Freelancing: How to start, find clients and get paid

Published Monday 2 February 2026

Table of contents

• What is freelancing?
• Pick a freelance business idea and method
• Market your freelance services
• Choose a freelance platform
• Win your first freelance contracts
• How to freelance as a side hustle
• Considerations before starting a freelance business full time
• Start your freelancing journey with confidence
• FAQs on freelancing

Key takeaways

• Choose a freelance service that matches your existing skills or invest time learning high-demand skills like web development, content writing, or digital marketing through online courses before launching your business.
• Create a comprehensive business plan that includes your target market, pricing strategy, and financial goals, then build your online presence through freelance platforms like Upwork or Fiverr and maintain an active portfolio showcasing your best work.
• Set clear payment terms and use professional invoicing practices that include project descriptions, rates, and due dates to ensure you get paid promptly and maintain strong client relationships.
• Start freelancing as a side hustle while keeping your main job to test the waters, but always work in your own time, deliver what you promise, and set aside money for taxes since you'll be responsible for your own tax obligations as a self-employed individual.

What is freelancing?

Freelancing means working for yourself as a self-employed individual. Instead of working for one company, you provide services to various clients on a project-by-project basis. This gives you the freedom to choose who you work with and what projects you take on.

As a freelancer, you are your own boss. You set your own hours, decide your work location, and manage your own workload. It’s a career path that offers flexibility and control, allowing you to build a business that fits your life.

Types of freelance work

Freelancing opportunities exist across almost every industry. Whether your skills are creative, technical, or administrative, there’s likely a market for your services. Understanding the types of work available can help you decide where to start.

Common freelance fields include:

• Creative services: graphic design, content writing, photography, and video editing
• Technical services: web development, software engineering, IT support, and data analysis.
• Professional services: accounting, bookkeeping, marketing consulting, and project management.
• Administrative support: virtual assistance, data entry, and transcription services.

Think about the skills you already have and how they could be offered as a service. Many successful freelancers start by turning their professional experience or a personal hobby into a business.

Why consider starting a freelance business?

Freelancing offers significant advantages over traditional employment. The key benefits include:

• Financial advantages: Multiple revenue streams reduce dependence on a single income source. Freelancers often earn higher rates than in-house employees due to their specialized expertise.
• Career growth: Working with diverse clients expands your professional network and portfolio faster than traditional roles.
• Work-life balance: Complete control over your schedule, location, and working hours allows you to design your ideal lifestyle.

Pick a freelance business idea and method

Choose a freelance business idea that matches your skills and market demand. Start by identifying services with strong freelance markets:

High-demand freelance services:

• Graphic design: Visual content creation for businesses
• Web development: Website building and maintenance
• Content writing: Blog posts, marketing copy, and documentation
• Digital marketing: Social media management and online advertising
• Accounting: Bookkeeping and financial consulting

Two paths to get started:

• Use existing skills: Build on expertise from your education or career
• Learn new skills: Take online courses through Coursera, Udemy, or LinkedIn Learning

Research freelancing platforms to confirm market demand for your chosen service before committing.

Choose a freelancing career method

Choose your freelancing approach based on your risk tolerance and career goals:

• Independent contractor: Work on specific projects with complete freedom to choose assignments. Best for those wanting maximum flexibility, though some industries have extra obligations. For example, those in building and construction must lodge a taxable payments annual report (TPAR).
• Diversified worker: Offer multiple services simultaneously (like copywriting and graphic design). Ideal for multi-skilled professionals who want varied work.
• Temporary worker: Take full-time, short-term positions with organizations. Provides steady income while maintaining freelance status.
• Moonlighter: Freelance part-time while keeping regular employment. Perfect for testing freelancing without financial risk.
• Freelance business owner: Build a company, hire other freelancers, and manage operations. Suited for entrepreneurs wanting to scale beyond solo work.

Create a freelancing business plan

A freelance business plan defines your services, target market, and financial goals (including administrative costs like the fees to register a business name, which can range from $45 for one year to $104 for three) to guide your success. This roadmap helps you secure clients, set profitable rates, and track progress.

