Design houses are groups of (as the name implies) designers (illustrators, graphic designers) that all work within the same house style. Those within these groups often have to adopt a certain style and work to that. People of design houses usually work with clients who have been discovered by the company itself, working through an agent, it is easier to find work, and will be a lot more regular than those in freelance.
These jobs supply a lot more security in that you don't have to depend on your own networking to find work, and your work will usually be shown to a fairly large audience. However, it has its drawbacks - most companies require you to conform to a certain style and cater to more corporate customers; those that don't demand you have very impressive work and stand out. In order to have your creative freedom, you need to work much harder for it.
This way of working is a lot more stable and probably offers a lot more restful nights - however I personally don't think I could work this way, as I require a lot more freedom; the stability would be nice but it is more my style to work hard for a more regular income than to give up some of my creative freedom.
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