How to Become a Freelancer: The Complete Guide for 2022

As much as 80% of the traditional workforce in the US would love to do additional freelance work next to their full-time jobs to increase their income. And, the number of top US companies who are open to hiring freelancers is rapidly increasing.

So, how do you get in the freelance gig industry and partake in this business trend?

The freelance economy is booming, with more people than ever before embracing the freelance lifestyle. In fact, recent statistics show that freelancers now make up over 35% of the American workforce. The freedom, flexibility, and fulfillment that comes with freelancing is understandably appealing to many professionals.

However, transitioning from traditional employment to freelancing also comes with its challenges. Building a successful freelance career requires dedication, organization, networking skills, and financial planning. If you’re looking to join the freelance revolution, this comprehensive guide reveals everything you need to know to thrive as a freelancer in 2022.

Why Freelance? Key Benefits and Motivations

First, let’s explore the many perks of freelancing that attract people to this career path

Flexibility – As a freelancer you decide when and where you work. You can set your own hours and work from anywhere. No more rigid 9-5 office schedule.
Freedom – Freelancing allows you to take control of your career and be your own boss. You get to choose your projects and clients.
Fulfillment – Working on projects you’re passionate about is deeply fulfilling. Freelancing lets you specialize in your niche.
Income potential – No income ceilings like traditional employment. With hard work, your earnings can surpass a regular 9-5 income.
Lifestyle design – The flexibility of freelancing enables you to design a lifestyle tailored to your priorities, from travel to spending time with family.

Before taking the plunge, reflect deeply on your motivations and goals for freelancing. Knowing your “why” will help guide your journey and sustain you during challenging times.

Skills and Attributes for Thriving as a Freelancer

Freelancing comes with a unique set of demands. Here are some beneficial skills and qualities for succeeding as a freelancer:

Self-discipline – Motivation and drive are crucial when you’re in charge of your schedule and workload.
Time management – Effectively juggle multiple projects and deadlines to stick to your schedule.
Organization – Track finances, contracts, projects, and client communications in an orderly system.
Communication skills – Clearly convey with clients to set expectations and share progress.
Self-promotion – Ability to confidently promote yourself and your services.
Networking skills – Build relationships to find work and collaborate with others.

Take an honest assessment of where you currently stand across these areas and your willingness to improve any weak spots.

Step 1: Pick Your Niche

A key step in any freelance journey is identifying your niche. A niche gives you:

Domain expertise – Become known as an expert in a specific field.
Better positioning – A niche makes you stand out from the crowd.
More targeted work – You can hone in on projects perfectly aligned to your skills.
Higher rates – You can charge premium rates as a specialist in your field.

Consider your natural strengths, skills, interests and experience as you select your niche. Popular options include writing, graphic design, bookkeeping, social media management, web development, and virtual assistance.

The narrower your specialty, the better. For example, instead of simply “writing,” niche down to “SEO writing for tech startups.”

Step 2: Build Your Branding & Online Presence

Establishing a professional brand and online presence is essential for attracting clients and showcasing your expertise. Key elements include:

Business name – Pick a memorable name aligned to your niche. Using your name lends a personal touch.
Logo – A logo reinforces brand recognition. Canva provides user-friendly logo design templates.
Website – Your custom website serves as an online hub showcasing your services, portfolio, and credentials.
Social media – Platforms like LinkedIn and Twitter enable networking, promotion, and thought leadership.
Professional headshot – A quality photo adds a personal touch when networking and applying to gigs.
Brand color palette – Cohesive visual branding makes a solid impression.

Your branding and online platforms convey professionalism, build authority, and help attract your ideal clients.

Step 3: Create Your Portfolio

The portfolio showcases your skills and experience. A few tips for an impactful freelance portfolio:

Pick your best work – A few high-quality projects say more than a large volume of average work. Focus on your proudest achievements.
Showcase breadth – Represent the full range of services you provide.
Include client testimonials – Direct praise from satisfied clients carries immense credibility.
Customize for each application – When pitching for a job, tailor your portfolio selection to match the client’s needs.
Make it accessible – Host your portfolio on your website, LinkedIn, and Behance to make it easy for clients to view.

