Difference Between Agency and Freelancer

Upwork has two kinds of freelancer accounts: individual and agency. Individual freelancers work independently and directly with their clients. Agencies are freelancer accounts that can add team members to projects for the agency’s clients. Generally, work that can be completed off-site can probably be done by individual freelancers and agencies. This includes one-off tasks like designing an infographic, as well as more complex tasks, such as running marketing campaigns. If you require more than one person to complete your project, you may want to consider hiring an agency, or multiple freelancers.

Working with a Freelancer

When you hire an individual freelancer, you will typically communicate directly with the freelancer about the project. In addition, the freelancer sets the rate and your payments go directly to the freelancer.

Working with an Agency

On the other hand, if you hire an agency member you are hiring the agency itself, which can have a number of freelancers that it pays to do work on your project. On agency proposals and contracts you may communicate mostly with the agency owner, a project manager, or with the agency member(s) working on your project, depending on how the agency does business and what arrangements you negotiate with the agency.

In addition, agency contracts are paid to the agency itself, not a specific agency member. The agency then pays its members off-platform for the work they perform for the agency at rates negotiated among them.

For advice on whether an agency or an individual and freelancer is suitable for your project, check out this article in our Hiring Headquarters.

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