FREELANER SURVEY 2016 · have a successful freelance career? From February to April 2016, we asked...

FREELANCER SURVEY 2016

02

FOREWORD

In 2016 the freelance market continues

with its trend and grows all over the

world. Especially in the IT field it is

possible to see how more companies,

both big and small ones, are starting to

outsource certain stages or projects

more often. Assuming that, we could

suppose that if the demand for

freelancers is higher, then these

professionals should also be earning

higher rates. But is this actually

happening? Are these possible higher

rates the key reason why professionals

start their freelancing careers?

Of course, we were tremendously

curious about the evolution of the IT

freelancing market and that’s why we

decided to carry out our freelancer

survey. We wanted to know not just how

much freelancers are charging for their

services but also which difficulties did

they face when they started or which

tools do they use to manage their work

day.

So, how does the IT freelancee market

look like in 2016? What skills do

freelancers really need to succeed? Do

freelancers charge higher rates? Are

they happy freelancing or would they

rather switch to full-time employment?

Which are the most important skills to

have a successful freelance career?

From February to April 2016, we asked

more than 140 freelancers about their

working habits, career goals,

motivations, challenges and ultimately

their opinions of the freelance market at

large. 79 freelancers based in 35

different countries submitted the

survey fully completed. The respondents

represented all genders, all ages and

experience levels (see figures pages 38-

41).

Along with quantitative data, the survey

produced nearly 50 pages of comments.

Please enjoy the read and the

interesting results!

The IT-Freelance market keeps growing in 2016 as well!


0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

< $20 $20-29 $30-39 $40-49 $50-59 $60-69 $70-79 $80-89 $90-99 >$100

What is your current all-inclusive hourly rate? (in USD)

03

ALL-INCLUSIVE HOURLY RATE

AVERAGE HOURLY RATE (In USD)

HOURLY RATE

The average hourly rate across all 35 countries surveyed is $47.45 US Dollar. The majority of freelancers

(44%) charge between $20 and $50 an hour for their job. 19% charge less than $20 and 37% command

over $50 per hour.

$47,45

Source: Freelancer Survey 2016 (N=79)

www.freelancermap.com


FINANCE SELF-EMPLOYMENT WORK DEMOGRAPHICS

04

CURRENT WORKING STATUS

Datenbasis: freelancermap Umfrage 2016 (n=711)

Quelle: www.freelancermap.de

62% of freelancers confirmed they were on a project at the time they were surveyed.

62%

38%

Are you in a project right now?

Yes No

FREELANCER SURVEY 2016 FREELANCER SURVEY 2016






05

AVERAGE PROJECT DURATION

72% of freelancers revealed they usually work on short term projects (up to 6 months). Just 9% of

freelancers confirmed that they work on projects for more than 2 years.

0%

5%

10%

15%

20%

25%

30%

35%

40%

< 3 months 3 months 3 - 6 months 7 - 11months

1 year 2 years 3 years 4 years 5 years > 5 years

On an average: How much time are you in a project?







06

INCOME DEVELOPMENT 2015

Almost half of the freelancers (47%) said their income increased in 2015. For 32% of them it did not

change at all and 22% saw a decrease in their income.

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

It dropped

It didn't change

It increased

How did your income develop in 2015?







07

CHANGING RATES IN 2016?

Nearly half of the freelancers plan to keep their rates unchanged (48%) and almost the other half (46%)

plan to raise it.

A minority of 6% think they will have to cut it off.

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Yes, I will cut it

Yes, I will raise it

No, it will stay the

same

Do you plan to change your hourly rate in 2016?







08

GROSS TURNOVER 2014

The majority of freelancers (69%) confirmed their turnover in 2014 was under US$50,000.

9% stated they earned between $50,000 and $74,999.

Interesting is that 7% had a turnover over $175,000 during the same period.

0%

10%

20%

30%

40%

50%

60%

70%

80%

< US$ 50.000 US$ 50.000 -74.999

US$ 75.000 -99.999

US$ 100.000 -124.999

US$ 125.000 -149.999

US$ 150.000 -175.000

> US$ 175.000

What was your gross turnover in 2014?







