Agency vs. Freelancer: Which Is Right for You?

Figuring out the next step in your career can be tricky. Two options people often contemplate are freelancing — which offers more flexibility and control — and agency work, where you can earn a steady income while gaining experience.

What to know about freelance vs. agency work

• Agency work usually offers more structure, teamwork, and steadier pay.
• Freelancing usually offers more control over schedule, clients, and pricing.
• Neither path is automatically better — the right fit depends on how much stability, autonomy, and business responsibility you want.
• On Upwork, you can start as a freelancer and later grow into an agency model if client demand outgrows your solo capacity.

The Upwork Future Workforce Index (2025) report shows that 43% of skilled freelancers already work through an agency model — the largest single category in the report. That reflects something real about how careers actually develop. For many people, one path eventually leads to the other. Understanding the differences between agency and freelancer models can help you decide where to start and what your best fit is.

Overview of agencies and freelance work

The main differences between freelancing and agency work are around pay structure, schedules, growth path, and a few other areas. For example, agencies may offer full-time employment contracts with steadier pay and benefits, while freelancing gives you more control over your schedule, clients, and day-to-day operations.

Here’s a quick breakdown of each before we get into the specifics of both career paths.

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If you want more structure, shared accountability, and a steadier routine, agency work may feel like the better fit. If you want more independence, client choice, and long-term upside, freelancing may be the stronger path.

Understanding the agency vs. freelancer models

Agency work and freelancing are very different when it comes to their environment and work styles. Some people prefer being part of the team that agencies offer, while others like working more independently and running their own businesses.

The structure, pace, and accountability of each type shape not just how you work, but how you grow..

How agencies work

Agencies provide specialized services to their clients. If a company doesn't have the resources to complete a project, like developing a mobile app or rebranding, hiring an agency can be cost-effective. Some companies prefer outsourcing marketing, sales, or customer service to an agency rather than building their own in-house teams. 

Common types of agencies include:

• Digital marketing
• Public relations
• Social media
• Branding
• Customer service
• Software development
• Artificial intelligence services

Agencies come in all shapes and sizes — smaller agencies or startups may give you the opportunity to try on many different hats and roles. Well-established and larger agencies can offer more structure and the chance to learn from experienced professionals. Boutique and full-service agencies are additional alternatives:

• Boutique agencies. These typically focus on a specific niche or industry and offer customized services to their clients.
• Full-service agencies. These are one-stop shops that provide many different services that often fit together.

Depending on your role at an agency, you may work with multiple clients at once or dedicate yourself to one project at a time. 

How freelancing works 

Freelancing involves independent professionals offering their services directly to clients by charging an hourly rate or working on fixed-price contracts. 

Freelancers work for themselves and run their own businesses, which means they're responsible for finding new clients and pitching their services. You largely have the freedom to choose when and where you work, unless the job requires you to be online at a particular time.

"I have the freedom to know that I’m not an employee but instead a business owner. I make my own schedule. I make my own destiny." 

– Catherine Marsden, Top Rated virtual assistant  

The way you work with clients can also vary from contract to contract. Some clients may incorporate you into their teams, checking in frequently, while others are hands-off and let you work independently.

You can find work through platforms like Upwork by submitting proposals to projects posted by clients you want to work with or accepting offers. Upwork connects independent professionals with clients of every size who are motivated and actively looking for freelancers. It makes working together easy by facilitating communication and project submission, as well as offering Payment Protection for hourly and fixed-price work. Doing great work on contracts you’re awarded can help you collect positive client reviews and public feedback to build your reputation over time. 

Working at an agency vs. freelancing

At an agency, your work is shaped by the team around you. Projects are collaborative, feedback comes from colleagues and managers, and your focus is on doing your part well within a larger structure. Day to day, agency activities typically look like:

• Working toward shared deadlines with other team members
• Receiving direction and feedback from a manager
• Contributing to projects that span multiple people and skill sets
• Following established processes and creative guidelines

Freelancing offers a different kind of ownership. You're accountable to your clients rather than a manager, with more autonomy over how and when you work — but also full responsibility for your output and client relationships. This means:

• Setting your own schedule and managing your own time
• Communicating directly with clients and managing their expectations
• Adapting your working style to each contract and client
• Building your reputation through the quality of your work and client reviews

Pros and cons of working at an agency

Agencies can be appealing if you want variety in your projects without the pressure of finding your own clients. The trade-off for this opportunity is usually a reduced degree of flexibility and control over the work you take on.

Let's dive deeper into the pros and cons of working at an agency.

Agency pros

Working at an agency instead of offering freelance work can provide a mix of structure, support, and variety. Most agencies offer steady pay, benefits, and a structured team environment — and many now offer remote or hybrid options too.

