No internship or entry-level job? Try freelancing

June 16, 8:42 AMEntry Level Careers ExaminerHeather Huhman

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Full-time entry-level jobs—and even internships—are proving few and far between. According to the National Association of Colleges and Employers (NACE) 2009 Student Survey, just 19.7 percent of 2009 graduates who applied for a job actually have one. Scary statistics often leave students and new grads fleeing to Europe or other hot vacation spots to take a break in hopes of returning to a better market. Instead, let’s talk about another option: freelancing.

I’ve written about this before, but for those seriously considering freelancing, you should know about some of the tools out there. The three main sites not limited to a specific industry are Elance, oDesk and Guru.

Having never used the sites myself, I spoke with Michelle Goodman, author of “My So-Called Freelance Life: How to Survive and Thrive as a Creative Professional for Hire” and “The Anti 9-to-5 Guide: Practical Career Advice for Women Who Think Outside the Cube.” 

“There are pros and cons to freelance job sites like this,” she said. “Among the pros: It may seem like a less daunting way to line up your first few gigs than hustling for work offline. Also, Elance requires clients to pay freelancers through the site, which gives you a bit more insurance against getting stiffed.”

“Among the cons,” Goodman continued, “Elance takes between a 6.75 percent and 8.75 percent cut of all jobs, so you’ll want to make sure you’re charging enough to cover this. That said, sites like this are known for their low-paying jobs, often made worse by the fact that freelancers from around the world bid on them eBay-style—with the lowest bidder more desirable in this case.”

Other sites you might want to consider? “The job board on FreelanceSwitch.com is supposed to be good, though it’s a bit heavier on design work. It’s $7 per month, but there’s no race-to-the-bottom public bidding involved. I’ve personally tried FlexJobs.com (about $50 per year), which aggregates at-home job listings from the Web, and I think it’s pretty good. There are still some jobs that pay next to nothing on there; you just have to be discerning.”

Goodman recommends not using Elance or other freelancing sites as your only resources. Just like with job hunting of any type, she says, it’s important to take relationships offline. “You need to get known in your industry as a freelancer for hire, and a huge part of that is getting out there and meeting other freelancers and businesspeople. You don’t want to just sit in your room and bid into the void week after week. You have to cultivate real, live relationships too.”

“Find and chat with other freelancers in your neck of the woods, starting with social networks like Biznik, LinkedIn Groups and Freelancers Union meetups,” she continued. “Next to a satisfied client, the best source of referrals is another self-employed pro who has more work than they can handle.”

Nathan Casey, president of Jobvana.com, a free social marketplace for freelancers, contractors and other self-employed individuals, completely agrees. “If one customer makes a business, then a lot of customers make a lot of business. People like to help people, and especially in a down economy, it’s more beneficial to work with someone you know, or who came with a personal referral. A referral can have any number of names like viral marketing or word-of-mouth marketing, but when it comes down to it, it’s a simple recommendation from someone who has had a good experience.”

Goodman also advises students and new grads to create a “killer” online portfolio. “It can be all of two to four pages. WordPress makes this simple and cheap. Don’t just send the URL to everyone you know, and ask if they know of any work. Research and target specific companies that hire freelancers, and ask if anyone you know has a contact there.”

Casey also adds that those new to freelancing should blog to help establish credibility. “If this is a new endeavor, or if you’re a recent graduate, chances are that you don’t have a résumé or client list exploding with experience. But, that definitely doesn’t mean that you don’t have the skills or expertise. A good way to convey this expertise is through blogs. It’s a way for potential customers to interview you by bypassing the résumé phase and letting people instantly know who you are, what you know and what you can do. This is often a fantastic way to market yourself.”

Finally, learn how to run a business. “Half of working for yourself is wooing clients, negotiating contracts, managing projects and making tricky judgment calls,” said Goodman. “Read blogs and books on freelancing, or take a workshop at SCORE. And, don’t skip the health insurance. If you break something, you’ll be sorry you didn’t at least get a catastrophic plan.”