Freelancer: Characteristics, Benefits, and Challenges

The freelancer has become a vital component in the global economy, assuming various roles with companies of all sizes. Their significance lies in the innovation, adaptability, and flexibility they bring to the job market.

In recent years, this mode of work has seen considerable growth, driven by technological advancements and socio-economic changes.

According to Amway's Global Entrepreneurship Report, 35% of Mexicans believe that the country offers the necessary technology that favors entrepreneurial spirit.

Today, we'll focus on the independent worker or freelancer, from its definition to its differences compared to an employee.

What is freelance work?

It's defined as a form of independent employment, wherein the person works for themselves, without a direct boss or contract involved.

A freelancer has the ability to provide services or sell products to different clients or companies. Of course, this entails more organization but also more freedom, as freelancers can make their own decisions regarding their schedules.

Working as a freelancers also involves additional responsibilities, such as finding clients or making decisions about how to perform tasks and ensure profitability in their work.

Key Characteristics of Freelancers

A freelance worker is essentially distinguished by not depending on an employer, but that's not all.

A freelancer is characterized by:

• Being proactive and versatile.

• Having clear objectives.

• Maintaining work autonomy.

• Making independent decisions.

• Being flexible in task execution.

• Handling financial and tax-related aspects.

• Being responsible for their own business.

• Executing tasks without the presence of a traditional contract.

In essence, a freelancer is responsible for their own work success or failure.

Examples of Freelancers

There's a wide range of independent workers or freelancers across various areas and job sectors. Some of them include:

Specialized Workers

• Builders.

• Plumbers.

• Electricians.

• Carpenters.

• Maintenance experts.

• Independent healthcare professionals, etc.

Freelancers and Digital Professionals

• Writers.

• Photographers.

• Graphic designers.

• Programmers.

• Marketing specialists.

• Community managers.

• Video editors, etc.

Low-demand and Combined Independent Workers

• Taxi drivers.

• Couriers.

• Home delivery personnel.

• Private tutors, etc.

These examples reflect the diversity and extent of this form of employment.

Is it mandatory for freelancers to keep track of their work hours?

No. The reason being that independents are excluded from the scope of application of the Workers' Statute, in Article 1.1. Here, it's specified that the Time Control Law is intended only for those who perform their work under the direction of another employer or entrepreneur.

Therefore, freelancers are not obligated to record their work hours unless they have personnel under their charge. In such a case, they would have to monitor the working hours of their staff.

Benefits and Challenges of Freelancers

Independent work comes with significant benefits that can be attractive to those seeking work independence. However, this mode of work also has its challenges:

Advantages

• Flexibility: as a freelancer, you can work from anywhere and at any time.

• Unlimited creativity: you have the opportunity to be innovative in your work.

• Autonomy: you'll be your own boss and choose your clients.

• Professional growth: you can develop further and receive direct benefits.

• Total work freedom: you'll work on your terms, without direct bosses and with whom you desire.

• Potential for higher income: you have the possibility of earning more.

Disadvantages

• No benefits: You won't enjoy typical job benefits like paid vacations or retirement.

• Competition and pressure: depending on the sector, competition is intense, requiring more effort to stand out and remain relevant in the market.

• Variable and non-guaranteed income: earnings can be irregular, there's no fixed or secure salary.

Despite the challenges that may present themselves, freelancing is a great option if you're someone who prefers to take control of what you do to generate income. It's up to you how far you want to go.

Either way, there are numerous sites to find freelance work. All you have to do is register with one of them and create an attractive profile that will attract potential clients.

However, if you are new to the platform, you may need to take a bit of a risk to increase your chances of attracting clients. You can do this in a number of ways, but ideally you should choose to advertise your business.

Freelancer vs. Employee

A person working as a freelancer or independent worker has freedom to choose their schedules and clients, and are capable of managing their own business. Additionally, they assume all financial and tax-related responsibilities.

In contrast, an employee works under someone else's supervision, with fixed schedules and the possibility of obtaining job benefits. Their responsibility is limited to assigned tasks.

Salary stability is usual for employees, while independents have variable incomes and fewer benefits.

Legal Aspects to Become a Freelancer in Mexico

The Mexican government promotes independent work through programs like Self-Employment Promotion (FA), which offers support for establishing oneself as a self-employed worker.

Now, to be a legal freelancer in Mexico, you need to:

1. Have a tax identification to pay taxes, if you have your own business.

2. Obtain the Federal Taxpayer Registry (RFC) through SAT, and have a Unique Population Registry Code (CURP).

3. Present a passport or immigration visa, resident card, and a Spanish-language CURP application letter to acquire CURP.

4. Have a social security number if you're a permanent or temporary resident in the country.

In Mexico, labor demand and access to technology have led to an increase in freelance work. Professionals, especially millennials, opt for freelance jobs in writing, web design, and translations without the need for a physical office. But amidst all this, a question arises:

How do freelancers working for foreign companies get paid?

Fortunately, services like DolarApp aid freelancers in the payment process. This application offers international accounts in the freelancer's name. A process without tedious paperwork, facilitating receipt, transfer, or exchange of digital dollars and pesos in just a few clicks.