Freelancer Vs Contractor

There's usually a comparison in the form of freelancer vs contractor. This debate has raged on for a while now with people having different opinions. Some are on the freelancer divide while others are in the contractor divide. There hasn't really been enough efforts made to settle this argument. In this article, I'll be giving deep insights into this debate. First, we'd have to know what each of them stands for.

Who is a freelancer?

A freelancer is a person who works remotely for clients from different parts of the world, rendering services and getting certain jobs done. This key word here is that a freelancers work remotely. Another key word is that freelancers can work for more than one client simultaneously. A freelancer can also have different skills for different kinds of jobs. Freelancers are definitely not employees, rather they are independent brands who render services to clients on time-based or skill-based agreement.

Who is a contractor?

A contractor is an employee who is usually hired to work for a certain period. A contractor can be hired to work for 2 or more years. This is a duration system. A contractor can actually be hired to work until a particular work is completed. This is a work completion system. Contractor works mostly as an employer until the end of the contract. 

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Similarities Between A Freelancer And A Contractor

Freelancers and contractors share certain similarities. There are usually features that are common to both a contractor and a freelancer. Some of them are:

• Payment
• Job
• Shared part-time
• Agreement
• Consent

1. Payment

A freelancer and a contractor are both paid after a job is done or a service rendered. There are different payment options which are usually based on what both parties agreed on. The central point here is that a contractor gets paid as well as a freelancer.

2. Job

Whatever a freelancer is doing for a client or a contractor is doing for an employer, the fact remains that it is simply a job. This is one feature both the freelancer and the contractor share. You don't assume it is not a job simply because it is a contract or a freelance work. A job is still a job irrespective of what name it is called. So, it is common that both the freelancer and the contractor do carry out jobs for clients on agreed payment.

3. Shared Part-time

In reality, a contractor can work with a client in the same office depending on the nature of the job. A freelancer on the other hand can share the same working platform with a client. One thing that remains constant for both the freelancer and the contractor is that their jobs or services have limited time, that is shared part-time. This means that their jobs end immediately when they are completed. This is not an employee system where you work for as long as a company keeps you. Contract and freelance are about "result" and "time". For a job that is based on time, once that time is up, then the job is over. For a job that's based on result, once the goal has been met, then the job ends. This is the same for freelancers and contractors.

4. Agreement

Contracts involve mutual agreement between clients and contractors. Freelance is also in involves agreement between a freelancer and a client. They are not a form of employment where the employer gives conditions that the employee must accept before he is employed or reject and remain jobless. Freelance and contract involves mutual agreement between the parties involved. They mutually decide on the work model, payment system and every other thing regarding the job. 

5. Consent 

A client must get a freelancer or contractor's consent before making any decision. It is common to both because you cannot possibly achieve your goal without getting your contractor or freelance expert involved in what you're doing. 

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Differences Between A Freelancer And A Contractor

• Remote vs Physical
• Currency Differences
• Payment System
• Part-time vs Full-time
• Number of clients at a time

1. Remote Vs Physical

Freelancers work online and do not have any need for physical meetings with clients. The remote work model is what makes freelance unique and completely different from other physical jobs. Most contractors on the other hand are required to physically carry out their jobs. This is what differentiates freelance from contract. Freelance jobs are done online and there's no prior meeting between the freelancer and the client physically. Everything starts and ends online. Contractors on the other hand have to be physically present to get jobs done.

2. Currency Differences

Contractors get paid with the local currency of their country but freelancers get the privilege of earning in foreign currencies as a result of working with foreigners. This is a major difference between these two. Contractors cannot get paid in foreign currencies when they are doing local jobs. 

3. Payment System

Contractors are paid in cash or through their local bank accounts whereas freelancers get paid through online payment platforms. The payment system for freelancers is usually flexible as the freelancer's preference is usually considered while the payment system for contracts is quite rigid. 

4. Part-time Vs Full-time

Freelancers generally work from home according to their own timing and availability. They don't have to work at a certain time. This is what gives freelance this part-time outlook. Even for full-time freelancers, the level of convenience, freedom, independence and flexibility inherent in the job still gives it a part-time outlook. Contractors on the contrary work full time until the expiration of the contract. Contracts involve your physical participation and constant presence and these require full-time attention. 

5. Number Of Clients At A Time

The freelancer can work for many clients at the same time but this is not the same for a contractor. A freelance job is usually flexible and allows you to multitask. A contract job requires full attention and this does not allow for multitasking. A contractor cannot possibly work for more than one client at a time because of the nature of the contract work system whereas this is a normal thing for a freelancer. This feature is most convenient in freelance platforms like UpMyChain where you are open to meeting many clients daily. 

Easy Answers

1.  Payment
2. Job
3. Shared part-time
4. Agreement
5. Consent
6. Remote vs Physical
7. Currency differences
8. Payment system
9. Part-time vs Full-time
10. Number of clients at a time

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