Owning a business as a millionaire freelancer in the gig economy

Is it your dream to own a business as a millionaire freelancer in the gig economy?

A freelancer is someone who is self-employed and usually works on short-term contracts or “gigs” for other individuals or companies.

Before you dismiss this idea as unrealistic and unstable, there are freelancers who have made it as millionaires in the gig economy. However, there are precautions that should be considered before diving into this type of lifestyle.

Why freelancing?

The lifestyle of a freelancer can be enticing. You create your own schedule and decide how many hours you want to work. You can work remotely from anywhere, whether it be lying on a beach in Spain or sitting in a cafe in Paris. If you own your business, you can make millions in the gig economy.

Why has freelancing increasingly become the ideal lifestyle for the millenial? As a millennial, you might be looking to buy your first home. You might not want to rely on a family member for a downpayment, so you have to use their own ingenuity to find other ways to afford a house, other than working a 9-5 job. More people have also opted to freelance as a result of the pandemic.

The gig economy is booming.

In the book Freelance Your Way to Freedom by Alexandra Fasulo, the author describes how she made a million dollars after some years on the freelancer platform Fiverr. Her success prompted her to run her own million dollar freelance agency.

Fasulo describes her lifestyle as a freelancer as being free from former, outdated rules of work and money. A freelancer would rather do things their own way, and not let anyone tell them that they have to do things like everyone else.

The book is an entertaining read as well as being educational. It teaches you how to freelance so that you can have the freedom to work from anywhere and have time for other things such as taking care of family. There’s also a low overhead to working either for a freelance platform or on your own agency.

The book goes into some of the same principles quoted in The 4-Hour Workweek, and gives tips on how to hire virtual assistants in your business. There’s a lot about social media and current trends, and how to go viral, which contributed to the author’s success as a freelancer. These tips may be geared towards a younger generation. But if you’re not, it pays to be social media savvy. It might not be everyone’s cup of tea though the book does emphasize that you don’t have to do anything or reveal anything about yourself that you don’t want to in order to be successful as a freelancer.

Is the freelancer lifestyle right for you?

A cautionary statement must be included with any discussion about the freelancing lifestyle. Sure, you can be your own boss, but don’t forget that you’d always be working for someone, either a client or for your audience.

You also have to be disciplined. There’s no one keeping an eye on you and your work, so it’s on you to deliver the work as required.

You have clients to please, and to deal with if they are unhappy with your work. You have to develop a thick skin, just like any other business.

Freelancing can also be precarious.

The benefits of financial security and a steady income are oftentimes lacking in a freelancer’s career. It’s called a gig economy for a reason. It can be unstable at times. What happens if there is a recession and your only source of income dries up? What if this forces you to go back to your corporate job?

This is why business owners emphasize having multiple streams of income. The more streams of income, the better. This could be investing in real estate, the stock market, or having multiple products for sale.

Just like being an entrepreneur, being a freelancer is not for everyone but the possibilities can be endless if you have the stomach and the drive for it. The book gives further tips on how to own a business and be a millionaire freelancer in the gig economy.

Creating wealth as a freelancer

Another helpful book about freelancing is The Wealthy Freelancer by Steve Slaunwhite, Pete Savage and Ed Gandia.

A concept that is described in a lot of business books is that when you are working for a salary, you’re trading your time for money. The amount of money you make is limited by how much time you have to work for that money.

However, if you outsource your tasks, or manage to create a product such as a course or membership site, you’re no longer trading your time for money and your income is limitless. The book goes into a lot of detail about how to work around trading your time for money.

Some questions that you must first ask yourself before deciding to jump into a full-fledged freelancer business include: Do you have the right mindset to be a freelancer? Are you disciplined, resilient, and don’t give up easily? If you pitch a project to a potential client, but they decide to hire a different freelancer, can you take rejection? Are you resourceful at finding ways around problems?

Are you in the right industry for a freelancer?

If you want to work from home, or work while travelling, the type of work you want is one you can do with just a laptop and WiFi connection. Some examples given in both books include writers or copywriters, bloggers, photographers, and web designers. These also have low overhead so it’s easier to get started with.

What is the first step to be a freelancer?

Know what niche you want to work in. You also want to know how to set your fees. You can do this by scoping out the competition and price your fees accordingly.

How do you transition from a traditional job to a freelance career?

Make sure that you have emergency savings if you want to leave your job. Have a plan and an intention in place. This includes a plan for how you will get clients, whether it be through referrals, networking, associations, or industry events. Referrals are worth more than randomly approaching people you don’t know, which is more like a shot in the dark.

If you don’t already have experience, put together a portfolio, which can be a mixed media of written pieces or videos.

It’s also important to nurture your leads. If they don’t immediately buy from you, it might take several weeks or even several months for them to make a decision to do business with you. Until then, continue to keep in touch with them and to send value to them, until they make that decision.

Is there is a high demand for your product or service in your market?

You can’t sell your products or services if there is no demand for it.

Finally, both of these books emphasize that as a freelancer, you must have personal branding. Personal branding is the one thing that sets you apart from every other freelancer, and gives your potential clients a reason to hire you specifically and not another freelancer.

If this convinces you that freelancing is the right path for you, make sure that you have systems set up that can help you focus your business and your mindset on success. Owning a business as a freelancer is possible, though being a millionaire in the gig economy takes time, effort, and a lot of patience.