How Do Freelancers Work? Launch, Grow, and Prosper in 2025!

Do you consider starting a freelance career? Check our guide on how do freelancers work and find your own path to solopreneur success! 💪

According to McKinsey, almost 40% of the US workforce is made up of independent workers (mostly freelancers).

results for the survey about how do freelancers work by McKinsey

That’s not surprising; a lot of people want to work for themselves or at least remotely. In a 2023 study conducted by Buffer, a whopping 98% of people said they want to work remotely, at least for some time.

However, freelance work comes with many challenges that you need to tackle pretty much on your own. If you’re interested in starting a freelance business, read on. In this post, we’ll show you how freelancers work and what to do to succeed.

Start With a Profitable Niche

While many companies want to hire freelancers, you need a niche or a specialization. Let’s take web or graphic design as an example. A web designer who offers websites “for everyone” will probably struggle to find clients because there are thousands of people just like them.

A much better way to go about this is to start with a specific niche, primarily a client industry or target market. If you are experienced with a specific type of project, focus on them and turn them into your specialty. This way, you will be able to:

Resonate with your potential clients (it’s much easier to find new clients when you know where to look)
Showcase your expertise (people will be more willing to trust you knowing you’ve done similar projects in the past)
Narrow down your search, which will be both less time-consuming and more effective

Of course, we’re not saying that you should never accept a project from outside your niche. At some point, you may want to expand, but if you’re just starting out, go fishing in a lake instead of an ocean.

Determine Your Niche’s Profitability

A good niche consists of several elements:

It’s large enough to provide you with many projects/clients (so don’t go too narrow with your niche)
It consists of people or companies who can afford to hire you (if you target solopreneurs, start with cheaper services)
It’s easy to locate (start your search by browsing Facebook groups)

If you’ve found a niche that checks all three boxes, you’re good to go!

Start Working On Your Online Presence

First off, your freelance business requires its own separate name. Of course, some freelancer go with personal name (e.g., photographers) but if your long-term plan is to grow and perhaps hire other freelancers to help you with large projects, it’s better to go with a separate brand name.

Get a Website

Once you do that, it’s time to create a website for your company. The portfolio is of the essence; the more projects and success stories you can show, the better. Make sure your portfolio page is easily accessible, preferably via the main page and the menu.

It’s also a good idea to create separate landing pages for the different services that you offer. A landing page allows you to speak directly to the client interested in this particular service. It’s also useful in terms of online advertising (of course, ads cost money, but they can be very effective at getting you leads).

Freelance Platforms

There are many platforms you can choose from. The most popular are:

Fiverr.com
Upwork.com
Freelancer.com
Toptal.com

It’s a good place to start if you’re looking for your first freelance job. These platforms are usually gig-based, so you have a lot of flexibility when it comes to managing your own schedule and the amount of clients you take on.

However, keep in mind that it’s usually better to pick one or two platforms and stick to them. Staying up to speed with new offers, talking to potential clients, and updating your portfolio can take a lot of time. You don’t want to spread yourself too thin.

Establish Good Rates Without Undervaluing Your Services

When working as a freelancer, you have three main options when it comes to your fees. Let’s have a look at them:

Settlement type	Pros	Cons	Use cases
Per-hour	Good for for uncertain workloads Transparent for both parties Work in different industries	Unpredictable income Limited time availability Usually not very profitable	Projects with unclear scope or ongoing work (e.g., virtual assistant)
Flat/fixed fee	Good for specific projects with known workload Transparent for both parties Can be very profitable	Requires accurate pricing Requires specific project scope Doesn’t work with ongoing projects	Projects with clear deliverables (e.g., website design)
Value-based fee	The most profitable model Works in every niche Potentially unlimited income	Requires client trust Requires strong positioning/brand Clients may not be willing to use this model	High-value projects (e.g., advertising campaigns)

When establishing a baseline hourly or project fee, start by calculating your minimum rate. To do so, you need to factor in several elements:

Overhead expenses (e.g., software, business insurance, health insurance)
Taxes you’ll need to pay
A sustainable income goal

Research market benchmarks in your industry and region to ensure competitiveness while taking your expertise into account. Of course, initially, you may set a more attractive rate to get your first clients and build experience and credibility, but as demand increases and your portfolio strengthens, you should start increasing your rates. Proven results will help you do so (that’s why portfolio and success stories are so important).

Land High-Quality Clients As Quickly As Possible

How do freelancers work to get high-ticket clients? First off, they build a strong portfolio as quickly as possible. Set a goal for yourself to gradually take on larger and more profitable projects. Your way up starts with your communication. When you create an offer, focus on the client’s pain points and emphasize the benefits your services will deliver.

If you’re after high-paying clients, you need to back up your claims with solid numbers. Your client needs to see that your work will bring in more profit than it costs. If you can’t do that, you will struggle to get better clients for your company.

Once you have those solid numbers and good case studies, you should start working on your prospecting strategy. This is where professional networks (such as LinkedIn) step into the game. Depending on your niche, other social media platforms (e.g., Facebook or Instagram) can also be very effective.

And here’s another good idea to consider – JVs (joint ventures). Try establishing cooperation with other freelancers and influencers who already have access to your idea target audience.

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Ensure You Sign Fair Contracts (And Watch Out For Red Flags)

When working on a contract, start by clearly defining the project scope, its deliverables, and payment terms. Outline what’s included in the project and what the timeline is. Next, you need to specify the payment structure. Will you take any upfront deposits? Are there any installments or milestone-based payments? Include all these details in the contract to ensure you are compensated fairly for your work.

Your contract should also address key elements, such as revisions (how many rounds are included and what constitutes an extra charge), confidentiality (protecting both parties’ sensitive information), refunds/warranty, and cancellation policies.

