Yesterday, we talked about What are the Advantages of Freelancing? So today we talk about What are the Disadvantages of Freelancing? Nothing in this world is all good and nothing is all bad. Thus without wasting too much time lets go straight to it.
1. Income Instability.
With freelance, nothing is assured. Today you could get a job then tomorrow fail to get. Some months you can even get multiple jobs then other months get nothing. Similarly, some months you can make months you can make thousands of dollars while others you make nothing. That’s the thing about freelance. You do not have a fixed guarantee income. Hence income instability.
2. No Job Security.
Another problem with freelance is that your job is not secure. The clients can end contracts at any time. Just a little disagreement can lead to the client cancelling the contract. Moreover, there is no guarantee of steady work. Sometimes you get sometimes you don’t. The worst thing that can happen is account suspension. If you do anything that the freelance company does not like, then they will suspend your account. Hence no job security.
3. Lack of Benefits.
Freelance has no benefits like the other 9-to-5 jobs. Your freelance clients only pay you for the job and have no farther association with you. Similarly, your freelance company has no farther relationship with you. You are just a freelancer. Just a user of their platform and that does not mean you are in an employment contract with you. They will not provide you with benefits like health insurance, retirement plans or paid leave.
4. Self-Employment Taxes.
Freelancers are responsible for their own taxes. Yes even you pay taxes. Most freelancers assume they are free of such commitments such as taxes. As long as you earn a living you have your tax commitment to the government. Hence you will have to do your tax calculations and pay. The problem is that it can be complex and costly. Unlike traditional jobs, freelance has no automatic deductions.
5. Irregular Workload & Burnout.
Freelance does not have a regular workload. Some jobs are light while others are very big and demanding. It gets worse if this heavy job is not paying well. Such hectic jobs that do not pay well are the ones that really hurt freelancers. Sometimes you take up a job without knowing how hectic it is then when you are already in a contract, you find out that its tough. But unfortunately, you cannot walk away from it since you are already in a contract. Working long hours to meet deadlines can lead to stress and burnout.
6. Client Dependence & Payment Issues.
One of the challenges of freelance is the clients. Not all clients are the same. If you have not come across your stubborn/bad client yet, then you haven’t truly done freelance. The day you come across a bad client, thats when you get your first round of stress because they can really bog you down. A bad client can refuse to pay you and claim that the job is not done or is nor done well. This is regardless of you doing the job well. In addition to that, some other clients might delay your payment even when you have bills to pay. Dealing with such issues can be frustrating.
7. No Clear Career Progression.
Unlike traditional jobs, freelance has no promotions nor salary raises. You could work for years as a freelancer and still remain at the same level and with the same income. The traditional jobs have promotions and salary raises from time to time. Actually when you have been working for a given number of years, then you get a raise and promotion. Any growth or progress you make is from your own personal efforts. You must actively seek opportunities for growth and skill improvement.
8. Distractions & Loneliness.
Most freelancers work alone in their homes. This leads to loneliness and boredom. Hence they are more likely to suffer from mental health problems. The isolation at home leads to lack of social interaction. In addition to the loneliness, household distractions can reduce productivity. Sometimes at home there are small kids that will distract you from your work. Working from home might be interrupted by house chores like cleaning, cooking and taking care of kids.
9. Self-Discipline is Required.
A special thing about freelance is that you have no boss. As much as this is a good thing, it can also end up being bad for you. How, the freedom of having no boss can make you end up mismanaging your time. The traditional jobs have a boss and a structure that guides employees on how to work and keep them disciplined. Hence traditional jobs remain productive. This is contrary to freelance where you have to manage your work and time effectively. Otherwise procrastination can negatively impact your success.
10. High Competition.
Freelance platforms such as upwork and peopleperhour are very competitive. There are millions of people allover the world on the same platform all at once competing for the same jobs. Its not rare for one job to have hundreds of proposals. Keep in mind that the client will only hire just one freelancer yet hundreds have sent proposals.
The problem with this high level of competition is that it leads to competition to the bottom. This means that the freelancers, will be competing with each other in quoting a lower rate. Hence the lowest quote wins the job because the client wants to save money. Hence the race to the bottom. Unfortunately, building a strong reputation takes time and effort.
11. Difficulty in Setting Rates.
Some freelancers especially new ones do not know how to price their services. They are afraid of over-quoting while on the other hand, they might end up undervaluing their services. Clients may negotiate lower prices, undervaluing your work. Hence leading to their own exploitation.
12. Bonus points: A list of more disadvantages of freelance.
- No Paid Training or Skill Development.
- Overhead Costs.
- Legal and Contract Issues.
- Unreliable Workflow Management.
- No Team Support.
- Time-Consuming Client Hunting.
- Scope Creep.
- Limited Access to Business Tools.
- Difficulty in Scaling Up.
