Did you know that 61% of freelancers say they earn more than they did in their traditional jobs? (Source: Upwork’s Freelancing in America report). It’s no surprise that more professionals are leaving the 9-5 behind for a life of independence. But when it comes to choosing between freelancing and solopreneurship, how do you know which path is right for you?
If you’re considering leaving the security of a traditional job for a more independent lifestyle, you’ve likely come across two popular paths: freelancing and solopreneurship. Both offer a level of autonomy and the chance to work on your own terms, but deciding which is right for you requires a deeper understanding of what each entails. Both offer the freedom to work on your terms, but choosing the right one for you means understanding what each path really offers.
As a recruiter, I’ve placed freelancers in roles across 20 countries, and over the last four years, I’ve helped many experienced professionals make the leap from steady jobs to thriving as freelancers or solopreneurs. What I’ve learned along the way is that no two paths to independence are the same, but knowing the differences—and the potential challenges—between these two models is critical for long-term success.
In this post, I’ll share insights from my own experience to help you weigh up key factors like autonomy, income potential, and work-life balance. Whichever path you choose, the most important thing is that it leads you towards the freedom and flexibility you’ve been dreaming of.
Understanding the Terms
Before we dive into comparing freelancing and solopreneurship, let’s make sure we’re on the same page about what each one really means. While they might seem similar, the differences between the two can impact how you live, work, and earn.
What is a Freelancer?
Freelancers are independent professionals who offer their skills and services on a project-by-project basis. It’s a pretty flexible setup—freelancers often juggle multiple clients and projects at once, but they don’t usually run a formal business in the traditional sense. Instead, you’re typically paid per project, per hour, or per task, depending on the agreement.
Typical freelance roles span across industries such as:
- Writing and editing
- Graphic and web design
- Marketing and social media management
- Software development
- Consulting and coaching
Freelancers enjoy the autonomy to choose their clients, projects, and workload. However, they’re often responsible for finding their own work, managing client relationships, and handling administrative tasks like invoicing and taxes.
What is a Solopreneur?
Solopreneurs, on the other hand, are all about running a business—one that’s based on their skills or services, but with a focus on building something scalable. While freelancers typically trade time for money, solopreneurs are thinking bigger—they’re creating a business that could run beyond just their personal capacity.
For example, solopreneurs might:
- Offer consulting or coaching services
- Sell digital products or courses
- Run subscription-based services
- Build an e-commerce platform
The key difference here is that solopreneurs aren’t just doing the work—they’re also focused on building something that can grow over time. This means juggling more than just client work. You’ve got to think about business development, marketing, finances, and how to scale your business in the long run.
Comparison Criteria
Now that we’ve covered the basics of freelancing and solopreneurship, let’s dive into the key areas that will help you figure out which path is the best fit for your lifestyle and goals. When deciding between these two, it’s essential to weigh up three critical factors: autonomy, income potential, and work-life balance.
- Autonomy: According to a Fiverr study, 67% of Gen Zers are ready to become self-employed, and one of the main reasons people pursue freelancing or solopreneurship is the desire for more autonomy. However, the level of control you have over your work can vary depending on the path you choose.
- Income Potential: Let’s talk money. Both freelancing and solopreneurship offer income potential, but the way you earn—and how much you can earn—differs between the two.
- Work-Life Balance: For many people, the desire to improve work-life balance is one of the biggest motivators for going independent. But how each path affects your balance between work and personal life can differ significantly.
Autonomy
One of the biggest draws of both freelancing and solopreneurship is the autonomy they offer. However, the level of control you have over your work and how you manage it can vary depending on which path you choose.
Freelancers:
- As a freelancer, you generally have the flexibility to choose the projects you work on and the clients you collaborate with. You get to decide how many projects to take on, set your own hours, and work from wherever you choose. Whether you prefer to work in a home office, a café, or while travelling, freelancing gives you the freedom to design your own workday.
- But with this autonomy comes a certain amount of unpredictability. While you can decide which projects to accept, your work is still tied to client demands and deadlines. Freelancers often find themselves needing to juggle multiple projects with competing deadlines, which can sometimes reduce the sense of freedom. There’s also the constant need to find new clients, which can add pressure, particularly during slower periods.
