Understanding Freelancing as a Programmer

Freelancing as a programmer offers a unique pathway to earning a lucrative income by leveraging your coding skills. However, to succeed, you need to become a consummate professional, understanding the business side of software development, marketing, and legal requirements. In this article, we will explore how a programmer can earn through freelancing and the challenges and opportunities that come with it.

How a Programmer Can Earnings Through Freelancing

Creating and selling custom software is a primary method for programmers to earn money through freelancing. If you receive an order to do a specific job, you can build your software packages and sell them. Alternatively, an annual contract to carry out certain tasks can also be lucrative. However, this requires a deep understanding of the business side of things. Ensuring that your billing rates accurately reflect the value of your work is crucial for success.

For instance, if you want to earn like a programmer making $100,000 per year, you will need to set your billing rates to bring in approximately $130,000 to $170,000 over a maximum of 1,800 hours. Additionally, you might want to build up a war-chest against bad times or to grow your business. Suppose you spend a good part of your time selling and marketing or outsourcing those functions, which can become relatively cheaper. Learning more than basic bookkeeping and understanding contract and tax law is essential to keep your business running smoothly.

The Possibility of Making Money as a Freelance Coder or Programmer

The short answer is yes, it is possible to make money as a freelance coder or programmer. However, the long answer is that it depends on how you approach the situation. If you can find a way to leverage your skills and tools to make your work more efficient and sell it as a significant project, you can significantly increase your earnings. This often involves creating tools and environments that reduce your workload, so you can sell the work as if it were done from scratch.

However, be aware that the freelance and contract jobs market comes with its own set of challenges. Getting paid on time can be a significant issue, and some clients might not pay you because they haven’t been paid by their upstream vendors. Estimating an accurate budget is tough and requires experience. Some clients might want a mansion but can only pay for an outhouse. Others might not pay you because there is a discrepancy between what they wanted and what you delivered, or they might look to hire someone to take the blame for their problems.

Overcoming Freelancing Challenges

Many first-time freelancers might take on jobs without proper understanding, especially when they are novices. It is often better to start as an employee to understand the business and software development landscape better. Getting paid can be a significant issue, and some clients might not pay for the work, especially when there is a discrepancy between what they wanted and what you delivered.

With that said, you need to know when to walk away from a bad situation. For example, I once had a good-paying contract with IBM, but it was moved to another division. Since I was under contractual obligations to preserve my relationship with the primary vendor, I couldn’t work at IBM for one year without having him take a commission. However, the first agent was not an authorized vendor with the other division, and this led to a claim that K-Farce took over my contract but had to pay the first agent his commissions. They told me they would cut my rate in half, which I refused, leading to another ultimatum to take the new contract or be terminated. I chose to keep working under the original contract. Knowing when to stand your ground and walk away can save you from a complicated situation.

Conclusion

Freelancing as a programmer can be a rewarding career, but it requires a deep understanding of business, technical skills, and legal requirements. While it is possible to make significant money, you must navigate the challenges that come with it. By setting appropriate billing rates, building a strong business model, and understanding the business landscape, you can turn your programming skills into a successful freelancing career.