Payment for freelance work also varies greatly. Freelancers may charge by the day, hour, a piece rate, or on a per-project basis. Instead of a flat rate or fee, some freelancers have adopted a value-based pricing method based on the perceived value of the results to the client. By custom, payment arrangements may be upfront, percentage upfront, or upon completion. For more complex projects, a contract may set a payment schedule based on milestones or outcomes.
Benefits
Freelancers generally enjoy a greater variety of assignments than in regular employment, and—subject to the need to earn a regular income—usually have more freedom to choose their work schedule. The experience can also lead to a broad portfolio of work and the establishment of a network of clients.
Sometimes a freelancer will work with one or more other freelancers and/or vendors to form a "virtual agency" to serve a particular client's needs for short-term and permanent project work. This versatile agency model can help a freelancer land jobs that require targeted, specific experience and skills outside the scope of one individual. As the clients change, so too may the players chosen for a virtual agency's talent base. This is a common way for freelancers to get work if the non-competing freelancer in the relationship reciprocates the relevant type of work back assuming that both are in the same industry.
Freelancers and clients may form a relationship based on mutual needs and the professionalism and competence of both parties.
Drawbacks
The major drawback is the uncertainty of work and thus income, and in lack of company benefits such as a pension, health insurance in nations without socialized medicine, paid holidays and bonuses. Many freelancers, especially in journalism, regard themselves as having greater income security through the diversity of outlets—the loss of any one of which leads to the loss of only a portion of income, rather than its totality as with salaried employees.
It is important to note that being a freelancer is not suitable to all people. Being a freelancer requires discipline and self-motivation along with other easier to acquire skills. If the freelancer works at home they are prone to additional stresses, that if not managed properly, could prevent them from earning an income at their profession.
