{"id":30661,"date":"2022-03-24T05:35:00","date_gmt":"2022-03-24T11:35:00","guid":{"rendered":"https:\/\/memberpress.com\/?p=30661"},"modified":"2022-11-16T15:13:59","modified_gmt":"2022-11-16T22:13:59","slug":"freelance-vs-contract-online-business","status":"publish","type":"post","link":"https:\/\/memberpress.com\/de\/blog\/freelance-vs-contract-online-business\/","title":{"rendered":"Freelance Or Contract: Which Is Right For Your New Online Business?"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"utf-8\" ?><html><body><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Learn_3_key_differences_between_freelancers_and_contractors_and_see_whether_they_matter_for_your_situation\"><\/span>Learn 3 key differences between freelancers and contractors, and see whether they matter for your situation.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you\u2019re a growing small online business or solopreneur looking to hire, you might not know where to begin. If you\u2019re looking for help, there a chance you\u2019re also stressed beyond belief if you feel bogged down and burnt out by an unrealistic workload.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 ez-toc-wrap-center counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69ba817f03678\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">WHAT'S INSIDE<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ba817f03678\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/memberpress.com\/de\/blog\/freelance-vs-contract-online-business\/#Learn_3_key_differences_between_freelancers_and_contractors_and_see_whether_they_matter_for_your_situation\" >Learn 3 key differences between freelancers and contractors, and see whether they matter for your situation.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/memberpress.com\/de\/blog\/freelance-vs-contract-online-business\/#Freelance_Or_Contract_Work_3_Key_Differences\" >Freelance Or Contract Work 3 Key Differences<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/memberpress.com\/de\/blog\/freelance-vs-contract-online-business\/#1_Negotiation_of_terms\" >1. Negotiation of terms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/memberpress.com\/de\/blog\/freelance-vs-contract-online-business\/#2_Duration_of_work\" >2. Duration of work<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/memberpress.com\/de\/blog\/freelance-vs-contract-online-business\/#3_Working_Conditions\" >3. Working Conditions<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/memberpress.com\/de\/blog\/freelance-vs-contract-online-business\/#How_to_Decide_Which_Worker_to_Hire_for_Your_Online_Business\" >How to Decide Which Worker to Hire for Your Online Business<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/memberpress.com\/de\/blog\/freelance-vs-contract-online-business\/#How_to_Find_Freelancers_and_Contractors\" >How to Find Freelancers and Contractors<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/memberpress.com\/de\/blog\/freelance-vs-contract-online-business\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<p>The good news? <strong>We can help you with one of the first major decisions you need to make with your new online business: choosing between freelance or contract workers.<\/strong> With a little research and direction, you\u2019ll be able to hire your ideal remote professional in no time.<\/p>\n\n\n\n<p>To get you there, we\u2019ll first talk about freelance vs contract workers. Then we\u2019ll explain how you can find the pro that\u2019s right for your business. Let\u2019s dive in!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Freelance_Or_Contract_Work_3_Key_Differences\"><\/span>Freelance Or Contract Work: 3 Key Differences<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you\u2019re interested in hiring either of these types of workers, you\u2019ve probably realized their job roles are very similar. They both have significantly different responsibilities and restrictions compared to traditional 9-5 employees.<\/p>\n\n\n\n<p>Before we get started, it\u2019s important to understand that \u201cindependent contractor\u201d and \u201cself-employed\u201d are interchangeable terms. Additionally, both <strong>share the same tax status<\/strong> as freelancers.<\/p>\n\n\n\n<div class=\"block-mp-button-wrap\">\n\t<a id=\"button-block_6255eec9159c3\" href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/independent-contractor-self-employed-or-employee\" rel=\"nofollow\" target=\"_blank\" class=\"button button-blue center\">GO TO >> IRS.GOV \u2013 Independent Contractor (Self-Employed) or Employee?<\/a>\n<\/div>\n\n\n\n\n<p><strong>The line between self-employed and employee is a very fine one.<\/strong> And it can be easy to accidentally treat your freelancers and contractors as employees, which is something you <em>definitely <\/em>do not want to do.<\/p>\n\n\n\n<p>For US-based companies, the Internal Revenue Service (IRS) is the ultimate authority when it comes to classifying workers. That being said, make sure you\u2019re careful to follow the rules, or you could find yourself owing some serious back taxes.