According to a recent survey conducted by the IPSE and The Freelancer Club, there is an average loss of £5394 per freelancer per year. It is believed that this is due to a lot of freelancers working for free with the expectation of a later payment.
In this blog post, Gorilla Accounting will be taking a look at the survey carried out by the IPSE and The Freelancer Club in relation to freelancers losing money each year.
Summary of the Report
The research found that freelancers spend, on average, 31 days per year undertaking assignments without being paid. There are several different factors that could make this happen. For example, a freelancer may take on a job for a friend with the assumption that they will be being paid, when in actuality they will not be paid for their services.
There are a few key points to take away from the survey results. There are as follows:
– 44% of respondents to the survey fit into the 16-29 age bracket
– Average age of respondents was 33
– Average of seven years’ experience in their field
– 67% of those undertaking unpaid work were female
Should you ever work for free?
It is thought that over (54%) of freelancers have chosen to work unpaid in the hope of gaining exposure of their work. In addition, it is estimated that just under half (45%) have worked for free to be associated with a reputable brand.
Although, with these statistics in mind, working for free is seen as a common thing within the freelancer industry. Several freelancers had noted that working for free is standard practice in their industry.
However, there are some instances when working for free could be beneficial to yourself but working for free should always be done at your own risk. You’re never going to get the time back that you spend working on a certain project, but the end goal doesn’t always need to be money.
For example, you may want to work for free in various different circumstances such as: a favour for a friend, working for future opportunities or completing work for companies who cannot afford you. Again, it’s completely up to yourself if you would like to complete work and you should think about the bigger picture.
As a freelancer, you will need to understand that your time is precious. It’s important to delegate your own time wisely, you should also learn to become comfortable with saying no.
