How Much Do Freelancers Make? A Comprehensive Guide

Transitioning to freelancing often leads to increased earnings for many individuals. Consequently, the burning question on everyone's mind is, "What is the typical income for freelancers?" Although the answer to this query is highly dependent on individual circumstances, it is feasible to provide an average estimate. 

We have examined the data concerning the average hourly rates charged by freelancers in five European countries: Germany, France, Spain, Italy, and the UK. Although it serves as a general indicator of freelancer salaries, it provides a valuable reference for individuals navigating the challenge of determining appropriate pricing for their freelance services.

Average Freelancer Salaries Across Europe

Examining the data within the table reveals intriguing variations across markets and industries:

The sky’s the limit in Germany

Data on earnings indicates that Germany stands out as one of the most lucrative destinations for freelancers in Europe. Specifically, Munich, a key tech hub in Germany, holds the distinction of being the most expensive city globally for hiring remote developers. Freelance developers in Munich command an average hourly rate of approximately €80. Additionally, other skills such as PR, branding expertise, and videography are highly valued and among the best-paid services in the region.

Developers are winning in Europe

Across diverse markets, freelance rates exhibit significant variations, yet developers consistently command the highest average hourly rates in Europe. Whether specializing in front-end, back-end, or a combination of both, the demand for developer skills is high. Given the rapid growth of this industry, the future appears promising for freelancers engaged in web development.

Commonalities Between France and the UK

France and the UK present excellent opportunities for freelancers to leverage their marketable skills and earn a living, with comparable rates prevailing across various markets. Notably, graphic designers lead the way in France, charging €54 per hour, while British copywriters, benefiting from their native language proficiency, claim the highest hourly rates in Europe at an average of €41 per hour. Apart from these distinctions, most other freelancers can anticipate similar earning potentials between these two markets.

Timeless Expertise Still Holds Value

Accounting remains among the most lucrative roles across various markets, underscoring the enduring demand for traditional job functions. The proliferation of small startups across Europe presents freelancers, including accountants, with opportunities, as these emerging companies seek resources to meet their immediate needs.

Optimal Returns for Your Efforts

Considering the lower cost of living in Spain and Italy in comparison to France and Germany, freelancers can indeed earn a respectable income through project-based work. Our findings indicate that Spain and Italy boast robust and competitive freelance markets, particularly for creative skills such as design, illustration, filmmaking, and user experience. The Spanish freelance market, in particular, features a diverse mix of junior, mid-weight, and senior creative professionals, fostering a competitive environment that proves beneficial for both employers and freelancers.

Freelance vs. Employed: Who earns more?

As it happens, the advantages of freelancing extend beyond the flexibility to work at one's own pace and location. In fact, it turns out that, on average, freelancers often out-earn their counterparts in equivalent full-time positions. What accounts for this phenomenon?

Typically, freelancers are enlisted to bridge gaps in an in-house team or provide additional support for an ongoing, yet often singular, project. For numerous businesses, the expense of engaging a freelancer for a defined duration is significantly lower than the costs associated with hiring a full-time employee. When factoring in overhead expenses like office space, payroll taxes, employee benefits, pension contributions, and more, the savings become evident. Furthermore, once the project concludes, the freelancer can be released, thereby releasing the company from ongoing budget commitments.

While providing businesses with significant flexibility and cost savings, this arrangement introduces a considerable degree of uncertainty for freelancers. In order to offset this financial insecurity, freelancers frequently set higher hourly or daily rates, a trade-off that employers are generally willing to accept.

Moreover, freelancers frequently extend their work hours beyond those of full-time employees in comparable roles, often working through weekends to sustain their business operations. This approach is driven by a straightforward calculation: the more hours they invest, the higher their potential earnings. Nevertheless, it's essential to recognize that freelancers bear additional costs, including deductions for holidays, sick days, maternity/paternity leave, and conference days. Managing these aspects diligently becomes crucial for freelancers.

Increasing Your Service Rates: Where to Begin?

Assessing the worth of your work can be an intimidating task for many, and it's understandable. Misjudging your pricing could have repercussions, potentially requiring you to invest more time and effort to meet your financial goals. To avoid such predicaments, initiate the process of determining your freelance rates and services by employing a few straightforward strategies.

• Clearly articulate and delineate your Unique Selling Propositions (USPs). Identify what sets you and your offerings apart. Consider the impact of your personal branding on your pricing. Reflect on what is necessary to attract your ideal customers. Deliberate thoroughly on your USPs to establish a competitive advantage and enhance the persuasiveness of your pitches to potential clients!
• Obtain certifications that hold significant value in your industry. Each industry typically recognizes and highly regards certain certifications. Incorporating these accolades into your extensive list of achievements will enhance your personal brand, positioning you as an expert in your field.
• Broaden your portfolio to increase your rates effortlessly. Expanding your range of services and diversifying your portfolio can be a simple yet effective strategy. Engaging in a more varied mix of projects will provide you with broader experience across different facets of your field, subsequently elevating the perceived value of your services.

Several elements can influence your freelance hourly rate, such as your experience level, specialization, portfolio, and industry connections. Research indicates that certain skills may be more highly valued in specific markets, but the average freelance salaries across Europe remain relatively consistent. Thanks to the availability of extensive freelance platforms like Upwork or PeoplePerHour, freelance professionals now have the opportunity to align their rates with the global market rather than being restricted to local rates.