- The freelance market is growing, with at least 39% of surveyed US workers doing side gigs last year.
- Fiverr and Upwork are two of the most popular freelance marketplaces to earn extra income.
The freelancing market is on the rise as more people look for ways to turn their skills into side income, especially amid economic uncertainty. In fact, 39% of surveyed US workers freelanced in 2022, up 3% from the previous year, according to a study by the freelance platform Upwork.
Some freelancers are using previous marketing experience to launch copywriting gigs, while others are turning specific skills, like creating PowerPoint presentations, into their own businesses.
While their expertise may vary, many freelancers rely on the platforms Fiverr and Upwork to advertise their services, find clients, and grow their businesses. According to both companies' 2022 annual-earnings reports, Upwork has 814,000 active buyers, and Fiverr has 4.3 million active buyers. Additionally, Fiverr and Upwork are available in more than 160 and 180 countries, respectively.
For those looking to start a freelance service, Insider spoke with current entrepreneurs across the two platforms to understand the biggest differences, along with the pros and cons of each platform.
Evan Fisher, a pitch-deck creator on Upwork; Jaime Hollander, a copywriter on Upwork; Jake Northern, a marketing specialist on Fiverr; and Levi Newman, a description writer on Fiverr, shared their personal experiences on both platforms. While each freelancer's perspective will be different, here's what they suggest users consider depending on their expertise, rates, and goals.
The difference between Upwork and Fiverr's clients
Fisher, an Upwork shareholder, said the client persona of each platform is wildly different. In his experience, Upwork clients are CEOs, startup founders, and established companies, while Fiverr clients tend to be smaller business owners or general individuals.
Hollander found that Fiverr was good for people who needed one specific project done, like an 800-word blog post or a logo design. "Fiverr is like going to the store, you know what you want and you buy it," Hollander said.
Whereas on Upwork, she's had more dialogue with clients to figure out what type of work will fit their needs.
Upwork clients come to the platform with an average budget of $5,045, while Fiverr clients have an average budget of $262, according to the companies' 2022 annual reports. That means freelancers who use Upwork can pursue fewer projects at a time while Fiverr freelancers typically complete more shorter-term gigs to earn the same amount of income.
Which platform is better for long-term customers
Fisher also prefers Upwork's service-fee structure, which is based on the prices of projects. The platform charges freelancers a commission fee of 20% on projects of up to $500; 10% on projects costing between $500 and $10,000; and 5% on projects costing more than $10,000.
These rates are based on the freelancer's lifetime earnings with a client. So once a freelancer has completed $10,000 worth of projects with one client, they will continue to pay the 5% fee for any future projects with that same customer. This incentivizes freelancers to build long-term relationships with their clients, Fisher said.
Fiverr charges freelancers a 20% flat rate on all projects. "Any job that looks like it's going to be more than $10,000, you are immediately highly incentivized to offer your services through Upwork," Fisher said.
The contrast in user-friendliness
Northern said Fiverr is a more user-friendly platform because all he had to do was create his profile one time and wait for clients to message him. He could add up to seven different services that users could hire him for, and it only took him one week to land his first gig, he said.
Newman said the ease of Fiverr allows him to focus more on projects rather than running the business. "I don't have to run a website, I don't have to pay for advertising," Newman previously told Insider. "I like just being able to do the work and it simplifies it for me."
Alternatively, on Upwork, freelancers create their profiles, listing up to 10 skills, then apply for projects. "You have to read through a lot of people's gig requests and then apply to it almost like you're applying for a job," Northern said, adding that when he first started freelancing, he created profiles on both Fiverr and Upwork.
Both platforms keep client communication within the apps, which can get tricky for customers who aren't tech savvy, Hollander said. "A lot of clients want to get on Zoom or FaceTime."
Payment terms and protection vary between platforms
Fisher's biggest gripe about Fiverr is that it pays freelancers in up to 14 days while Upwork pays freelancers in up to 10 days. It may not seem like a major difference, but for freelancers, it's a top priority, he said.
Upwork also offers verified freelancers hourly payment protection, guaranteeing they will get paid if a client disputes payment, which is common with any contracted work, Fisher said.
When it comes to charge-backs and disputes, Fisher said he feels Fiverr favors the client over the freelancer. "If the client wants to dispute that it was not a good job, then that client's getting their money back," he said.
Ultimately, Hollander said that freelancing isn't an overnight success, and highly depends on the work you put into your profile.
"Whether it's Fiverr, Upwork, or any of the other platforms out there, you need to build your profile," she said. "It doesn't matter what platform you choose; you've got to do the work."