The New Way to Work: Freelancer vs Contractor vs Everybody Else

Jayde Powell posted this...

...and all I could think (and so did 500+ other people) was O.M.G. I thought I was the only person who noticed that freelancers are no longer being treated like freelancers!

But then I realized something...

This problem is so much bigger than people not knowing the difference between a contract and a freelance hire. They actually don't know the difference between a:

Freelancer

vs

Contractor

vs

Consultant

vs

Fractional

I get it, it's a lot.

But if you're considering switching from full-time to one of these roles OR hiring someone to step into one of these roles, then here's the quick and dirty:

In this video, we breakdown the difference between Freelance vs Contract vs Consultant vs Fractional work.

Still not 100% sure which type of work you want to do or which kind of professional you'd like to hire? Check out the breakdown below.

Freelancer

Nature of Work: Freelancers typically work on a per-project or task-based basis, usually for multiple clients. Their work is often short-term and specialized.

Autonomy: Freelancers generally work independently, setting their own hours, and choosing which projects to accept.

Example: A graphic designer who takes on different design projects for various companies on a freelance basis.

Contractor

Nature of Work: Contractors are usually hired for a set period or specific project. They can either work for a single client full-time for the contract duration or on multiple projects, similar to freelancers, but their contracts might be more formalized with specific start and end dates.

Autonomy: They work more independently than employees but may have more formal agreements or stipulations tied to the job.

Example: A software developer hired to work on a six-month contract to build an application for a company.

Consultant

Nature of Work: Consultants provide expert advice or strategic insights based on their expertise in a specific field. They may not be directly involved in the execution of work, focusing more on guidance, strategy, or troubleshooting.

Autonomy: They typically work independently, but their relationship is more focused on advisory roles and less on doing tasks directly.

Example: A marketing consultant hired to analyze a company's brand strategy and offer suggestions for improvement.

Fractional

Nature of Work: A fractional professional works part-time but offers senior-level or executive services to one or more companies. Their role is ongoing and can be strategic or operational, usually filling gaps in leadership or expertise without the need for a full-time hire.

Autonomy: They often have the autonomy of a consultant but function more as part-time executives or team members with consistent engagement.

Example: A fractional CFO who works part-time for multiple small businesses, providing financial leadership without a full-time commitment.

Fin. Bookmark this and come back to it before you make your next hire or sign your next client.