09

GROSS TURNOVER 2015

In 2015, 5% of freelancers got to the next level in comparison to the previous year. Just 64% of freelanc-

ers earned less than $50,000, while 12% of freelancers earned between $50,000 and $74,999.

As in 2014, 7% had a turnover over $175,000.

0%

10%

20%

30%

40%

50%

60%

70%

< US$ 50.000 US$ 50.000 -74.999

US$ 75.000 -99.999

US$ 100.000 -124.999

US$ 125.000 -149.999

US$ 150.000 -175.000

> US$ 175.000

What was your gross turnover in 2015?







10

GROSS TURNOVER 2014 vs 2015

When we compare both years we can observe a positive trend.

The number of freelancers that earn less than $ 50,000 per year decreased and freelancers who raised

their turnover can be distributed into the following categories between $50,000 and $124,999.

0%

10%

20%

30%

40%

50%

60%

70%

80%

< US$ 50.000 US$ 50.000 -74.999

US$ 75.000 -99.999

US$ 100.000 -124.999

US$ 125.000 -149.999

US$ 150.000 -175.000

> US$ 175.000

Gross Turnover 2014 compared to 2015

2014 2015







11

GROSS PROFIT 2015

The majority of freelancers (73%) said their gross profit was less than $50,000 in 2015.

Just 9% confirmed they got between $50,000 and $74,999 and another 9% up to $100,000.

The remaining 8% got over $100,000.

0%

10%

20%

30%

40%

50%

60%

70%

80%

< US$ 50.000 US$ 50.000 -74.999

US$ 75.000 -99.999

US$ 100.000 -124.999

US$ 125.000 -149.999

US$ 150.000 -175.000

> US$ 175.000

What were your gross profits in 2015?







12

INCOME DEVELOPMENT 2015

Nearly half of the freelancers (47%) confirmed that their income actually increased in 2015.

21%

32%

47%

How did your income develop in 2015?

It dropped It didn't change It increased







13

INCOME & SATISFACTION

We asked the freelancers surveyed if they were satisfied with their current income from freelancing. Only

43% seemed to be happy with their current income, the majority (57%) said they are actually

43%

57%

Are you satisfied with you income?

Yes No







14

INCOME SATISFACTION BY AGE GROUP

There is only one age group with more satisfied freelancers than unsatisfied and these are those

freelancers between 40-49 years old.

In all other age groups there are more freelancers unsatisfied than satisfied.

0%

5%

10%

15%

20%

25%

20-29 y 30-39 y 40-49 y 50-59 y >60 y

Income satisfaction by age

% satisfied % unsatisfied







15

MORE INCOME THAN FULL-TIME EMPLOYEES?

41% of freelancers confirmed that they earn more than full-time employees.

23% say they should be earning the same and on the other hand, 14% of freelancers said that they earn less than those

working the traditional way.

Also 23% of the surveyed could not answer this question.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Yes No About the same I don't know

Do you earn more than full time employees?







16

FREELANCER BY CHOICE?

The majority of freelancers (80%) would not switch to full time employment.

15% of freelancers expressed their willingness to change if the salary would be appropriate and just

5% would like to go back to working the traditional 9-to-5 way.

80%

15%5%

Do you want to continue working as a freelancer?Yes

No, I would switch to full time employm ent when the salary is appropriate

No, I want to switch to full employment







17

YEARS OF EXPERIENCE BEFORE FREELANCING

The majority of freelancers (36.71%) confirmed they had between 1 and 5 years of professional

experience before starting freelancing, followed by those with 6 to 10 years of experience (25.32%).

Only very few professionals (3.80%) decided to take the leap into freelancing with less than a year of

experience.



0%

5%

10%

15%

20%

25%

30%

35%

40%

<1 year 1-5 years 6-10 years 11-15 years 16-25 years >25 years

How many years of work experience did you collect before you went freelancing?







18

SINCE WHEN ARE YOU FREELANCING?

More than half of the respondents (59%) have been freelancing for 1 to 6 years already.

29% have been freelancing for 7 to 15 years and 11% of freelancers have over 16 years of freelancing

experience.

A minority of 1% are newcomers in the freelance world (less than one year freelancing).

