Friday, June 14, 2019

Making Money as a Freelancer: From Planning to Big Money

Ensure sustainable success and a secure income


Anyone working as a freelancer in the future will, in a sense, be independent of a permanent employer and a company. Distinctive and independent qualifications are the first prerequisite for making money successfully in the long term. Freelancers are rightly the declared darlings of the economy, as more and more companies work together with freelancers in the face of increasing skills shortages. This trend has a positive effect on pay, so that the hourly rates alone have risen further in comparison to recent years. Especially skilled workers are in demand like never before.

How freelancers secure long-term success

In fact, there are not that many German freelancers. The jobs that are in demand include translation work, with the Internet providing various opportunities to make money out of one’s own services. The selection ranges from programming, IT tasks, texts and research to translations, design and architecture. The secret is the key skills that make a freelancer stand out from the rest of the industry. As the name already implies, the freelancer freelances for a company and does all the work that has been put out to tender.

Be sure to inquire whether your job or service fits into the professional field of a freelancer at all. You can easily clarify that on the phone with an employee of the tax office. Freelancers do not need a trade license, but there are limits to the additional income. If the terms freelancers and freelancing are also often used as a synonym, the freelancer describes the employment relationship, and the freelancer the defined job profile.

In particular, the independence in the choice of working conditions represents a significant advantage in this area. So determined freelancers themselves, the place, the time and the period of their activities in coordination with the client. This results in an individual and flexible organizational structure that determines one’s own daily work routine.

Entry into freelancing – not so easy!

Freelancers search online for the right agencies and projects. Here are the successful platforms that have now millions of agencies and freelancers have brought together. If you want to position yourself as an online service provider, you should clearly identify your own qualifications, with references and a corresponding education or study to find the right companies and agencies.

Freelancers, like self-employed persons, have to file an income tax return. At the beginning, it is sufficient to apply to the tax office for a tax number and to get in touch with a tax consultant. Investing and working with a professional will pay off no later than the end of the year. So you play it safe to get the most out of your own financial planning. At best, you have the opportunity to work with a specialist in your industry.

Freelancing is the uncomplicated way to get involved in location-independent work. Nevertheless, it is not enough to simply open the laptop, sit down at the desk and get started. If you want to work successfully in the long term, you should first and foremost train yourself in the area of ​​aquise and self-marketing. Only in this way do you learn to independently get the best jobs on the open market.

Home work or home office is not a magical magic formula and a money printing machine or a way to escape bad-tempered bosses. This includes serious activities that sustainably secure their own income for the next few years.

Sustainable opportunities in direct customer business

The direct customer business secures the more straightforward sources of revenue. In particular, digital services can be billed as quickly as possible. That makes the customer business very difficult to scale. Nevertheless, freelancing is now one of the most important building blocks when it comes to developing your own company. Some entrepreneurs with a correspondingly high budget in the hindquarters skip this stage and at the same time develop their own project. For other company founders, freelancing is a secure foundation to provide a necessary financial base.

Not to be neglected is the experience that the customer business brings with it. Here you will get started with the basics of direct marketing. So you should first build a secure income to experiment according to their own financial resources and not neglect the opportunities of passive income streams. Even if everything looks wonderfully simple at first glance, getting started is not so easy.

The platforms for freelancers are in direct competition with the personal contact and application. Experience has shown that well-paid projects usually appear outside the platforms. If you equip yourself from the beginning with the decisive skills in direct marketing, you will benefit from it for a lifetime and can also sell successfully outside the platforms. Not everyone is born a professional. Most people start with the experiences from customer to customer. Every freelancer should delete the fear of rejection from their own memory, pick up the phone and contact an agency. Even in the age of increasing digitization, personal calls are more effective than hundreds of emails.

Use the nodes where the potential customers are located and develop successful sales texts step by step. The most important thing for a freelancer is the existing customers, the steady bookings assure in a familiar relationship. So you will find out what works in your industry without any problems and you can rely on this knowledge. There is no standard recipe for how you convince a customer of yours, but an individual secret of success that pays off in the long run.

How to finance the entry as a freelancer?

For freelancers and beginners there are demands and start-up grants, which facilitate the entry. There is talk of state support. So if you are entitled to unemployment benefits, you can also apply for a start-up grant, which is available directly from the Employment Agency. There are two different phases of production. In the first six months, there will be a grant equal to the unemployment benefit. This is usually 60% of the last salary. For the social security contributions the employment office pays a subsidy of 300 €.

