Are You Freelance or Self-Employed?

We see this all the time, and it really is amazing how folks view “freelancers” as opposed to corporate employees. Remember, the money spends the same!

Well, at the moment I’m employed, self-employed, and freelance. I work a part time job and freelance. This is a fairly new circumstance since I’ve only recently entered the world of freelance, but if business remains as it is or increases then I could see eventually switching to full time freelancing.

That aside, I’d say that everyone who’s a freelancer is also self employed. Just my opinion of course, but I think that while it’s possible to be self-employed without being a freelancer, it doesn’t work the other way around. Similarly to how all squares are rectangles, but rectangles need not be squares. I am new to the freelancing world though, so it’s possible there’s just something I don’t understand myself.

Enough of these question posts!

Ha Ha! Actually this happens quite frequently. Recently, I was in my home town and a distant relative comes to me and asks, so what do you do for living? I replied that I am a freelance writer and I write blah…blah….he listened to me for good few minutes and then he says, That’s all fine but what do you do (what’s your job)!!

Well, I was stumped and had to run away for my life. But yeah, this happens regularly!

Enjoyed reading your post.

Great article, Jason! I guess I’d have to confess to being a lot of one and a little of the other. I’m self-employed and tied to the responsibility of staff, writers and a physical office most of the time, but I do allow myself the freedom of freelancing in bunny slippers on occasion.

Cheers, Linda
The Beacon Magazine
Bowser, British Columbia

For a long time I labeled myself as Freelance-in-search-of-full-time, but in the past 12 months or so I’ve transitioned into being self-employed, including operating almost entirely under my business name. It changes perceptions, certainly.

The only downside is that folks are less likely to consider you for employment, whether it be temporary or full-time. You’re now the competition, not a potential resource.

I have never differentiated between “freelancer” and “self-employed”; to me, they are synonymous. I’m kind of surprised to hear people figure freelancers must be unhappily unemployed/between jobs/just waiting for something better to present itself, to be honest. I’ve been freelancing for 14 years and have never run across this attitude once.

In any case, when people ask me what I do for a living, it’s a 50/50 split as to whether I’m going to answer, “I’m a freelance market research analyst” or “I’m self-employed.” Mostly it depends on whether I think the person will have any idea what a market research analyst is or if I’m going to have to spend half an hour explaining it.

Having recently made the switch from being a corporate sysadmin to a full time freelancer, I’m still fending off the “I’m glad you’ve found something to keep you busy until you can find a real job” comments from my mostly older family. Maybe this phrasing will finally get through to the 50+ crowd.

I tend to say that I’m self-employed. Freelancing has always, to me at least, seemed to imply working with any one client one project at a time; hopefully with repeat business but not necessarily an on-going relationship. Since I have on-going contracts with a few clients, in addition to the one off projects, and some products I sell, I feel more like I’m running a business than freelancing.

I agree. I think it depends heavily on who you are speaking with. The term freelancer can create a sense of “lack of commitment” or it can say “progressive”. On the other hand, self employed can suggest “small and ineffective” or “nimble and efficient”. You just have to feel out the audience you’re communicating with.

If I tell people (especially the in-laws) that I’m a freelance web developer, they tend to think or say “Oh, so you’re not doing well?” or “so you’re in between jobs?”

I’ve found that if I tell people that I run a web design business (which is essentially true) then they’re taken back and usually say something along the lines of “That’s awesome! Good for you.”

It seems it’s not what you say, but how the other person interprets it. =/

Hey Jason, good article. I’m constantly trying to get our members to stop calling themselves ‘freelancers’ and use the term ‘consultant’ or almost anything else. It doesn’t really matter what we call ourselves, it’s how we’re perceived (positioning) that really effects our credibility as experts. For years between layoffs, I ‘freelanced’ for an agency. It disturbed me that I was always treated like an entry level fluky by the corporate wage salves. And I had a master’s degree and more than a decade of experience!