0%

5%

10%

15%

20%

25%

<1 year 1-2 years 3-4 years 5-6 years 7-9 years 10-15 years 16-20 years >20 years

Years freelancing (Full years)









19

PARTICULAR IMPORTANT FOR FREELANCERS (MULTIPLE ANSWERS ALLOWED)

72% cited expertise as the most important thing when freelancing, 67% agreed on working experience

as a key point and networking was mentioned by 58% of all interviewed freelancers.

0% 10% 20% 30% 40% 50% 60% 70% 80%

Certificates

Furthereducation

References

Networks

Workexperience

Expertise

What is particularly important for freelancers?









20

MOST IMPORTANT SOFT SKILLS (MULTIPLE ANSWERS ALLOWED)

The most repeated soft skills were discipline (66%), communication skills (65%), self-motivation (46%)

and self-confidence (41%).

0% 10% 20% 30% 40% 50% 60% 70%

Stamina

Creativity

Flexibility

Self-confidence

Self-motivation

Communication

skills

Discipline

What are the most important soft skills for freelancers?









21

BIGGEST ADVANTAGES (MULTIPLE ANSWERS ALLOWED)

The advantages reported most often were having the flexibility to work from anywhere (58%),

independence (49%), and freedom (49%).

According to this data, flexibility is the key driver of freelancing over earning more money (just 14% cited

this as an advantage).

0% 10% 20% 30% 40% 50% 60% 70%

Free customer selection

Higher income

No income limits

Project diversity

Time management

Freedom of decision

Ind ependence

Home Office

Which are the biggest advantages of freelancing?









22

BIGGEST DISADVANTAGES (MULTIPLE ANSWERS ALLOWED)

70% of freelancers cited fluctuating income as the biggest disadvantage of freelancing.

Also unpaid vacation and client acquisition were cited as two major disadvantages by 47% of the

surveyed freelancers, followed by negotiation of contracts (44%).

0% 10% 20% 30% 40% 50% 60% 70%

Time management

Accounting

Contract

negotiations

Task or project

acquisition

Unpaid vacation

Fluctuating income

Which are the biggest disadvantages of freelancing?









23

BIGGEST CHALLENGES (MULTIPLE ANSWERS ALLOWED)

Almost 60% of freelancers cited negotiations to get better payment as the biggest challenge.

For 56% staying productive and motivated is also a big issue.

On the 3rd place, with 38% of freelancers who agreed, is having the right work/life balance.

0% 10% 20% 30% 40% 50% 60%

Accounting

Affordable healthinsurance

Project management

Work/life balance

Stay productive

Get better payment

What are the biggest challenges for freelancers?









24

MOST COMMON MISTAKES

63% highlighted that they often negotiate a too low hourly rate with their clients.

53% confirmed that they do too many tasks at a time and furthermore 53% of freelancers said that they

often cannot say “no” both to projects or clients.

0% 10% 20% 30% 40% 50% 60% 70%

Working too much

Not saying NO

Doing too many different things at the

same time

Negotiating a too small hourly rate

Which mistakes do you make the most?









25

PAYMENT PERIOD?

Nearly half of the surveyed freelancers (43%) disclosed that they normally agree on a 30 day payment

period.

Interesting as well is that 47% work with payment periods of less than 30 days (7 or 14 days).

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

7 days 14 days 30 days 45 days 60 days >60

On which payment period do you usually agree on?









26

OUTSOURCING

OUTSOURCING

Outsourcing involves the contracting out of

a business process to another party.

Most common outsourced tasks:

Accounting

Graphics & design

Client acquisition

24%

76%

Do you outsource certain work stages?

Yes No, I do everything on my own









https://en.wikipedia.org/wiki/Business_process

27

WORKING HOURS PER WEEK

WEEKLY WORKING HOURS

ON AVERAGE: h / week 45.71

According to the survey, freelancers work an average of 45.71 hours per week. That’s 9.1 hours per day

for a 5-day work week.

90% of freelancers work up to 30 hours a week; of those the majority (43%) works between 31 and 40

hours a week, followed by a 20% who work between 41 and 50 hours.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1-10 h 11-20 h 21-30 h 31-40 h 41-50 h 51-60 h >60 h

How many hours do you work per week?





