PayPal
U.S. Freelancer Insights
ReportMethod & Objectives• Online survey with 1,000 Freelancers (and those about to become Freelancers) carried out inlocal language in the US in October 2017. This report is one of 22, reflecting markets aroundthe world.
• Freelancers are defined as those who do contract or freelancing work as or alongside theirmain income and do most of it on a computer, via the internet• Considerers are defined as those who don’t do contract or freelancing work but expect to startin the next 6 months and will do most of it on a computer, via the internet• To provide a baseline U&A of the target group – providing understanding and identifying
opportunities to inform product development and marketing communications• Covering everything from what is important to freelancers in general, to the tools and brands
they use to do their work and how they get paid and move their money.

Table of contents
1. Profile
2. The Freelancing Life
3. Getting Work & Use of Freelance Platforms
4. Dealing with Money©2017 PayPal Inc. Confidential and proprietary.

1. Freelancer Profile

Freelancer profile: overview
Two-thirds of US Freelancers are female. The age of profile freelancers is evenly spread, and theaverage time freelancing is 6 years.
Age profile

Gender profile

60-69,
13%

69%

Time freelancing

70+,18-23,
2% 6%
24-29,
14%

<115%

1-2

31%

50-59,
18%

23%

3-5

29%

6-10
30-39,
29%

FemaleMale

Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

40-49,
19%

17%

11-15

6%

16-20

5%

20+

5%

Mean time:
5.99 years

The freelancing business
There’s a wide range in the number of clients and projects undertaken.
IncomeNumber of Clients orProjects

Income (Local currency)%

More than $100,000

5%
3%
2%
3%
4%
5%
6%
8%
12%
14%
15%
18%
6%

$90,001 - $100,000$80,001 - $90,000$70,001 - $80,000$60,001 – $70,000$50,001 – $60,000$40,001 – $50,000$30,001 - $40,000$20,001 - $30,000$10,001 - $20,000$5,001 - $10,000$5,00 or lessPrefer not to say
Mean income$30,737
Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

Mean:
17.1

Clients
24%

5 or less

26%
22%

6-10

11 – 20

14%

15%

21 – 40

More than 40

15%
23%

21%

19%
22%

Projects

Mean:
18.8

Freelancers expect their work to increase
Business has mostly been stable or growing over the last year and two-thirds of Freelancers
anticipate future growth.

FutureGrowth

I expect to be doing a
lot more work

51%

30%

I expect to be doing
more work
I expect to be doing
the same work27%

I expect to be doing
less work

15%
4%

3%

I stopped
doing thisbusiness

I am doing My business My business My businessless businessis stable
is growing
is growing
nowsteadily
very fast
Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

35%

More
65%
Same
33%
Less
3%

I expect to be doing alot less work28%

I don’t expect to be
doing this in the future

5%
1%
2%

Freelancing has diversity of business and customers
Over half of US Freelancers have some work from international clients.
Domestic / InternationalType
Data entry/internet research
14%
Consultant
12%
Customer service
8%
Graphic design/illustration
8%
Web design
6%
Web marketing and sales
6%
Copywriting
5%
Photographer/videographer
5%
Virtual assistant4%
Market research
4%
Project management3%
Web/mobile development
3%
Accounting
2%
Content writer - stories/…
2%
Telesales2%
Programmer
2%
Translation
2%
Financial advisor
2%
Transcription
1%
Other includes
Online tutoring/ teaching1%
interior design,
Online trader
1%
exam marking,
Legal services
1%architectural design,
Other online service or online…
7%
personal training
Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary.

97% have adomesticclient58% have aninternational
clientTerritory

US

84%

CA

17%

UK16%

AU

6%
6%

Amongst those who haveboth the distribution is...
5%
4%
6%

81-100

14%

61-80

71%

71%

41-60
21-40
14%

<20%

Averageproportion
Source: Netfluential / PayPal

6%
4%
5%

Domestic

81%

International

19%MX2. The Freelancing Life

Becoming a Freelancer is often triggered by seeing it work forothers, though the the work itself is largely solo
Why considered freelancing

Work solo or collaboratively?

50%

I only work on my own

35%
33%

Other includes simply
stumbling into freelancing,supplementing their income,a desire to stay work fromhome and issues finding
regular full time employment

18%

SeeingsomeoneHearing
about itSocial media An event

17%

Other

Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

51%

I mostly do work by myself

31%

I sometimes hire or contract
other people to work for me
and help on a project13%

I always hire or contract
other people to work for me
and help on projects

6%

Web development
freelancers aremore likely to workalone

The autonomy of freelancing is its greatest appeal
Being their own boss, with flexibility in where they work, what they do and when they do it is most
attractive to Freelancers.
Likes
Digital & social media Freelancers are
more likely to enjoy the freedom ofworking where they want
50%