It finally clicked. It’s their problem. Now that I run the Self-Employed Academy for solo pros that’s a huge distinction I make for our students. It’s part of positioning and branding. It’s fine to work in our fluffy slippers at home – I do! – but we want to present ourselves as experts to the world. I think the term ‘freelancer’ is more entry level than being a business owner.

Just my $.02 worth.

I generally say self-employed, because of the way the two terms are interpreted. Freelancing to some is something you do part time, or between jobs. Self-employed has ‘employed’ right there in the title, so there is less of a tendency towards the “unhappily unemployed” frame of mind.

Good post, it’s an interesting trend word association.

I say I’m self-employed because I don’t freelance on a w-2 form (US) and run all income through my own S-Corp. Kinda makes the conversations easier this way.

For some reason I’ve always disliked the word “freelance”. It sounds too dramatic or something.

If someone asks me “Are you a freelancer?”, I will say yes, but given a choice I will just say “I work for myself.”

Yes – I usually just say “I own my business,” I then go on to describe my services if they seem interested.

Very interesting. I call myself a stay-at-home mom or in the church world a clergy wife. After turning 55, I was advised to raise my status by saying that I am retired – (retired being a word in the corporate vocabulary whereas mom and wife aren’t). If so inclined, I could be even more imaginative and say that my return on investment enabled me to retire the week before my 32nd birthday – (I suppose putting hubby through school could be considered a high yield investment.).

Hey there,

Good on you Christopher, depends on who i am talking to. In France, Freelance is well-know and associated to webworkers or artistic area, i believe.
So it’s different !

Maybe this is why no one takes me seriously… I have been saying that I am a freelancer but after reading this I am definitely self employed. Never gave it that much thought until this post.

I think people don’t get what I am doing and almost chuckle when they ask how “EDGD” is doing. It is a little disheartening since I have been working really hard at growing my business over the past year. Guess some people just don’t get it, esp. if they don’t have the option of “freelancing” or being “self employed”. It must still be somewhat of a new concept to work from home and I guess some don’t take you seriously if you don’t actually drive to a location everyday or wear a suit to work.

This is a great topic and honestly I usually base my response by stereo-typing the person who is asking me based on age and appearance:

18-35 – Freelance Web Developer/Designer – with a job as a Flash/ActionScript Developer
35-50 – Web Designer / Developer
50-65 – I build websites

… and if I don’t want to explain it I say I am a garbage man or a mail man – feel free to use this one!

great article!

I think the answer is obvious: I’m a self-employed freelance consultant.

(So’s my wife.)

What I tell people depends on what they understand.

“Consulting” (or “contracting” or “professional services”) means little to many and a lot to a few. It works best with potential clients, though.

“Freelancing” explains the 8am to 8am work hours or the ability to work from a coffee shop. It also seems to go with writing more than consulting does.

And self-employed works well when taxes are being paid. It also works well to explain that we don’t always work for someone else (like you do with consulting and sometimes even with freelancing). It is better at defining making something for yourself and then selling it directly to customers as opposed to selling your time to someone else (consulting) or selling your work to a publisher (freelance writing or content creation, often through a contract — but rarely called contracting).

Right now it’s the freelance status for me. Once I’m done with unfinished business I’ll be heading towards the “self-employed” route.

Here where I live the idea of being a freelancer is actually becoming more and more popular, but I guess it has to do with the fact that freelancers are earning dollars and not local currency.

Sometimes I need to remind myself of this fundamental truth, but — EVERYONE is self-employed, even if they are (currently) getting a corporate paycheck.

From a personal financial perspective, YOU, like any business, manage a revenue stream and expenses; hopefully with more revenue than expenses (profit).

You–and what you know and do–are the product. Sometimes you sell YOU in 40-hour-week slices, or sometimes in smaller slices. It is the business of YOU.

