The gap between freelancer turnover at the top and bottom end of the spectrum is more than five to one, with some professions taking years to make their first €100,000.
59% of consultants, engineers and IT professionals turnover below €20,000 in their first year, according to figures released this week by Accountable, an accounting app for self-employed workers.
However, for professions such as architects, the figure is higher: 93% of architects make less than €20,000 in that first year. The results are based on over 7,000 Accountable users in Belgium and show that first-year freelancers have low, varied turnover.
"The first year of freelancing is often a year of building rather than maximising income. You are developing your offer, learning which clients are the right fit, and creating a network and pipeline. Much of that work does not generate revenue immediately, but it can produce opportunities later," Jenny Björklöf, founder and community manager of Freelancers in Belgium, told The Brussels Times.
She also explained that many new freelancers undercharge to figure out how to position themselves in the market, learning as part of the process.
However, while this was important to gain experience, she warned freelancers to ensure lower rates are a "conscious and temporary choice, not a rate you become stuck with."
Björklöf encouraged freelancers to take advantage of opportunities to build and engage with a network of freelancers to benchmark rates and maximise income.
Making the first €100k
Accountable's data shows how easy it is for some professions to gather steam after their first year.
On average, it takes consultants, engineers and IT professionals around 18 months to turn over their first €100,000. For architects, it takes 38 months, reflecting the profession's nature.
Accountable notes that many architects spend their first years building up their client base.
For professions where the volume of activity may be higher, but rates are low, the time it takes is longer. Hair and beauty specialists take over four years to cross the threshold. Meanwhile, smaller retailers, including e-commerce traders, take over five and a half years to make €100,000 according to Accountable's data.
Turnover by profession
Overall, the median self-employed professional in Belgium has a pre-VAT turnover of €76,932 each year.
According to Accountable, hair and beauty professionals, sports professionals, copywriters and translators, and coaches are the four professions that fail to clear €70,000 a year.
At the other end of the pack are brokers and financial advisers who make €199,003 before taxes and expenses. Car dealers (€141,016) and doctors (€125,241) follow to make up the top three.
