Side Business Failure in Skill Selling (Freelancing): Key Reasons for Setback

Skill selling is an appealing way to directly convert one’s talents into revenue. However, many fail to achieve a stable income and become discouraged due to “Product Design Failure” and the “Wall of Client Work.”

1. Failure in “Product” Design and Pricing

The main cause of failure is the inability to design one’s skill into a marketable product.

  • Self-Satisfying Skill Offering:
    • Selling what “I want to do” will not lead to sales unless it connects to “solving a specific problem for the client (purchaser).”
    • Inability to objectively assess how well one’s skills will fare against market needs (e.g., video editing, web design, SNS consulting).
  • Pricing Mistakes (Too Cheap):
    • While starting with a low rate is common, setting the price too low, ignoring one’s labor time, skill acquisition cost, and platform fees.
    • This results in high volume/low margin work. The effective hourly wage is unviable, leading to the depletion of time and energy.
  • Inability to Differentiate from Competitors:
    • Beginners with no track record are unlikely to be chosen if they offer the same services at similar prices as other sellers. Failure to offer a unique strength or a niche service targeted at a specific audience.

2. The Wall of Client Work and Reputation Management

Providing a skill requires mandatory communication and trust-building with the purchaser.

  • Lack of Client Service (CS) Capability:
    • Failing in business basics like neglecting to Report, Inform, and Consult (Horenso) on deadlines and progress, or being slow to answer client questions.
    • Proceeding without fully understanding the request or brief (regulations), leading to extensive revisions and rework, which increases the client’s burden.
  • Inability to Maintain Reviews (Reputation):
    • On skill-selling platforms, track record and reviews are paramount. Receiving even one low rating becomes an obstacle to securing the next assignment, leading to a negative loop.
  • Failure to Meet Rising Expectations:
    • After building a track record and increasing the rate, the client’s expectation level rises significantly. Inability to meet this increased demand can lead to being overwhelmed by pressure.

3. Lack of Stability and Consistency

Unless a single project evolves into a sustainable source of income, the activity cannot continue.

  • Failure to Acquire Repeat Clients:
    • The service ends after delivery, without providing the added value or attentive service that would make the purchaser want to hire the seller again.
    • The constant need to find new clients increases the cost of acquisition (the effort required to maintain visibility within the platform).
  • Skill Obsolescence:
    • Web-related skills (e.g., video editing software, programming languages, SEO knowledge) are constantly evolving. Neglecting continuous learning quickly renders one’s skills outdated, leading to a cessation of work.

💡 Typical Failure Pattern

“I sold my video editing skills cheaply and was flooded with projects, but the requirements varied with each client, forcing me to pull all-nighters editing daily. The constant near-deadline submissions, combined with physical exhaustion and low ratings, forced me to close the account.”

Failure FactorSpecific Risk and Outcome
Pricing MistakesOver-acceptance of cheap projects led to overwork, resulting in decreased service quality, and ultimately, burnout and quitting due to depleted time and energy.
Lack of Client WorkInsufficient ability to manage varied client requirements (direction skills) caused the workload to explode. Near-deadline submissions are highly detrimental to client trust.
Product Design FailureSetting a “product” that the seller couldn’t realistically handle (ignoring one’s own labor capacity) led to low ratings and the eventual cessation of activity.

Key to Success: To succeed in skill selling, it is vital to correctly understand “the value of your time” and set an appropriate price. You must consistently aim to slightly exceed the client’s expectations to garner good reviews, which is the cornerstone of a sustainable business.