
“A Freelancer gets paid for the hours they work, an Entrepreneur gets paid while they sleep.”
Are you a freelancer or an entrepreneur?
This is a question you need to ask yourself. Some people believe an entrepreneur and freelancer are the same thing. Traditionally they were very different animals, mainly in terms of risk, originality and the potential upside. But now one can start as one and become the other, and many people are playing both roles simultaneously.
Are you both? Is that a good idea? With the current startup boom, almost anyone can be an entrepreneur and that their company can be a tech startup. It takes very little — a laptop and Internet connection and a lot of hard work.
The goals for working or starting a business are now more than to make a living. People want to control their lifestyle, work remotely, travel while they work, have no boss, work part time, spend more time in their home. There are several good books about remote work and digital nomads or the 1099 nation or the gig economy.
It’s also not inconceivable for freelancers become millionaires, possibly by selling the little solopreneur company to a large tech company, or productizing their services. This happens occasionally for freelance web developers.
So You’re an Entrepreneur

An entrepreneur is someone who takes real risks — their own money, time, reputation and whatever else they can find to try to make something new, or find a breakthrough. They often work for little or nothing for months or years to pursue a dream that has no guarantee of coming true. They’re usually good at recruiting others to help them build their dream, also for no pay. Their ego is evolved enough to collaborate with others yet they remain the leader and visionary of something big.
If there is no risk involved, you’re probably not an entrepreneur.
Entrepreneurs must continue to be driven and keep the faith before seeing any rewards, sometimes for years. They pioneer new ideas and ways of doing things, which requires a different kind of marketing than simply selling a commodity. They are usually breaking things and making mistakes. They seek fast growth to create wealth for many people, not just themselves.
Entrepreneurs also must create something new, different, better, or more clever and then defend that innovation from possible copycats. Freelancers don’t have these headaches.
So You’re a Freelancer

Ahh, sitting on the beach on a tropical island with your laptop, no schedule, no boss, no office politics. Just a deadline on a project that is a country away from you. Let’s celebrate the freelancer for a minute.
The freelancer is usually selling a commodity, especially in the startup and digital worlds. There are differentiators, but not major innovations; they fulfill needs already established. The biggest stress factor is finding steady work that pays your target rate.
Freelancing is actually kind of refreshing; successful ones have to turn down work. Often that is the catalyst that causes them to start a bigger business and shift over to the entrepreneur role.
I’ve done a lot of freelance work myself, mainly to take a break between serious projects or so I can work remotely. It’s been a great way to make money, have freedom and hone my craft. It also allows me to not get too emotionally involved, give my mind a rest from the pressure of “building a company”.
Freelance work can support you while building a more strategic startup, essential funding your next company launch. Some freelancers make up to $200 per hour, and many are building product companies on the side.
Essentially, lawyers, accountants, and many other professionals are freelancers, but most don’t realize it. There’s also a giant army of developers and designers that are mostly freelancers and do realize it. It’s a big part of our new economy where there are much fewer actual salaried jobs or benefits, but more freedom.
The tech industry has had a renaissance over the last five years, against the direction of the overall economy. At the same time when freelancers were becoming the norm instead of the exception, developers and designers and digital marketing experts were proliferating and became a large contingent of society.
Employers love hiring freelancers because they cost less, they don’t have to pay for their benefits, and they’re disposable without severance or unemployment costs.. Work for hire, with no equity (usually).
The digital marketing revolution fits well with the work and lifestyle of a freelancer, as does more rigorous software development. Digital experts are selling commodities, but they are highly-prized scarce commodities.
By freelancing, you can keep your independence, find new challenges and work on entrepreneurial projects on the side. In addition, sometimes you are given the option by your client to become a full time employee, giving you the opportunity to get to know them before making a long term commitment.
Large companies like Google and Facebook depend heavily on freelancers. They try before they buy and cycle through people quickly.
The explosion of code schools is another artifact of the digital transformation of our world. Eight to twelve week boot camps that will have you earning $60,000–120,000 after just a few months. Usually it takes a lot more than work beyond the intense boot camp, and must be augmented with more practical experience, but you can become a decent developer with six to twelve months of hard work. And it is worth it.
The idea is that even in a bad economy, you can quickly learn a high-paying, highly in demand skill and be able to snap your fingers anytime you need work.
In todays world, freelancing has become a gateway to entrepreneurship, and entrepreneurship is often enabled by freelancing. They both offer a lifestyle and personal growth very different from the 9 to 5 job. Whichever you choose, good hunting!
