Just a few years ago, if you owned a solo business and contracted your time and expertise out on an hourly basis, you probably called yourself a freelancer.
Maybe you were good at writing, or typing, or graphics design, or doing research.
Whatever the skill you possessed, you found you were able to hire your time out to others on an hourly or "per job" basis. It seemed pretty nice at the time.
Hopefully, you enjoyed whatever it was that you did because you were being paid to perform that function only as you were able to produce. Typically, the more hours you spent in someone's service, the more you got paid.
Freelancing offered a way to choose your "job" both in terms of the subject you were dealing with and also the project you worked on.
Within some overall parameters (like a project deadline and a set of deliverables and specifications you agreed to), you enjoyed the freedom to work how and when you wanted, and maybe had the opportunity to add some of your own creativity to the project.
You could show up for work in your jeans and take the afternoon off for a round of golf if you wanted to.
It was pretty cool working for yourself!
But wait a minute . . . is that really what you were doing?
I'm not knocking being a freelancer, but in some ways, at least, that business model seems suspiciously like being someone else's employee.
Why? First, you only get paid what your employer says your time is worth.
That can be a good thing if you set your fees very high. But open competition sometimes forces freelancers to be price competitive and that certainly limits your income.
Second, you must conform to the project parameters that someone else places on the job. You're being paid to follow your employer's instructions.
You may or may not be able to incorporate all the great ideas and creative angles you think best for the project.
Also, you will only be able to have work as long as you find work. Often, freelancers are not able to line up steady work that keeps them busy on a full time basis.
That fact alone is what turns many freelancers to seeking part time work in other fields or taking odd jobs during the slow periods.
Solo online operators are different. They are truly in business for themselves.
They work exclusively on projects that they set up, they determine the scope of those projects, and they are paid for the work that's accomplished without having to share the profit.
The effective business owner automates his business operation and leverages his time.
He is not simply paid for the hours he spends creating a project. He is paid indefinitely and without limit into the future as the project owner.
Therein lies the real advantage of the independent Internet small business owner over the freelancer: the freelancer is paid for his time only while the business owner leverages his time to get paid passively into the future. There is a huge difference!
[ Author's note: A free lancer can become a business owner by the very nature of how he operates and designs his business. ]