<\/p>\n\n\n\n<p>With that out of the way, let\u2019s explore the <strong>three major differences between the roles of independent contractor and freelancer<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Negotiation_of_terms\"><\/span>1. Negotiation of terms<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The most notable difference between independent contractors and freelancers is that contractors tend to engage in more specific negotiation. After all, that\u2019s why they\u2019re referred to as \u201ccontractors\u201d. <\/p>\n\n\n\n<p>The most common negotiated terms include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Location where work is completed<\/li><li>The amount of time the person can count on work being available (contract period)<\/li><li>Hours of expected availability<\/li><li>Project price<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Duration_of_work\"><\/span>2. Duration of work<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The contract period (mentioned above) and pay are also major differences between freelance and contract workers. Both freelancers and contractors will typically need written contracts outlining the scope and the duration of their projects:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/sample-freelance-contract.png\"><img decoding=\"async\" src=\"https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/sample-freelance-contract-1024x507.png\" alt=\"An example of a freelance contract. \" class=\"wp-image-30764\" width=\"800\" srcset=\"https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/sample-freelance-contract-1024x507.png 1024w, https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/sample-freelance-contract-300x148.png 300w, https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/sample-freelance-contract-768x380.png 768w, https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/sample-freelance-contract.png 1211w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption>an example of a freelance contract<\/figcaption><\/figure><\/div>\n\n\n\n<p>However, independent contractors generally work on much longer terms and often work for a set price, rather than on an hourly basis. This isn\u2019t always the case, but it\u2019s much more common for a contractor to charge \u201cby the project\u201d or to negotiate a \u201cretainer\u201d. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Contractors and long-term retainers<\/h4>\n\n\n\n<p>A <strong>retainer <\/strong>is an agreement where the contractor charges a set amount in exchange for reserving their services. For example, a web developer might agree to set aside a certain amount of time per month and charge you a <strong>$2000 monthly retainer<\/strong> to reserve that time.<\/p>\n\n\n\n<p>As a result, it\u2019s not uncommon for contractors to remain with one company for many months or even years. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Freelancers and short-term work<\/h4>\n\n\n\n<p>In contrast, freelancers complete projects on shorter timelines and more often for a per-hour rate. They may work for weeks or even days. You\u2019re also usually not obligated to give them notice if you no longer need their services (although it is polite to do so). <\/p>\n\n\n\n<p>For example, a marketing team at a large company may want to hire a graphic artist for a redesign project that will take about two months of part-time work. <\/p>\n\n\n\n<p>This would likely be a job for a freelancer. When the job is complete, the company may decide to stay in touch with the designer. The worker can then decide if they want to accept any projects in the future.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Working_Conditions\"><\/span>3. Working Conditions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another big difference between freelance and contract work is the working conditions. These two types of workers have different restrictions and freedoms. <\/p>\n\n\n\n<p>Contractors usually have longer contract periods, but they also tend to have more limitations. This often (but not always) translates into less independence. <\/p>\n\n\n\n<p>In contrast, freelancers can enjoy the freedom to complete their projects at their own pace, according to their chosen hours.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/working-from-beach.png\"><img decoding=\"async\" src=\"https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/working-from-beach-1024x666.png\" alt=\"An example of a freelancer working from the beach. \" class=\"wp-image-30763\" width=\"800\" srcset=\"https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/working-from-beach-1024x666.png 1024w, https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/working-from-beach-300x195.png 300w, https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/working-from-beach-768x499.png 768w, https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/working-from-beach.png 1300w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>Additionally, freelancers choose the work they take on. They must come to agreements about deadlines and the scope of projects. But outside those terms, they can make independent decisions. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Decide_Which_Worker_to_Hire_for_Your_Online_Business\"><\/span>How to Decide Which Worker to Hire for Your Online Business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every online business is unique. It will have evolving needs and preferences at any moment in time, so there\u2019s no hard and fast checklist for making this decision.<\/p>\n\n\n\n<p>Still, it will be easier for you to choose between freelancers and contract workers if you carefully consider the three key differences between them. You might want to reflect on the following: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The scope of the work<\/li><li>How long projects will last<\/li><li>The work relationship you\u2019d like to have (more or less supervision)<\/li><\/ul>\n\n\n\n<p>In general, smaller businesses with restrictive budgets or solopreneurs trying to <a href=\"https:\/\/memberpress.com\/blog\/monetizing-blog-through-affiliate-marketing\/\" target=\"_blank\" rel=\"noreferrer noopener\">monetize their ideas<\/a> might want to start with freelancers. <strong>If you really like working with a freelancer, and the feeling is mutual, you can always hire them as an independent contractor later on.