That said… I prefer SELF-EMPLOYED; in my business experience, seems to evoke more positive acceptance. Perhaps people think it’s a few steps closer (on the ladder of success) to “independent means” than “freelance” that may suggest “trying-to-get-started-but-actually-broke-and-open-to-anything”. -slj-

Over here, I like to use the term “self employed” as people tend not to take you seriously when you say “i’m a freelancer”. Especially people in the corporate sector.

Also, when you tell your prospective clients you’re a “freelancer”, they tend to think you’re not serious, it’s just your hobby. And there goes your opportunity. Of course this is different for everyone.

Ben is exactly right- I feel the word “freelancer” has a stigma to it where people don’t view you as having a real job. Even some of my friends, who know exactly what I do and some of my day-to-day stuff, have asked me when I’m getting a ‘real’ job.

I usually just say, “I run my own web development business.” I find that gets the best reaction out of people

That is a hard one.

I actually feel that self employed is kind of loserish as well.
Self employed suggests the consternation of always needing more work, and needing more work makes it seem like you are not successful… Since to be successful is the option of turning down work.

I prefer to use several terms.
I run my own internet media corporation
I run my own Internet Marketing Engineering Corporation/business/cabal… current favorite

People may ask if you have any employees, I say without blinking that i work globally with best in class freelancers, partners at moving niche and unsaturated internet markets.

when they persist, since they can’t wrap there minds around what I do, I end up saying
” you know how your company is losing traction in its online sales”, yeah well someone like me is taking your sales, and giving them to your competitor who is paying me a better commission.

Good article, you made me pause when you mentioned the definitions of “freelancer” & “self-employed”, I was struggling to work out the difference until I read further

I’m not “Free” and my name isn’t “Lance!” – learned that a long time ago.

I own Holy Cow! Creative.

I used to call myself a freelancer. But for me the term felt temporary, part time. I freelanced when I was at the agency at night, now that I wasn’t there if I was still freelancing, well it was like it was helping me get by until the next thing.

Turning off the term freelance was a part of a big switch for me of embracing my dream. I started to not just refer to myself as an owner, but I started to see my self as an owner. It gave me a better frame to work within. This wasn’t casual, this wasn’t temporary. And…I work exclusively with churches so dropping the word free helps them to realize it isn’t free.

How do you differentiate freelancer and contractor? (I have a french background and the difference is not obvious to me)

Is it just that a contractor could also be used for a company?

I love how your bio says “Still a bit new to the world of freelancing”

Freelancing has always, to me at least, seemed to imply working with any one client one project at a time; hopefully with repeat business but not necessarily an on-going relationship.

Right now…freelance. I still have a part-time job, and soon I’ll be working full-time in a field nowhere near design, while still freelancing.

I have a bunch of clients right now, but not quite enough to keep me busy full-time, and I haven’t been able to do much marketing.

Nice read!

I agree with those responses saying that it depends who you talk to.

Usually, I tend to say: “I build websites and write.”, similar as @Michael Saathoff

However, I do see the point of stating “I’m self-employed” as it implies that you have a business not struggling to continue the cash and project flow.

Thx for

Interesting post and I agree it’s tricky to differentiate freelance vs self-employed.

Thanks for raising this question Jason! When I tell people that I had an office job and now I’m freelancing they automatically assume that I was fired and that I can’t find a job. The expression on their face says: “You mustn’t be too good at what you do and I hope you don’t ask me if I know of a job.”

I’ll try using self-employed the next few times people ask what I do just to see if there’s a change in reaction.

Hi Jason, great post topic. I actually wrote one similarly a little while back and I would definitely state that I’m self employed rather than a freelancer. You’re right about all the negative conclusions a term like “freelancer” can lead others to believe.

Actually, if I had to choose between calling myself self-employed or an entrepreneur, I would choose the latter, because that’s ultimately what I’m doing. I’m not focusing on a single industry to generate my income. I believe with the freedoms we (people who have decided to trust in their own abilities to succeed financially) all have come to realize and want, we know we don’t like be bounded by a rigid title that’s supposed to define us.

