Freelancer
Encyclopedia
A freelancer, freelance worker, or freelance is somebody who is self-employed and is not committed to a particular employer long term. These workers are often represented by a company or an agency that resells their labor and that of others to its clients with or without project management and labor contributed by its regular employees. Others are completely independent. 'Independent contractor" would be the term used in a higher register of English.

Fields where freelancing is common include; music
Music
Music is an art form whose medium is sound and silence. Its common elements are pitch , rhythm , dynamics, and the sonic qualities of timbre and texture...

, journalism
Journalism
Journalism is the practice of investigation and reporting of events, issues and trends to a broad audience in a timely fashion. Though there are many variations of journalism, the ideal is to inform the intended audience. Along with covering organizations and institutions such as government and...

, publishing
Publishing
Publishing is the process of production and dissemination of literature or information—the activity of making information available to the general public...

, screenwriting
Screenwriting
Screenwriting is the art and craft of writing scripts for mass media such as feature films, television productions or video games. It is a freelance profession....

, filmmaking
Filmmaking
Filmmaking is the process of making a film, from an initial story, idea, or commission, through scriptwriting, casting, shooting, directing, editing, and screening the finished product before an audience that may result in a theatrical release or television program...

, acting
Acting
Acting is the work of an actor or actress, which is a person in theatre, television, film, or any other storytelling medium who tells the story by portraying a character and, usually, speaking or singing the written text or play....

, photojournalism
Photojournalism
Photojournalism is a particular form of journalism that creates images in order to tell a news story. It is now usually understood to refer only to still images, but in some cases the term also refers to video used in broadcast journalism...

, cosmetics
Cosmetics
Cosmetics are substances used to enhance the appearance or odor of the human body. Cosmetics include skin-care creams, lotions, powders, perfumes, lipsticks, fingernail and toe nail polish, eye and facial makeup, towelettes, permanent waves, colored contact lenses, hair colors, hair sprays and...

, fragrances, editing
Editing
Editing is the process of selecting and preparing written, visual, audible, and film media used to convey information through the processes of correction, condensation, organization, and other modifications performed with an intention of producing a correct, consistent, accurate, and complete...

, event planning
Event planning
Event planning is the process of planning a festival, ceremony, competition, party, or convention. Event planning includes budgeting, establishing dates and alternate dates, selecting and reserving the event site, acquiring permits, and coordinating transportation and parking...

, event management
Event management
Event management is the application of project management to the creation and development of festivals, events and conferences.Event management involves studying the intricacies of the brand, identifying the target audience, devising the event concept, planning the logistics and coordinating the...

, copy editing
Copy editing
Copy editing is the work that an editor does to improve the formatting, style, and accuracy of text. Unlike general editing, copy editing might not involve changing the substance of the text. Copy refers to written or typewritten text for typesetting, printing, or publication...

, proofreading
Proofreading
Proofreading is the reading of a galley proof or computer monitor to detect and correct production-errors of text or art. Proofreaders are expected to be consistently accurate by default because they occupy the last stage of typographic production before publication.-Traditional method:A proof is...

, indexing, copywriting
Copywriting
Copywriting is the use of words and ideas to promote a person, business, opinion or idea. Although the word copy may be applied to any content intended for printing , the term copywriter is generally limited to promotional situations, regardless of the medium...

, computer programming
Computer programming
Computer programming is the process of designing, writing, testing, debugging, and maintaining the source code of computer programs. This source code is written in one or more programming languages. The purpose of programming is to create a program that performs specific operations or exhibits a...

, web design
Web design
Web design is the process of planning and creating a website. Text, images, digital media and interactive elements are used by web designers to produce the page seen on the web browser...

, graphic design
Graphic design
Graphic design is a creative process – most often involving a client and a designer and usually completed in conjunction with producers of form – undertaken in order to convey a specific message to a targeted audience...

, website development, consulting
Consultant
A consultant is a professional who provides professional or expert advice in a particular area such as management, accountancy, the environment, entertainment, technology, law , human resources, marketing, emergency management, food production, medicine, finance, life management, economics, public...

, tour guiding
Tour guide
A tour guide provides assistance, information and cultural, historical and contemporary heritage interpretation to people on organized tours, individual clients, educational establishments, at religious and historical sites, museums, and at venues of other significant interest...

, video editing
Video editing
The term video editing can refer to:* Linear video editing, using video tape* Non-linear editing system , using computers with video editing software* Offline editing* Online editing...

, video production
Video production
Video production is videography, the process of capturing moving images on electronic media even streaming media. The term includes methods of production and post-production...

 and translating
Translation
Translation is the communication of the meaning of a source-language text by means of an equivalent target-language text. Whereas interpreting undoubtedly antedates writing, translation began only after the appearance of written literature; there exist partial translations of the Sumerian Epic of...

