The Difference Between Freelancing And Consulting

But in a world where words have the ability to shape our behavior and the attitudes of the people around you, how you define yourself as a contract worker can actually impact your work environment, your earnings, and the way your customers treat you.

First let's talk about definitions. The term freelance has its roots in the ancient days of horsemen and knights, where independent mercenary soldiers acted on behalf of a king for money. The term today continues to describe, according to Merriam-Webster's Collegiate Dictionary: "A person who pursues a profession without a long-term commitment to any one employer."

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Consultant, on the other hand, is a more modern term to define someone who "consults" or "one who gives professional advice or services," to quote Webster's. The term implies a certain amount of expertise, while certainly freelancers and consultants have know-how.

These days the terms freelancer and consultant are often used interchangeably. But there are some key distinctions. A freelancer is someone who usually works at home and the work comes to them. They use and own their own tools and are responsible for maintaining them.

A consultant—described perhaps as a more transient type of employee—likely works in a client's office with tools owned by the client. The client controls the tasks worked on and the timeline.

Consultants may broker themselves through staffing or consulting firms or may sometimes seek out clients independently without an intermediary. They may also get three to four W2s at the end of the year, according to Dan Pink, author of the book "Free Agent Nation," which discusses the growing ranks of self-employed people. These consultants could be almost considered like temporary employees, part of a company's contingent staff.

What is crucial for the economic viability of independent contractor—whether freelancer or consultant—is the ability to stay employed. Even as a consultant contracted with a staffing firm, the minute you start costing the firm money and stop making them money, you have a bulls eye on your back, and are at risk being unemployed.

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