28

MONTHLY DISTRIBUTION OF WORK DAYS (MAX. 30 DAYS)

WORKING DAYS ON A PROJECT

ON AVERAGE: days / month 16.04

The survey showed that freelancers spend most of their time working on their projects (16.04 days a

month), they invest 5.23 days on professional development and 4.91 days in looking for new projects.

The rest of the time they deal with accounting and other general issues.

1 3 5 7 9 11 13 15 17

Accounting

Other

Project acquisition

Professionaldevelopment

Working time onprojects

How do you split up your monthly working?







29

WORK LOCATION IN 2015

Over half of the surveyed freelancers worked from home in 2015 (52%) and nearly the other half (44%)

worked on-site in a company.

CO-WORKING SPACES

Co-working is a style of work that involves a shared working

environment and independent activity. Professionals are

normally interested in the synergies that can happen working

with people in the same place.

Home office In a company Rented office Co-working space

0%

10%

20%

30%

40%

50%

60%

Where did you work predominantly in 2015?







30

WORK LOCATION IN 2016

Confirming the growing trend of remote work, 63% of the surveyed freelancers work or will work

remotely from home in 2016.

28% will work directly in a company. 6% of freelancers are renting an office and just 3% will use co-

working spaces.

0%

10%

20%

30%

40%

50%

60%

70%


Where will you work predominantly in 2016?







31

WORK LOCATION 2015 vs 2016

The survey showed that freelancers prefer to work remotely.

The percentage of freelancers working on-site in a company has decreased and instead more of them are

working in a home office, a rented office or co-working spaces.

0%

10%

20%

30%

40%

50%

60%

70%


Workplaces in 2015 and 2016 compared

Workplace 2015 Plan 2016







32

USE & ACCEPTANCE OF CO-WORKING SPACES

34% of freelancers are not using co-working spaces right now but they are willing to try it at some point

in the future.

33% are not using them now and they don’t plan to do it either.

0%

5%

10%

15%

20%

25%

30%

35%

I don't plan to, but why not No and I don't plan to Yes Currently not, but I plan to

Are you working in a co-working space?







33

HOW ARE THINGS GOING TO CHANGE IN 2016?

The majority of the interviewed freelancers (71%) think the situation is going to be better this year. 21%

consider that it will stay the same and just 8% are skeptic and affirm that the situation is going to be

worse in 2016.

71%

8% 21%

Is the current situation going to change in 2016?

better worse the same







34

APPLICATIONS BEFORE A NEW ASSIGNMENT

Less than 20% of freelancers said they send 1 or 2 proposals before they find a new assignment.

68% confirmed that they usually need to apply for 3 to 10 projects before they sign a contract.

0%

5%

10%

15%

20%

25%

1-2 applications 3-4 applications 5-6 applications 7-8 appplications 9-10 applications 11-20applications

>20 applications

For how many different projects do you apply before a contract comes off?







35

PROJECT REQUESTS PER MONTH (VIA JOB BOARDS, E-MAIL, RECRUITERS, ETC.)

Unfortunately, the surveyed freelancers said that they get on average 10.98 uninteresting project

requests per month whereas just 4.92 requests are interesting opportunities.

31%

69%

How many interesting project requests do you receive per month?

interesting uninteresting





36

LONE FIGHTER OR TEAM PLAYER?

Just over half (58%) consider themselves team players and 35% of freelancers picked up “lone fighter”

as the most accurate description for them.

36%

6%

58%

How would you describe yourself?

Lone fighter Other Team player







37

WHICH TOOLS DO YOU USE? (MOST FREQUENTLY GIVEN RESPONSE)

PROJECT PLANNING 1

Office Programs 43.04%

Don‘t use a tool 18.99%

Trello 15,19%

TIME RECORDING 2


Don‘t use a tool 26,58%

Toggl 3.80%

INVOICING TOOL 3

APPS 4


FreshBooks 6.33%

Fastbill 2.53%

Skype 83.54%

Toggl 11.39%

Wunderlist 6.33%





38

GENDER DISTRIBUTION

82% of the surveyed freelancers were men and 18% were women.

