Long gone are the days when a 9-5 job was the only employment option. With the arrival of the internet and the further democratization of the economy, freelancing and remote work have grown to become appealing alternatives.
But are freelancing and remote work the same? What’s the difference? And how do they compare in terms of autonomy, work-life balance, income potential, and job security?
We’ll discuss the key differences below.
Understanding the Basics
Freelancing involves offering services to clients on a contractual or per-project basis. They are technically not employed by the clients or companies they work with. Rather, they are self-employed and seen as contractors.
Freelancers often juggle multiple clients at once. They also essentially function as a business, handling marketing (looking for clients), billing, and tax filing themselves.
Remote work refers to the act of working remotely from a location of the worker’s choice—often one’s home. The term remote work can apply to any off-site work arrangement, whether it be full-time or part-time with a company or freelance. Technically, most freelancers are also remote workers.
However, for the sake of comparison in this article, we’ll only be referring to part-time and full-time employment with a company when we say “remote work.”
As such, remote workers receive salaries and benefits and have structured roles much like any other traditional job—they just don’t need to be physically present at the company’s office!
Income Potential and Scalability
On average, freelancers have more potential to make more money. However, this is offset by the inherent instability.
Freelancing
A freelancer’s income can fluctuate heavily from month to month, often being feast or famine.
Since freelancers can set their rates, take on multiple clients, and choose high-paying projects, the earning ceiling can be higher. Many skilled freelancers in fields like software development, graphic design, and copywriting earn six figures or more annually (in USD).
And because freelancing is inherently entrepreneurial, freelancers can scale their income by evolving their trade into a business. They can hire subcontractors, build agencies, and even launch their own products.
However, this comes with variability. Newer freelancers may struggle to set competitive rates and find clients (especially since freelancers often rely on client referrals).
And while experienced freelancers with stronger portfolios can command higher fees, income is never truly guaranteed. Contracts expire, and clients may no longer need you after a project.
Remote Work
Employed remote workers have a steady paycheck—as well as benefits like health insurance, retirement plans, and paid time off.
This monthly income may not be as high as that of a good month for a freelancer, but you can count on it to always be there, at the very least. So, while the earning ceiling may not be as high, the income floor is also not nearly as low compared to a freelancer.
Of course, this all depends on the role and industry you’re in. High-ranking roles in fields like tech, medicine, and engineering offer high salaries.
In the same vein, the scalability of remote employment is also slower but steadier, as climbing the corporate ladder is limited by the organization’s structure, budget, and promotion timelines.
Winner: Freelancing—for those with strong skills and an entrepreneurial mindset.
Job Stability and Financial Security
Remote work is more stable, given that it’s official employment.
Freelancing
Since freelancing involves hopping from one project and client to another, they are always on the lookout for new work. Freelancers are almost always on the lookout for new work.
It’s not uncommon for there to be times when there is little to no work for a freelancer. Truth be told, half the battle of freelancing is maintaining client relationships and managing contract timelines.
Of course, freelancers can build long-term client relationships or develop retainers to achieve more stability. However, these typically only last for a few years at best.
Remote Work
In comparison, a remote worker can be employed at the same company for decades at a time—maybe even their entire life.
Yes, one can get fired at any moment. However, there is technically no definite expiration date on employment contracts the way there is on freelance contracts.
Additionally, employed workers also qualify for unemployment benefits, paid leave, and career development resources that freelancers don’t typically receive.
Winner: Remote Work—for long-term security.
Taxes and Expenses
While freelancers and remote workers are taxed about the same on average, freelancers face the added stress of having to file their taxes themselves.
Freelancing
Classified as independent contractors, freelancers need to handle their own taxes. Additionally, they also need to invest in any business tools or software their field needs, such as editing programs or a VPN. While they can deduct those from taxes, it’s still an expense at the end of the day.
Freelancers need to be aware of mismanagement, as it can lead to a lot of IRS headaches. If you’re a freelancer, record meticulously—or just hire an accountant!
Remote Work
Since employees have taxes automatically withheld from their take-home pay, filing is far, far simpler. While they can’t do business deductions, they typically also don’t have to spend on business tools and health insurance in the first place. Many jobs will give you a work laptop, for example.
Winner: Remote Work—for tax simplicity and lower out-of-pocket expenses.
Work-Life Balance and Burnout
In comparison to on-site employment, both freelancing and remote work are kinder when it comes to work-life balance. However, they can also be stressful in different ways.
Freelancing
Many freelancers operate on output-based, per-project arrangements. This gives freelancers the freedom to control their own schedule.
They can work, take breaks, or do anything whenever they want—as long as they get the job done by the agreed-upon deadline. However, this flexibility can often be a double-edged sword.
Many struggle to maintain work-life boundaries. Juggling multiple clients can also lead to inconsistent routines that can affect family time or sleep schedules. Many also feel the need to overwork themselves, taking on as many clients as possible out of the fear of instability.
Truly, one needs a lot of self-discipline to be a freelancer.
Remote Work
While remote workers can control where they work, they often can’t control when they work. Since they’re still employed, many still have a structured work schedule (often being 9-5 as well).
They also face micromanagement in the form of time trackers, Zoom fatigue, or work-life blur since both their work and home lives occur at the same place. Many even report feeling lonely due to the lack of socialization that an office provides.
Still, many report better overall well-being than in traditional office jobs.
Winner: Tie—depends on personal preferences and circumstances.
Freelancing vs. Remote Work: Which is Better?
The answer depends on your goals, skills, risk tolerance, and lifestyle preferences.
Choose freelancing if you are self-motivated, value time flexibility, and are willing to take risks for higher rewards. It’s ideal for those valuing independence and have (or are willing to build) in-demand skills.
Choose remote work if you prefer stability, benefits, and a predictable income while still enjoying working from home. It’s better for those who want to grow within a company and have little tolerance for financial uncertainty.
