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Ilona Milostnaja

Freelancing in simple words: Advantages and disadvantages

Updated: Feb 7


 Ilona Milostnaja  is the author of the article titled : Freelancing in simple words Advantages and disadvantages

Publication date: 09.08.2023



What do you do for a living? Freelance. This answer no longer seems to be a sign of a momentary part-time job. It is perceived as a responsible choice for the applicant of the type of work that suits him and even lifestyle. What is freelancing all about?


What is freelancing?


Freelancing is a way of earning money working on your own. In particular, it allows you to cooperate with different employers (even at the same time!) without a permanent employment contract in any organization. Usually, freelance workers take on the order that they consider profitable and organize their own working time and space.


The freelancer assumes complete accountability for both the quality of the work carried out and their own legal standing. To put it simply, I work with anyone I want, I am responsible for the result I bring, and I also take care of taxes, insurance, and pensions by myself. However, like any other type of business, freelancing is a personal business and there are pros and cons.



woman doing freelancing


What are the benefits of being a freelancer?


Being independent

Of course, the most important thing is the independence you have.

Free work schedule

Another benefit is the free work schedule and the ability to work from home. In other words, a state of ease that generates a specific service.


Comfortable working conditions

Often, but not always, the advantages include comfortable working conditions. For example, you have your own workplace, clothing, food, downshifting, or vice versa, traveling to other countries.


Balanced personal and work life

Also, you can create an optimal balance between family, environment, and work. This is because a person can afford to work at a time when it is convenient for them and spend part of that time on their loved ones.


Freedom in job decision

Also, one of the big pluses is the ability to independently choose a job and refuse uninteresting or unprofitable projects. But these are people who have gained a foothold in this market. Those who really understand what freelancers do and have a certain monthly number of orders that allows them to comfortably exist.



What are the benefits for the employer?


Pay only for the work performed

Of course, a huge plus is the ability to pay only for the work performed, and not for hours. This is because people do not work by the hour on freelance, but until the project is fully completed. If the project is delayed by months, then some odds may arise, but it is mostly a job where payment is made for the work completed.


Qualified employee

Also, the ability to involve a highly qualified person in the implementation of one or another piece of the project for a smaller budget.


Save on the workplace

Another big plus is an opportunity to save on the workplace, which is not always cheap, especially in today's realities of modern offices.


No additional costs

As well, the absence of the need to provide social guarantees and pay vacation pay, as well as sick leave for the employer is also quite a big plus. And, of course, to minimize paperwork and some reporting.


Flexibility in finding employees

And last, it is possible to refuse to continue cooperation with a freelancer who cannot always do their job with high quality. You can always find another person.


What are the disadvantages for freelancers?


Seek new orders

One of the primary drawbacks involves the requirement to independently seek new orders. This entails both a time investment and direct financial expenses. Actually, this is because

exchanges also require revenue to sustain their operations. For example, relying on funds generated through paid premium accounts and ad spaces that are funded by both freelancers and customers.


Income varies from month to month

As for income, it is extremely uneven compared to the system of office advances. That’s why it is necessary to plan your own budget because income varies from month to month. For example, you can earn $3,000 in one month and $300 in another. So, that’s why it is necessary to plan everything wisely.


Nervous breakdown

For some people, freelancing just isn't the way to go, because at some point you might have a nervous breakdown. Of course, only office work is suitable for them, but this is a rather narrow circle of people.


Own accounting

Another disadvantage is the need to maintain your own accounting. In order to understand whether to pay taxes or not, how much money has come and gone, how much you have spent on your promotion, and so on.


Risk of fraud

Also, there is a high risk of fraud or dishonest actions on the part of the customer, which can occur regardless of which contract was concluded.


What are the disadvantages for the employer?


Control the workflow

First of all, it is difficult to control the workflow. A remote employee is still a person whom you do not see, do not understand his psychological state and how quickly he will give the result you need. Although the modern world makes it quite easy to communicate - video, audio, in writing – but it is still quite difficult to do it remotely.


Fraud by a freelancer

Fraud by a freelancer also happens. Actually, it's a fact that you have to pay money to someone who you do not know and conclude contracts.


Confidentiality protection

Also, there is a problem of confidentiality protection and the risk of leakage of some sensitive information. Even if you work under an NDA, this does not guarantee that the data will not leak.


 

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