Create your plan using these essential steps:

1. Do your SWOT analysis
2. Create a value proposition
3. Find your target market
4. Create your distribution system
5. Streamline your admin
6. Get funding

Market your freelance services

Marketing your freelance services attracts clients and builds your professional reputation. Effective marketing establishes you as an expert in your field and generates consistent work opportunities.

Build these three essential marketing components:

• Strong online profile: Showcases your skills and experience on freelance platforms
• Active social media presence: Demonstrates expertise and connects with potential clients
• Outstanding portfolio: Proves your capabilities with real work examples

Create an online profile and freelance online

A strong resume and portfolio on freelance platforms like Upwork and Fiverr are a great base from which to sell your skills and create interest, and give you access to a varied, flexible and global marketplace.

To attract clients, your online freelancing platform should highlight your professional skills, experience, and past work. Creating your own freelance website is an extra way to help do this.

Building a clear and user-friendly website takes time, but it’s worth it. Branding decisions, like the fonts, colours, and copywriting style to use, will be key.

Find out more on how to create a business website.

Use social media

Having social media is expected for businesses, and the same goes for freelancers. Use social platforms like X (formerly Twitter), Facebook and LinkedIn to directly market your freelance business.

Posting updates about your work and engaging with your core audience helps build a strong online presence and gives clients a sense of your work.

Build your freelance portfolio

Your freelance portfolio is your calling card to win new clients and demonstrate your expertise. So put up your best work and regularly update it to reflect your growing skills and experience.

It’s great if you can include testimonials and high-quality images from your latest projects. You might be lacking paid work examples if you’re starting out, so include other work you’ve completed in your own time to show what you can do.

Choose a freelance platform

Choose freelance platforms that match your service type and experience level. Each platform targets different client needs and project sizes:

• Upwork: Best for professional services and long-term projects. Create detailed profiles and apply for specific jobs. Ideal for experienced freelancers seeking higher-value work.
• Fiverr: Perfect for quick, standardized services at fixed prices. Clients browse and purchase pre-defined service packages. Great for beginners offering creative or technical services.
• Freelancer.com: Offers project bidding similar to Upwork with competitive pricing. Good for building initial experience and portfolio.
• Toptal: Targets elite freelancers in development and design. Requires passing screening tests but offers premium rates.
• Start with one platform, build your reputation, then expand to others as your business grows.

Win your first freelance contracts

Winning your first freelance contracts establishes your reputation and generates initial income. Success requires preparation, realistic goal-setting, and strong negotiation skills.

Set achievable milestones like securing one contract or earning your first $500. Master these essential skills before launching:

Learn negotiating strategies before starting your freelance business

Strong negotiation skills help you set fair rates and win work as a freelancer. You’ll be setting your own rates, and getting them wrong means being underpaid or not getting the job at all.

To negotiate your fee successfully, keep these steps in mind:

Understand your options

If a client doesn’t hire you, know what other options you have and how many other streams of revenue you can pursue. Your goal, of course, is to avoid underselling yourself while still being an attractive proposition for the client. So strike a balance between knowing the worth of your work and what the options are for your client.

Determine ZOPA

ZOPA, the ‘zone of possible agreement’, is the range in which agreements can be made that benefit both parties. Understand the market and know the bottom and top range for your work to help you secure your first freelance agreement contract.

Set the price first

Begin negotiations with your rate to set the tone of the discussion. Present your pricing confidently and be prepared to justify it based on the value you offer and your knowledge of current market rates.

Harness soft skills and project management with freelancing apps

Being a freelancer isn’t just about perfecting and selling your professional skills; you’ll need to develop and hone your soft skills too. Confidence, problem-solving skills, and being able to work autonomously all help you win and deliver your work.

Also, strong freelance project management, organisational skills and time management help you meet your contractual obligations and secure repeat business.

To keep on top of it all, remember these three things:

Commitment

Before starting a project, make sure both you and the client are clear on the project’s terms. Clearly communicate any expectations and get commitment from the client to the project’s timeline and goals in writing so you all know where you stand.