46%
38%

37%
30%

27%
21%
15%
7%

Being my own Ability to work I can choose
bossfrom anywhere the work I
enjoy

Greater
flexibility
schedules

Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

I earn moreincomeAbility tochoose who
you work forNo office
Shorter
Collaborating
politics/ big commute/ lesswith othercompany
timeFreelancers
bureaucracy commuting

1%
Other

Irregular, low income is a key issue with freelancing
Competition for work is also a concern for a quarter of Freelancers.
Dislikes

46%

Digital & social media Freelancers
are more likely to be concerned
about an irregular income

24%

23%
18%

15%

15%

Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

15%

14%

13%

13%

10%

8%

8%

5%

3%

The majority of Freelancers are keen to receive support andinformation about freelancing
Freelancers are keen to learn how to attract new and retain current customers. Developing new
skills and advice on what they should be charging would also be appreciated.
What do they want to hear about?

Where do they currently get this info?
38%

Reaching / retaining customers

30%

Learning new skills to sell

28%

Fee advice
Payment protection/ insurance

24%

Money management advice

47%

Websites

41%

Social media
Online blogs, forums or podcasts

36%

Friends & family

35%

YouTube channels

27%

24%

Other Freelancers

26%

Help with getting my own website

23%

Industry associations

Advice on contracts / legal issues

21%

My current bank

12%

Negotiation skills

21%

Accountant/ business advisors

11%

Work spaces / start-up hubs

10%

Trade association memberships

9%

Trade press

7%

Government associations

6%

Other

3%

Meet-ups and online forums

18%

International development

18%

I’m fine as I am

22%

Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

22%

Travel and computers are Freelancers’ largest expenditures
The average annual spend on Freelancer platforms and banking/currency fees is around $150.

Main Expenses
$564

$549

$294

$163

Business related
travelComputers /Phones /Software

Marketing andadvertising

Freelancer
platform fees

Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

$148

$139

$133

$132

IT support

Banking andcurrency fees

Legal support

Accountingsupport

3. Getting Work & Use of Freelancing
Platforms

Half of Freelancers, particularly amongst those with a domestic
focus and more freelancing experience, receive work throughword of mouth
Work as a Resultof Marketing

Self-Marketing
Word of mouth/referrals

43%

50%

Social media networks

37%

Online job boards or newsletters

36%

Through Freelancer platforms

30%

37%
42%

31%

Through my website

28%

31%

Through my online marketing

26%

29%

Community or networking events

25%

25%

Pitching to prospective clients

24%

24%

Through marketing offline

16%

Employment agencies

14%

Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

23%28%

Those with 2 years or lessfreelancing
Online job boards plays a biggerrole
Those with 11+ years freelancing
Word of mouth and pitching toclients play a bigger role

Web development Freelancers
Online marketing / advertising, theirwebsite, and community/
networking events play a bigger role
More domestic based clients
Word of mouth plays a bigger roleOver half of US Freelancers currently use a Freelancer platform
The main barrier to using a Freelancer platform is a lack of knowledge.
Platform UserBarriers to using Freelancer platforms
I don’t know enough about them

54%
30%

Have enough work without using a platform
I wouldn’t get the kind of work I want

Not good value for money

12%

Unable to promote my services the way I want to11%

I wouldn’t be able to choose who I work for10%

I wouldn’t reach the kind of clients I want

10%

I wouldn’t be able to charge enough10%

Difficult to use and set up

10%

No, 45%
Yes,
55%

17%

Freelancers with more international thandomestic clients, and those with less yearsfreelancing are more likely to be using aFreelancer platform
Base: Freelancers (n=800)
Base: Freelancers who haven’t used a platform (n=362)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

There’s less flexibility daily / holiday schedule7%

Too time consuming

7%

I wouldn’t be able to choose where I work

6%

Other

3%

The majority of those using Freelancer platforms foresee using
them more in the future as it provides greater flexibility in how
they work
Positives60%of those using Freelancer platforms
Digital & Social media
say they will use Freelancer platforms Freelancers are more likely tomore in the future
believe they are easy to useand set up

61%

Platform users

57%

Non-platform users

54%

52%

51%

51%
42%
39%

36%

38%

36%

29%
25%

25%

24%

20%
12%

I can work
fromanywhere

13%
10%

7%

8%

13%

9%
0%

1% 0%

I can choose I get the kind I have greater I can reach They are easy They promote They are
I gain more They provide They help me I don’t knowThere’s
who I work for of work I want flexibility daily new clients to use and set my services good value for income from support withreachenough aboutnothingto do/ holidayup
the cost
the clients I invoicing and international them to say good about
work withgetting paidclientsthem
Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

Few who currently use Freelancer platforms would use themless in the future
But some Freelancers have issues with the level of income they receive, the number of new clients
they get and the support they receive from such platforms.
Negatives3%53%of those using Freelancer platforms say they will
use Freelancer platforms less in the future

