How is a freelancer typically compensated?

A freelancer is typically compensated through project fees or hourly wages because they work independently and are not tied to a traditional employment structure. This compensation model allows freelancers to charge clients based on the specific work they complete or the time they invest in a project. It fosters flexibility and enables freelancers to set their own rates according to the nature of their services and the value they provide to the client. Freelancers often negotiate these fees on a per-project basis, making this option the most fitting for their work arrangement.

In contrast, a yearly salary would imply a consistent compensation structure tied to employment, which isn't applicable to freelancers who operate as independent contractors. Compensation solely by commission suggests a sales-based role often found in traditional employment settings rather than freelance work, which doesn't typically rely on sales performance for compensation. Additionally, employee benefits are not part of a freelancer's compensation package, as they do not have a formal employer-employee relationship.