The post I mentioned earlier that I wrote about is titled Define Entrepreneur

Great site btw.

I tell people I run my own illustration and design business. Thats seems to get more understanding and respect than just ‘freelance’ (which I think many people equate with temp work). I my experience, ‘freelance’ seems to be more of a hired hand for a company working in their offices during their set hours, etc. I work out of my own office, and set my own work times, etc.

I have written about this same subject a while back – it’s true… Freelance conjures up so many pre-conceived notions, and while I use the term sometimes when talking with other freelancers, I don’t really identify with that label. I understand freelance as to mean that you work for various businesses as a free agent… and that doesn’t describe me at all. I work exclusively for one business… I have many clients, but those clients hire my business …and that business just happens to be a one-woman show.

It’s funny, I sometimes introduce myself to new clients as a ‘freelancer’ if I feel they are looking to cut costs with out-of-house work. Most of the time I say I’m self employed though, which seems to reassure people (sounds safer I guess?).

With friends and family I’ve learned to say self-employed always, because ‘freelancer’ gets me a pity look.

I find myself having to filter all the time, when I try and explain what I do! Technically I’m probably both but I’ve met quite a few people that struggle with the concept that I can do, and earn money from, more than one thing!

“Still a bit new to the world of freelancing” < that made me smile too, it's probably how I'd describe myself (well on my twitter feed I say 'Somewhere on the Road to Damascus, in a purely non-denominational way'! Which is the same, right?), being year three into being 'free' having go back to self-emplyment after 11 years as an employee!

The main difference in terminology is as you pointed out the perception attached to each phrase. Freelancer to many means you have no aspirations of going beyond self-employment and building a business. While this is not always the case, that’s a perception that’s out there.

For me, I’ve decided to extend my definition of freelancer beyond either of these two labels: http://lifeofthefreelancer.com/2010/08/03/lets-extend-the-definition-of-freelancer/

haha. it’s always been ‘i’m a webdesigner’ and leave it to that. very rarely they’ll ask who i’m attached to and usually I would say the name of the company i’m currently working on a project for.

but in malaysia, freelancers are perceived to be cheap but slowly and surely, clients are starting to wisen up that they rather appoint these small design boutiques who can give more solutions and ideas.

Sounds similar to those “misunderstandings” one has in Germany.

There’s either “Freiberuflich tätig” (working as a freelancer) or “Selbständig” (being self-employed). The last term usually also refers to running a “Einzelunternehmen”, which translates as sole proprietorship / one-man business, but is a legal German corporation form (ie. you have to apply for it at the local town department, writing down roughly what your business is about).

I’m using the latter form, also because “Freiberufliche Tätigkeit” is mostly associated with artists, journalism and similar jobs in Germany. And then, of course this kind of “he’s not employed” crap ..

FYI: You even are able to apply for the KSK (translates roughly as “artists social insurance”) when you are officially working as a freelancer, but you have to display some kind of artistical / creative work to get into it. They pay half the fee of your current insurance, just like it would be if you still were working in a full-time contract.

cu, w0lf.

My wife is in the corp. world, and she is always asking when are you going to get a job, well i am a freelance web designer/graphic designer. she doesn’t understand that i work from home and not from some corp. office so i know what everyone is talking about

This is a good one, one that as many comments have noted and you yourself have, is a grey area. In the UK as far as I am concerned there is only Self-employed. I say this because when you do your tax-returns there is no option for freelance.

However when I explain what I do to many people they say I am freelance. I ahve found though that many people see freelance as a person who works for another company, but for short periods. I just wish there was a simple clear cut answer to this question.

