The picture isnt so rosy for everyone.
For many people, freelancing is less an opportunity and more a burden.
The freelance economy is complicated, so if youre a part of it, lets break it down.
Both are self-employed, but theres an important distinction when it comes to earning potential.
According to a recentPew study, nearly a quarter of all Americans earn some money through these platforms.
Too often people lump all aspects of the gig economy into one uniform bucket, Liston said.
Uber and Lyft are examples of services in the first bucket.
Your earnings depend on the amount of time you have available.
Examples of services in the second bucket would be Upwork or Listons own company, All Set.
Despite his affiliation, Liston breaks it down perfectly.
You have different people working different hours in different capacities.
There are some crucial caveats here, though.
First, this doesnt factor in how many hours they work, which almost makes the finding pointless.
If the average hours worked per month is 20, then $500 isnt so bad.
If its 160, the earning potential is even worse than it seems.
Priceonomicsbrings up another caveat in a blog post.
Finally, it doesnt consider just how different the earning potential is from one platform to another.
Thats not exactly comparing apples to apples.
Airbnb is more passive income than Uber, which takes up a lot of workers time.
So lets look at what the average Uber driver can earn.
According to Josh Mohrer, their former GM in New York, their drivers earn $25 an hour.
This would mean Uber drivers earn upwards of $50,000 a year, which doesnt seem quite right.
SoBuzzFeed News interviewed a handful of random drivers, looked at their pay stubs, and crunched their data.
They worked between 5.78 and 42.65 hours per week.
Its a valid criticism.
That frees you up to add on more clients and earn significantly more.
Bloomberg reportsthat the number of freelance workers who earn six figures is growing.
But theres an important caveat here, too.
Heres the thing, though.
So what are those costs?
And how can you earn more money as a freelancer?
Zane Benefits estimates that the average individual monthly premium (without subsidies) is $393 for 2017.
The average annual deductible?
Sure, the Affordable Care Act offers some relief for that,but for how long?
Self-employed workers alsohave to consider retirement.
This doesnt seem like a big deal, butmany experts believe that a retirement crisis is looming.
Saving for retirement isnt about relaxing on a beach in some exotic location.
Finally, self-employed workershave to think about taxes, too.
Come April, theyre in for an ugly surprise.
If you work for yourself, youhave to pay estimated quarterly taxesthroughout the year.
Taxes are just one example of all the administrative BS self-employed people have to deal with, too.
Theres also invoicing and morecomplicated budgeting.
Also, it seems like youre almost always waiting on a check.
Find companies who are hiring in your area of expertise and approach them as a freelance consultant.
This is how Ive gotten the majority of my high paying clients, Elizabeth said.
What do they need?
How can you help them?
If youre a web designer, you might offer to improve part of their crappy website.
You set your own prices as a freelancer.
This is where a lot of people get freaked out and severely undercharge for their services, said Elizabeth.
This is so true it hurts.
And as a result?
I was paid crap.
In many ways, freelance work is the equivalent of being an entrepreneur.
