Sometimes, when people ask what I do for a living, I struggle to essentially describe it.
“Well, I’m a contract author,” I sometimes say. But consider it or not, not everyone really knows what freelancing is. Also, that isn’t the one thing I do. It’s more of a simple, catch-all term. And—that is nit-picky, but I actually have been in business for myself for a very long time and been very successful at it. In some way, “freelance author” doesn’t really capture all of that.
“I’m a author and PR consultant,” is one other version I take advantage of. I at all times get quite a lot of followup questions as to what “consulting” is and the main points of my day by day work. I feel that after I say the word consultant, I actually have to someway prove that what I do is an actual job. It carries a couple of more expectations.
And really, what is consulting? And what’s freelancing? And what should I call myself professionally, for crying out loud?
The freelancing vs. consulting debate is long-running and sophisticated. And there is basically no single right answer. But all of us must determine what language to make use of, and to do this, it could actually help to have a greater understanding in regards to the history and context of each words.
In this text, we’ll attempt to untangle the differences, define what you’re really saying if you say freelancing vs. consulting, and assist you determine what terms best fit your role and assist you avoid that awkward pause at the subsequent networking event when someone asks, “So, what do you do?”
Freelancing vs consulting: what’s the difference?
Should you try to grasp freelancing vs. consulting, it’s necessary to essentially dig into what each word means.
The word freelance comes from the book Ivanhoe by Sir Walter Scott. What? You is perhaps saying––what does a book written within the 1800s must do with my freelance job?
In its first use, “freelance” meant literally a free lance––a warrior (presumably with a lance) who was not loyal to any territory or cause, and fought whoever paid them probably the most.
It has since come to mean an expert who isn’t locked right into a single company, but sells their skills to numerous clients and might come and go as they please––inside the terms of their current contract. Freelancers do whatever is required, from coding computer software to designing brochures, and all the pieces in between.
Seek the advice of is a fair older word, compiled from French and Latin, which implies to call together or take advice. The word “consultant” as a job actually also comes from a book––on this case, Sherlock Holmes, even though it could have been in use before then.
In the company world, consulting just means to offer advice professionally. You could be a consultant in almost any industry, and what consultants do varies wildly. They are sometimes brought in to assist an organization solve a selected problem. Consultants might offer legal help, fame management, HR concerns, or almost the rest.
While freelancing and consulting are similar, they aren’t the exact same. Among the differences between freelancing vs. consulting are:
- Freelancers are never full-time employees for one company. A consultant, then again, may match for a consulting firm, a big corporation or the federal government as a W2 worker.
- Consultants generally sign on for an extended time frame, similar to the duration of a strategic shift, or are even kept on retainer. While that is true for some freelancers, more often, a freelancer is brought on for a selected task or series of tasks. When the work is completed, the contract is over.
- Freelancers normally have multiple clients directly. A consultant most frequently stays with a single client until the issue is solved, after which moves on to something else.
- Consultants are inclined to work more on the large picture. They provide plans driven by strategy, and sometimes the business does the implementation themselves. Or a full team of consultants works on those details. Freelancers usually tend to be hired to do this implementation work after the overarching direction has been determined. This isn’t a set difference. Some freelancers offer strategy planning as a service, and a few consultants maintain the tactics, but usually, consultants are more focused on the master plan.
- In a way, all freelancers are consultants, because they’re offering outside expertise. But not all consultants are also freelancers, because a lot of them are full-time employees working for a single business.
A number of people use the terms freelancer and consultant interchangeably, but as you’ll be able to see, the 2 roles are somewhat different. That doesn’t mean you would possibly not be each things, however it’s a very good idea to know the nuances and ensure you might be using the proper title in the proper situation.
Comparing freelancing vs consulting
Whether you are attempting to come to a decision what to call yourself, or fascinated with a future profession and what varieties of skills you would like, here’s a breakdown of freelancing vs. consulting.
Education
Neither freelancing or consulting has an official degree or training that’s required. Nonetheless, consultants are considered “experts,” and want to essentially know their stuff.
Often a consultant has a sophisticated degree, extensive experience, or each. Freelancers simply must show that they possess the abilities for which they’re being hired. Education can definitely help with this, however it isn’t likely that a client will request to see a diploma or transcript.
Legal Concerns
Nobody desires to get in legal trouble, so it’s necessary to know the ropes when you find yourself fascinated with freelancing vs. consulting.
Technically, neither term is legally defined, so that you won’t face a penalty for calling yourself either a freelancer or a consultant. In either business, depending in your ultimate goals, chances are you’ll want to think about hiring an attorney to assist you arrange an LLC and protect yourself.
Pay
When you find yourself in business for yourself, money is pretty central to all the pieces you do. How are you going to make a living? It seems that freelancing vs. consulting is structured pretty otherwise with regards to billing.