Accountability

Fostering a culture of responsibility and continuous improvement helps to successfully deliver a project. So regularly review processes, make sure everyone involved in a freelance project knows what they’re responsible for, and hold team members accountable.

Time management

Tracking a project, either manually or by using software, helps you monitor its progress, anticipate delays, and let the client know in advance.

Apps for freelancers that support online quoting in Xero, tracking, invoicing, and monitoring money on the go, like Xero Projects, free up your time so you can spend more of it on your work. Time management for freelancers is the bedrock of a successful career and will help keep your business on track.

Send your first freelancing invoice and get paid

Professional invoicing ensures fast payment and maintains client relationships. Proper invoicing processes reduce payment delays and establish you as a reliable business partner.

Complete this invoicing checklist:

• Include all necessary details: Project description, hours worked, rate, and total amount
• Set clear payment terms: Specify due date and accepted payment methods
• Follow up professionally: Send polite reminders for overdue payments

Download Xero’s freelance invoice template to streamline this process and ensure you include all required information.

How to freelance as a side hustle

Follow these eight steps to make freelancing a seamless side hustle:

1. Check your primary employer’s policy on freelancing

Most companies understand that employees might take on freelance jobs, especially if you’re in a creative role that lends itself to freelancing.

However, your employer is likely to have policies that restrict you from dealing with a competitor or directly with a client of theirs, or they may even forbid you from working within the same industry due to a conflict of interest. Check your employer’s policy first so you can start a freelancing business without putting your primary income at risk.

2. Freelance in your own time

No matter how busy you get, only ever freelance in your own time. Your primary employer, and your colleagues, should get the same professionalism from you as they always have. You’ll have to work out how to effectively manage your time outside of your primary work hours.

Perceptions are important, so avoid taking freelance-related calls at your main job. Make it clear to your clients that they’ll have limited access to you during regular office hours. If they’re used to hiring freelancers, they should understand this.

3. Find low-budget ways to attract business

Checking freelance job websites, maintaining an online portfolio to showcase your work, and having your own website to showcase your previous projects are all low-cost ways to secure work.

If you’re just starting out as a freelancer and don’t have a portfolio of work, you could:

• Search online for freelance jobs for beginners, like volunteer positions, to build your portfolio
• Offer to do free or lower-paid work for people within your network in return for experience
• Offer free training or seminars in your field to create networking opportunities for freelancers that could lead to paid work

4. Record your time

Always document what you do and when. This is crucial when it comes to creating accurate invoices and charging the client correctly.

Even if you’ve agreed on a flat fee or a retainer, time recordings are helpful. They’ll tell you how long a job actually took, as opposed to what you thought it would take. This helps you estimate future jobs more accurately.

Time recording can be done quickly and easily on your mobile phone using apps such as MinuteDock, and Harvest.

5. Deliver what you promise

When first starting your freelance business, it can be tempting to over-promise to win a job. But that can be damaging.

Be realistic about what you can deliver and when, then convey that clearly to the client. You both must understand the scope of the job from the beginning and agree on the outputs you’re expected to deliver.

Do your research before agreeing to a budget or timeline, and protect yourself by confirming what you’ve agreed to in writing. If expectations seem vague, make an effort to straighten them out. Question every assumption you made when scoping the project, and document the scope and assumptions in your client agreement.

You’ll also need to manage expectations. Stay in touch with your client regularly and tell them if something is taking longer than expected so they can plan accordingly.

6. Avoid burnout

When you’re freelancing on the side, life can get hectic. Even if you’re enjoying the buzz of extra income and exciting projects, it’s important to have realistic expectations of yourself and ensure you don’t overdo it at the expense of your family time or mental health.

Overworking can eventually lead to exhaustion and a dip in productivity which can be detrimental to your side hustle. You can avoid burnout by:

• recognising when you have too much work and saying no to new projects
• partnering with other freelancers to share the workload
• getting a bookkeeper or accountant to take care of your finances
• taking time off

7. Create a goal to work towards

Give yourself a clear, defined objective when you’re starting out, to give you incentive and purpose. This could be setting up the business or having the chance to work on a pet project.

