Freelancers in various industries, are facing several issues with lower pay. In fact, lower pay is becoming the norm for freelancers across the country. This is not by choice. Several freelancers are finding that particular industries are becoming increasingly geared and conditions offering lower pay for more work. This is seen primarily in content, editing, publishing and graphic design. There are several reasons that lower pay is becoming a trend for freelancers within the United States. The following are a few of those reasons to take into consideration as a freelancer.
Gig sites like Fiverr, though popular with businesses, are one of the main reasons that lower pay is becoming a trend for freelancers. These gig sites offer a marketplace for freelancers to offer their services for a lower rate of pay. Some freelancers have learned how to use these gig sites in order to increase their pay rather than lower rate. However, the vast majority of freelancers using these sites are finding that they are making a third or less of what they would make from private clients and other sources. The gig sites have been increasingly popular with individuals looking for graphic artists and other small gig jobs and connecting business owners with services offered by freelancers outside of the United States. Though the site to do help keep business costs down, they are hurting the freelance industry.
Offshore to Onshore
Offshore or outsourcing was a huge industry in the late 90s and into the 2000s. However, in 2011 a trend started to remove jobs from outsourcing offshore to outsourcing onshore. Several businesses refer to this as shoring in jobs. Unfortunately, businesses had become used to paying a very small amount for certain services such as graphic design, marketing, social media marketing, content and editing. When the transition from offshore to onshore or shoring in jobs occurred businesses were finding that freelancers were demanding higher wages. The higher wages were due to several factors. These higher wages were due to economy, cost of living and the time an individual may put in a particular job. Though the wages were comparable to the high quality being offered, businesses still had a difficult time in offering higher wages in meeting their own budgeting standards. This led several businesses to only increase their wages by a certain amount rather than the amount is that several freelancers were requesting.
Though bidding sites have been much like gig sites and have offered businesses the chance to find high-quality for lower rates, they are one of the reasons that lower rate to becoming an issue for freelancers. Bidding sites run slightly differently than gig sites. Freelancers may look for jobs that are being offered by businesses or private clients and can bid on that job. It is up to the business or client whether or not they accept the rate or refuse the rate. This is led to many freelancers trying to maintain their income by lowering their rates just enough to obtain the client but maintain a steady income.
These are only a few of the reasons that lower pay is becoming a trend for freelancers, they are the main reasons. Freelancers are trying to find new ways of finding clients that will pay their going rate. However, this is easier said than done. Several freelancers have moved to lowering the rates to a modified rate that meets the client needs as well as their income needs.