In this video, Dave Ablar, an AI engineer with over seven years of freelancing experience, explains the two primary freelance models in the tech industry: long-term contracts and project-based work. Long-term contracts resemble full-time jobs, often secured through recruiters or staffing agencies, paying hourly or daily rates for roles like AI engineering or software development. In contrast, project-based work involves fixed-price projects with defined deliverables and timelines, typically for smaller clients, requiring freelancers to continuously find new projects to maintain steady income.
Dave emphasizes the significant differences between these models, noting that long-term contracts offer more stability, higher pay (often two to three times regular employment), and freedom from company politics. These contracts usually require several years of relevant experience and a strong technical profile similar to traditional job applications. Currently, the most in-demand skills for such contracts revolve around AI engineering, including integrating large language models (LLMs) into products and building AI pipelines.
Project-based work, on the other hand, is more common among solo freelancers working with small to medium-sized enterprises (SMEs). These clients often need automation for routine back-office tasks like managing invoices, emails, data entry, and customer support. Freelancers in this space build custom AI-powered automations and chat assistants to streamline these processes. The technical focus here is less about complex architectures and more about practical, user-friendly solutions that SMEs can adopt without deep technical knowledge.
Dave highlights that the most successful freelancers combine both models: securing at least one long-term contract for steady income while stacking smaller project-based gigs on top. Additionally, many top freelancers generate recurring revenue through maintenance retainers, supporting and updating software they’ve built for clients. This diversified approach not only maximizes earnings but also provides the freedom to develop their own software products, as Dave himself does with his speech-to-text tool, Glideo.
Finally, Dave invites viewers to join his free monthly masterclasses focused on freelancing in tech, including upcoming sessions on leveraging AI coding agents for client acquisition and project delivery. These sessions offer practical guidance and community support for freelancers aiming to thrive in the evolving tech landscape. He encourages viewers to subscribe and engage with his content to learn more about building a sustainable and lucrative freelance career.
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