Freelancing and the Gig Economy

Historical Context

• 1194: Maurice De Bracy combats a mysterious Black Knight, revealed to be King Richard the Lionheart.
• "Ivanhoe" Novel: Sir Walter Scott's 1819 novel popularized the concept of "Free Lances," mercenaries who worked for the highest bidder.

Modern Freelancing

• Definition: Independent workers who are not tied to any single company.
• Happiness: A 2016 survey found that 70% of freelancers by choice were happier than traditional workers, valuing independence and flexibility.

Considerations for Freelancing

1. Skills in Demand:
   • Ranges from universal skills like driving to specialized skills like neurosurgery.
   • The demand and rarity of the skill affect earning potential.
2. Entrepreneurial Mindset:
   • Requires marketing, negotiating, networking, and administrative skills.
3. Budget for Benefits:
   • Freelancers need to self-fund benefits typically provided by employers, such as health insurance, retirement plans, and paid leave.

Digital Freelancing Platforms

• Examples: Uber, Lyft, Fiverr.
• Promises: Connect freelancers with clients and handle some administrative tasks.
• Hidden Costs:
  • Flexibility: Limited by platform controls, e.g., rideshare driver restrictions.
  • Earnings:
    • Variable and location-dependent; expenses may not be included in advertised rates.
    • Uber study: Earnings dropped from $22 to $12 per hour after deductions.
• Platform Variability:
  • Different terms and conditions; Example: Brazil's 99 platform and its shared responsibility clauses.

Considerations for Joining the Gig Economy

• Advantages: Quick entry into the job market, especially for those in urgent need of work.
• Disadvantages:
  • Possible lack of reliable living wage.
  • Hidden costs and lack of control over working conditions.

Self-Assessment Questions

• How much do you value flexibility and autonomy?
• Do you prefer established structures or creating your own?
• Are you willing to network for clients?
• Are you organized and self-directed?
• Do you need consistent weekly earnings?

Conclusion

• The decision to freelance or join the gig economy should consider personal values around flexibility, earnings, and job security.