Last time I was pitching for working from home as the next best alternative to working abroad. For most people, especially in my country, working from home, or even the word “freelancing,” really sounds strange. It’s like you’re standing in front of a mysterious cave, thinking of what horrors await you inside.

If you have been salaried for at least 10 years, you have 243 plus reasons to be scared, that is, equivalent to the number of paychecks you’ve got on the job. You will start missing your two favorite numbers, 15 and 30… and your favorite month (13th month).

Seriously, that’s the first scary thing to confront once you have really decided to work from home and call yourself a solopreneur, or engage in online business as a webpreneur. But if you have lived on commissions previously, say you’re an insurance or real estate agent, or a self-practicing accountant, then I’m sure you know what I’m talking about, and you can adjust easily to the job.

Currently, a poll is running on oDesk about the same topic and the results are:

• No work stability – 49% (680 votes)

• No health insurance and other benefits – 18% (257 votes)

• No colleagues to work with – 6% (78 votes)

• Not earning enough – 22% (306 votes)

• Other – 6% (81 votes)

These are based on the total votes of 1401 as of this date. Let me discuss each variable based on my experience as a remote service provider, as we are called on oDesk.

No work stability may be viewed as having no fixed employer and income. Being a freelancer means you are always on the lookout for a new outsourcing buyer. Typically, you can be on the job for six months to a year. If you’re really exceptional, the buyer may just hire you permanently, which rarely happens.

Based on experience, I think the best thing to do is to start prospecting for your next buyer at least two months before your current commitment expires. If you have a potential buyer coming in, you can even bargain better with your present buyer (a raise, for example), that is, if the buyer likes your performance and would like to extend business relationship with you.

My mistake in one of my past clients, I counted on the prospect of extension and never sought a new project ahead of time. So when the contract ended, I struggled without a buyer in the following two months or so. I guess, that’s the worst I got so far.

Now, about no health insurance and other benefits, I believe you can easily procure your own benefits, like you get your SSS, Philhealth, life and pension plans. Anyway, in most cases, such compensation packages or benefits are also taken from your salary when you’re employed in a company.

No colleagues to work with? Is that a problem? (Ha-ha… I’m kidding.) That can really be a problem if you find it hard to work solo. Imagine me at 2 AM  in my work station. My wife and kid and everybody in the house are still in a deep sleep. There’s only my favorite online jazz station (keeps me going) and no one to talk with, aside from the once-in-a-while checking for details with your buyer on Skype or YM.

It’s different when you’re working in a team. You can definitely consider your remote team mates as your colleagues. If you depend on one another, such that your functions are inter-connected, it’s also like doing work in the office with your buddies around you (even hear one of them sip his cappuccino with gusto).

On not earning enough, as when you engage in a business, what you earn is the result of the hours (efforts) you put in to your work. It is based on skill set as far as freelancing is concerned. As Ray Kroc puts it, “the more you sweat, the luckier you get.”

What I really like about this field is that your expertise is NOT solely based on education, but on what you can do and what you did. The sample cover letter on oDesk when you apply to a job post clearly specifies the skill set and your experience. You will have to keep learning and getting your skills to the next level, so you can confidently bid on higher rates and compete with other freelancers or outsourcing providers.

I will do my best to provide much needed information that will help you decide if freelancing is something you can do. Do you find this blog helpful? Please share with friends.

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