I think it depends on the culture of the sector or locale in which you operate. I work in London, UK, mainly with ecommerce and media clients. Contrary to what I’ve read here, the minute I’ve said I’m freelance my rates are immediately perceived to be higher than if I say I’m self-employed. I’ve also had a more favourable reaction to being freelance than being self-employed.

At a recent tweetup I went to for small business owners, this exact question was raised, and it has to be said that London snobbery appeared to have a part to play in how freelancers are perceived; according to my peers, people that are ‘self-employed’ are ‘provincial’ and from ‘brick and mortar businesses that *think* they have a clue about freelancing’, where as ‘freelancers’ either outgrew the companies they worked for and/or were so in demand in that they figured they would make more money flying solo; freelancers are dynamic superstars, where as people that are self-employed are simply ticking along.

That’s not my personal opinion of people that call themselves ‘self-employed’ as I frankly think it’s all the same. My personal preference is simply not to mention my status at all and just say I’m a designer, producer or strategist, depending on the context in which I’m meeting someone.

Interesting question – let’s say I’m both. What’s funny is that when you tell people that you’re a freelancer, they think you have too much free time not to be working like everybody else… then when you tell them you’re self-employed, they think your skills maybe too mundane so people won’t hire you, and pity that you have to employ yourself then. So, when people ask me next time, I’d say I’m a thought leader.

My own clients are mainly training consultants running their own one-person businesses, and they are not likely to be comfortable with the term “freelancer.” I usually talk to them, in my materials, as “independent training consultants”.

I also try to nudge them into realizing that what they call themselves has an impact inside their own heads, how they approach their business, and not just on the perceptions of their clients.

You can see more of that reasoning in my blog post at http://j.mp/coUdnM, on my Best Consulting Practices blog.

I described my self as self-employed when I had no Freelance work or was working for a fixed pre-agreed price and freelance when on a day or hour rate.

I always tell people I do freelance design. I don’t really consider myself “self employed” because my work is only occasional (fine for now.) Interesting article! I’ll have to think about this issue a bit more.

To avoid any unwanted reaction I’d pretty much agree with what Rochelle Dancel stated (her personal opinion). Just say what you do. Done.

I just say I own my own business , and i see glitter in all their eye’s . Simple .

This is actually my first week as a self employed designer. I was calling my self a freelance designer until I read this article…

I guess it depends on what conversation you are having. I’ve always wanted to be self-employed but use the term freelancer when talking to people.

Might have to switch that around!

Hmm.. though i don’t have any spouse (as of now), i have encountered similar situation whenever i meet relatives or new people.

but i never quote myself as “freelancer”. i call myself either “independent professional” or “entrepreneur” or simply “co-founder of Cybrevo” – Cybrevo is my firm’s name – a small team of developers.

using such a heavy title sometimes confuses the listener and you survive for the while.

Heh. Well, I sometimes say I have my own small web design company, and sometimes I say I’m self-employed, and sometimes I’m a freelancer and other times I’m a contractor.

Here in New Zealand the word “freelancer” isn’t perceived negatively, and I use it when I’m referring to a web design relationship that I (and/or my company) have directly with a client who wants a website. We do all the work (generally with a fixed-price contract), and we keep all of the fee we’ve negotiated for that project.

This is in contrast to the times when I describe myself as a contractor – which is when a larger web design agency is contracting me to work for them on a particular web project, generally for a fixed amount of time – and where they make the profit on the job, while paying me an hourly rate for my work. As a contractor I don’t have a financial relationship directly with the client, I’m an agent of the larger company I’m contracting for.

And then of course there’s trying to explain to people that my company is me – plus a number of other web people who work on freelance projects with me as and when they’re needed – and that we work together as an informal collective – people generally start imagining Russian tractors when I say the word “collective” for some reason

I agree with the approach of @webweaver. Really can imagine to get familiar with that way of self-understanding.

PS: I’m missing a “like” button comment posts!

Regards,
- Alex

agree with the approach of @webweaver. Really can imagine to get familiar with that way of self-understanding.