November 12, 2023

Freelance vs. Contract Work

There are lots of types of remote working available, and the number of these are increasing every year. Today we will focus on freelance and contract work. These two types of work seem similar but there are key differences between these way of works. This content can be influencing for both companies and individuals who are seeking to work as freelance or contractor.

What is Freelance (Freelancer)?

Freelance work style is typically project based work, allowing individuals to work for different clients, startups and teams. Freelance offers high flexibility for people like they can set their own schedules and the location of the workplace. They have the flexibility to balance their work and personal life with being a freelancer. Being independent is the most crucial advantage of freelancers. They can work at coworking spaces, coffees, hotels, libraries and even restaurants.

What is Contract Work (Contractor)?

Contract based working involves long term commitment to a specific - only one - company or organization. Contractors have specific responsibles, deadlines for their projects and tasks. It can be short-term, medium-term and long-term commitments. The duration of the engagement can vary and contract based work allows to work for only one company at the same time.

Differences Between Freelance and Contract Work

Work Arrangement

Freelancers can choose their projects and create their schedule depending on their interests. They are accountable to their services, they don't work under one team or manager. They are only responsible for their results. With this advantage they can create a balance on their working and personal hours. They have the freedom to choose to work on one or multiple projects simultaneously.

On the other hand, contract workers are a kind of a part of the company. They are typically work as a part of a team or under the management of a manager until the end of the project. Their responsibilities are clear and borders are strict. Contractors need to meet the goals of their managers or the team they are responsible for. They often have specific deadlines - fixed schedules and timelines that must be met. Their income and stability of working are predictable when we compare with freelancers.

Income and Payment

Freelancers have to find new clients to continue work as freelance, it is depending on new clients, managing their time and creating brand - name awareness for their services. They can easily set their rates based on their expertise, they can negotiate with clients about the project - the payment. They need to invest time and money on their brand, name and reputation, generally it takes a long time to create it.

Contract workers are working as regular employee for the companies. They are working based on a stable salary and income. Some companies can offer additional benefits like health care coverage and food allowance. They have predictable payment schedule and security of in house employment. In this aspect, being a contract worker can be better than being a freelancer.

Skill Set

Creativity and independence play a crucial role for achieving success for freelancers. They need to take initiative, handle more than one task at the same time, solve problems individually. Freelancers constantly adapt to the ever-evolving demands of various industries and projects. This is a kind of "you are the limit" situation, freelancers need to consider improving themselves for new trends continiously.

Contract workers typically specialize in specific skills, they don't have to handle all the project individually. Their knowledge and experience make them valuable for each project or task.

Finding Work

For freelancers, finding new work often involves leveraging their existing network, actively utilizing social media platforms or registering on popular online platforms such as Upwork or Fiverr. Freelancers must actively market their unique skills and expertise to secure projects independently.

For contractors, there are multiple avenues available to find potential clients. These include ;

• Exploring job search engines catering to freelance opportunities

• Regularly visiting company websites that frequently post contract positions

• Establishing connections with staffing agencies that match freelancers with suitable projects.

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