24%

24%
17%

16%

11%
7%

14%
10%

13%
11%

12%
10%

2%

12%
8%

12%
8%

4%

9%

9% 8%

5%

8%

They are I don’t get They are I can’t reachLess
I’m getting I don’t get They don’t
I can’t
I can’t
I can’tlower
enough new provide promote my not good the kind of difficult to the clients I choose choose who flexibilitywith myincome from clients thatenough services the value for the work I want use and set want that
where I
I work forcostup
scheduleclientsway
support with way I want
to doway
work frominvoicing
toand getting
paid

Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

4%
1%
Other

5%

6%

There’s I don’t know
nothing not enoughso good about them
about themto sayPlatform users
Non-platform users

Freelancer platforms should allow users to work from anywhere
and reach clients providing a higher income but not at the cost ofvalue for money
Important platform features
Not at all important

Allowing me to work from anywhere 2%3%

Not very important

Quite important

27%

68%

Being good value for money 2% 5%

28%

66%

Reaching clients who provide higher income 2% 5%

29%

65%

Being easy to use and set up 1% 5%

31%

63%

Reaching the clients I want 1% 5%

31%

63%

Allowing me to choose who I work for 1% 5%

32%

62%

Promoting my services 1% 7%

30%

62%

Sourcing new clients 1% 5%

33%

61%

Providing greater flexibility with my daily and holiday schedule 3%
Helping me manage the process of invoicing and getting paid 3%
Reaching international clients

7%

32%

12%
11%

Base: Freelancers (n=575)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

Very important

58%
34%

28%

52%
30%

32%

4. Dealing with Money

PayPal is the most widely used payment method amongst
Freelancers, making up over half of users’ payments% using method at all(Domestic or International)

Main methods
Via PayPal
By Credit/Debit card

18%

Transfer into bank account16%

ChequeVia a Freelancer platform
Via other online payment
Via Venmo
Bitcoin or other cryptocurrency
Other
I don't have this type of client
Domestic

10%
23%
15%
15%
10%
15%
10%
8%
8%
5%
2%
3%

38%
40%
39%
35%

70%

76%

Percentage of payments

46%
44%

54%

40%

27%
20%
21%
14%
42%

International

Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

34%

30%

28%
24%
18%

17%
11%

Most Freelancers using platforms withdraw funds using PayPal
for its ease, where it outperforms bank transfer and Payoneer
Withdrawing fundsWhy?
Other85%

Low fees

Speeds

59%
57%
23%

42%
12%

74%
2%
57%
55%

Bank
transfer

38%
65%
0%

Payoneer

Base: Freelancers who use platforms (n=438)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

Ease

2%

PayPalBank Transfer

Tax advantages

58%
54%
50%
62%

Security is key for US Freelancers choosing which payment
methods to accept
Receiving payment quickly and being easy to withdraw and use are key factors too.

Importance when selecting payment method to accept – Top 5 reasons
44%
38%
32%
27%

Is secureIs fast to receive mypayment

It is easy for me towithdraw the money
when paid

Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

It is easy to set up anduse

24%

It’s not too expensive

Familiarity, and offering a secure, fast, easy to use payment
drives the appeal of the payment method
Likes

44%
40%

39%

37%

34%

32%

31%
28%

27%

26%

25%

22%

20%
16%

16%
4%

Familiarwith itSecure

Easy to use

Fastpayment

Not tooexpensive

Easy towithdrawTrustedbrandBase: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

Use on amobile

Prescribed
Fraud Good online Customer
customers protection self-serve
service

Accept's Integration Offers data Nothing I
foreignwith back- analytics like about
currencies
officethemsystems

Current payment methods are well liked but there are minor niggles
No single issue stands out, but users have a range of smaller issues – slow payments, lack of data
analytics, not accepting foreign currencies, expense.

Dislikes
42%

12%

Slow tomake thepayment

10%
No dataanalytics

9%

9%

9%

9%

CannotExpensive
No
Hard toacceptintegration withdraw
foreignwith backcurrencies
officesystems

9%

9%

9%

Not secure Poor online Can’t be
self-serve used on amobileBase: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

8%
Not a
trustedbrand8%

8%8%8%

Not easy to No fraud Not familiar
Notuseprotection
prescribedby mycustomers

7%
Poorcustomer
service

There’snothing I
dislikeabout them

Half of Freelancers have experienced not being paid
Almost half of those who haven’t been paid before believe Freelancers are not taken seriously.
Disputes

Reasons
44%

Freelancers are not taken seriously
Yes morethan 5times, 4%
Yes 3 – 5times, 8%

There were disputes about the payment
terms
I havenever notbeen paid,50%

Yes onceor twice ,39%

Base: Freelancers (n=800)©2017 PayPal Inc. Confidential and proprietary. Source: Netfluential / PayPal

28%

Customers were unhappy

18%

The client couldn’t use the payment
methods I accept

16%

The payment took too long to arrive

16%

The payment got lost
Other13%18%

©2017 PayPal Inc. Confidential and proprietary.