Freelancer, Contractor, or Consultant?
Updated: May 22, 2023
In the vast and evolving world of work, certain terms often overlap and intertwine. This could lead to confusion and uncertainty.
Are you a freelancer, a contractor, or perhaps a consultant? While it may seem that these words can be used interchangeably, there are nuanced differences that set them apart. The short answer is that all these terms are “technically” the same. In the US, there are two distinct worker classifications: Employee (W2) and Independent Contractor (1099). Since all of the above fall into the "independent contractor" worker classification, they are all technically the same.
That doesn’t mean that they each don’t have distinct meanings depending on the context. Here's a general breakdown of the differences:
Freelancer: A freelancer is an individual who works independently on a project or task basis. Freelancers are typically self-employed and offer their services to multiple clients. They have the freedom to choose the projects they want to work on and set their own rates. Freelancers may work remotely or on-site and often have specialized skills in areas such as writing, graphic design, web development, community management, or marketing.
Contractor: A contractor is an individual or a company that enters into a formal agreement with a client to provide specific services or complete a project within a defined timeframe. Contractors are usually engaged for a specific task or a predetermined period. They may work independently or have a team working under them. Contractors are responsible for managing their own resources, such as tools, equipment, and personnel, to deliver the contracted work. They may work on-site or remotely, depending on the nature of the project.
Consultant: A consultant is an expert who provides professional advice and guidance in a particular field or industry. Consultants are typically engaged to analyze a specific problem, develop strategies, or provide recommendations to improve processes, operations, or business performance. They are hired for their expertise and experience and often work on short-term projects. Consultants may work independently or as part of a consulting firm. Their services can range from management consulting to IT consulting, financial consulting, or community consulting.
While there can be overlap between these roles, the key differences lie in the nature of the work, the level of independence, the specific expertise provided, and deliverables. It's important to note that the distinctions may vary across industries and countries, and individuals may identify themselves using different terms based on their personal preferences or the nature of their work.
Over the years, I’ve conducted customer and freelancer outreach to understand better how "gig" workers think of themselves and how they would like to be addressed. There is really no right answer, and sometimes it’s all a matter of preference. Some freelancers think they'll get more jobs if they call themselves independent contractors vs. Freelancers, yet some thrive on being called a "freelancer." Lyft/Uber/Postmates have really co-opted the "Gig economy worker" label, so most who freelance/contract don't love that moniker.
Regardless of the label you choose, the Community Consultants Collective stands as a supportive platform, empowering community professionals to thrive and grow in their freelance and consultancy pursuits. We’d love to have you as part of CCC and embark on a journey where you define your own professional identity.