An impressive portfolio helps attract clients and is a key tool for any freelancer. Continuously update it with your latest and greatest projects.

Step 4: Learn Key Business Skills

Beyond your core service offerings, mastering certain business skills gives your freelance career a serious advantage:

Project management – Break projects into clear tasks, timelines, and milestones.
Productivity systems – Implement systems for task management, documentation, file-sharing, invoices, and more to maximize efficiency.
Tax basics – Learn how tax filing works for freelancers so you can properly budget and file.
Pricing strategies – Determine effective methods for pricing your services at competitive yet profitable rates.
Negotiation tactics – Confidently negotiate project terms, scope, and pay rates with clients.
Legal protection – Understand how to legally protect yourself with elements like contracts and insurance.

Investing in these operational skills early on will pay dividends by empowering you to run your freelance career smoothly and professionally.

Step 5: Build Your Network

In freelancing, it’s not just what you know – it’s who you know. Networking is critical for finding work by building meaningful connections and raising awareness about your services.

Ways to build your freelance network:

Industry events – Attend conferences and seminars to connect with others in your field.
Online platforms – Leverage LinkedIn, Twitter, and Facebook groups to connect with potential clients and partners.
Referrals – Ask existing satisfied clients if they can recommend you to others seeking similar services.
Local organizations – Join relevant local business associations and chambers of commerce to connect with local clients.
Coworking spaces – These facilitate networking and collaborations with fellow freelancers.

Make networking a consistent effort, not just a one-off activity. Nurture authentic relationships that support collaboration and organic referrals.

Step 6: Search Job Boards and Online Marketplaces

Sites like Upwork, Fiverr, Freelancer, and Guru enable you to browse and apply for open freelance positions across every field imaginable.

When searching listings, filter for gigs closely matching your niche to maximize relevancy. On these platforms you can:

Build client reviews and ratings
Showcase your profile and portfolio
Connect with clients around the world
Broaden your client base beyond local networks

While job boards are helpful, also pursue opportunities through your website, referrals, and direct outreach to potential clients. A diversified client acquisition strategy ensures you have access to a steady stream of work.

Step 7: Set Your Rates

One of the most complex yet crucial elements of launching any freelance business is determining your fee structure and rates. Some tips for setting competitive yet profitable rates:

Research industry averages – See what top freelancers charge within your niche.
Assess the market – Factor in rates of competitors at various experience levels.
Consider your expenses – Account for taxes, tools, marketing, and other costs so you earn a net profit.
Price based on value – Charge based on the value you provide – not merely time spent.
Charge hourly or project rates – Hourly rates around $30-50/hour are common starting points for new freelancers.

Get clear on your rate structure and ideal income goal so you can price accordingly right from the start. Don’t undervalue your worth!

Step 8: Protect Your Finances & Legal Standing

Some financial considerations for new freelancers:

Separate business and personal finances – Open a dedicated business bank account and get a business credit card.
Track income and expenses – Use bookkeeping software to track every dollar flowing in and out of your business. Deductible expenses can be claimed at tax time to reduce your tax burden.
Charge sales tax – If required in your state or municipality, factor relevant sales tax into your

how to be a freelancer

Find a perspective niche (and stick to it)

No matter whether you’re a graphic designer, copywriter, developer, or anything in between by vocation, it’d be best if you were to specialize in a particular area of work:

For example, If you’re a content writer, don’t aim to write about any topic under the sun, from Top 3 Ways to Prepare Your Garden for Spring to Taxation Laws in all 50 US States Explained.

Sure, you may start by writing various topics, to find your ideal niche, but eventually, you should pick one, and stick to it.

But, Cryptocurrency or Technology content writer always sound much better in your CV than General content writer. Moreover, they inspire more confidence in you on the part of the clients who’ll always be looking for specific, and not general content.