Solopreneurs:
- Solopreneurs typically experience a higher level of autonomy because they are building and running their own business. As a solopreneur, you have complete control over the direction of your business, what services or products you offer, and how you manage day-to-day operations. You’re not just choosing your work—you’re designing the entire business around your vision.
- However, while solopreneurs enjoy more freedom in the long term, they also shoulder more responsibility. Running a business requires managing all aspects—sales, marketing, customer support, finances, and growth strategies. In the early stages, solopreneurs often face long hours and the pressure of wearing many hats. But as the business grows and systems are put in place, solopreneurs can scale back their direct involvement, enjoying greater control over their time and work.
Income Potential
When it comes to earning potential, both freelancing and solopreneurship can offer financial freedom, but the way you generate income—and how much you can potentially earn—varies quite a bit between the two paths.
Freelancers:
- As a freelancer, your income is typically tied directly to the number of hours you work or the projects you complete. Most freelancers charge by the hour, per project, or work on retainers with clients. This means that while you have control over your rates, your earnings are still largely dependent on the time you can put in.
- That said, many freelancers manage to increase their income by developing specialised skills or offering niche services. For example, freelancers in tech-related fields, such as software development, or digital marketing, can command higher rates. However, there’s usually a cap to how much you can earn because, at the end of the day, there are only so many hours you can work.
- According to Upwork’s Freelancing in America report, the median income for freelancers is around US$20 an hour, but this can vary significantly depending on the industry and level of experience. The key for freelancers is maintaining a steady flow of work, which can sometimes mean dealing with fluctuating income based on the availability of projects and clients.
Solopreneurs:
- Solopreneurs take a different approach to income, often focusing on building a business that can scale beyond their personal time. Instead of being paid solely for the hours they work, solopreneurs look for ways to generate passive or recurring income streams. This could be through selling digital products, offering subscriptions, or automating parts of their business.
- For example, a solopreneur might start a consulting business but eventually package their expertise into online courses, or they might build an e-commerce store that generates revenue without requiring them to be hands-on all the time. This creates the potential for much higher income, especially as the business grows.
- However, the income for solopreneurs is not immediate—it often takes time and significant effort to build a profitable business. According to a study by Inc.com, nearly 50% of solopreneurs earn between $50,000 and $100,000 a year once their business is established, but in the early stages, earnings can be lower as they focus on setting up their systems and scaling their business.
- The key difference is that solopreneurs have the opportunity to break free from the time-for-money model. Once they’ve built their business, their income potential isn’t limited by the number of hours they can work in a day.
Work-Life Balance
Professionals of all ages are drawn to the idea of having the freedom to shape a lifestyle that fits both their personal and professional needs. While freelancing and solopreneurship both promise a better work-life balance, the reality of achieving that balance can vary significantly depending on the path you choose.
Freelancers:
- One of the biggest appeals of freelancing is the flexibility it offers. As a freelancer, you get to decide when, where, and how you work. Want to work from home, a café, or even another country? It’s your call. Need to take a weekday off for personal errands or spend more time with family? You have the freedom to do that.
- However, with this flexibility comes a few challenges. While you may be able to control your hours, the reality is that client deadlines, project demands, and the need to constantly secure new work can blur the lines between your work life and personal life. Many freelancers find themselves working late nights or weekends to meet deadlines, especially when multiple clients have overlapping needs.
- In fact, according to a study by Forbes, 53% of freelancers report working more hours than they initially expected when they first started out. To maintain a good work-life balance, freelancers need to set clear boundaries with clients, manage their workload effectively, and create a routine that works for them.
Solopreneurs:
- Solopreneurs often start their businesses with the goal of achieving more control over their time and, eventually, their work-life balance. In theory, solopreneurship can provide even more flexibility than freelancing, especially once the business is up and running smoothly. By creating scalable systems or automating certain aspects of the business, solopreneurs can eventually step back and enjoy more free time.
- However, in the early stages of building a business, solopreneurs are likely to find themselves wearing many hats—handling everything from product development to marketing to customer service. This often leads to longer hours and higher levels of stress, especially when trying to grow the business from scratch.
- A 2019 survey by The Alternative Board found that 84% of business owners report working over 40 hours per week, and solopreneurs are no exception. The upside is that, once the business is established, solopreneurs have the potential to create more space for personal time, especially if they’ve built a business model that doesn’t require them to be hands-on all the time.
