Remote Work Job vs Freelance
When you start looking into working from home you’ll see that there are two main options, freelancing and remote jobs. While both will allow you to work remotely, they are not the same. A remote job refers to a full-time or part-time employment agreement between an individual that allows the employee to work remotely. This is very different from working as a freelancer.
Remote freelance jobs refers to someone who is not employed by an employer, is self-employed, and works based on a contractual agreement. Freelancers are self-employed and often work with multiple companies on projects instead of for one company.
Let’s start by comparing the advantages and disadvantages of freelancing:
In order to help you decide which is the best remote working option for you, we will lay out the advantages and disadvantages of both a remote job and freelancing.
The advantage of freelancing are:
- More freedom to work wherever you want and to choose clients/projects.
- More growth opportunities. Freelancing is really being self-employed and allows you the ability to grow a business.
- Not having to answer to a single boss.
- Create your own schedule and hours. Since you are not employed, you can work when you want to.
- The more you work, typically the more you earn. You are not limited to a salary. You control your income.
The disadvantage of freelancing are:
- Earnings are less secure and based on your work and skills. Unlike a full-time job, freelancing means you have to find new opportunities and projects.
- No unemployment benefits. A full-time job means that if you lose your job, you’ll be able to collect unemployment. There are no unemployment benefits for freelancers.
- No insurance benefits. Freelancers will have to find their own health insurance.
- Pay your own taxes. When employed, the employer will pay all of the taxes. Freelancers are self-employed, meaning that you will have to save part of your income for taxes.
- More open to lawsuits and not paying clients. Being a freelancer means that clients may try not to pay and that you are open to lawsuits with unhappy clients.
The advantages of a remote job:
- More security. Working a full-time remote job means that you don’t have to worry about finding your next client or project.
- Don’t have to worry about taxes. Taxes can be complicated and if you don’t remember to save can get you into trouble. A full-time job means that the employer will take care of your taxes.
- Insurance and other benefits. Most companies offer insurance and other benefits for working with them as an employee.
- Unemployment benefits if you lose your job. In most countries as a full-time employee, you will be able to get unemployment benefits if you lose your job. Freelancers will not have this.
- The support of a team. If you are a freelancer typically you’ll work with many different companies. As an employee, you will have the benefit of working with the same team everyday.
The disadvantages of a remote job:
- Limited earning potential. As an employee, you are limited to what your employer will pay you.
- Having a schedule. While remote jobs will allow you to work from anywhere, most full-time jobs will have a structured schedule and you will have to answer for your hours.
- Working with a team. While it may be nice to work with a team, as an employee you will be more reliant on other employees.
- Being overworked and unrealistic expectations. As an employee, the boss may have unrealistic expectations for projects and you may end up working more for less.
- Remote employee monitoring and time tracking. As an employee of a remote company, your employer may use a software to monitor your work and websites you visit.
Remote job vs freelancing, which is right for me?
In order to help you decide on which is best for you. Let’s explore who each one will be better for. Freelancing will be better for you if you are disciplined, want unlimited growth potential, are not afraid to save and pay your own taxes, and are willing to take more risk. Freelancers might also have a full-time job and freelance on the side to mitigate risk. A remote job will be for someone who wants more security, doesn’t want to worry about healthcare or taxes, likes working with the same team, and just wants a remote income. Remote jobs are less risky and a great way to start working from home without taking on a huge risk.