.

Freelance practice varies greatly. Some require clients to sign written contracts, while others may perform work based on verbal agreements, perhaps enforceable through the very nature of the work. Some freelancers may provide written estimates of work and request deposits from clients.

Payment for freelance work also varies greatly. Freelancers may charge by the day, hour, a piece rate, or on a per-project basis. Instead of a flat rate or fee, some freelancers have adopted a value-based pricing
Value-based pricing
Value based pricing, or Value optimized pricing is a business strategy. It sets selling prices primarily, but not exclusively, on the perceived value to the customer, rather than on the actual cost of the product, the market price, competitors prices, or the historical price.The goal of value-based...

 method based on the perceived value of the results to the client. By custom, payment arrangements may be upfront, percentage upfront, or upon completion. For more complex projects, a contract may set a payment schedule based on milestones or outcomes.

In writing and other artistic fields, "freelance" and its derivative terms are often reserved for workers who create works on their own initiative, then look for someone to publish them. They typically keep the copyright to their works and sell the rights to publishers in time-limited contracts. In contrast, intellectual property created under a work for hire
Work for hire
A work made for hire is an exception to the general rule that the person who actually creates a work is the legally recognized author of that work...

 situation according to the publishers' or other customers' specifications are referred to as "independent contractors" and similar terms. They have no copyright to the works, which are written as works made for hire, a category of intellectual property defined in US copyright law — Section 101, Copyright Act of 1976 (USC 17 §101). This is the opposite of the situation with a regular employee, the relationship between a freelancer and an employer being that between two business equals, the protections of the intellectual property rights that naturally vest in the creator of the work are considered to have been sold in toto in the work for hire agreement.

Etymology

The term was first used by Sir Walter Scott (1771–1832) in Ivanhoe
Ivanhoe
Ivanhoe is a historical fiction novel by Sir Walter Scott in 1819, and set in 12th-century England. Ivanhoe is sometimes credited for increasing interest in Romanticism and Medievalism; John Henry Newman claimed Scott "had first turned men's minds in the direction of the middle ages," while...

 to describe a "medieval mercenary
Mercenary
A mercenary, is a person who takes part in an armed conflict based on the promise of material compensation rather than having a direct interest in, or a legal obligation to, the conflict itself. A non-conscript professional member of a regular army is not considered to be a mercenary although he...

 warrior" or "free-lance
Lance
A Lance is a pole weapon or spear designed to be used by a mounted warrior. The lance is longer, stout and heavier than an infantry spear, and unsuited for throwing, or for rapid thrusting. Lances did not have tips designed to intentionally break off or bend, unlike many throwing weapons of the...

" (indicating that the lance is not sworn to any lord's services, not that the lance is available free of charge). It changed to a figurative noun around the 1860s and was recognized as a verb in 1903 by authorities in etymology
Etymology
Etymology is the study of the history of words, their origins, and how their form and meaning have changed over time.For languages with a long written history, etymologists make use of texts in these languages and texts about the languages to gather knowledge about how words were used during...

 such as the Oxford English Dictionary
Oxford English Dictionary
The Oxford English Dictionary , published by the Oxford University Press, is the self-styled premier dictionary of the English language. Two fully bound print editions of the OED have been published under its current name, in 1928 and 1989. The first edition was published in twelve volumes , and...

.
Only in modern times has the term morphed from a noun (a freelance) into an adjective (a freelance journalist), a verb (a journalist who freelances) and an adverb (she worked freelance), as well as into the noun "freelancer"

Current marketplace

According to the Bureau of Labor Statistics
Bureau of Labor Statistics
The Bureau of Labor Statistics is a unit of the United States Department of Labor. It is the principal fact-finding agency for the U.S. government in the broad field of labor economics and statistics. The BLS is a governmental statistical agency that collects, processes, analyzes, and...

 of the U.S. Department of Labor, in 2005 approximately 10.3 million workers in the US (7.4% of the US workforce) were independent contractors.

Benefits

Freelancers generally enjoy a greater variety of assignments than in regular employment, and—subject to the need to earn a regular income—usually have more freedom to choose their work schedule. The experience can also lead to a broad portfolio of work and the establishment of a network of clients.

Sometimes a freelancer will work with one or more other freelancers and/or vendors to form a "virtual agency" to serve a particular client's needs for short-term and permanent project work. This versatile agency model can help a freelancer land jobs that require targeted, specific experience and skills outside the scope of one individual. As the clients change, so too may the players chosen for a virtual agency's talent base. This is a common way for freelancers to get work if the non-competing freelancer in the relationship reciprocates the relevant type of work back assuming that both are in the same industry.