In the second phase it is possible to get another € 300 in each month over six months. Only very few freelancers can completely self-finance after half a year, so that the subsidy always represents only a small financial support. Start-up loans, for example from KfW Förderbank , special loans for freelancers, investors and private loans are another way of providing financial resources. Unemployment Benefit II Beneficiaries are not entitled to the start-up grant. Here, however, there is an entry fee, which can correspond to the standard rate of payments of 50-100%.

In addition, there is the start-up coaching in Germany. This is also available to freelancers in the starting phase. Even if starting up a business and self-employment can be up to five years old, you can take advantage of this promotion. This is above all a question of organization, financing and efficiency in connection with insurance, taxes and jurisdiction. The upper limit of the promotion of the consulting fee is a maximum of 6000 €. The consultant may charge up to € 800 per day. In addition, there are still differences between the new and the old federal states.

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Step 1: The personal profile and portfolio

The first step is to create your own portfolio and profile. This can be compared with the CV. In conjunction with the application you can apply for all advertised jobs. If you invest a lot of effort here, you increase your own chances to win the project. Some clients have prepared special placement tests or sample tasks to test only the knowledge.

ATTENTION: A trial is not a free service, but merely a test that demonstrates your own skills and abilities. So should written texts later not find free on the Internet. The client offers alternatives, such as a compensation of the trial, if this later appears on the Internet. Freelancers should protect themselves from the beginning – instead of working for free.

Step 2: Job Search

For a freelancer it comes out of the sheltered lap of a company and towards exciting projects and new cooperation partners. If you want to make a name for yourself first, look for suitable projects on the open market. With appropriate knowledge of foreign languages, the national boundaries do not constitute an end point for processing. Basically, the whole world is at your feet.

Step 3: Set budget

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Many newcomers make the first mistake, to submit a too cheap offer, hoping to get the job really. However, this does not always have to be a positive factor for the client. Many large agencies and companies see in the budget and hourly price of freelancers their quality, in addition to the actual qualification. In any case, it makes sense to use an objective hourly rate from the beginning on which you can live and work.

A main focus is on a detailed offer, which addresses all questions of the client. The offer should definitely meet the individual requirements, the offer period as well as the budget expectations. The more the qualifications are fulfilled from the start, the greater the likelihood that you will win the contract.

In the conclusion there is no regular income, but the fee or the fee. Freelancers themselves have to pay insurance, taxes and social security contributions as well as the health insurance. On this basis, you should calculate your own hourly rate and not too tightly calculate here.

In the case of artistic and journalistic activities, a freelancer has the opportunity to join the artist social fund . Here, the KSK takes over the employer’s share, which drastically reduces the social security contributions and assures enormous financial support. Many companies use freelancers whenever there is a bottleneck in connection with the in-house staff and, in return, the employment of another permanent employee would be too expensive.

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Step 4: Project execution

With the successful contract, you have come a good step further. Now the goal is to satisfy the customer 100%. After all, a successful order is always an economic mirror for the entire industry. Freelancers should not underestimate an unpleasant experience with a customer, they can go around quickly and repel other potential clients. In addition, nobody should take the opportunity to give ratings. After a successful project, you should ask a client to rate the collaboration. These are important references that help with the later development and application.

Step 5: Payment

If it is not a project-based collaboration on a platform, the payment is easy by invoice and bank transfer. In other cases, a trustee account is available. Here, the employer pays the money after the contract has been awarded. Once the project has been completed, the sum goes to the respective freelancer. For particularly large projects, the processing of which lasts for a long time, it is worthwhile to agree fixed payment dates and a prepayment. So you take no risks that it comes to financial difficulties later. Serious providers have no problem with the prepayment or a fixed payment plan.

Anyone who wants to successfully position themselves in an industry must, as a freelancer, be prepared to approach customers and market themselves. With every successful project your own reference account and the positive impact on the corporate outside world increases. In the direct context, it is important to set a personal online presence in addition to the personal profile, the application and the CV. The professional and customer-friendly presentation on the Internet is one of the basic requirements to set yourself apart from the competition right from the start and to be a successful freelancer with the coveted skills preferred.

What freelancers should consider when boarding

The advantages of Freelancer are obvious. They can work flexibly and flexibly, are connected to changing companies and companies and hold their own economic success in their hands. Even if it seems at first glance, the entry is not so easy. It’s not about making the best deals, but building on a long-term successful direct marketing that provides you with special skills that the company can not do without. In addition to the experience, the freelancers learn from customer to customer to sell better and to invest in their own profile. This provides one of the most promising foundations for sustainable, economic success that works for years and builds a secure income. Quite a few companies once made their entry through freelancing and provided themselves with the important funds needed to invest later.


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