Independent contractors play a huge role in today’s economy. One in five jobs in the U.S. are performed by a worker under contract, and contractors and freelancers could make up 50% of the American workforce within the next decade.

With more and more work done by freelancers, it’s important for independent contractors to make the most of every opportunity. Here are a few ways to become a more successful independent contractor:

Set a Fair Price From the Start

As an independent contractor, it’s crucial to know your worth. Many independent contractors undercharge clients what they are truly worth, especially when they’re first getting started. Undercharging often comes back to bite you: prospects may see you as a "quantity over quality" type of contractor, and customers who were drawn in by the low price may go elsewhere when your rate starts rising.

Do some market research before you set and advertise your rate. Find out what other firms and contractors in your field are charging, then balance those rates against your own experience and expertise. (There are also resources available from Monster, Intuit, and many others to help you calculate an hourly rate that accounts for taxes, benefits, and business expenses.) Once you’ve done the research and set your rate, you should get an idea of whether it’s too high or too low by how full your inbox is!

Know Your Skills and Experience

The best independent contractors are great self-assessors. Knowing your skills and experience are key to taking on jobs that fit you and the work you want to do.

If you undersell your skills and expertise, you may end up doing menial work that doesn’t reflect why you became a contractor in the first place. If you oversell yourself, you may take on jobs that are beyond your own abilities, which can result in a poor experience, bad reviews, or even a lawsuit!

Understanding your unique mix of skills, qualifications, experiences, licenses, etc. helps you avoid taking jobs you are underqualified or overqualified for. When you accurately assess your own skills, you continue to build your brand by performing high-quality work that is firmly in your area of expertise.

Brand Yourself

Many independent contractors are able to drum up business via word of mouth to get their business started. But over time, the most sustainable growth strategy for your business is to brand yourself and help customers find your services.

Branding yourself doesn’t have to be an all-consuming effort. To start, just think about what makes you you, and what sets your services apart. Develop a solid "elevator pitch" that quickly tells prospects what you’re all about (and make sure to emphasize the unique value you provide!). You may benefit from a website, or even a social media profile, that increases your online visibility and helps potential customers find you right away.

Protect Yourself and Your Business

Many independent contractors operate without comprehensive insurance policies in place—a mistake that can cost your livelihood. While insurance may seem like just another expense, protecting yourself from risk could end up saving your entire business in a difficult situation.

A general liability policy for an independent contractor often covers:

●Bodily injury liability

●Property damage liability

●Personal injury liability

●Medical payments

●Premises liability