There are two general paths that software devs can take:
- do generalist software augmentation contracting, where you are essentially an employee but paid better (and fired faster but that goes both ways)
- specialize, build expertise, and do consulting - selling your brain, so to speak, as opposed to providing an extra pair of hands
The advantage of the contracting route is more predictable income, esp. if the projects take months or even years to finish. That's quite common in Europe if you contract for a Fortune 500 equivalent company like Volkswagen. The corporate "digitalization" projects run forever and a contractor can successfully embed himself or herself there for as long as is enjoyable (and profitable).
There are downsides.
First, you do not develop your sales and marketing muscle when taking on full-time staff augmentation roles. In Europe, it's common to get these gigs through recruiters, and so you don't even own and manage your relationship with the client.
Second, it feels like employment because it essentially is. You attend all the Scrum ceremonies like everyone else. Clients expects you to be available during the working hours and has all the other expectations they have for their staff employees.
Third, it's hard to scale this "business". Since you are a staff engineer, just with a different contract, the client does not see you as a consulting partner, so offering additional manpower to the client could be a tough sell.
On top of that, it's easy to just "go with the flow" and accept whatever gig the recruiter calls you about, provided it pays OK. Then, you look back at your portfolio and it's a hot mess!
This has been my experience doing staff augmentation in Europe for 10+ years. I am transitioning away from that, and the journey has been quite taxing, mentally. Like going to gym for the first time in years, only now it's your brain that needs training - it can hurt for a while.
One more point:
I see some people professing their hate for sales.
Actually, you do sales, too, when you sell yourself to the recruiter or your future boss. Sales is inevitable and we engineers better be GREAT at it.
I think sales in consulting can be even enjoyable, and I do love this aspect of the work. It just can't be the "used car salesmanship" type of sales. You gotta listen, really listen to the client, grok their situation and build baseline trust. Then the sales conversation feels more like an advisory session. But to get there, I think, requires building expertise and some level of specialization. How much of either, I am not sure.
Hopefully this helps a little.
PS I strongly recommend following Jonathan Stark of the "Hourly Billing Is Nuts" fame. It's a great antidote to a lot of questionable freelancing advice one can find one the interwebs.