These factors make this path appealing to professionals who enjoy collaboration and a more defined process:

• Financial security. As a full-time employee, you get paid on a set schedule and may be eligible for benefits like health care and paid time off. 
• Team environment. You can be part of a team and have more opportunities for collaboration with colleagues you can turn to for support and advice if you need it. 
• Internal growth opportunities. The agency may have in-house resources for employee development and growth or networking opportunities.
• Assigned work. You don’t have to actively pitch clients and look for work unless you have a client-facing role. 
• Structured environment. Your manager will likely handle many of the logistics of a project, like timelines and dependencies, so you can focus on doing your specific job. 

Agency cons

Agencies may offer full-time employment opportunities that include steady pay and benefits, but you’ll lose much of the flexibility, control, and opportunities for growth associated with freelancing. Understanding the drawbacks can help you decide whether the pace, structure, and level of control fit what you want from your career:

• Fast-paced. Some agencies are high-stress environments with long hours and tough competition, especially for entry-level positions in industries like marketing and advertising. 
• Set work schedules. Unless you're an independent contractor or consultant, you likely won't be able to create your schedule and choose when you work.
• Fixed pay. You'll likely be paid a set hourly or salary rate and need your manager’s approval for raises instead of negotiating each client contract. 
• Limited creative freedom. The agency may have specific procedures and styles that you have to adhere to, and other teams or leadership may be the ones making the creative decisions. 
• Limited control. You may not get to choose the projects and clients you work with. 
• Working beyond capacity. There’s less freedom in an agency to turn away work or projects that may stretch you beyond capacity.

“My last full-time job was leading a strategy team at a Cincinnati-based brand agency. The experience was great and I learned a lot. But at the end of the day, I realized that what would make me happiest and most fulfilled was doing this kind of work, but having the freedom to design my life the way I wanted … A beautiful part about freelancing is that I don't feel like I have to choose between being a mom or working. I can create a life that's integrated and includes spending time with my family and continuing to work on exciting, challenging projects.” 

– Betsy Grote, Top Rated brand strategist 

Pros and cons of freelancing

Freelance work has pros and cons to consider as well. One of the appeals of freelancing instead of being an employee is having more freedom to choose when and where you work. This flexibility can give you the freedom to travel, care for your loved ones, or work when you feel most productive. It also means you have to be self-disciplined, spend time pitching clients and be financially prepared for the slower times, especially in the beginning.

Let’s look at the pros and cons of freelance vs. agency work in more detail.

Freelancing pros

Here’s why freelance work appeals to so many independent professionals:

• Flexible hours. Create your schedule, deciding your working hours and when you're available to clients. 
• Career control. Choose the specific skills and services you offer, as well as the clients you work with and projects you work on. 
• Ability to experiment. Freelancers have the freedom to experiment and iterate quickly — testing new tools, like generative AI, without waiting for organizational sign-off.
• Choice in clients and ability to say no. When applying to projects and evaluating offers on Upwork, you can see the client's public feedback from other freelancers to avoid working with difficult clients. If a project doesn't fit your schedule or the client doesn't seem like the right match, you get to decline the offer. 
• Creative freedom. You answer to the client, not a manager or another decision-maker. Your style and creative choices make you unique and are often what attract clients. 
• Earning potential. Working as an independent professional, you set your rate and decide how much to charge clients in your pitches and negotiations. You can give yourself a raise and increase your rates as the demand for your services rises and you have less availability in your week.  
• Growth opportunities. You can upskill and offer more services to your clients, potentially charging more. The only limit is what clients are willing to pay, and this depends on your skills, experience, and reputation. 
• Freedom to work remotely. Freelancers can choose when and where they work, and most projects are fully remote.

“Freelancing offers so much flexibility and opportunity, no matter what your specialty is. So whether it's social media, marketing, graphic design, or coding, there are so many opportunities. And while it's less structured than a university or maybe a corporate life would be, it also allows you to create your own schedule and work from anywhere.”

— Madelyn Harris, marketing and social media specialist

Freelancing cons

Reviewing the potential downsides can help you set more realistic expectations and decide which challenges you’re more willing to manage. Some of the cons of freelancing include:

• No employer benefits. Freelancers are small business owners, meaning you don’t have any guaranteed employer benefits like health insurance and paid time off. 
• Inconsistent pay. Instead of getting paid a set amount every week, you may have some contracts that pay more than others. Unless you're working an hourly contract (which has weekly billing cycles), you may only get paid once you complete a milestone or submit an invoice. 
• Wearing multiple hats. When freelancing, you’ll need to set aside time for finding and pitching clients, marketing, and doing other business management tasks. These are unpaid hours that you need to factor in when you calculate your hourly rate.
• Administrative work. Freelancing comes with paperwork, time tracking, and client management — but on Upwork, much of it’s already built into the platform. You can find jobs, submit proposals, track hours, deliver milestones, and message clients all in one place.
• Platform fees. Freelancers on Upwork pay a variable service fee ranging from 0% to 15% per contract to use the platform. 
• Building your own pipeline. You’ll need to actively submit proposals, pitch clients, and market your business to create a steady workload. 
• Solo work. Some people find freelancing lonely and miss the social interaction that being part of a team or working in the office can provide. Unless your client schedules a meeting or needs you to collaborate with team members, you likely are working by yourself all day.

