Is AI killing freelancing? Freelancing experts weigh in.

Freelancing is an opportunity to keep the lights on while giving you the flexibility to build your product. But AI may threaten its viability as an option for indie hackers.

I caught up with freelancing experts to understand the threats and opportunities, and to learn how indie hackers can be effective in the current freelancer economy. 👇

Threats and opportunities: AI replacing (or supplementing) freelancers

Craig Short of Gigged.AI:

We have definitely seen some interesting movements here that suggest it is a worry. We have seen a 90% reduction in gigs for copywriters and social media managers. We asked our clients why and they said they were using ChatGPT, Copy.AI, or Jasper instead.

[But the opportunity is that] we have seen over $2M of data engineering gigs since 1st March which suggests that there will be a huge demand here. Our number 1 skill requested now is “Data Engineer”.

This is directly linked to AI. They are hiring data engineers to help build, integrate or configure large language models (aka generative AI). We think this will become the biggest in-demand skill over the next 3 years as companies look to integrate generative AI into their products.

Tim Noetzel of FreelanceGPS:

I absolutely don't worry about AI taking my clients. AI simply isn't good at the types of critical thinking and strategic planning that high-end clients need. Yes, it can reproduce passable code or write a legible blog article. But it can't deliver a solid strategy for helping a client grow its business, retain more customers, or scale its technical stack.

At some point, that may change, but we're nowhere close. If the only services you offer are the absolute basics that somebody with a few months of experience could offer, maybe you should be worried, but companies will need experts for the foreseeable future.

Enda Mac Nally of Go Freelance With Confidence:

There’s no question that AI will transform how we all live and work, but as long as people need to work with people, I think I’ll be fine. I’ve spoken with many of my current clients about this, and they agree. They all seem to want to work with people, at least for the time being.

Tom Hirst, author of Pricing Freelance Projects:

AI will only give freelancers superpowers. If clients want to use AI for a task, then you probably weren't going to get paid much for that task anyway. I see AI as an assistant to freelancers for low level tasks like re-wording things they've written, or generating images for articles. But I don't see it taking our jobs end-to-end anytime soon.

Daria Ofitserova of Fast Launches:

[I recently pivoted] back to content marketing, and one of the reasons is AI — it's faster than ever to produce text. [Before,] it was me wearing multiple hats: marketer, editor, copywriter (an exhausted individual). Or it was me, the editor, a couple of junior writers (a management headache). Now, it's just me, backed by a few powerful tools.

Do I worry about AI taking my job? Not really. AI might crack nuclear codes before it pens prose like Tolstoy. Currently, machines excel at summarizing, crafting “look-alike” content, handling SEO, executing automated outreach, and producing a wealth of raw material. Fact-checking and writing to hook people’s eyes and soul is not their thing.

Threats and opportunities: Supply saturation

Rich Wilson of Gigged.AI:

Supply saturation could be an issue, McKinsey released a gig economy report this week that says there are 58m freelancers in the US and that is expected to grow 35% by 2027. Being able to stand out from the crowd will be really important.

Mark Woodhall of Devcinch:

I think the market could get quite saturated, it seems after COVID many companies are looking to return to office working — and freelancing offers a good opportunity for people who have got used to working from home to continue.

I also think there could be more opportunity than ever, companies striking a new balance between knowing just how much a remote freelancer can contribute and also wanting their own staff on-site.

Threats and opportunities: Regulations

Craig Short of Gigged.AI:

Another serious threat is government regulations around classification, in the US this differs from state-to-state about what is an independent contractor. In the UK we have IR35 which caused a reduction in the amount of freelancers hired by companies. Governments see that they can make significant tax revenue from freelancers.

Tip: Get clients

Mark Woodhall of Devcinch:

Previous employers, colleagues and clients refer me to new clients all the time.

I’ve spent so much time trying out job boards, paid ads, networking events, traditional application processes, cold email, etc., and nothing has been as consistent or as rewarding as a simple intro from a friend.

If you’re starting out, I would recommend not skipping this part. It’s the one where you’ll have to do the least convincing. Once you have a few clients, feel free to experiment with job boards and other methods so you can expand your experience and reach.

Enda Mac Nally of Go Freelance With Confidence:

I’ve tried various methods over the years, but the one that has delivered most consistently is through personal connections. By this, I mean people who know my work, and who are confident in recommending me to others.

Craig Short of Gigged.AI:

Build your brand on LinkedIn, this is a great way to find new clients. Post every day about your experiences and projects you have worked on, it creates inbound leads. Also, work with 2-3 freelancing platforms and really invest your time in understanding how they work.

