The Difference Between Freelance, Remote Job and Online Business

In the modern world, we hear terms as the gig economy, freelancing, location independent lifestyle, online business, solopreneur, and many others. Those are relatively new.

The variety of options and changes we have witnessed over the past few years created many misunderstandings, so let's make it clear once and for all.

1. Remote Job, Telecommuting, WFH

COVID-19 changed the world. Many companies reduced their office spaces, leading many of those new remote workers to continue to work from home once the pandemic has relented.

This is the classical illustration of the remote job; it is also called WFH (work from home) or telecommutes. Several meanings for merely a job at a home office, usually with the same previous schedule combined with similar responsibilities. Meetings become managed with conference calls, processes, and reporting organized with specialized software.

Pros for the worker:

• Saving time on the commute
• Less stressful
• Usually, the same regular paycheck (under the contract)

Cons for the worker:

• Illusional flexibility
• Hard to organize workspace, because, as it often happens, family members will have 'you home' feeling and interrupt often; takes time to adjust
• Very often, reduced or no insurance from the employer

2. Freelance

Freelance jobs begin as a side hustle. When a working 9 to 5 professional decides extra money is needed, knowledge or some other expertise such as consulting is used. Whether under the same knowledge as a part-time, one-time off or ongoing, this is called 'taking a gig'. The term gig economy explains this concept.

In the past decade, with the massive development of different technologies, freelancing became more popular than ever. This has resulted in processes and tasks that can now be outsourced to freelancers.

Pros for the worker (full-time freelancer):

• Own boss ( many people enjoy the concept of being their own boss)
• Flexible schedule
• Ability to work from any corner of the globe

Cos for the worker (full-time freelancer):

• Financial results will depend on your efforts, thus prospecting and negotiation are on you also (this is why many freelancers go broke for a long time and wish to go back to 9 to 5 job
• For some jurisdictions, reporting and taxation is quite tricky and time-consuming
• Need to organize their own insurance, workspace, and other things

3.Online Business

Frankly, years ago, any business with an online presence able to sell online used the tools of a website with a gateway was called online business.

The situation changed with the massive growth of a variety of MLM and Scams that used their marketing messages with lines as 'start your online business,' '100% remote', 'from home,' and so on.

Back then, when those offers flooded the internet, the term 'online business' lost its' original meaning and almost became a synonym to 'fraud, scam and get rich quick schemes.'

Unfortunately, this misconception is still in place.

But, on the other hand, many online businesses are 100% legit, and there are simply businesses with all or most of the remote processes. In this case, everything is delegated to freelancers and other companies or contractors.

Take, for example, dropshipping - no warehouse, no office, nothing - classical online business. Like many e-commerce stores also, some even delegate warehouse and shipping process management. It is all easy nowadays.

Initially, as a freelancer, you scale up again and again and then realize that you have an online business already, not quite a freelance career.

This is what happened to me. Apple, HP, and Facebook originated from a garage, remember?

Pros for the worker/business owner compared to the remote job and freelancing

• Still a great percentage of flexibility
• Easy to build global teams
• Work with the best of the best in any corner of the globe
• Huge growth opportunities with proper management

Cons comparative to remote jobs and freelancing:

• Expenses - if, as a freelancer, you paid taxes and other costs increase, one can almost drown in debt when inevitable hard times such as COVID occurs. With the obligations of a business, one cannot do so. We certainly must pay our taxes. That is an obligation and a duty You still have to pay to your workers and business operational expenses, which could not be reduced as significantly as with freelancer case
• Management, - you have to have the proper skill set to hire, train and manage your teams
• Results - you are responsible for the consequences of your decisions. Some businesses have had the luxury, so to speak, of waiting numerous years to enjoy a return on investment.

This is basically why freelancers choose to become an Agency. They go broke in six to twelve months and return to freelancing or the standard requirements of work.

So, before making a final decision, think carefully, and decide what option suits you best. What do you want as your lifestyle and your future? Always learn and acquire new skills - this is a success recipe that never fades.

Need more help? We have a team to help StartUps; we have training for freelancers and development programs of diverse groups.

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