The right path depends on your priorities and preferences

When deciding between freelance and agency work, start by thinking about your ideal work style and environment before focusing on titles or income. The better choice is usually the one that fits your career goals and the way you prefer to work every week, not just how the role sounds on paper. A few questions can help clarify the decision:

• Do you want steadier pay, or more freedom to set your own rates?
• Do you prefer team collaboration, or more independent work?
• Do you want projects assigned to you, or do you want to choose your clients directly?
• Do you want a clearer internal career path, or more control over your niche and business direction?
• Do you need predictable structure right now, or are you comfortable with managing your own time, income variability, and fluctuating workloads?

It also helps to think in stages rather than absolutes. Some people start at an agency to build experience, process discipline, and confidence. Agencies are also a great way to gain exposure to experienced people who know the business. Others start freelancing right away because flexibility, ownership, or location independence matters more to them.

The right answer can also change over time — what works early in your career may look very different two or three years later.

Starting a business can come with risk, so it's also worth reviewing your current finances and future needs before committing. A financial cushion helps when you first start freelancing since you may not have a full workload right away or new contracts  lined up when one ends. If you want the consistency of a single client relationship, contract-to-hire arrangements are worth exploring.

If you're leaning toward agency work, start by:

• Building your portfolio

• Reaching out to recruiters
• Attending networking events

If you want to know more about working at an agency, try reaching out on LinkedIn. Find the type of agency you'd want to work at and send messages to employees with the types of job titles you're interested in. Explain that you're considering working for an agency and ask if they'd be willing to talk with you and let you know their personal experience. 

If you're ready to try freelancing, start by:

• Learning how to use Upwork as a new freelancer
• Working on making your profile stand out
• Sending strong pitches to clients actively looking for someone with your skills
• Do great work, build your portfolio, and grow your presence with positive client feedback

Transitioning from freelancer to agency on Upwork

If you want the autonomy of freelancing and the collaborative energy of an agency, starting your own agency on Upwork is worth considering. You can maintain creative freedom and control while building a team of independent professionals with complementary skills — taking on bigger projects without giving up what made freelancing work for you. 

Many freelancers choose to create an agency on Upwork once they reach the limit of what they can accomplish on their own. If you find yourself having to decline new projects or clients regularly, you may want to consider an agency model and work with other freelancers. 

Before starting your own agency, it helps to have some experience under your belt — either freelancing directly with clients or working within another agency first. Freelancing sharpens your client management and time management skills, while agency experience builds collaboration and exposes you to different ways teams operate. On Upwork, you can work exclusively with an agency or continue to freelance independently on the side. 

“Once I got my first clients, things really snowballed from there. And within the first six months of starting on the platform, I had too many clients and too many projects to handle on my own. At that point, I knew that I needed to start building a team that was going to help me support these clients because I was literally declining invitations to jobs that I was getting every day because I didn't have the capacity to service them.”

 — Keenan Theron, cofounder of Workiflow agency

You can continue to freelance while establishing your agency on Upwork and looking for the right people to collaborate with. Search for freelancers whose skills complement yours, so together you can offer clients a more complete service within your niche.

“One day, everything blew up and I started to have 10 to 15 interviews per week. At the same time, I realized that my peers were struggling to work in Brazil, which was why I asked them to work with me.”

 — Thiago Maior, founder of EZOps Cloud agency

If you'd rather start with agency experience first,  you can do so and start freelancing on Upwork part time. Many independent professionals slowly transitioned into freelancing in this way; they kept their full-time jobs while taking on small projects in their spare time. This way, you can see if you enjoy being a freelancer before fully committing. 

Grow your agency or freelance career on Upwork

Deciding between freelance vs. agency work depends on your work style, career goals, and desired level of autonomy. Reading Upwork success stories can give you a real sense of how successful freelance professionals built careers on the platform.

If you're leaning toward freelancing, you don't have to go all-in right away. Setting aside a few hours a week alongside your current role is a practical way to find your footing — see what skills are in demand, take on a few smaller projects, and transition to full time freelancing when you're ready.

Creating a free account on Upwork takes just a few minutes — fill out your profile and start submitting proposals to jobs that match your skill set.

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Upwork is not affiliated with and does not sponsor or endorse any of the tools or services discussed in this article. These tools and services are provided only as potential options, and each reader and company should take the time needed to adequately analyze and determine the tools or services that would best fit their specific needs and situation.