Freelancing in Consumer Insights: Mastering the Business Side

Being a great researcher is only part of what it takes to succeed as a freelancer in consumer insights. To build a steady, sustainable practice, you need to think beyond your craft and operate like a business owner: one who protects their time, prices their value accurately, and knows how to navigate contracts and compliance.

While freelancing can offer autonomy and project variety, it also requires rigor and planning. Here’s what to have in place before saying “yes” to your next gig.

Contracts: Set the Foundation for Every Engagement

Freelance projects move quickly, but that doesn’t mean skipping formalities. Before you dive in, get a contract in place that clearly defines:

• What you’re delivering (and what you’re not)

• Key deadlines or phases

• Payment schedule and method

• Ownership of deliverables

• Cancellation or extension terms

Kathryn Korostoff, founder of Research Rockstar, which operates as a staffing agency through its Rent-A-Researcher program, warns that many freelancers accept projects on their own without fully reviewing the terms. “They end up working more hours than expected, or not being compensated for informal work that was never documented.” Even a short-term or hourly engagement deserves a written agreement. It protects your time, clarifies expectations, and prevents misunderstandings.

If you’re working through a third party (recruiter, staffing agency, platform, etc.), review the contract they provide carefully. Understand what you’re committing to, and what happens if the scope changes midstream.

Pricing: Know Your Value and Understand the Market

Pricing is one of the most strategic decisions freelancers make. Your hourly or project rate reflects not just your skills but also your business model, overhead, and market positioning.

According to Susan Lustig, a veteran recruiter in market research, “freelance rates vary widely, some as low as $60/hour. The key drivers? Skillset, experience, project type, and who’s doing the hiring.

Recruiters or staffing agencies generally add a markup that can range from 20% to 100%. That means a freelancer billing at $100/hour might cost the client $120/hour or more. That means freelancers should carefully consider whether to work directly with clients or through intermediaries.”

If you’re approached for a project, ask:

• Am I working directly with the client or through a recruiter?

• What’s the total value of the project?

• Is this a short-term task or a strategic engagement?

Direct client work often comes with higher pay but requires more involvement—scoping, contracts, and client communication. 

Also, consider setting a minimum acceptable rate that reflects both billable and non-billable time. Admin, marketing, and professional development all take time that must be factored into your pricing.

Recommended Reading: for help setting your rates: https://www.upwork.com/resources/how-to-set-your-freelance-rate]

Taxes and Invoicing: Build a Financial System from Day One

Freelancers don’t have payroll departments. You are the accounting team: responsible for tracking income, paying taxes, and making sure your invoices get paid.

Here’s what you need:

• A simple accounting system to track revenue and expenses (even a spreadsheet can work)

• Tax planning to set aside a portion of your income for quarterly estimated payments

• Clear, consistent invoicing that includes payment terms, late fees, and your preferred payment method

Consulting hiring managers are looking to avoid payroll and HR departments, too, and it’s relatively easy for a company to start working with you as an independent consultant by  “1099ing you”, especially for smaller projects. They set you up as a special kind of vendor with no strings attached as an employee.  

If you're paid on a 1099 basis as an independent contractor, your client will report the income, and it's your responsibility to pay any taxes on that income either quarterly or in annual income tax reporting.If you’re a W-2 contractor through a staffing agency, taxes may be withheld for you, but benefits and job protections will vary.

Legal Setup: Choose the Right Business Structure

It can be relatively easy to get started as an independent research consultant. While some clients will require more insurance and business assurances, many will work with you as an individual or Sole Proprietorship as described above and will guide you on what’s required to work with them. Companies that work with consultants regularly can be incredibly helpful in getting you onboarded and aware of your requirements.  

While many freelancers operate as sole proprietors, you may want to consider forming an LLC or other structure for added legal protection or tax advantages. Here are a few options:

• Sole Proprietorship: Easiest to start, but offers no liability protection. No federal employer ID is needed unless you hire someone as an employee, but a FedID is recommended to get a business bank account, build business credit, and protect your identity. 

• LLC (Limited Liability Company): Offers personal liability protection and flexibility; common among independent professionals. Quarterly filing and annual fees or taxes may apply.

• S Corp or Corporation: May offer tax benefits if your income exceeds certain thresholds but comes with more complexity.

Choosing the right setup depends on your risk tolerance, client mix, and financial goals. Check your state and local requirements, filings, and benefits for each of the business types above. 

If you plan to grow your freelance business into a consultancy or hire subcontractors, formalizing your structure early is wise.

Time is Your Most Valuable Asset: Track It

One of the most overlooked parts of freelancing? Time management and tracking.

Kathryn Korostoff notes that freelancers often lose money by underestimating the hours spent on “invisible work”: onboarding calls, scheduling, reviewing briefs, or handling revisions. "Freelancers often eat up a lot of hours in back-and-forth conversations or onboarding and don’t get paid for it,” she says.

Solutions:

• Use a time-tracking tool (like Toggl or Harvest) to log hours across projects

• Define how many meetings or rounds of revisions are included in your scope

• Set boundaries on availability, especially for last-minute requests

If you don’t track it, you can’t manage it or bill for it. Being diligent helps you evaluate project profitability and sets you up for more accurate proposals in the future.

The Current Reality: More Freelancers, Tighter Margins

It’s important to contextualize these best practices within today’s freelance landscape. Both Lustig and Korostoff point out that there is currently more supply than demand in the market. Companies know it, and many are offering lower rates as a result.

According to Korostoff, Junior (<5 years) and senior (>15 years) freelancers make up the largest share of the pool. Those in the middle (7–10 years of experience) often stay in full-time roles, only taking on freelance work during evenings or weekends. This dynamic has contributed to rate compression, especially for generalists.

While the market remains competitive, researchers who run their freelance work as a business—with systems, clarity, and boundaries—are better equipped to weather fluctuations and land repeat clients.

Freelance Research is Still Research—But It’s Also Business

If you're freelancing in consumer insights, you're not just selling your expertise. You're managing contracts, pricing your services, tracking your time, and handling taxes. You're negotiating scope, protecting your IP, and running the operations behind every invoice you send.

It’s easy to focus on research deliverables and overlook the infrastructure that sustains your business—but those who build that infrastructure are the ones most likely to succeed.

Freelancing isn’t just about being good at your craft. It’s about being good at staying in business.