is that almost every home has some form of Internet access, or there is an opportunity to use free Internet access at a local library, coffee shop, or other business. This isn’t considered an extra expense of starting and operating a freelancing business. If jobs are taken from the freelancing sites, there is a commission charge that varies, but it’s not a cost unless and until a job is paid.
The average online freelancer may need a couple of other services that can carry a cost, especially if the freelancer is a writer or in some other way must maintain files of work online and share them with buyers. There may also be costs for gathering and maintaining research files to create the work the freelancer is selling.
Using a cloud storage solution can be free if kept to a reasonable amount of storage, but even if you need more, it can often be purchased in the terabyte range for less than $10/month. As for file sharing and research capture from email and online sources, there are cloud solutions that also provide huge storage space and easy information capture for as little as $5/month.
Other than a computer, there isn’t much more you should need to operate an online services and freelancing business. There are tens of thousands of online freelancers generating five-figure incomes with business expenses under $200/year. That’s an overhead percentage structure major corporations dream about but can’t achieve
How do you make money from Freelancing?