what is a freelance agency
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By 6.2 min readLast Updated: 10. January 2023

Get answers to everything you need to know about a freelance agency and when it makes sense for you as a freelancer to use one.

The freelance industry is growing rapidly, and the number of tired 9-5 types who go the freelance route and seek more flexibility in their working life is steadily increasing.

At the same time, new terms are constantly appearing, and the freelance world can sometimes seem like an endless (albeit exciting) world to explore.

One of the great opportunities that have become available to you as a freelancer is a freelance agency. But what the hell does that really mean? We dive into it here.

1. What is a freelance agency?

One freelance agency, also called service agency for freelancers, is basically an agency that offers a service to freelancers that makes freelance life a lot easier.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help almost 2,000 others with an everyday life without administration.

create free user
A freelance agency keeps track of administration and accounting

As an independent and freelancer, it can be difficult to achieve everything.

There are many things to keep track of, which is why more and more people also use a freelance agency, which, among other things, removes one of the biggest headaches, also known as accounting and administration.

Often freelance agencies charge a small fee for their service, e.g. a percentage of your turnover.

That way, you also only pay when you use the agency and as needed, so that the price can follow your turnover.

For the price, you as a freelancer get more freedom, fewer worries and no longer have to think about financial Accounting, VAT and taxes.

Not to mention newly started freelancers, who with a freelance agency have the opportunity to avoid creating a CVR no., business account, business insurance and other administration in connection with starting a sole proprietorship.

2. What can you use a freelance agency for?

When it comes to outsourcing time-consuming tasks as a freelancer, it is understandable that accounting and administration are often at the top of the wish list for most freelancers.

Get rid of administration and focus on your customers

In fact, freelancers spend on average 13.6 hours on administration each month.

Therefore, this is also what the vast majority of freelancers who look towards a freelance agency dream of outsourcing.

In short, as a freelancer you can use a freelance agency to get rid of all accounting and administration, and thus free up time for all the fun.

Gaining more time by using a freelance agency for accounting and administration can in many cases be a good investment, as both the business and the customers can get the focus they require, and you thereby have better conditions for scaling and increasing turnover.

The reasons why a freelancer uses a freelance agency can be many, but most often it is due to:

  • That you want to get rid of the hassle of administration
  • That you would like to free up time for other parts of the business or increase free time
  • That you, as a new freelancer, would like to test the freelance life without setting up a company, etc.
  • That you miss the simpler and carefree time as an employee

Many freelancers also have a vision of a more free, simple and flexible working life, and this goes well with what a freelance agency can do.

What does a freelance agency do for you?

Most freelance agencies offer to take care of all administration and accounting – as in everything!

Most of the time, you only need to register as a user at first, and then all that is required of you is to enter the customer's information, some information about the job and price, and any deductions.

After this, the majority of freelance agencies handle the rest, such as creating and sending invoices, providing insurance during your work, deduction registration, VAT and tax accounting, holiday pay, etc. and instead pays out your profit as quite normal wages.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help almost 2,000 others with an everyday life without administration.

create free user

3. When should you use a freelance agency?

There is no exact answer to this and of course it depends on your situation.

A broad answer can be; when you want or need it!

Are you tired of administration and accounting?

If you are tired of accounting and if the administrative work is a motivation killer time and time again, then this is a sign that a freelance agency is a good solution for you.

Free up time and energy for what you're really passionate about and get the passion back!

Are you a new freelancer and want to test life?

If you are new to the freelance world and have just found your first client, it can seem overwhelming to get started as a freelancer.

With a freelance agency behind you, you can easily and quickly get off the ramp and start your first task, so that you can test life as a freelancer without difficulty and without setting up a company.

A good opportunity for you who want to get started effortlessly and quickly!

Having a hard time keeping up?

Maybe your freelance business is going well, you have many tasks and the customers are queuing up?

Here it can be a relief not to have to think about accounting and administration on top of the many tasks.

We only have 24 hours in a day and everyone has a limit to how many balls they can juggle at once.

Get time to focus fully on your customers and work tasks!

There can be many scenarios where you as a freelancer can benefit from a freelance agency - and in the vast majority of cases it pays off.

As a freelancer, by using a freelance agency, you can also get rid of expenses for accounting software, an accountant and a business account.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help almost 2,000 others with an everyday life without administration.

create free user

4. What does a freelance agency cost?

As mentioned earlier, most freelance agencies charge a small fee, which is usually a percentage of your revenue or income from that invoice they process, before tax.

Denmark's largest freelance agency, Factofly, takes 6% of your invoice before tax. (It's our magic fingers that wrote the article here fyi!)

The price of other freelance agencies can vary slightly, where it is often between 6-12% in administration fee.

Many freelance agencies also have an online one salary calculator, so you can easily and quickly get a clear overview of what things cost and what you have in your hands.

