About the author: I work as a software development freelancer. My minimum hourly rate is $125 but I usually double that to $250 as I get work done very, very fast. That’s the benefit of having skills and experience!
This post is all about how you can get started with freelancing, and it’s not specific to developers. You can have any skill and still follow my process below.
Is Freelancing Tough for Beginners?
I hear this all the time and the answer is – absolutely not! Freelancing can be broken down into 2 simple activities:
- Having a skill that people need (this can be anything)
- Finding people who need your skill (who will also pay)
Beginners often come to me saying their skills are really bad and they don’t know how to apply for freelance jobs. And you know what I tell them?
Can you work a smartphone? Yes? Do you think there’s a 95 year old woman out there who would pay you $20 to show them how to use WhatsApp?
Obviously the answer is yes! That old lady is going to think you’re a complete genius, even if you’re not that great on smartphones. And because she thinks that, and gets a result, she will happily pay you!
So freelancing is for everyone, but especially for beginners as you put in the most effort, unlike us lazy veterans 🙂
Which Freelancing is Best for Beginners?
Well, I’m a software developer so naturally I say that’s the best. But I could be wrong. After all there are plenty of graphic designers that do great business, some even making over a million dollars a year!
Therefore the type of freelancing you should do should be what you like doing.
You should not look at how much your hourly rate will be and then choose a path. That is the way to demotivation as we rarely stick to paths we don’t have a passion for.
- If you like making wooden benches then make them for clients.
- If you like making apps then be a freelance app developer.
- If you like designing things then be a graphic designer.
If you have a choice between two things then you should pick the easiest one, assuming you want to start getting paying clients right now. If you have a bit of time then you can opt for the harder thing as that difficulty keeps competitors out and allows you to raise your rates.
For example I’m a full stack developer – which means you bring your idea to me and I’ll do everything.
This is great for a client, only having to manage one person instead of a team of 4. It’s also a lot cheaper even at my high rates (which is also a reason I can charge those high rates).
However making full stack software is not easy and takes years to get good at it. So if you have the aptitude and the time then by all means go ahead.
However if you don’t want to spend a lot of time or just hate learning to code then choose something else you’re good at and love!
Do You Need an LLC to Freelance?
I would say that you don’t need an LLC to start with, because the process will slow you down and kill your passion. You’re reading this article because you’re on the verge of starting so just get started NOW and operate under your own name.
Take on a few small jobs just to test the waters. Then, if you enjoy freelancing you can always get an LLC later on.
The one caveat I have is that you should always have a water tight contract that limits your liability. Working under your own name means that clients can sue you for any assets you own so a great contract is essential. You should definitely spend the money on getting a template contract from a good lawyer!
You can also use that contract when you eventually open an LLC, so it has longevity.
Spending money on a good lawyer may seem expensive today but if someone sues you it will be cheapest protection you ever bought!
Put Together a Freelance Portfolio
So you’ve decided to start but you have no client. What do you show potential clients as a catalog of previous work? Well that’s easy!
Simply do some work for yourself and host that as the portfolio.
- If you’re a graphic designer then make 10 logos / designs / prints.
- If you’re a developer make 2 / 3 small apps and get them on the App Store.
- If you’re a web designer then make 4 websites to show off your skills.
Is this cheating? Not really if you ask me. A portfolio is there to show people what you can do, rather than showing them that you can attract clients.
The beauty of this method is that you control what sort of work goes into your portfolio, so your potential client sees a unified interface. This makes it more likely they’ll sign with you because your portfolio looks very similar to what they need.
Contrast that to a portfolio with multiple types of work which can look scattered and unfocussed. That’s not as attractive to a client.
Finally, get that portfolio up on a webpage. If you have even minor technical skill then use WordPress, if not then use Wix or some other website builder. Your portfolio is no good if people can’t see it!
How to Find Freelance Clients – Starting Out
Now this is the potentially tricky bit, but only because there are so many options! If you’re a beginner then the best option is to start out on freelance job sites.
Freelance job sites such as Upwork, Fiverr and Freelancer have thousands of listings. However, clients on there expect a lot of work for relatively little money, but that’s ok.
As a beginner your goal is to get experience in applying for jobs and crafting your message. This will take time so be patient. You will be rejected dozens of times before you get your first job. I know I was! And don’t get dismayed at the low dollar amounts on offer.
In fact my first client was on one of these sites and the first job was a grand total of $250. Let me tell you I worked like a slave for that $250!