Tim Noetzel of FreelanceGPS:

I think that one-on-one conversations are by far the most efficient way to find and land high-value clients.

I cover this in way more detail in my free course, but the short version is this:
Find your local hubs – look for places where your clients, and freelancers serving your clients, are hanging out. These could be coworking spaces, industry meetups, Slack groups, startup accelerators, etc.

Go and participate. Ask for advice from other freelancers. Provide value by teaching about your area of expertise. Ask questions of others and show an interest.

Tom Hirst, author of Pricing Freelance Projects:

My personal website is my main source. Second to that is repeat business. Third, referrals. I've built a good following on Twitter too, where opportunities often land (like this interview!)

Daria Ofitserova of Fast Launches:

I used to run a Telegram blog for 25k beginner investors. I started it as an acquisition channel for the fintech company I was at, and it was also a fun place for me to write. When I left and announced my own subscription-writing gig, some of those subscribers hopped on as clients. From there, word of mouth took over, and more clients rolled in.

Tip: Don't get burned

Enda Mac Nally of Go Freelance With Confidence:

There’s one incident in particular that’s etched in my memory. Not only did they refuse to pay, but they verbally abused me because I delivered exactly what we agreed on.

If I’m being honest, I had a bad feeling about them from the start, and should have trusted it. They refused to get on a phone call (‘too busy’), and needed the work in a hurry (‘previous freelancer let them down’).

I was too green to know that these were red flags.

Tom Hirst, author of Pricing Freelance Projects:

[I got burned] a long time ago. I had to chase for a long time and eventually got paid after offering a payment plan.

The best way to get paid as a freelancer is to get as much as you can up front. If you're in a position (and have the confidence to) ask for 100% up front, try it. Otherwise, ask for 50%. 33% at an absolute minimum. In my experience no project is real until some money has exchanged hands.

Craig Short of Gigged.AI:

I was often burned as a freelancer. That's why it's best to go with a platform like Gigged.AI, where all the client money goes into Escrow, then the freelancer gets paid as each deliverable-based milestone is completed.

Mark Woodhall of Devcinch:

I've not had any particularly bad clients, and definitely no payment issues. I'm not sure exactly what to put that down to but most of my clients are quite large reputable companies and with the SDaaS (Software Development as a Service) product I offer, almost all of them pay up-front.

Tip: Set aside money for lean times

Tom Hirst, author of Pricing Freelance Projects:

The key is to ensure you save enough resources during the good times to cover the bad times. You'll often have to deal with variable income as a freelancer.

Tip: Manage your time effectively (time-block)

Mark Woodhall of Devcinch:

I run with 3-5 concurrent clients and have daily time blocks for each client, each block is no longer than 2 hours and is always separated by a block where I do something for myself, usually well-being related.

Tip: Less (clients) is more

Enda Mac Nally of Go Freelance With Confidence:

I choose to work with fewer clients, but focus only on projects that have a high enough budget to justify it. I turn down most potential clients for this reason.

Tip: Identify the right clients

Tim Noetzel of FreelanceGPS:

Understanding how to identify the best clients and land them is a huge advantage that's put me on track to earn $480K+ this year. I cover the strategy and tactics in detail in my free course.

Enda Mac Nally of Go Freelance With Confidence:

[To work with someone, there must be] direct contact with the key decision maker, a minimum level of budget/investment, and at least one initial phone call to get to know them.

And I’m always hoping to work with people I click with personally, who have missions and products that align with my values, and who genuinely appreciate my work. Those clients are out there for you too - don’t accept less.

Tom Hirst, author of Pricing Freelance Projects:

The client must want to work with me. A freelancer-client relationship where one side wants to dictate to the other rarely works out. The freelancer-client relationship should be a collaboration.

Tim Noetzel of FreelanceGPS:

I only work with clients who value my time (pay premium rates), view me as a partner, and treat me with respect.

Tip: Keep your safety net

Enda Mac Nally of Go Freelance With Confidence:

‘Making the leap’ is overrated. Start freelancing while still at your current job, if possible. It postpones any cash flow concerns, and ensures that you don’t take on bad projects simply because they pay.

Just try and land one client to start.

If you need help, you might enjoy my recent course Go Freelance With Confidence. It’s helping other first-time freelancers land their first client, and avoid the common mistakes people make.

Tom Hirst, author of Pricing Freelance Projects:

Start on the side. If you're getting paid by someone to perform a skill, it's very likely there are other people who will pay you to perform the skill on a smaller scale.

Tip: Set clear deliverables

Craig Short of Gigged.AI:

There needs to be clear deliverables, that is super important.

Tim Noetzel of FreelanceGPS:

It's your responsibility to ensure the client knows what your non-negotiables are and how you expect them to act during the engagement.

