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Web design is one of the fastest-growing industries on the planet, with more and more people believing they can 'make it big' by creating websites. Such growth has it's downfalls, and supply now greatly outstrips demand. That doesn't make for a good industrial economy, giving the customer much more choice, but the company a lower chance of finding work.
As has become the case for people like Accountants, and Lawyers/Solicitors to some extent, you have to be able to really prove yourself in order to make web design pay as a living. This could mean a high profile client, or a vast portfolio of work that you have done, or contributed to. You then have to decide whether your talents warrant a hefty price tag should anyone wish to utilise them, or whether you want to aim a little lower and try to ensure a constant flow of lower-paid work.
Whatever the case may be, it will be no easy task to prove successful. The internet is a rapidly expanding marketing tool, yes, but conventional methods are far from dead and buried. To this end, it is probably better to offer a broader range of services (if you are able to), possibly branching out into graphic work.
It's a harsh reality, but there are literally millions of people who think they can whip up a smart looking website (or not so smart in some cases), and that this automatically qualifies them to charge insane amounts for their time. They build themselves up, ultimately, for a big fall. Unless you are well established already, are lucky enough to latch on to a number of decent projects, or are able to effectively market an almost unique talent you have (or at least make it seem as though you have something different to offer the client), being a web designer can be a long slog.
I think it's far more effective, and ultimately realistic, to target a particular industry, aiming your services directly at a select group of companies. This doesn't mean going through the business directory and mailing all the companies in a particular business area. Instead, focus on an entire market, motor sport, or engineering for example (the area can be literally anything). Having an interest in the area you choose is an obvious advantage, as you can tailor the website far better if you have a true understanding of the audience you are projecting to.
This is for me gives you by far and away the best of chance of 'survival'.
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