The way people work and think about working has changed significantly over the past decade, as more and more workers are prioritizing flexibility by taking on side gigs and freelance work.
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A study by Upwork found that 64 million people, or 38% of the U.S. workforce, freelanced in 2023. This represents an increase of 4 million people who performed the same kind of work the previous year.
Freelancers not only increased in number but also earned substantial amounts of money. As the study reported, they contributed around “$1.27 trillion in annual earnings to the U.S. economy” last year.
Freelancers aren’t just making a few extra bucks to add to their retirement account or emergency fund; they are replacing their salaries and, in some cases, making much more than they did in their traditional careers.
If you are considering jumping aboard the self-employed bandwagon but are afraid you won’t make enough money, here are 4 ways to become a millionaire freelancer.
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Cybersecurity or Software Development
When asked about freelancing careers that could make a person a millionaire, Dennis Shirshikov, a financial expert and the head of growth at GoSummer, said, “Becoming a millionaire freelancer in 2024 requires strategic positioning in high-demand, high-revenue niches.”
He continued, “One lucrative path is freelancing in software development or cybersecurity, where top freelancers can command rates of $100 to $150 per hour. Working 40 billable hours a week at $125 per hour can yield an annual income of approximately $260,000.
“With smart financial management and investments, reaching a million dollars within a few years is feasible.”
The Upwork study found that almost half (47%) of freelancers provided skilled knowledge services. If you have a degree in computer programming, IT or another specialized field, you may be able to set your own hours and wages in a lucrative (and growing) field.
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Real Estate
Shirshkov, whose company GoSummer helps individuals buy, renovate, furnish and manage vacation rentals, said hopeful freelance millionaires could also consider a career in real estate.
“In real estate, transitioning to freelance real estate investing can also be highly profitable,” he said. “For example, if you invest in fix-and-flip properties — purchasing distressed homes, renovating them and selling at a profit — you could achieve substantial earnings.”
He added, “Assume an average net profit of $50,000 per flip, completing just 20 flips in a year can generate $1 million. This approach, however, requires substantial initial capital, industry knowledge and risk management skills.”
Digital Marketing
Another industry experiencing rapid growth is digital marketing. Shirshkov, who is also a professor of finance at the City University of New York, explained, “For those with expertise in digital marketing, freelancing in this field can also be incredibly rewarding.”
According to him, freelancers specializing in SEO, PPC and social media marketing often charge between $75 and $150 per hour.
“By offering comprehensive digital marketing services to small and medium-sized businesses, a freelancer can easily bill over $200,000 annually,” he added. “The key is to build a strong portfolio and reputation, enabling you to attract high-paying clients and retain them with proven results.”
AI-Driven Careers
AI (or artificial intelligence) is touching nearly every aspect of our lives. It seems natural that individuals wanting to step outside the normal confines of a cubicle or 9-to-5 position should embrace the technology that is growing at an exponential rate.
And it seems many freelancers are ahead of the game, with 20% reportedly using “generative AI tools on a regular basis (multiple times per week)” compared to only 9% of non-freelancers.
In addition to using the technology, Mitchell Cookson, co-founder of AI Tools, suggests freelancers consider an AI-driven career to make a six-figure income or more.
“Some AI-driven freelance careers are paying handsomely,” Cookson added. “For example, AI consultants charge an average of $200-$500 per hour. With consistent work, working 20-30 hours per week can bring in $300,000 to $700,000 annually. Push that to 40 hours per week, and you can easily earn $1.04 million annually.”
He continued, explaining, “Data science and machine learning are other attractive AI-driven freelance careers that can easily help you become a millionaire. Freelance data scientists and machine learning engineers earn between $150-$300 per hour, depending on experience.
And Cookson said full-time freelance work in this field can generate up to $300,000 annually.
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This article originally appeared on GOBankingRates.com: 4 Ways To Become a Millionaire Freelancer
Source: 4 Ways To Become a Millionaire Freelancer