To do this, always ensure you're on the same page with your client by signing a thorough statement of work that details things like:

• project scope
• payment terms and due dates
• timelines
• deadlines for your clients to provide feedback and necessary assets
• limits to any time-consuming tasks (number of revisions, number of calls, etc)

Tip: Create a personal website

Tom Hirst, author of Pricing Freelance Projects:

My secret sauce is definitely my personal website. I've had one for 20 years now. Iterating on that over the years has become quite the obsession.

I've tested lots of different landing pages, SEO and writing techniques to help myself stand out. My personal website has played a part in 90% of the opportunities I've ever had. I've also worked hard on my soft and marketing skills to complement my technical ones. Sometimes the best developers/designers/writers aren't the ones who get the best work as a freelancer.

It's a competitive market because the benefits are great. You need to know how to build credibility at scale. Whether that be with a personal website or on social media.

Enda Mac Nally of Go Freelance With Confidence:

Show the change you make. Don’t get bogged down in creating the perfect website. Instead, simply put together three consistent examples of your work- the kinds of projects you want more of- and explain how you helped on each.

Spell out the value and impact your work has in clear terms. Then reach out to 10 friends or former colleagues and tell them you’re taking on freelance work.

Tip: Own your sales/marketing process

Tim Noetzel of FreelanceGPS:

Own your marketing and sales process. Outsourcing it to freelance sites is a recipe for low profitability and huge hassles.

Tip: Start for free if you have to

Mark Woodhall of Devcinch:

Don't be put off if you can't quite find a market on big sites like Upwork. Spend time building a brand on places like LinkedIn. Anywhere where you can provide social proof of your skills. If you can't find your first client then offset your services for free and gradually raise your rates.

Tip: Leverage AI

Daria Ofitserova of Fast Launches:

Leveraging AI and being nice.

Tip: Do good work

Tom Hirst, author of Pricing Freelance Projects:

Tell everyone you know that you're available for freelance work. Start talking to other freelancers in your field. Get your first client, do a good job and you'll very likely end up getting more work.

Enda Mac Nally of Go Freelance With Confidence:

I never farm my work out to others - that’s why my clients stick with me.

Tip: Update your processes when they break

Enda Mac Nally of Go Freelance With Confidence:

Now that you’re the boss, you can create a rule so [a client issue] never happens again.

• Client didn’t pay? Now you always charge half of your fee up front.
• Client wouldn’t get on the phone? You have a call-first policy. Politely say no, and move on.
• Client needed work in a rush? You charge a rush premium or set a hard minimum turnaround time.

Red flags to watch out for with potential clients

Enda Mac Nally of Go Freelance With Confidence:

• They exhibit poor communication skills
• They need something I can’t confidently deliver
• They need work ASAP
• They ask for free work up front
• They won’t pay a deposit up front
• Slow to pay at all
• If they are rude, or if I don’t trust them

Daria Ofitserova of Fast Launches:

A definite dealbreaker for me is clients who suddenly appear, overly enthusiastic, prolonging an initial call that should take 40 minutes to 1.5 hours, only to vanish for months on end. It comes across more as a maniac phase rather than serious work.

Tom Hirst, author of Pricing Freelance Projects:

People who don't respect time boundaries after you've explained how you work best. For example, if you're putting the kids to bed at 19:00, you shouldn't be hounded with calls.

The best freelancing tools

Mark Woodhall of Devcinch:

I often use the toolset dictated by a client, but if there aren't any existing requirements in place, my technology of choice is usually Clojure, ClojureScript PostgreSQL and docker. I use vim to write code. FreeAgent for accounting and Stripe for subscriptions.

Tim Noetzel of FreelanceGPS:

In addition to the technical tools I use as a developer, designer, and CRO, my "freelance stack" includes Harvest for time tracking and invoicing and QuickBooks for accounting. That's about it. It's extremely cheap to start freelancing.

Enda Mac Nally of Go Freelance With Confidence:

It’s pretty basic: Google Workspace, Dropbox, Webflow, Text Expander, Twitter, Airtable, and Carrd

Daria Ofitserova of Fast Launches:

ChatGPT, Grammarly, and ReversoContext for general use. Notion, Trello for workflow. Some niche tools for specific marketing tasks.

Craig Short of Gigged.AI:

Gigged.AI and Upwork for finding work, ChatGPT for creating proposals, Notion for documenting projects, and GitHub.

Tom Hirst, author of Pricing Freelance Projects:

I am a tools minimalist. Google calendar, Apple Notes, and FreeAgent (a UK based invoicing tool) are about all I use.

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