<\/strong> <\/p>\n\n\n\n<p>Overall, both worker models are pretty flexible, so you shouldn\u2019t stress about this decision. However, you <em>will <\/em>need to know where to look for these different professionals. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Find_Freelancers_and_Contractors\"><\/span>How to Find Freelancers and Contractors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/memberpress.com\/blog\/the-great-resignation-and-how-memberpress-is-fueling-the-entrepreneurial-movement\/\" target=\"_blank\" rel=\"noreferrer noopener\">The rise of entrepreneurship<\/a> means both freelancers and contractors are easy to find. Many people are fed up with rigid labor conditions and toxic work environments. Therefore, they see the benefits of going remote and working for themselves or online businesses.<\/p>\n\n\n\n<p>If you\u2019re looking for a contract worker, you may want to advertise the posting like you would a traditional full-time job. There are plenty of places to post a listing online. For example, <a href=\"https:\/\/www.linkedin.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">LinkedIn.com<\/a> and <a href=\"http:\/\/indeed.com\" target=\"_blank\" rel=\"noreferrer noopener\">Indeed.com<\/a> are some of the most popular places for job seekers. <\/p>\n\n\n\n<p>You can seek freelancers on these platforms too, but you also have other options. There are many well-established freelancer platforms, such as <a href=\"http:\/\/upwork.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Upwork<\/a> and <a href=\"https:\/\/memberpress.com\/go\/fiverr\" target=\"_blank\" rel=\"noreferrer noopener nofollow sponsored\">Fiverr<\/a>, where you can search for specialized remote workers.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/Fiverr-website.png\"><img decoding=\"async\" src=\"https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/Fiverr-website-1024x482.png\" alt=\"The Fiverr website. \" class=\"wp-image-30726\" width=\"800\" srcset=\"https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/Fiverr-website-1024x482.png 1024w, https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/Fiverr-website-300x141.png 300w, https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/Fiverr-website-768x361.png 768w, https:\/\/memberpress.com\/wp-content\/uploads\/2021\/11\/Fiverr-website.png 1407w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>It\u2019s quick and easy to make accounts on either of these websites. Additionally, they have many benefits, such as streamlined payment processes and internal messaging systems. <\/p>\n\n\n\n<p>With both <a href=\"https:\/\/memberpress.com\/go\/fiverr\" title=\"Fiverr Affiliate Link\" class=\"pretty-link-keyword\"rel=\"nofollow \" target=\"_blank\">Fiverr<\/a> and Upwork, you\u2019ll want to make sure you understand the terms of service for your chosen platform. These <strong>terms can sometimes prevent you from transitioning your freelancer to an independent contractor<\/strong> (for a set duration of time).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Hiring someone to collaborate in your online business can be daunting, especially if you\u2019re already struggling with excess work. And there are many factors to consider when making this life-changing professional decision. <\/p>\n\n\n\n<p>Fortunately, there are some key differences between remote workers that should help you decide.<\/p>\n\n\n\n<p>To recap, here\u2019s what you need to know to decide on hiring freelance or contract workers:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Freelance:<\/strong> This setup is typically for irregular or short-term work. Freelancers tend to work with minimal supervision and on their own schedule.<\/li><li><strong>Contract:<\/strong> These workers complete long-term projects, in roles that may become full-time. The work will require more collaboration and may include a retainer.<\/li><\/ol>\n\n\n\n<p>Do you have any questions about hiring a freelancer or a contractor? Let us know in the comments section below!<\/p>\n\n\n\n<p><strong>If you liked this article, be sure to subscribe to our newsletter in the <a href=\"https:\/\/memberpress.com\/go\/box\" title=\"Box affiliate link\" class=\"pretty-link-keyword\"rel=\"nofollow \" target=\"_blank\">box<\/a> up to your right!<\/strong><\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p>Learn 3 key differences between freelancers and contractors, and see whether they matter for your situation. If you\u2019re a growing small online business or solopreneur looking to hire, you might not know where to begin. If you\u2019re looking for help, there a chance you\u2019re also stressed beyond belief if you feel bogged down and burnt [\u2026]<\/p>\n","protected":false},"author":76756,"featured_media":32026,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_strive_editorial_status":"complete","_strive_copy_of":0,"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","_strive_checklists":"\"\"","_strive_active_checklist":"62291e2bb2422","_strive_post_notes":"","footnotes":""},"categories":[69,144],"tags":[582,347,173,322,622,245],"class_list":{"0":"post-30661","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-advice","8":"category-business","9":"tag-employees","10":"tag-freelance","11":"tag-hiring","12":"tag-online-business","13":"tag-small-business","14":"tag-working-with-freelancers","15":"entry"},"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO Pro 4.9.5.1 - aioseo.com -->\n\t<meta name=\"description\" content=\"Looking to hire a remote worker for your new online business? 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