I develop iOS applications. Based on j45's definitions I'd be a consultant/contractor. I have one client right now and they take up most of my time. They're a small startup and it was my first development job in nearly 10 years. The first projects were priced according to the scope of the work and what they could afford. I was severely undercutting myself but I Didn't feel I had any leveraging power. Their dependence on me grew and they've come to rely on me to help them shape the direction and future of the company. The last project I charged what I believe is market rate for an iOS developer and I let them make payments while I retain all IP rights until its been paid. Now I have an ongoing agreement with them where I guarantee them a set amount of time per week in exchange for $1,000/wk. How that time is used is up to them. It could go to consulting or to actually writting code. This works out for both of us because my income is fixed from this client, it's not full time, gives them flexibility to use me as best serves the business and keeps us from wasting time on the negotiation table on individual projects.