Freelancing in the professional and technical services sector has the highest chances of making more … [+]
Is it even possible to be a millionaire as a freelancer? Or does the idea of a being a one-man-band millionaire sound absolutely incredulous?
Perhaps not anymore.
Recent research has unveiled the state of freelancing in America, and it appears that more numbers of non-employer businesses are making or exceeding the million-dollar-mark, according to Business Insider analysis of the United States Census.
The analysis revealed that “between 2020 and 2021, the number of non-employer businesses with revenues of at least $1,000,000 skyrocketed from just under 47,000 to nearly 58,000. The 2021 numbers are the most recent from the US Census Bureau. This number had been steadily increasing since the Census Bureau started tracking it in 2012, when it was about 31,800,” Insider continues, further noting that the the 2020 to 2021 increase made the largest year-over-year increase since 2012.
But what exactly does it take to achieve the coveted millionaire status as a freelancer?
Is it sheer luck?
The freelancers who comprise the 58,000 (that number has most likely jumped since then due to increasing numbers of freelancers taking over the workforce) have likely figured something out that many other aspiring freelancers would do well to take heed to.
It turns out that the majority of those who make or surpass a million dollars in revenue each year, have freelance jobs that are within the following high-paying sectors:
“The 2021 data suggests the professional, scientific, and technical services sector is where entrepreneurs have had the most success growing their businesses to over a million in sales. Of the 14,450 millionaire businesses in this sector, 874 have revenues over $2.5 million. Millionaire businesses make up 0.38% of all one-person businesses in this sector,” says Insider.
However, each of these sectors has abundant potential for you to become a millionaire—granted, the right ingredients are in place.
The number of freelancers making seven figures each years has risen sharply since the pandemic
Some of the core ingredients that lead to success in becoming a millionaire freelancer include:
The easiest and best way to make the most money from your freelancing business-even as much as six to seven figures—is to think long-term about how to work sustainably, working smarter and not harder. Consider ways that you can scale your business so that you can take on more projects, or larger projects, which pay significantly more while you are realistically doing less work, to avoid burnout.
This will mean different things to different people. For example, you might decide to outsource some of your work, which of course, eats into your profits, but pays off in the long run when you are able to take on more without needing to put extensive effort in. Or you might decide to hire people as you scale and expand (although this is technically not a non-employer approach as you will have a permanent team working with you).
Another idea is to use technology and AI tools to help reduce your workload, and to work smarter by considering passive income mediums such as group classes, workshops, and training (as opposed to 1-2-1), writing books and designing courses, or trying dropshipping, for example.
It may sound cliché, but mindset matters. Your attitude towards your work will greatly inhibit—or increase—your success. Being a freelancer requires you to have resilience as it is a tough journey, and it can be easy for you to feel like quitting and losing hope. It’s a fierce battle, especially if you are competing with other established freelancers in your niche and industry, or are using popular freelance marketplaces and platforms such as Upwork and Fiverr.
Remember to stay positive throughout your freelance career journey, understanding that your thoughts can motivate you, but also have the power to defeat you. You’re a one-man band, so you’ll need to consult with your own thoughts often. This makes mastering your mindset an absolute necessity.
You will need to tell yourself several times that you are more than capable. You will need to remind yourself that you deserve every client you take on, every client praise and five-star review, every business award, and that even then, when people may not take you seriously, question your abilities, or try to barter down your prices—you are just as much of a professional as any other worker under an employer.
Becoming a millionaire as a freelancer requires a shift in mindset and an upgrade in your skill set
You will also need to ensure that you think like a business leader. This means you need to learn self-leadership skills fast, because, although you are not employing anyone, you need to stay disciplined and lead yourself. Therefore, remember to think strategically, think about the big picture while also paying attention to the smaller details, and also consider your personal brand and self-organizational skills.
Perhaps, making your first million dollars is more achievable that you initially thought.
