Economy’ Effects on the Freelancing Industry
The economy is affecting everyone these days in some way or another, and that includes buyers and freelance contractors. And even though the effects for each are surely different, they are no less significant for either. For buyers, business is tending to dwindle, which ultimately means that the same is occurring for contractors. But even more of a concern, particularly to contractors, is not so much the lack of business alone, but the reduction in the amount of money to be made in the business as well. The ripple effect results in an unwelcomed outcome for both buyers and freelance contractors, which is that buyers are paying less for work and contractors, are making less money. Each of these factors results in even more negative consequences for the relevant party, and essentially the freelancing business as a whole.
The Negative Effect on Buyers When They Pay Less
It may seem to contractors that buyers are paying less money because they are being cheap in tough economic times, but buyers suffer from paying less as well, and it is hardly something that they enjoy having to do. In many cases, buyers who desire quality work would much rather pay more money for a better product or service, as paying less often means getting less too. The old saying “you get what you pay for” is a perfect explanation for this phenomenon. In addition, buyers who are forced to reduce the amount that they pay for work often have a much more limited choice when it comes to contractors as well, which can be extremely frustrating when looking for just the right contractor. And when buyers have to hire less skilled contractors that produce a subpar product, they make money less money in the end as well, which is certainly not a welcome result for any buyer.
The Negative Effect on Contractors When They Earn Less
The most obvious negative effect for contractors when they earn less is that they have to take on more work to makeends meet. When a contractor is forced to take on even more work and being paid less for it the outcome is frustration and discouragement in their choice of work. This can snowball into a complete lack of faith in one’s skills, and in the industry itself, and can cause a considerable amount of doubt regarding their future as a freelancer. In addition, when GetACoder contractors are earning less, and ultimately charging less, other buyers are going to expect to be able to pay less for their work as well, which can lead to a contractor having to lower their rate, rather than gradually increasing it. None of these outcomes are ones that any contractor wants to have to experience.
Everybody is obviously going to have to suffer some consequences of the bad economy, but it is difficult enough to make money in the freelancing industry. The only way to overcome these outcomes is to be honest and realistic about expectations, and then you can overcome the effect of the bad economy too.
Michelle Lynn Schmeer is a student at American Public University, with five months left before she will earn a Bachelor’s degree in Political Science. She has been freelance writing for more than three years and has been writing about a variety of topics, including health supplements, business, communications, and travel, just to name a few. Michelle lives in upstate New York with her husband and two children. She enjoys reading, being outdoors, and cooking. Michelle is one of several freelance writers on the GetACoder Blog team.