Last week, I covered several of the myriad reasons why full-time freelancing rocks my world. But before you trade in your ID badge and put out your own shingle as a sole proprietor, I have some bad news: it's not all leisurely mornings and long lunches.
Full-time freelancing has some serious drawbacks. Like taxes and computer glitches and loneliness. They aren't enough to keep this independent-minded girl from flying solo, but they're certainly worth thinking about before you make the plunge.
- No benefits, paid time off, and other perks. Friends say, "gosh, it must be nice to take a day off whenever you want." But they conveniently ignore the fact that every time I play hooky or get distracted by Hulu, I lose money. Sure, I allow myself a day of rest every once in awhile, but most people get paid on Christmas and Fourth of July even when they don't work. Freelancers don't. And forget those holiday bonuses, health insurance, staff retreats, and free pizza Fridays. We don't get that stuff, either.
- No support staff. In my previous post, I mentioned how much I like having my pay tied to my output. On days when I sail through my paid projects, I love this setup. But I had several days last week where my printer and computer weren't on speaking terms, my client's VPN wasn't responding, and I had to fill out tax paperwork for my accountant. Did I get paid for any of the time I spent playing bookkeeper and IT person? Nope. Did I have to get them those tasks done to earn money on other projects? You bet. As freelancers, we wear many different hats, like it or not. Some of those tasks can be outsourced, but most of us can't afford to have people on-call all the time.
- Extra taxes. Self-employed folks pay more in taxes to make up for the fact that we don't have an employer shelling out for social security and Medicare. This is commonly called self-employment tax. Oh, yeah, and your taxes are a whole lot more complicated when you're getting paid by 20 different companies instead of one or two.
- No office camaraderie. True, freelancers don't have to deal with office politics, but we also lack the built-in social circle that most offices afford. We don't automatically have someone to chat about The Bachelor with or join us for a mid-afternoon Starbucks run. No one notices when we wear a cute new outfit. I'm a social person by nature, so I've met my need for socializing by doing the occasional on-site project and connecting with people through social media. Twitter has become my virtual watercooler, but I also remind myself not to get too comfortable and scare off a potential client.
- Erratic cash flow. Fear of going broke is one of the biggest reasons that people stay employed rather than striking out on their own. There are two major reasons that this could happen. Either you aren't able to secure enough work to support yourself. Or you do secure enough work and clients don't pay when they're supposed to (which in some ways is more frustrating than the former). Sure, I've had slow months workwise, and I've had clients drag their feet on cutting my check, but overall, the erratic cash flow hasn't tempted me back to a steady job.
What do you think? Have you experienced other freelance frustrations that newbies should consider? What would you add?
Flickr photo courtesy of drizinha ツ away !