March 11, 2025
Following the COVID-19 pandemic, the gig economy took a new turn. Today, around 38% of the U.S. workforce, according to Forbes, is freelancing, cumulatively earning close to $1.3 trillion a year.
Unlike a 9-to-5 job, freelancing work has a number of perks that have made it a lucrative proposition for many Americans—not just the younger ones, but the older generations, too.
Working for yourself provides incredible flexibility and freedom. You get to set your own terms, pick and choose what you want, decide your hours, and work from wherever you fancy. There are also no entry barriers and no cap on the earning potential. If you have marketable skills, whether designing, coding, or accounting, there is no one stopping you from joining the gig economy.
But when starting as an online freelancer, there are a few pitfalls you must watch out for. If you ignore them, they can quickly end your career as soon as it starts.
Here’s what to avoid as a newbie to build a stable and predictable income from freelancing in 2025.
Sure, plenty of genuine businesses and individuals are out there seeking services from independent workers. But separating them from the rest is not always easy.
There will be people who get work done and disappear without paying or try to get you to do much more than what was initially agreed. Even worse—the gig economy is infiltrated by fraudsters, too. These shady actors could rope you into financial scams, identity theft, and illegal activities under the guise of an authentic client.
So, practicing caution is crucial, especially with jobs that promise ridiculously high pay, ask for personal info, or seem urgent and rushed.
If something doesn’t feel right, google the company, read freelancer reviews, and go through the client history (if you’ve met them on a freelancing platform). You can also check suspicious individuals on Nuwber using their name, contact number, or email address.
Pitching too low or too high can backfire on you, especially as you launch your freelancing career. If you take on low-ball offers, you eventually get ripped off and frustrated. But if your price is too high, you can lose potential business (which equals lost money).
While each person may have different theories about the right pricing method, the truth is, there is no hard and fast rule when it comes to that perfect price point. What works best for you depends on your goals, freelancer reputation, skill level, demand, and what makes you happy.
Ultimately, you can feel miserable about losing a big client by pitching too high, the same way you could get frustrated at being underpaid. So, instead of getting overambitious or selling yourself too short, do some research on fee levels for your area of expertise. Then, decide at the outset a reasonable amount to charge that will make you and your clients happy.
Freelancing sites like Upwork and Fiverr can get you access to hundreds and thousands of jobs from around the world. But it doesn’t mean you should apply for them all. “Why not?”, you might wonder. After all, the more jobs you apply for, the higher the likelihood of winning one, right? Well, not really.
When you work for yourself, there is one mantra you need to take to heart—time is money. If you pitch for every single project that comes your way, you are wasting time and energy that you could have spent elsewhere (like upskilling yourself or sprucing up your work portfolio).
Besides, some clients aren’t serious about hiring. They could post multiple jobs on free job boards to get an idea about market rates, spam hiring platforms, or lure in freelancers for job scams (ever noticed vague one-liner job posts or those that seem straight out of a script?). However, by being selective, you can use your time more effectively and increase your chances of winning quality projects.
This is one of the top reasons freelancers lose clients (hey, nobody said it was easy!). Not getting an accurate estimate of the workload, failing to communicate minor and major setbacks, missing deadlines, and delivering subpar work are some of the ways you can underwhelm your clients.
How can you avoid this? To begin with,
Gig economy workers are known for putting in longer hours. There are several factors contributing to this trend. When you are an employee, you are limited to a fixed monthly salary. But as a freelancer, the more projects you take on, the higher your earnings.
When working on your own, it is also natural to feel a greater responsibility toward your clients. So, you would not think twice about pulling an all-nighter to make sure you don’t disappoint them. And the flexibility to work from home doesn’t help either. It could literally blur the boundaries between your professional and personal life, making you put in more hours when you work without a clear schedule.
But work-life balance is a major incentive that attracts people to freelancing in the first place. So, why risk burnout and lose sight of your health, relationships, and, not to mention, personal goals?
Freelancing has, no doubt, various perks that have made it an appealing career choice for many Americans.
But there are a few common pitfalls that could get in your way when working for yourself. Shady clients, wrong pricing, over-pitching, over-promising and under-delivering, and burnout are some of the top things newbies must avoid.
If you want to build a solid online career as an independent worker, choose your clients wisely. Research market rates and decide what works best for you. This is important for minimizing price-related frustrations.
Also, be selective when pitching for projects so you can direct your time and energy to quality jobs, not time-wasters.