- Ultimately, achieving a healthy work-life balance as a solopreneur requires careful planning, the ability to delegate or automate tasks, and a long-term mindset.
Pros and Cons
Now that we’ve covered autonomy, income potential, and work-life balance, let’s break it down even further with a straightforward summary of the pros and cons of freelancing and solopreneurship. This should give you a clear picture of what each path offers and what challenges you might face along the way.
Freelancer Pros:
- Flexibility: Freelancers have the ability to choose their clients, set their own hours, and work from anywhere. This makes freelancing highly appealing to those looking for a flexible lifestyle.
- Lower Barrier to Entry: It’s typically easier and quicker to start freelancing since you can begin offering your services with minimal setup costs or business infrastructure.
- Variety: Freelancers often work on a diverse range of projects, which can keep things interesting and allow you to build different skills.
Freelancer Cons:
- Income Fluctuations: Freelancers may experience periods of feast or famine when it comes to work, leading to inconsistent income. Securing a steady stream of clients can be a challenge.
- Limited Scalability: As a freelancer, your income is largely tied to the number of hours you can work. This can cap your earning potential unless you significantly raise your rates or take on higher-paying projects.
- Administrative Burden: You’re responsible for managing all aspects of your business—finding clients, handling contracts, invoicing, and sorting out taxes. This can take time away from actually doing the work you’re passionate about.
Solopreneur Pros:
- Scalability: Unlike freelancers, solopreneurs focus on building a business that can grow beyond their own time and effort. This can result in higher income potential through diversified revenue streams and scalable systems.
- Business Ownership: As a solopreneur, you’re in full control of your business, from the services or products you offer to the long-term direction you want to take. This allows for more entrepreneurial creativity.
- Greater Income Potential: While solopreneurship often requires more upfront effort, the ability to scale your business means you’re not limited by the number of hours in a day, which opens the door to higher long-term earnings.
Solopreneur Cons:
- Higher Risk: Solopreneurs often need to invest more time and resources into building a business from the ground up. There’s a greater financial risk involved, especially in the early stages before the business becomes profitable.
- Wearing Many Hats: In the beginning, solopreneurs have to handle all aspects of their business, from product creation to customer service to marketing. This can lead to longer hours and more stress, particularly when starting out.
- Longer Setup Time: Building a successful business as a solopreneur takes time. You may not see immediate financial returns, and the process of growing and scaling a business requires patience and persistence.
Decision-Making Guide
Now that you’ve seen the differences between freelancing and solopreneurship, how do you decide which path is right for you? It’s not just about income or flexibility—it’s about understanding your goals, your strengths, and what you want from your work-life balance. Here are five steps to help you make an informed decision:
- Assess Your Current Skills and Interests
- Consider Your Income Goals
- Evaluate Your Desire for Flexibility
- Think About Your Long-Term Vision
- Reflect on Work-Life Balance
Choosing Your Path Forward
Choosing between freelancing and solopreneurship is a deeply personal decision, and there’s no one-size-fits-all answer. Both paths offer incredible opportunities for independence, flexibility, and the chance to design a career that aligns with your lifestyle and goals. Whether you’re drawn to the immediate freedom of freelancing or the long-term potential of solopreneurship, the key is understanding what works best for you.
If you value flexibility, enjoy working directly with clients, and want to hit the ground running, freelancing might be your ideal choice. On the other hand, if you’re excited by the idea of building something scalable, managing a business, and creating multiple revenue streams, solopreneurship could be the path that leads you to long-term success.
Whichever path you choose, remember that both options require careful planning, dedication, and a willingness to adapt along the way. The journey to independent work isn’t always straightforward, but the rewards—freedom, control, and the ability to shape your future—are well worth it.
Ready to take the next step towards your independent career?
Whether you’re leaning towards freelancing or solopreneurship, we’ve got resources to help guide you on your journey. Download our Work and Live Your Way Starter Pack to discover your ideal workstyle, and get the tools and insights you need to succeed.
If you’re still unsure about which path is right for you, don’t hesitate to reach out for a 1-to-1 consultation. We’re here to help you make the transition and create a life that fits your goals and dreams.
Here’s to working and living your way,
Dave
Co-Founder, Project Workstyle