But guess what? When the next job for that client came up they only had eyes for me because I had proven myself. I quoted them $5,000 and they accepted within minutes!
How to Find Freelance Clients – Level up
Once you’ve had a few jobs from those job sites you will get a few follow on jobs from those same clients. My advice is to take them off the job sites and into direct contact with you. They should trust you by now so this won’t be an issue.
Yes those job sites love to keep you working through them and continue taking 10-50% of everything you earn but don’t let them! Imagine working for an extra hour each day to put money in their pockets.
Once your clients are truly yours you now have rate flexibility. Lookup the industry standard for your profession and start working your way there with each new job.
Do not be afraid to massively raise your rates! People are looking for valuable freelancing skills and cheap prices imply that yours are not valuable!
Yes, some clients will drop off but that’s fine. Trust me, you do not want to work for cheapskates and penny pinchers because they drain you of energy. You want to do good work for people who recognise and reward your value, because that’s a win-win situation.
At this point you should have adequate experience in quoting, discussing and delivering work. Now you are ready for stage 2 of marketing, cold outreach:
- Get the contact details of local companies that could use your skills.
- Send them an email introducing you and your services. Outline the value they would receive if they worked with you!
- Follow up via email 2 weeks later or even call them.
The above process should be continuous, with at least 5 companies that you cold email each week until your working time is full. At this point you can stop cold emailing as your network will continue to provide you with all the work you’ll ever need.
How to Raise Freelance Hourly Rates
If you follow my process your work schedule will eventually be full as you’ll have more clients than you know what to do with. Now is the time to start raising your rates, even more than int he previous step.
Freelancers usually quake in fear at this point but fear not! I will give you a foolproof strategy for doing so.
It all starts with treating your clients with respect. Be up front and tell them that you love working with them but your time is completely full. Any new work is going to suffer in quality so you’re going to start parting ways with some clients so this doesn’t happen.
You’ve now just told your client there’s a chance they’ll be fired, which puts them in a mental state of wanting to do anything to stay on with you.
No client wants to start from scratch and find a trustworthy freelancer all over again. Whenever I’ve done this I’ve always had emails asking that they stay on as the “chosen one”.
In that same email tell them that you have to raising your rates by a certain amount to keep quality high. This is effective immediately for any new work coming in.
However, your existing clients can have the current rates for the next 6 months. This gives them some warning but also makes them feel special for getting a 6 month discount on your new rates.
This strategy has never, ever failed me but I’ve usually had 1 or 2 clients each time who say they don’t like the new rates – but they stayed on and paid them anyway!
Freelancing – Avoid Bad Clients
To end this long article allow me to show what a bad freelance client looks like. Here are some red flags in order of importance:
- Expects the world for little money (fire this client as soon as finances allow, they will drain your energy)
- Is rude and dismissive of you (definitely a firing offence)
- Micromanages you by requesting many tiny changes (these I move to a different pricing model consisting of a base project rate, then an hourly extras rate for other changes above a beyond the contract. This usually stops the micromanagement dead in its tracks. You can quote something nice and pricy for overage extras: $200 p/h with minimum of an hour usually does the trick.)
- Pays their bills late (not necessarily bad but you should draw a line in the sand where you stop doing work until invoices are made up to date. This works very well if their website or software breaks for example. You’d be amazed at how fast accounting get their finger out when the website stops bringing in revenue…)
These traits are more guides than hard and fast rules so use your own judgement. If you see them appear time and again in the same client then it’s time to fire them or find another solution. On the other hand if these issues happen once or twice I would say that’s fine and a normal cost of doing business.
Freelancing – What a Good Client Looks Like
You will come across clients you love during your career. Unfortunately, at the outset you have no idea which ones are good and which are bad! It usually takes a few weeks to discover this (which is why I urge you to fire clients if need be).
That said here are some traits of good clients I’ve seen over the years:
- They trust you to provide your expertise and don’t question everything you do (a few questions are fine though!)
- They usually pay their invoices on time.
- They’re happy to communicate with you throughout the job (this is important if you don’t want an unhappy customer at the end)
- They’re polite and easy to work with.
Summary
Freelancing is a very rewarding path to take, both financially and mentally. You get to meet people who are the movers and shakers and who knows, you might even pair up with one to make your own killer business!
So, even if you’re a beginner, then I encourage you to absolutely go for it. Get your mini portfolio in order and start applying.
Don’t overthink the process and just get started.
To help you get started you can check out my Freelancer Flow Chart available at iamdev.net/free