Contract-Related Red Flags

You need to watch out for warning signs such as:

Vague project descriptions
Unclear expectations and requirements
Unclear payment information
Non-standard communication channels (if a potential clients writes to you from a gmail address or using Telegram, it’s usually a red flag!)
Unwillingness to sign the contract

If you come across any of those red flags, be cautious. It’s better to say no than to take on a project where you won’t get paid.

Take Care Of Your Finances

Taking care of your finances starts with setting up a dedicated business bank account and getting a bookkeeper/accountant (keep in mind that as a freelance business owner, you’re fully responsible for your taxes and insurance). Both elements are essential to keeping your finances well-organized and secure, especially when it comes to taxes and other obligations.

Once you start working with more and more clients, you may also need to get good invoicing software to streamline the invoice creation process. The same is true concerning tracking payments. Oftentimes, you’ll need to remind clients about overdue payments. You need a solution that will help you do so regularly and in an effective manner.

Streamline Your Work Organization And Boost Productivity

As a solopreneur, you need to be well-organized and productive. Your income depends on that! If you struggle with time management, consider using a productivity tracker for freelancers. Such a tool will help you stay organized and accurately track time spent on different projects.

a timesheet view in TimeCamp freelancers use to track time for projects

Additionally, you can use the same software to simplify communication and the billing process with your clients (using TimeCamp’s automatic calculations).

billing and invoicing in TimeCamp for freelancers

In the same way, you can also generate transparent reports for your clients, clearly indicating how much time you spent on their projects each week/month. Our platform also comes with an invoicing module to help you save time. And once you start working on more and more projects, you may also consider using project-management software to keep track of your progress and next steps across your client base.

There is one more thing to consider here. You need to optimize your workflows. If you don’t, your work-life balance will suffer and you will quickly face burnout, which can be deadly to your freelance business. Make sure you balance work and rest and not take too many projects at the same time.

Take Care of Your Work-Life Balance

Maintaining work-life balance starts with setting clear boundaries, such as:

Pre-defined work hours
Scheduled breaks (you can’t stay productive non-stop for 8 hours!)
A dedicated workspace (ideally, find yourself a quiet and well-lit place where you can focus)

These steps will help you prevent overworking and burnout. Also, it’s important to predict potential issues and counteract them by having:

Airtight contracts
Clear client communication
Transparent policies for payments, guarantees, and dispute resolution

Working this way will help you stay productive, motivated, and simply happy with your work. On the other hand, if you ignore those preventative measures, you will soon face exhaustion and inconsistent income.

Good Marketing Will Secure a Steady Stream Of Clients

Client acquisition is by far the most difficult and the most important aspect of every freelance business. According to a recent Freelance Study published by FreelanceMap.com in 2024, project acquisition is the number one challenge for over 50% of surveyed freelancers.

What’s the answer to this challenge? Marketing. Without marketing, you will always struggle to get the next project. Depending on what you do, you have several options concerning promoting your business and building a strong personal brand:

Content marketing (try writing blog posts and guest posts on other websites)
Advertising (primarily Google Ads, Facebook Ads, and Instagram Ads)
SEO (work on your website’s positioning so that it’s visible on Google for relevant searches)
Networking (try establishing cooperation with other professionals and building JVs to build a steady stream of clients)

All those strategies can help you build repeat business for your company. And don’t forget to include your success stories and testimonials in your communication with prospective clients. They will help you stand out and win their trust!

Don’t Underestimate Education (And Expand Your Offer)

A good freelancer never stops learning. You should reserve some time for self-improvement and education. Apart from that, you need to stay up to speed with emerging industry trends. This way, you will be able to outrun your competitors and present yourself to potential clients as an experienced and trustworthy professional.

Think about complimentary services and invest in courses and certifications that will help you get more clients this way. Here’s an example: If you are an SEO freelancer, why not learn how to do web design, too? This way, you can be a one-stop shop for clients who need both a website and positioning.

Start Scaling And Automating Your Business

While freelancing can offer a lot of fun and satisfaction, you should think long-term and optimize and automate as many elements as possible. Scaling a freelance business starts with automating repetitive tasks such as reporting, invoicing, and follow-ups using tools like CRM, proposal and contract templates, and accounting platforms.

As your workload increases, you ought to consider outsourcing time-consuming tasks. To do so, you can find yourself a subcontractor or a virtual assistant who will help you with ongoing tasks (especially administrative ones) that don’t need to be done by you.

This way, you will free up some of your time, which can lead to getting more projects or expanding your offer.

Wrapping Up

Starting and leading a successful freelance business is no cakewalk! However, with the right approach and strategy, you will avoid typical pitfalls and build a solid client base that will secure a good income for you and your family.

If you need support with staying productive, try TimeCamp! Our platform will help you with:

Time and productivity tracking
Billing and invoicing
Reporting your work to clients

Our platform is tailored to both freelancers and small teams and start-ups. And the best news is you can opt for a free plan. Start today!

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Track time in projects and tasks, create reports, and bill your clients in just one tool.

Sources:

https://www.mckinsey.com/featured-insights/sustainable-inclusive-growth/future-of-america/freelance-side-hustles-and-gigs-many-more-americans-have-become-independent-workers

https://buffer.com/state-of-remote-work/2023

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Maksymilian Kujawa Seasoned marketer with 5+ years of experience working with SaaS products, B2B audiences, and market research. Passionate about data-driven strategies, storytelling, and bridging the gap between product and market needs. Always on the lookout for automation opportunities, recently deeply interested in the possibilities offered by AI. When not crafting marketing strategies, he enjoys exploring the worlds of business psychology, history, and sports.

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How Do Freelancers Work? A Guide to Launch, Grow, and Prosper in 2025!