The Freelancer’s Guide to Financial Success

The Freelancer’s Guide to Financial Success

You can review our guide on 12 points you need to focus on to achieve financial success as a freelancer.

Although the freelancing system has become a rising trend with increasing interest every year with the development and spread of technology and digitalization, the biggest contribution to this was during the pandemic period. The freelancing style, which is in the minds of employees who stay away from the office environment during the pandemic, has led to frequent research on the intricacies and advantages of freelancing. Especially in this period when many companies, large and small, have introduced remote working or hybrid working systems; Prejudices about freelancing have also been largely broken. Over the last few years, many people have been dreaming of becoming freelancers. So, how possible is this, and what needs to be taken into consideration to implement this working system smoothly? To achieve financial success as a freelancer, you can review the guide we have prepared for you on freelancing style.

What is a Freelancer?

This term, which refers to people who work independently, has started to be heard more and more lately. Freelancing is one of the most popular working styles of today; It is mainly common among those who start their own business. In addition, it is known that some large companies work with freelancers in certain departments or on seasonal projects.

What Works Can Be Done as a Freelance?

There is almost no limit to what freelancers can do. It is possible to do many jobs as a freelancer, from translating to social media management, from SEO expertise to writing, and from graphic design to software development. People who have expertise or have previously worked in a business in that field may decide one day to switch to the freelance working system. For this reason, although there is no limit to the work that can be done, the person must choose an area in which he is competent. Among the most common professions in freelance work; There are those such as translator, social media expert, SEO expert, graphic designer, software developer, editor, consultant, writer, project manager, manager, and musician.

Advantages of Freelancing

One of the points that freelancers generally enjoy most about this working system is that the are free to choose their work area. This working style, which provides freedom to travel, allows the freelancer to work from home, cafe, abroad, or in the garden. In addition, since there is no need to enter an office environment and comply with office rules, there is no need to pay extra attention to one’s appearance, and freelancers can do their work in their daily home clothes. However, it should not be forgotten that freelancers should pay attention to their clothing and appearance when meeting with clients.

Freelancing also largely eliminates the risk of exposure to transportation-related problems. Since millions of people working in offices commute to work at almost the same time, traffic can be a big problem, and it can sometimes take hours to get home. Freelancers, on the other hand, feel like they are returning home from work as soon as they finish their work.

If freelancers do not work for a company, they can grow their business as they wish and expand the scope of their business through different business lines by communicating with different customers. They can also increase their income by trying more than one job. For freelancers, there are no city limits or even country borders. 

12 Points to Focus on Achieving Success for Freelancers

People who experience the freelancing system for the first time may need a guide on where to start and how to deal with the difficulties they will encounter. What you may need before starting freelance work; You can look at what you need to pay attention to at critical points such as invoices, taxes, and customer relations.

1. Determination of Services

Some freelancers may have more than one job or area of ​​expertise. However, before becoming a freelancer, it is necessary to decide well in which areas you will serve. Otherwise, when a person takes on every job he encounters during the process, his productivity may decrease, and he may experience confusion in the process of producing work. For this reason, even if you will be serving as a freelancer in more than one job, it is necessary to determine them in advance.

2. Creating a Portfolio

Before starting freelancing, the freelancer must create a strong portfolio in the field in which he is an expert and wants to serve. Thanks to this portfolio, it becomes easier to find the right customers and convince them.

3. Submission of References

References are important for both businesses and freelancers to find new clients. A freelancer with strong references gains positive points in the eyes of customers and is more likely to be preferred. For this reason, it is useful to create a portfolio of references by obtaining the permission of the brands or people you have worked with before.

4. Creating Brand Identity

Freelancers should no longer be a business, but brands themselves. For this reason, one should not forget that he/she represents his/her brand on social media, different freelance channels, or various platforms and must fulfill some standards regarding his/her brand. For this, it is important to create a photo or avatar that will be the same in every medium, a name that will be the same in every medium, and a professional appearance. In this way, the availability of freelancers increases, and it becomes easier to gain the trust of customers.

5. Becoming Visible in the Industry

A freelancer who creates a strong brand identity must take care of his/her visibility both digitally and in online or offline events. For this purpose, while social media, freelance platforms, blog sites, and web pages can be used digitally, it is also important to follow events related to one’s sector and appear there.