With a salary calculator, you can see what your payment of an invoice will be after the freelance agency's administration fee, tax and with travel and personal deductions – i.e. your final 'salary'.

what is a freelance agency
By 6.2 min readLast Updated: 10. January 2023

Get answers to everything you need to know about a freelance agency and when it makes sense for you as a freelancer to use one.

The freelance industry is growing rapidly, and the number of tired 9-5 types who go the freelance route and seek more flexibility in their working life is steadily increasing.

At the same time, new terms are constantly appearing, and the freelance world can sometimes seem like an endless (albeit exciting) world to explore.

One of the great opportunities that have become available to you as a freelancer is a freelance agency. But what the hell does that really mean? We dive into it here.

1. What is a freelance agency?

One freelance agency, also called service agency for freelancers, is basically an agency that offers a service to freelancers that makes freelance life a lot easier.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help almost 2,000 others with an everyday life without administration.

create free user
A freelance agency keeps track of administration and accounting

As an independent and freelancer, it can be difficult to achieve everything.

There are many things to keep track of, which is why more and more people also use a freelance agency, which, among other things, removes one of the biggest headaches, also known as accounting and administration.

Often freelance agencies charge a small fee for their service, e.g. a percentage of your turnover.

That way, you also only pay when you use the agency and as needed, so that the price can follow your turnover.

For the price, you as a freelancer get more freedom, fewer worries and no longer have to think about financial Accounting, VAT and taxes.

Not to mention newly started freelancers, who with a freelance agency have the opportunity to avoid creating a CVR no., business account, business insurance and other administration in connection with starting a sole proprietorship.

2. What can you use a freelance agency for?

When it comes to outsourcing time-consuming tasks as a freelancer, it is understandable that accounting and administration are often at the top of the wish list for most freelancers.

Get rid of administration and focus on your customers

In fact, freelancers spend on average 13.6 hours on administration each month.

Therefore, this is also what the vast majority of freelancers who look towards a freelance agency dream of outsourcing.

In short, as a freelancer you can use a freelance agency to get rid of all accounting and administration, and thus free up time for all the fun.

Gaining more time by using a freelance agency for accounting and administration can in many cases be a good investment, as both the business and the customers can get the focus they require, and you thereby have better conditions for scaling and increasing turnover.

The reasons why a freelancer uses a freelance agency can be many, but most often it is due to:

  • That you want to get rid of the hassle of administration
  • That you would like to free up time for other parts of the business or increase free time
  • That you, as a new freelancer, would like to test the freelance life without setting up a company, etc.
  • That you miss the simpler and carefree time as an employee

Many freelancers also have a vision of a more free, simple and flexible working life, and this goes well with what a freelance agency can do.

What does a freelance agency do for you?

Most freelance agencies offer to take care of all administration and accounting – as in everything!

Most of the time, you only need to register as a user at first, and then all that is required of you is to enter the customer's information, some information about the job and price, and any deductions.

After this, the majority of freelance agencies handle the rest, such as creating and sending invoices, providing insurance during your work, deduction registration, VAT and tax accounting, holiday pay, etc. and instead pays out your profit as quite normal wages.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help almost 2,000 others with an everyday life without administration.

create free user

3. When should you use a freelance agency?

There is no exact answer to this and of course it depends on your situation.

A broad answer can be; when you want or need it!

Are you tired of administration and accounting?

If you are tired of accounting and if the administrative work is a motivation killer time and time again, then this is a sign that a freelance agency is a good solution for you.

Free up time and energy for what you're really passionate about and get the passion back!

Are you a new freelancer and want to test life?

If you are new to the freelance world and have just found your first client, it can seem overwhelming to get started as a freelancer.

With a freelance agency behind you, you can easily and quickly get off the ramp and start your first task, so that you can test life as a freelancer without difficulty and without setting up a company.

A good opportunity for you who want to get started effortlessly and quickly!

Having a hard time keeping up?

Maybe your freelance business is going well, you have many tasks and the customers are queuing up?

Here it can be a relief not to have to think about accounting and administration on top of the many tasks.

We only have 24 hours in a day and everyone has a limit to how many balls they can juggle at once.

Get time to focus fully on your customers and work tasks!

There can be many scenarios where you as a freelancer can benefit from a freelance agency - and in the vast majority of cases it pays off.

As a freelancer, by using a freelance agency, you can also get rid of expenses for accounting software, an accountant and a business account.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help almost 2,000 others with an everyday life without administration.

create free user

4. What does a freelance agency cost?

As mentioned earlier, most freelance agencies charge a small fee, which is usually a percentage of your revenue or income from that invoice they process, before tax.

Denmark's largest freelance agency, Factofly, takes 6% of your invoice before tax. (It's our magic fingers that wrote the article here fyi!)

The price of other freelance agencies can vary slightly, where it is often between 6-12% in administration fee.

Many freelance agencies also have an online one salary calculator, so you can easily and quickly get a clear overview of what things cost and what you have in your hands.

With a salary calculator, you can see what your payment of an invoice will be after the freelance agency's administration fee, tax and with travel and personal deductions – i.e. your final 'salary'.