What is a Freelancer?

Interest rates are up. Americans are struggling to pay their bills. A recession is coming.

Across the U.S., similar headlines are popping up every day. In this scenario, those of us who aren’t independently wealthy have two basic options. 1.) reduce current spending, and 2.) make more money.

While reducing spending is always important, there are only so many coffee shop visits that we can cut. So here, we’ll focus on option 2, making more money.

Thanks to the tech advancements of the 21st century, there are numerous ways in our (almost) post-covid society to make money online, usually with some effort of learning a new skill. Many, however, have turned to freelance work, opting to monetize the skills they already have instead. According to Freelancers Union, nearly 60 million Americans earned money from freelance work last year.

Freelancer Defined

You’ve probably heard the term before, but what exactly is a freelancer?

According to Upwork, freelancers are individuals who engage in supplemental, temporary, project- or contract-based work.

However, I prefer Seth Godin’s definition better. Godin is an OG in the marketing space and one of the first to openly talk about freelancing many years ago:

Freelancers get paid when they work. We’re not focused on scale… and we’re not tiny versions of real entrepreneurs. Freelancers do the work for clients who need them.

Solopreneur

A freelancer is just one type of solo business practitioner (solopreneur), the key word here being “solo.” The term freelancer is often interchanged with other types of solopreneurs, including contractors, consultants, and those who take on the occasional side gig.

There are nuanced differences in how each kind of solopreneur operates, but the fundamental similarity is that each is self-employed.

Think about all of the jobs and professions that fall into this category: some hairstylists, some barbers, Uber drivers, Lyft drivers, real estate agents, some communications professionals, some lawyers, notary publics, photographers, videographers, interior designers, catering professionals, tutoring professionals, virtual assistants, event planners, some IT repair professionals, personal trainers, translation services…and the list goes on.

The Numbers

Freelancers are shaping the future of work and the future of our global economy. According to Forbes, freelancing is estimated as a $1.5 trillion dollar economy engaging as many as 500 million part and full-time professionals on over 1,000 platforms on a world-wide basis.

A $1.5 trillion dollar economy. Trillion, with a “t.”

Not only is the freelance economy booming right now, it’s predicted to grow even more over the next several years. According to a 2017 study by Upwork, currently at nearly 60 million and counting, freelancing is poised to become the U.S. majority workforce by 2027.

A Word of Advice

If you’re looking for a way to maximize your earning potential now, and in the future, consider what freelancing could look like for you.