Freelancers and clients may form a relationship based on mutual needs and the professionalism and competence of both parties.

Impact of the Internet

The Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...

 has opened up many freelance opportunities, expanded available markets, and has contributed to service sector growth in many economies. Offshore outsourcing
Offshore outsourcing
Offshore outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured. It can be contrasted with offshoring, in which the functions are performed in a foreign...

, Online outsourcing
Online Outsourcing
Online outsourcing is the business process of contracting third-party providers to supply products or services which are delivered and paid for via the internet...

 and crowdsourcing
Crowdsourcing
Crowdsourcing is the act of sourcing tasks traditionally performed by specific individuals to a group of people or community through an open call....

 are heavily reliant on the Internet to provide economical access to remote workers, and frequently leverage technology to manage workflow to and from the employer. Much of the computer freelance work is being outsourced to poorer countries outside the United States and Europe. This has spurred conflict because American and European workers are not receiving the benefits. The compromise has led to student
Student
A student is a learner, or someone who attends an educational institution. In some nations, the English term is reserved for those who attend university, while a schoolchild under the age of eighteen is called a pupil in English...

 freelancers who now provide a steady source of cheap labor while keeping jobs American and European.

As a result, freelance employment has been common in the areas of writing
Writing
Writing is the representation of language in a textual medium through the use of a set of signs or symbols . It is distinguished from illustration, such as cave drawing and painting, and non-symbolic preservation of language via non-textual media, such as magnetic tape audio.Writing most likely...

, editing, translation, indexing, software development
Software development
Software development is the development of a software product...

, website design, advertising
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...

, open innovations
Open Innovation
Although the idea and discussion about some consequences date back at least to the 60s, open innovation is a term promoted by Henry Chesbrough, a professor and executive director at the Center for Open Innovation at the University of California, Berkeley, in his book Open Innovation: The new...

, information technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...

, and business process outsourcing
Business process outsourcing
Business process outsourcing is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments...

.

Changes to the publishing
Publishing
Publishing is the process of production and dissemination of literature or information—the activity of making information available to the general public...

 industry since the 1980s have resulted in an increase in copy editing
Copy editing
Copy editing is the work that an editor does to improve the formatting, style, and accuracy of text. Unlike general editing, copy editing might not involve changing the substance of the text. Copy refers to written or typewritten text for typesetting, printing, or publication...

 of book and journal manuscripts and proofreading
Proofreading
Proofreading is the reading of a galley proof or computer monitor to detect and correct production-errors of text or art. Proofreaders are expected to be consistently accurate by default because they occupy the last stage of typographic production before publication.-Traditional method:A proof is...

 of typeset manuscripts being outsourced to freelance copy editors and proofreaders.

Drawbacks

The major drawback is the uncertainty of work and thus income, and in lack of company benefits such as a pension
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...

, health insurance
Health insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...

 in nations without socialized medicine, paid holidays and bonuses. Many freelancers, especially in journalism, regard themselves as having greater income security through the diversity of outlets—the loss of any one of which leads to the loss of only a portion of income, rather than its totality as with salaried employees.

It is important to note that being a freelancer is not suitable to all people. Being a freelancer requires discipline and self-motivation along with other easier to acquire skills. If the freelancer works at home they are prone to additional stresses, that if not managed properly, could prevent them from earning an income at their profession.

Author and poet Ernest William Hornung
Ernest William Hornung
Ernest William Hornung , known as Willie, was an English author, most famous for writing the Raffles series of novels about a gentleman thief in late Victorian London....

 (1866–1921) used the term in "The Gift of the Emperor" to describe his woeful state as a freelancer in those days, "I warmed to my woes. It was no easy matter to keep your end up as a raw freelance of letters; for my part, I was afraid I wrote neither well enough nor ill enough for success."

Legal aspects

Many periodicals and newspapers offer the option of ghost signing, when a freelance writer signs with an editor but their name is not listed on the byline of their article(s). This allows the writer to receive benefits while still being classified as a freelancer, and independent of any set organization. In some countries this can lead to taxation issues (e.g., so-called IR35 violations in the UK). Ghost signing has little bearing on whether a writer is a freelancer or employee in the US.

Freelancers often must handle contracts, legal issues, accounting, marketing, and other business functions by themselves. If they do choose to pay for professional services, they can sometimes turn into significant out-of-pocket expenses
Out-of-pocket expenses
Out-of-pocket expenses are direct outlays of cash which may or may not be later reimbursed.In operating a vehicle, gasoline, parking fees and tolls are considered out-of-pocket expenses for the trip...

