Freelancing is a popular choice for those with specialized skills and who enjoy working remotely and independently. The MBO State of Independence study found that there are 72.9 million total independent workers in the United States, and Gen Z accounts for 28%.

However, with the rise of AI and other market obstacles, you may be wondering whether freelancing is still profitable. Let’s dive into why freelancing can still be a strategic move in 2026 and how you can stay competitive and earn more revenue in your business.

The Current Freelance Landscape (And The Obstacles For Freelancers)

The freelance market is growing. According to Grand View Research , the freelance platforms market is projected to grow from $6.3 billion in 2025 to $24 billion in 2033. Business Research Insights expects the gig economy market as a whole to grow from $674 billion to $2522.37 billion by 2035.

But there’s a catch: Freelancing is becoming more competitive. There’s ever-present pressure to upskill or reskill as AI gets more sophisticated and lowers barriers to entry. In some cases, AI is being used in place of freelancers. One such study compared the effect of Generative AI on freelancers and found a 21% decrease in the number of job posts for automation-prone jobs related to writing and coding, compared to jobs requiring manual-intensive skills.

Some freelance platforms are seeing less work available for the taking, too. GigRadar reports that Upwork's active client base shrank by 6% in 2025. However, spending per remaining client rose 5%, indicating that clients who remain are willing to pay more for skilled, experienced freelancers.

So, despite these obstacles, is freelancing still a profitable career choice? Let’s take a look.

Are Freelancers Still Making Money?

Investopedia reports that the average freelancer in the U.S. makes $99,230 per year, while top earners make more than $200,000. Businesses are continuing to invest in freelancers who provide strategic thinking, creative services, and technical expertise that AI can’t easily replicate.

Furthermore, Jobbers found that freelancers who price their services based on value rather than an hourly rate earn considerably more money (a median income of $96,000 versus $58,000).

The takeaway is this: freelance work is still available and can still be profitable - if you’re strategic about it. The market is moving towards specialists rather than generalists, and low-level work that may be easily produced with AI is becoming less abundant.

How To Stay Competitive As A Freelancer

Freelancers who make money and win new clients are strategic and intentional about how they market themselves and position their services. Here are a few strategies to keep in mind:

  • Evaluate your positioning and value proposition. Be clear about how you help clients, the types of clients you work with, and the results they can expect.
  • Many freelancers find success in offering niche services. For example, rather than offering social media management services for anyone and everyone, you may specialize in Instagram and TikTok management for retail companies.
  • Always have an up-to-date portfolio . Your portfolio should have examples of your best work, and results you’ve generated for clients.
  • Collect testimonials and display these in your portfolio, website, LinkedIn, and any profiles you have on freelancer directories.
  • Diversify your offerings. To be more profitable, you could offer more than just hands-on, done-for-you services. For example, you could create a digital product to sell on autopilot or offer 1-to-1 strategy sessions.
  • Price your offerings based on value versus time. Even better: use retainers to create consistent and predictable freelance income.

The bottom line is that, yes, freelancing can still be profitable in 2026. That’s not to say it is easy; the freelancers who thrive the most are those who offer specialized services and position and price themselves strategically. Don’t let the competitive market put you off - the rewards are great for those who put in the work.