The same is true if you’re a graphic designer:

consider your level of experience
your current pool of connections
your natural inclinations to a particular design niche

Then, make your pick — focus on delivering interface design for apps, creating new custom logos, devising layouts for books, or any other specific design work.

Now, this doesn’t mean you should downright refuse to work on anything else. But, you will be building your experience, skills, and reputation in one specific line of work, which will increase your likelihood of getting hired to do side gigs for reputable companies looking for experts in a particular niche.*

*You should check with your employer on what’s the company’s policy of working on such side hustles. Perhaps your contract forbids you from accepting freelance work in your respectable niche, outside of the company.

Just like you shouldn’t aim to cover every niche in your industry, you shouldn’t aim to cater to the needs of the entire industry’s market.

Small businesses, teams, remote workers, or even other freelancers may all require the same type of service you’re looking to offer. But, you’ll need to target one or two types of clients especially.

Say you want to start a blog about everything related to working remotely. There are freelancers, teams, but also entire businesses working remotely, and they can serve as your starting point.

But, just like with choosing a niche, specific is always better.

how to be a freelancer

Think about the age of your desired readers. Perhaps you’re a Millennial, so you can write a blog about working remotely for Millennials?

Think about the location. Perhaps you want to cover predominantly the US market?

Think about the education level. Perhaps you want to cover newly independent remote workers, who’re just starting out their careers?

Think about income. Perhaps you’re looking to write for people with a limited budget, but who would like to move to a digital nomad visa country?

Think about gender. Perhaps you want to predominantly target women freelancers?

These are only some questions you should ask yourself, but they reveal a lot. For example, that you can write for fresh-out-of-college female Millennials from the US looking to start and cultivate a career in social media while traveling abroad with a limited budget.

This is specific enough to draw in the right crowd, but general enough not to alienate other digital nomad workers. After all, you’ll still mostly write about challenges, tips, and hacks on work-from-anywhere lifestyle, which will likely interest all remote workers.

But, you’ll get a more specific idea where and how to market your blog, and what kind of copy you should write for your Landing page and subsequent pages.

Work on additional skills

Apart from your core, industry-related freelance skills (i.e., your hard skills), you’ll need to work on some additional skills — your soft skills.

Soft skills are more personality-related: communicativeness and critical thinking are probably the most important traits to pursue, but, you’ll also need to be persistent, good at handling stress, an efficient scheduler, and skilled in time management.

You’ll also need to be confident, to persuade your potential clients that you possess the skills and experience they’re looking for.

In the end, perhaps most importantly, you’ll need to nurture and get accustomed to discipline. After all, you will likely have to balance between your full-time job and freelance side-projects (not to mention your personal errands), and this takes some practice in planning.

*Some pointers from the previous section of this post are required even if you don’t have experience — defining your business goals, choosing a niche, creating a personal website, and identifying target clients is always mandatory, so make sure you look into these points.

How to Build a Freelance Career That Works for You | The Way We Work, a TED series

What does a freelancer do?

As a freelancer, you’re running your own small business. You’re responsible for finding the clients and projects you want to work on and pitching your services. Once you win a job, you’re the project manager, making sure that you meet your deadlines and have all of the resources you need to be successful.

How to become a successful freelancer?

Try to put yourself in the shoes of your ideal clients. Consider the problems that they have and how your skills can resolve the issue. Remember that clients are looking for a solution to a problem. To be a successful freelancer, you need to understand the client’s situation and use your service to address their issue.

How much does it cost to be a freelancer?

Your income potential as a freelancer is limitless. Solopreneurs are able to name their own hourly and/or project rates. To give you some ballpark estimates, European freelancers charge $98 per hour on average, across industries.

How to start a freelance business?

Part of understanding how to start a freelance business includes building up a nest egg to ease some of the stress when work is scarce. To become a successful freelancer, learn how to incorporate finding future work into your daily schedule—even while finishing up assignments at hand.