Freelancers can bill their clients any way they select: hourly, per project, or through a retainer. They send their very own invoices and receives a commission intermittently, depending on how they’ve set things up and the way often they invoice for projects. Often, payment doesn’t occur until a project is completed.
Consultants usually tend to be on a cyclical pay structure, normally through a monthly or bi-monthly check or money transfer. Also necessary to know––typically consultants charge the next rate than freelancers, as a result of their unique expertise inside their field.
Getting Began
One other facet of freelancing vs. consulting is learn how to begin.
Starting a contract business is pretty easy. Work out what marketable skills you might have, construct a portfolio, and begin on the lookout for clients.
Consulting is a little more involved. Businesses on the lookout for a consultant want someone who knows so much about whatever a part of their business they need assistance with.
To land quality contracts, you would like a level, proven experience and an extended list of references. Should you opt to work for a consulting firm, a university degree or some type of certificate is perhaps enough to get you within the door. Working for yourself, you’ll probably need a bit of more meat in your resume.
Finding Work
Where do freelancers and consultants find their clients?
Many freelancers depend on convenient freelance web sites to seek out and apply for area of interest gigs. In fact, it also helps to construct an internet site, ask for referrals, offer lead magnets, and do quite a lot of networking.
Consulting is a bit of different. Often, consultants first have to persuade a business that they need consulting services, and talk themselves into the job. Consultants need word of mouth in an enormous way, and usually tend to do content marketing and paid promoting to seek out their ideal clients. The larger your client base, so long as you consistently provide quality service, the simpler it’s to seek out latest consulting jobs.
Freelancing vs consulting: what’s the suitable word for you?
So, now you’re an authority in what freelancing vs. consulting means. But does that answer our original query?
What do you call yourself?
As you will have guessed, the reply isn’t necessarily a simple one.
The short version is, you’ll be able to call yourself whatever you’d like. There’s no “freelancing vs. consulting” committee that offers you permission to be either a freelancer or a consultant. Legally, neither title is tied to a certificate or license.
The longer version is that it probably comes all the way down to your experience level.
A contractor just starting out, or shifting industries might be more of a freelancer than the rest. As you’re employed through various projects, gain more knowledge, add to your portfolio or take latest courses, you’ll begin to feel more confident in your work. When your clients completely trust you to advise them on major decisions, you would possibly consider restyling yourself a consultant.
If, then again, you might be branching out to work on your individual after years of experience, being a sought-after expert amongst colleagues or clients, calling yourself a freelancer is perhaps underselling your skills. You can select to make use of the term consultant as a substitute, and sure charge the next going rate right off the bat.
Just remember, in the event you sell yourself as a consultant, after which can’t deliver a high level of experience, problem-solving and strategic considering, you might be more likely to find yourself with frustrated clients who won’t be recommending you to their network.
Consider this instance. A designer, fresh out of faculty, decides to tackle contract work with a view to travel for a couple of years before settling down in a single place. He decides on an inventory of services he can easily provide, and starts applying for jobs on sites like Freelancer.com and signs up for a service like SolidGigs to hunt down more work. This designer might be calling himself a freelancer, because he’s on the lookout for quite a lot of flexibility and freedom, is comparatively latest to the industry and does specific tasks.
One other example is perhaps a mom who decides to take a break from the company rat race with a view to spend more time together with her kids. She has been working in marketing at various firms for over a decade and has some impressive results to indicate for it.
There isn’t a reason this woman shouldn’t ask for referrals from her past clients, put together a killer website, and arrange shop as a consultant at the next rate than she was working for at her previous position.
Freelancing vs. consulting comes all the way down to what seems to suit best. There isn’t a set threshold when you find yourself “officially” a consultant. Just consider your strengths, weaknesses, and the extent you might be at currently.
Make the choice for yourself
Freelancing vs. consulting; LLC vs. sole proprietorship; earn a living from home vs. renting office space. There are such a lot of inquiries to ask yourself when starting a business. Whether to call yourself a freelancer or consultant is perhaps something you might be battling. You wish to get it right, so you might be learning all you’ll be able to and trying different titles as you go.
Freelancing vs consulting—freelancing is in regards to the freedom to work for yourself and pursue your passion. Consulting is about providing detailed, proven, actionable advice that solves strategic problems.
Let me offer some advice. The more necessary query is why?
Why do you need to go into business for yourself? Why are your skills unique or invaluable? Why are you a very good fit in your goal clients?
All the whys will assist you keep going when things get hard. They are going to assist you justify each your title and your rates as you sell your services. They are going to guide your goals and assist you make smart decisions.
Sure, it matters what you call yourself, because it sends a transparent message to clients about who you might be and what you’ll be able to offer. But whichever you select, having sound, well-thought-out whys for all the pieces you do will go much further in impressing the subsequent person to ask you, “So, what type of work do you do?”
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