Freelancer Community

How Profitable Is A Freelancer Community? (Updated for 2024)

Pat Walls

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Updated: September 17th, 2024

How Profitable Is A Freelancer Community? (Updated for 2024)

So you want to start a freelancer community?

And the first question that came to your mind was, “well, are freelancer communities actually profitable?”

With a market size of $1.5T - there’s plenty of business to go around.

Especially considering:

You could start a freelancer community with as low as $100
Based on our data, freelancer communities generate an average of $1.78M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a freelancer community.

Let’s dive in!

Is a freelancer community profitable?

Yes, a freelancer community is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $1.78M per year with an estimated gross margin of 65%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your freelancer community.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your freelancer community is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a freelancer community worth it?

If you’re wondering if a freelancer community is worth it, the answer is a big YES. With freelancer communities, you have the potential to earn $1.78M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $1.5T, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a freelancer community to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful freelancer communities case studies.

Examples Of Profitable Freelancer Communities

Here are a few examples of profitable freelancer communities, and a few more details about them:

1. FVA Business Consultancy ($12K/year)

Julmar Grace Locsin, founder of Filipino Virtual Assistance, came up with the idea after experiencing the challenges of transitioning from office jobs to freelancing. Recognizing the potential for freelancing to improve the lives of individuals and families, Locsin and her husband launched FVA to provide training, coaching, and services to empower freelancers. Since its inception, FVA has trained over 25,000 students and aims to become the top online academy in the world.

Is it profitable? Yes
How much money it makes: $12K/year
How much did it cost to start: $500

On Starting A Business Training Virtual Assistants

Filipino Virtual Assistance by FVA Business Consultancy, founded by Julmar Grace Locsin, offers online and offline training to empower marketers, enable businesses, and equip freelancers which has trained 25,000 students from their 31 courses, has 16 coaches assigned from different territories, and fifteen in the FVA team for global digital leadership that will impact the world through digitalization, one life at a time.

Read this case study

Read by 8,354 founders

2. Solar Staff ($6M/year)

solar-staff //s3.amazonaws.com/www.starterstory.com/story_images/images/000/021/326/original/open-uri20221009-25-vx9a2y?1665301493 We used business networking and personal connections to attract and retain customers, along with themed conferences and context advertising. Our promotional budget accounts for 20-25% of our revenues.

Is it profitable? Yes
How much money it makes: $6M/year
How much did it cost to start: $1.5M

I Put My Entire Life Savings Into This Startup Idea & Turned It Into An $6M Business

Solar Staff is a profitable fintech solution that helps businesses work with cross-border contractors, making interaction with freelancers 5 times faster and optimizing business productivity, with a YOY growth of 92% and plans to expand into the UK, India, Mexico, and Brazil.

Read this case study

Read by 2,418 founders

3. Refrens ($120K/year)

Naman came up with the idea for Refrens after struggling to find and engage with freelancers for his previous startups. Recognizing the challenges freelancers faced in payment collection, he saw an opportunity to address these issues.

In 2018, he launched Refrens.com, focusing initially on streamlining invoicing to reduce delays and inefficiencies. The platform expanded beyond invoicing to include features like quotations, expense tracking, and tax reporting, aiming to support freelancers comprehensively.

I met a lot of good freelancers during my course of growing multiple startups but finding them and interacting with them was tough. It looked like a good market to solve problems for. — Naman (Source)

Is it profitable? Yes
How much money it makes: $120K/year

How Naman Sarawagi Built Refrens to $120K ARR

Discover how Refrens, a billing platform that facilitates seamless payments and client acquisition for B2B service providers, grew from a basic tool to generating $120K annually through targeted SEO, email marketing, and user-centric design improvements.

Read this case study

Read by 245 founders

Learn more about starting a freelancer community:

Where to start?

-> How much does it cost to start a freelancer community?
-> Pros and cons of a freelancer community

Need inspiration?

-> Other freelancer community success stories
-> Marketing ideas for a freelancer community

Other resources

How much can you make with a freelancer community?

With a freelancer community, you can make an average of $1.78M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $100. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a freelancer community make a week?

Based on our data, average weekly revenue for a freelancer community ranges around $37.1K. As such, you could see monthly revenues of $149K.

To know if your freelancer community achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your freelancer community.

How much do freelancer communities owners make?

The income of a freelancer community owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established freelancer community is about $37.1K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a freelancer community owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Freelancer Community Profit Margins

Generally speaking, a freelancer community can expect profit margin of around 65%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a freelancer community, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, freelancer community owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, freelancer community owners can ensure long-term sustainability and profitability for their business.

Freelancer community owner salary

The salary of a freelancer community owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established freelancer community, in a prime position, might see an average weekly salary around the ballpark of $24.1K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a freelancer community may be a promising business to start - but the success of your freelancer community mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable freelancer community.

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Starting A Freelancer Community: Everything You Need To Know

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