Once you’re up and running, keep reviewing your goals along the way. Make sure the type of work you’re doing serves those aims and ask yourself the following questions:

• Is it fun?
• Is it profitable?
• Am I attracting the sorts of jobs (and clients) I want to work on?
• Is freelancing still worthwhile for the time I’m putting in? If not, what do I need to change?

8. Bookkeeping for freelancers: know your tax obligations

As a freelancer, you’re classed as self-employed and are therefore responsible for your own taxes, which includes obligations like the Medicare levy is 2% of your taxable income. Here’s some key tax tips for freelancers to take the headache out of your bookkeeping:

• Set up a bookkeeping system. Bookkeeping for freelancers is essential as it helps you track your expenses, plan payments and monitor your accounts, so you’re ready at tax time.
• Seek professional help from a financial advisor to help organise your bookkeeping and to make sure you’re tax compliant.
• Set aside money from each payment you receive, keeping in mind that as an Australian resident, you are entitled to a tax-free threshold of $18,200 before you need to pay tax on your income.
• Know which expenses you can claim, and which you can’t. Common tax-deductible expenses are home office supplies, work-related travel, and marketing costs.

Even if you see your extra work as a side hustle, check whether you must register as self-employed and pay tax on the money you make.

Considerations before starting a freelance business full time

Freelancing full-time seems like the dream for many, but there’s a lot to consider before you take the plunge and quit your regular job.

First, you’ll need to assess your finances and whether you can afford to leave your main job. Online educator Ryan Robinson recommends that you grow your side income to at least between 50% and 75% of your total current income before leaving your full-time job, depending on your risk tolerance.

While matching or increasing your regular income is an important consideration, there are others too. For example, you’re likely to be working alone for most of the week; is this something you can cope with?

You’ll also need to have self-discipline and hold yourself accountable: there’s no one to organise your workload. Can you be sure you’ll regulate the time and effort you put in to avoid burnout and deliver what your clients expect?

Becoming a full-time freelancer can give you a better work-life balance and a greater sense of achievement when you plan for the financial and lifestyle changes involved.

Start your freelancing journey with confidence

Starting a freelance business is an exciting step towards greater flexibility and control over your career. With careful planning and the right tools, you can build a sustainable business that you’re passionate about.

A key part of that plan is managing your finances effectively. With tools that simplify invoicing, expense tracking, and reporting, you can spend less time on admin and more time focused on your clients. See how easy it is to run your freelance business and try Xero for free.

FAQs on freelancing

Here are answers to common questions about starting and running a freelance business.

Can I freelance with no experience?

If you have no experience, first consider what you’d like to do. Some of the most in-demand jobs for freelancers include copywriters, graphic designers, accountants, bookkeepers, web designers, coders and digital marketers. Once you’ve decided on a job, you can start learning and gaining experience in this field.

How can beginners start freelancing?

When starting a small business and looking for your first client, first establish what kind of work you’d like to sell and then make sure your skill set is relevant. Once you know what you’ll be doing and how much you’re going to charge, you’ll need to market your business and build a portfolio that showcases relevant and high-quality work.

How do freelancers get paid?

You can get paid in several different ways, depending on what you have agreed with the client. Most freelancers are paid via bank transfer but some clients might prefer to pay by cheque or secure payment portals like PayPal.

As a freelancer, you have flexibility with how you’re paid and how often. You’ll need to establish your payment terms: will you work on a project basis or a retainer? When will you send invoices, and when is payment required? Include this information in the contract you send to your client.

Learn about sending invoices with Xero.

How do I accept freelance payments?

If you’re starting your freelance journey and need a way to accept payments from clients, it’s worth considering a payment processing solution. Solutions like the option to accept payments online in Xero enable you to send your invoice with a ‘Pay now’ button to make it easier for your clients.

Is freelancing a good career?

Freelancing can be a great option, with the opportunity to earn more than you would in employment. You’ll be your own boss, manage your own time, and have more control over your work-life balance. Income can vary, so freelancing takes time and consistent effort before it becomes a sustainable career.