Debunked! The 5 biggest freelancer myths

Freelancer myths under the microscope ...

Myth #1 - Freelancers have less stress & more free time

Reality Check:

Strictly speaking, it's the opposite. Self-employed people usually take on more work than they can actually do. This is often due to the fact that contractors and clients often underestimate the complexity or the amount of time involved. After all, compared to a 40-hour week, the average freelancer works over 7 hours more per week. Even though free time and flexibility are clear advantages of freelancing, you are still an independent small business in which, in addition to the main job and deadlines, you also have to take on the roles of accountant, project manager and CEO. Freelancers have a lot of responsibility, with client/project acquisition and invoice writing being only a fraction of it.

Expert tip: Pay attention to the work-life balance

Many prospective freelancers are afraid that their new job will take them over completely, leaving them no time for family, friends and hobbies. Similarly, a case of illness could reduce the attractiveness for future clients, since they calculate with a flexible but also reliable workforce. A case of illness can be prevented, for example, by a balanced and healthy work-life balance. Activities such as accounting can also be outsourced. Here, work can be made easier, for example, with tools such as the accounting software Billomat. This leaves more time for the core business, because: Time is money. Despite all this, enough days off should be ensured, as overwork can quickly set in.

Myth #2 - Freelancers can't find a job in the "normal" world!

Reality Check:

The majority of people who decide to become self-employed usually have many years of experience in a permanent position. Or: They want to be their own boss or not feel restricted by fixed working hours. Advancing their own career or finding new challenges also play a significant role in the decision. Freelancing is a legitimate business model. While "freelancing" has more of an ambivalent connotation, "running a small business" sounds much more positive. In comparison, it is easy to see that being a freelancer is equivalent to running a small business, as you fill all the roles yourself, from intern to CEO. Accordingly, freelancing is definitely a "normal" job, which shows how qualified practitioners are. A permanent position should therefore not be a problem.

Expert tip: Networking and being open to permanent employment

But the search for more responsibility is not the only reason for self-employment. The decision is not always voluntary: family, health or work-related circumstances can also be a reason. Also due to past unemployment, freelance employment makes sense. The most important tool for jobs is networking. So those who initially find themselves in self-employment involuntarily should concentrate on the good aspects of their work and not give up immediately if success fails to materialize at the beginning. If the desire to switch to a permanent position comes up again later, the time as a freelancer can be a good reference on the resume.

Myth #3 - Freelancers don't need anything except a website!

Reality Check:

Those who practice freelance are not only experts in their field, but are equally salesmen and marketers - for themselves - in one person. Especially when it comes to highlighting one's expertise and asserting oneself against competitors in the respective market. If the order situation is currently rather low, the focus is on one's own Internet presence or profile on a professional network and optimizing this as best as possible. This takes time.

Expert tip: Project acquisition costs time

What is often underestimated is that the constant search for new assignments and projects is a full-time job. Freelancers have to show their best side again and again, market themselves anew and sell well, so that they are positioned as the best possible expert for the right client at all times. 65.92 percent of the freelancers surveyed see project acquisition above all others as the greatest challenge of self-employment. For this reason, it is important to always look for new projects and keep one's references up to date.

Myth #4 - Freelancers earn more money!

Reality Check:

Although there are no legal requirements for freelancers' earnings, competition among freelancers can actually tempt them to reduce their own hourly rate in order to get the job they want and outdo the competition. When calculating their hourly or daily rate, freelancers must also consider their total expenses, which include business costs, taxes and insurance. This is because the higher the profit, the higher the tax rate. Likewise, there are special regulations for freelancers when it comes to insurance: The special regulations cover almost all insurance areas, such as pension, health, nursing care or accident insurance. The private costs and the desired profit at the end must also not be disregarded here.

Expert tip: Use expertise and industry as a guide

Freelancers can earn good money with extensive know-how and a professional profile. However, the income is always strongly dependent on the current order situation and fluctuates monthly or between projects. Fees that are too high or too low should be avoided, as they give a dubious impression. As a guideline: The average hourly rate for freelancers in Germany is 84.40 euros. On the other hand, an hourly rate that is set too high may result in a poorer order situation due to the large competition. However, this supposedly higher hourly rate is always justified by many years of experience, good references or high-quality work. Here, the usual salary for the respective industry can be used as a guideline.

Myth #5 - Freelancers are lone wolves!

Reality Check:

As a freelancer, you communicate a lot with clients to offer yourself and your expertise. In addition, depending on how the project is structured, it is essential to always adapt to and harmonize with new teams and colleagues. This applies to both digital collaboration and on-site work at the company. The Freelancer Compass 2017 also shows: 55.76 percent of the freelancers surveyed see themselves as team players and only 38.13 percent as lone wolves.

Expert tip: Be present on site and digitally

Depending on the industry and the project, some of the work can actually be done at home. Nevertheless, regular order acquisition requires permanent contact with various parties. Effective communication with the respective clients, the team or, in case the freelancer has been contracted externally, with the client is mandatory. Networking, for example, with other freelancers or collaboration in a coworking space is also not insignificant, as this can result in further orders, knowledge and experience. In addition to working in your own office, there are also some jobs that require the freelancer to work on-site at the company. Ideally, the freelancer creates an adequate balance of telecommuting and presence in the company.

As a pioneer in digital order brokering, the company has freelancermap specializes in clients and highly qualified freelancers in the IT and engineering industry. The company was founded in 2005 as an open marketplace and has since grown to become a one-stop shop for finding experts and contract projects, named "Top Career Portal 2018" by FOCUS BUSINESS. The annually published Freelancer Compass, is a comprehensive study by freelancermap and shows trends and tendencies regarding current developments on the freelancer market.