Does the Recession Benefit Freelancers?

I say the answer is yes, the down economy does benefit the freelancer.

Now this is not to say that I’m glad we’re in a recession or anything of the sort.  We’re in tough times, and it affects everyone negatively in some way.  All I’m saying here is that freelancers, especially freelance web workers, are in a unique position to weather the storm more effectively than others.

My friends ask me, “how’s business these days?”  The common assumption is that since I’m self-employed, business must be slow in an economy like this.  But my honest answer is quite the contrary.  I’m having my best year yet.

OK, granted, it’s only my second full year of being completely self-employed.  You could chalk up some of this year’s success to learning from mistakes made in 2008 and generally improving my skills all around – both in design and in business.

But I still make the argument that a freelancer, especially one working in the web industry, has a unique advantage during a down economy.

Here’s why:

Companies aren’t hiring. But they still have work that needs to get done.  Where do they look when they can’t afford to pay for salaries and benefits?  Freelancers.  I made a healthy rate working for a company early in 2009 who needed extra help on several projects.

Freelancers can compete with larger agencies. In a tough economy, businesses seek the most bang for their buck.  Especially small and local businesses.  During a booming economy, these businesses might pay big bucks to a well-known agency with staff.  But these days, they’re considering alternatives, such as hiring a talented freelancer or small shop who can produce the same (or better) quality results at a fraction of the price.

People want to start side businesses. This economy makes people seek a secondary source of income.  This often means starting a side business.  What do small businesses need?  Quality, affordable web design, particularly e-commerce web design.

Freelancers can work anywhere. This benefit is two fold:  Freelancers can physically set up shop at home, on the road, at a local coffee shop, anywhere.  Having to relocate doesn’t hurt the freelancer’s business – as long as there’s an internet connection.  The other benefit is freelancers can find clients anywhere..  I have clients that reside in all corners of the US, plus a client or two in other countries.  As a freelancer, I have the ability to seek new projects anywhere, not just in my home city.

Over to you

Agree?  Disagree?  What affect has this economy had on your freelance business?