. Working hours can extend beyond the standard working day and working week.

In Europe, the perceived disadvantages of being freelance have led the European Union to research the area, producing draft papers that would, if enforced, make it illegal for companies or organizations to employ freelancers directly, unless the freelancer was entitled to benefits such as pension contributions and holiday pay. In the UK, where the terms of integration into the EU have and are being hotly debated, this would lead to a significant reshaping of the way freelance work is dealt with and have a major impact on industry; employers would be required either to give freelances the contractual rights of employees or employ only freelancers already being employed by agencies or other organizations granting them these rights. However, the White Papers that recommend such moves have not yet been adopted in the EU, and the potential impact on UK employment laws is being opposed by key UK organizations lobbying the government to negotiate over the acceptance of EU legislation in such areas. The legal definition of a sole trader requires that he/she must have more than one client or customer which promotes the freelancing ethos,

In the U.S. in 2009, federal and state agencies began increasing their oversight of freelancers and other workers employers classify as independent contractor
Independent contractor
An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement. Unlike an employee, an independent contractor does not work regularly for an employer but works as and when...

s. The U.S. Government Accountability Office (GAO) recommended that the Secretary of Labor have its Wage and Hour Division "focus on misclassification of employees as independent contractors during targeted investigations." The increased regulation is meant to ensure workers are treated fairly and that companies are not misclassifying workers as independent contractors to avoid paying appropriate employment taxes and contributions to workers’ compensation and unemployment compensation.

At the same time, this increased enforcement is affecting companies whose business models are based on using non-employee workers, as well as independent professionals who have chosen to work as independent contractors. For example, book publishing companies have traditionally outsourced certain tasks like indexing and proofreading to individuals working as independent contractors. Self-employed accountants and attorneys have traditionally hired out their services to accounting and law firms needing assistance. The U.S. Internal Revenue Service offers some guidance on what constitutes self-employment
Self-employment
Self-employment is working for one's self.Self-employed people can also be referred to as a person who works for himself/herself instead of an employer, but drawing income from a trade or business that they operate personally....

, but states have enacted stricter laws to address how independent contractors should be defined. For example, a Massachusetts law states that companies can hire independent contractors only to perform work that is "outside the usual course of business of the employer," meaning workers working on the company's core business must be classified as employees. According to this statute, a software engineering firm cannot outsource work to a software engineering consultant, without hiring the consultant as an employee. The firm could, however, hire an independent contractor working as an electrician, interior decorator, or painter. This raises questions about the common practice of consulting, because a company would typically hire a management consulting
Management consulting
Management consulting indicates both the industry and practice of helping organizations improve their performance primarily through the analysis of existing organizational problems and development of plans for improvement....

 firm or self-employed consultant
Consultant
A consultant is a professional who provides professional or expert advice in a particular area such as management, accountancy, the environment, entertainment, technology, law , human resources, marketing, emergency management, food production, medicine, finance, life management, economics, public...

 to address business-specific needs that are not "outside the usual course of business of the employer."

International freelancing



International freelancing is a relatively new development in the global market. Some freelance professionals move from one country to another looking for business opportunities along with travelling experience. These individuals often use the Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...

 as their main communication technology for running a business. Online outsourcing marketplaces focus on assisting freelancers to find work around the world. International freelance support may differ in developed countries, as opposed to developing countries, which have almost no freelance support at all.

See also

  • Freelance marketplace
    Freelance marketplace
    Freelance marketplaces are websites that match buyers and sellers of services provided via the internet. Service providers, or sellers, create a profile where they include a description of the services which they offer, examples of their work and in some cases information about their rates...

  • Freelancers Union
    Freelancers Union
    Freelancers Union is a non-profit organization in the United States that provides health insurance to its members through its for-profit Freelancers Insurance Company as well as service information through monthly meetings and information on its website....

  • Independent contractor
    Independent contractor
    An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement. Unlike an employee, an independent contractor does not work regularly for an employer but works as and when...

  • Mercenary
    Mercenary
    A mercenary, is a person who takes part in an armed conflict based on the promise of material compensation rather than having a direct interest in, or a legal obligation to, the conflict itself. A non-conscript professional member of a regular army is not considered to be a mercenary although he...

  • Misclassification of employees as independent contractors
  • Self-employment
    Self-employment
    Self-employment is working for one's self.Self-employed people can also be referred to as a person who works for himself/herself instead of an employer, but drawing income from a trade or business that they operate personally....

  • Recruitment advertising
    Recruitment advertising
    Recruitment advertising, also known as Recruitment Communications and Recruitment_Agency, includes all communications used by an organization to attract talent to work within it....

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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