Freelancing Glossary

A U.S. tax form issued by clients to freelancers paid $600 or more in a year, reporting non-employee compensation.

A formal amendment to the original project scope documenting additions or modifications along with their cost and timeline impact.

An unsolicited outreach to a potential client offering freelance services.

A financial arrangement where a third party holds payment until both client and freelancer confirm project milestones are met.

The pattern of alternating between periods of excess work and periods of insufficient income common among freelancers.

A self-employed individual who offers professional services to clients on a project or contract basis without long-term commitment to a single employer.

A worker classified as self-employed who controls how, when, and where work is performed, as distinguished from an employee.

Legal rights over creative works, inventions, and designs, including copyright, trademarks, and patents.

Compensation paid to a freelancer when a client cancels a commissioned project before completion.

A payment made upon completion of a defined phase or deliverable within a larger project.

A payment term requiring the client to pay the invoice within 30 days of its date.

A contractual restriction preventing a freelancer from working with a client's competitors for a defined period.

A legal agreement requiring confidentiality about project details, trade secrets, or proprietary information.

The professional identity and reputation a freelancer cultivates to differentiate themselves and attract ideal clients.

A curated showcase of a freelancer's best work samples used to demonstrate skills and attract clients.

A formal document sent to a prospective client outlining the freelancer's approach, timeline, deliverables, and pricing for a project.

Periodic tax payments made by freelancers to the IRS four times per year to cover income and self-employment taxes.

A document listing a freelancer's standard prices for various services.

A recurring fee paid by a client for ongoing access to a freelancer's services over a set period.

The uncontrolled expansion of project requirements beyond the originally agreed-upon scope.

A document defining the deliverables, tasks, timelines, and boundaries of a freelance project.

Taxes paid by freelancers to cover Social Security and Medicare, totaling approximately 15.3% in the United States.

A major online marketplace connecting freelancers with clients across numerous professional categories.

A pricing strategy where fees are set based on the value or impact delivered to the client rather than hours worked.

A legal arrangement where the client is deemed the author and owner of work created by the freelancer.