Freelancing & Business Glossary

Freelancer

A self-employed individual who provides services to clients on a project or contract basis rather than as a permanent employee of any single organization.

Hourly Rate

A pricing model in which a service provider charges clients a fixed amount for each hour of work performed, billing the total time spent at the end of a period or project.

Independent Contractor

A self-employed individual or business that provides services to clients under a contract, without being classified as an employee of the engaging organization.

Milestone

A significant, defined point in a project that marks the completion of a phase or the delivery of a key output, often tied to a review, approval, or payment trigger.

Portfolio

A curated collection of a service provider's previous work samples, case studies, and client outcomes used to demonstrate expertise and attract new clients.

Project Rate

A fixed fee charged for completing a defined scope of work, regardless of the number of hours it takes, based on the total deliverables agreed upon in the project scope.

Scope Creep

The gradual expansion of a project's requirements, features, or deliverables beyond what was originally agreed upon, typically without corresponding increases in budget or timeline.

Sole Proprietor

An individual who owns and operates an unincorporated business personally, bearing full personal liability for all business debts and obligations.

Statement of Work

A formal document that defines the specific services, deliverables, timeline, and scope of a project or engagement between a service provider and a client.

Value-Based Pricing

A pricing strategy in which fees are determined by the economic value delivered to the client, rather than by the time spent or cost to produce the work.