Hi Mr Brett,
I am not really a professional artist. But, since I have significant experience with freelancing in general, I think I could share some of my thoughts here.
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Originally Posted by Mr-Brett
1. How long did it take you to start making enough to pay yourself a decent salary? by that I mean more than just enough to pay the bills and basic living costs.
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If you started early like 3 to 5 years ago, this will not take that much time. However, in today's world where freelancing is rapidly growing and evolving this will take time. Give it like 2 to 3 years of solid experience and you will get there. You basically have to work your way up. You are going to get paid according to experience and reputation.
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Originally Posted by Mr-Brett
2. Are there any standards in the industry that I should know with regards to freelancing? such as is it common to charge by the hour or day etc.
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It basically boils down to the agreement between you and the employer. You could either be paid by the hour or per project depending on the nature of work. Let's take oDesk and Elance for example. They offer contract jobs so it is reasonable to pay per project. On the other hand, in today's evolving freelancing industry there are now full time remote workers from quality sites like
Staff.com. These people are paid by the hour.
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Originally Posted by Mr-Brett
3. I was thinking of mainly targeting smaller developers, possibly even individuals who can code but need some art assistance and can afford to actually pay someone. Is this viable?
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You are on the right track. You can start with this setup and it is totally viable. I would go back to my first answer. This is going to be the start of building your reputation from experience.
Good luck on your venture!