6. Contract Preparation

Although freelancers are independent and far from standard rules in business, they must also pay attention to the contract issue to ensure that the relationship they establish with their customers progresses healthily and that the working process does not end in a negative situation. A work contract, which is one of the contracts that can be preferred for this, ensures that the freelancer will be rewarded for his labor and that the employer proves that he will receive the service. The general service contract is like the employment contract signed while working in an office environment, and when signed with the employer, it proves the service provided by the freelancer for a certain period. While the home service contract is a legally regulated contract for freelancers, it provides proof of the service provided from home.

7. Pricing Policy

One of the critical points of being a professional freelancer and achieving success in this process is the price policy. When pricing, the person should consider his/her competence and expertise and determine a standard figure. If a freelancer does business by giving different prices to everyone, it may damage his brand identity in the long run, shake his self-confidence, and negatively affect his earnings. At the same time, it is necessary to research the market value of the job before determining the pricing policy.

8. Scheduling Time for Vacations and Breaks

Freelancing means: It does not mean working 24/7, day and night, 365 days a year. For this reason, the person should leave time to breathe, considering that the working method is different from the office and assuming that there is weekend leave and annual leave. Having two days off a week, going on vacation for a few weeks a year, and taking breaks at regular intervals while working during the day to deal with different things contribute to a person’s financial success in the long run. Because success can be achieved not only by working hard, but also by working in a planned, effective, and professional manner.

9. Personal Development

Achieving financial success in freelance work is also very related to how much a person improves himself and how much he can keep up with the current situation. For example, People working in the office feed heavily on each other, whether they are aware of current developments and sectoral innovations or not so that they do not fall behind the current situation. Since a freelancer works alone, he/she must be aware of every new development and take care to improve himself/herself professionally and progress further.

10. Customer Relations Process

One of the most important conditions for achieving financial success as a freelancer is to manage customer relationships well. The relationship with the customer begins at the moment of first contact, or even before contact has been made; This is the moment when the customer first sees the freelancer on social media or various platforms. For this reason, even before establishing a dialogue, it is necessary to create a good brand identity to make a good impression. The relationship with the customer begins with this first contact but never ends. Because even if an agreement is made with a customer for a one-time job, it is not known whether that customer will do business again or whether that customer will be a reference for different customers.

It is necessary to always prioritize professionalism in the communication process with the customer. It is beneficial to determine communication channels in advance and draw the framework of communication accordingly. It is necessary to fulfill the commitments made to the customer and never give up on the professional approach. The freelancer’s ability to establish a standard in customer relations directly affects his work performance and therefore, his earnings. At the same time, it is important to receive a detailed and complete briefing from the customer, determine the pre-work conditions, avoid any problems with the quote, clarify the invoicing processes, and set out the entire work/payment schedule from beginning to end.

11. Tax Obligations

The information that self-employed people are not subject to tax is not true. For this reason, freelancers must also pay taxes on the income they earn from their work. Freelancers may be included in self-employment income or incidental, i.e. non-permanent, income. If the service provided by the freelancer is continuous, it is taxed within the scope of self-employment income. When a one-time freelance service is provided, this can be considered as non-permanent income and if the income is below a certain figure, it is not taxed. However, the person receiving the service prepares an expense slip and pays withholding tax on behalf of the freelancer. On the other hand, in cases where there is continuity, the freelancer must issue an invoice.

12. Creating Invoices

Freelancers may not have much knowledge about invoicing processes because they are usually busy with work that uses their creativity. However, to avoid problems afterward and to progress successfully in the freelance work process, it is necessary to fulfill the invoice part of the job completely and correctly. Although there is no obligation to open a sole proprietorship as a freelancer, this is also an invoicing method. On the other hand, freelancers who are not sole proprietors can pay their taxes with a self-employment receipt. However, to issue a self-employment receipt, it is necessary to first obtain a professional liability certificate from the tax office. Then, receipts are printed from contracted printing houses, and receipts are filled in for the service provided.

If you are a freelancer or want to become a freelancer, you can create your invoices easily and reliably with WeApplications , even if you do not have a company. With the invoicing solution offered by WeApplications, you can easily send invoices to your customers and receive your payment within 1 business day when the project is completed. You can contribute to financial success in your freelancing process by taking advantage of WeApplications legal compliance, taxation, invoicing, and project management solutions.