There are pros and cons for each. For instance, most content providers provide instant gratification. We can see our names in print quicker and payment is almost instantaneous. There's almost always work too. I used to use my content gigs as filler between my private clients.
With private clients there is indeed the leap of faith, but I find an independent contractor's agreement takes care of the deadbeats. The money is much better and they look better in a portfolio and as a reference. Private clients pay more money, but they expect a lot more bang for their buck as well.
Also, as for placing service ads on Craigslist, if you do this be prepared to receive a lot of spam.
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