18%

82%

Participants pro gender

Female Male





39

ORIGIN OF THE SURVEYED FREELANCERS

Freelancers participate from all over the world, but we can highlight the participation of those living in

emerging markets in Asia (India 13%) and Latin America (Brazil 6%, Argentina 5%, Colombia 4%).

0%

2%

4%

6%

8%

10%

12%

Location







40

AGE DISTRIBUTION

The vast majority of freelancers surveyed are in their 30s and 40s (67%).

0%

5%

10%

15%

20%

25%

30%

35%

40%

20-29 y 30-39 y 40-49 y 50-59 y >60 y

Age Breakdown



AVERAGE AGE OF FREELANCERS

39.90 years





41

EDUCATIONAL LEVEL

Freelancers come from a variety of educational backgrounds. However, the majority hold a university

degree (82%).

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Junior highschool

Master

A levels

Other

Technical college

University degree

What is your highest educational level?







42

AVERAGE HOURLY RATE BY AGE GROUP

The survey shows that experience has to be paid. Those aging between 50 and 59 charge the highest

rates with an average rate of $70.55 US Dollar per hour, followed by those aging 40-49 with an hourly

rate of $52.71 and after them those over 60 with an average rate of $49.

0 USD

10 USD

20 USD

30 USD

40 USD

50 USD

60 USD

70 USD

80 USD

20-29 y 30-39 y 40-49 y 50-59 y >60

Avarage hourly income by age group







43

AVERAGE HOURLY RATE BY GENDER

Male professionals are charging significantly higher rates than females. Male freelancers charge $49.07

per hour versus $40 from female freelancers.

0 USD

10 USD

20 USD

30 USD

40 USD

50 USD

60 USD

Female Male

Average all-inclusive Hourly Rate by gender







44

AVERAGE HOURLY RATE BY COUNTRY

The countries with the highest rates are in Europe. The 1st place goes to Malta with an average hourly

rate of $120, 2nd place to Germany $110 and 3rd place to the UK ($109).

Canada appears on 6th place as the first Non-European country (with an average hourly rate of $77.5).

0 USD 20 USD 40 USD 60 USD 80 USD 100 USD 120 USD

SloveniaPeru

UkraineHungary

IndiaRussia

ColombiaSerbia

South AfricaPortugal

BangladeshVenezuela

ItalyItaly

RomaniaMexico

SpainBrazilChile

TunisiaArgentina

SlovakiaThailand

AustriaUnited States

BelgiumSwitzerland

CanadaSweden

NetherlandsCroatiaNigeria

United KingdomGermany

Malta

Average all-inclusive hourly rate (in USD) by country







45

AVERAGE HOURLY RATE BY DISCIPLINE

Those freelancers working in the field of consulting and management charge their clients the highest

rates ($77.50 average hourly rate) followed by SAP consultants with an average hourly rate of $58.82.

The lower rates are charge by those working in development ($35.90/per hour) and in categories like

graphic, content and media ($37.45).

FINANZEN | SELBSTSTÄNDIGKEIT |

FREELANCER UMFRAGE 2016

ARBEIT | DEMOGRAFIE

0 USD 10 USD 20 USD 30 USD 40 USD 50 USD 60 USD 70 USD 80 USD

Development

Graphic, content, media

Marketing

Other

IT-Infrastructure

SAP

Consulting & Management

Average hourly rate by discipline









46

CREDITS

© freelancermap GmbH

Pretzfelderstr. 7-11

90425 Nürnberg

Germany

E-Mail: [email protected]

CEO: Michael Amtmann Local Court: Nürnberg HRB: 27944 USt.ID: DE260465872

Picture: © everythingpossible / Fotolia

Source: www.freelancermap.com/freelancer-survey-2016

About freelancermap.com:

Freelancermap.com is an IT-network for IT-professionals from all over the world. With more than 2,000 projects a week, freelancermap is one of the leading job listing portals. Freelancers and self-employed workers can easily set up a profile in our freelancer directory to get in contact with potential clients. Our basic membership is free of charge for all IT-experts (freelancers, self-employed and IT-providers.

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FREELANER SURVEY 2016 · have a successful freelance career? From February to April 2016, we asked...

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