Fiverr Vs. Upwork: Which Is Better For New Freelancers

Freelancing has become an increasingly popular means of earning a living. With the rise of the gig economy, many people have turned to freelance marketplaces such as Fiverr and Upwork to find work and earn some extra income. These platforms connect freelancers with businesses and individuals who are in need of their skills and expertise. So in this entry of the VS. Series, we will compare the differences between Fiverr and Upwork, and see which is better for new freelancers.

Overview Of Fiverr

Fiverr is a global online marketplace that was founded in 2010. The platform specializes in offering freelance services in various categories such as graphic design, writing, programming, video editing, and much more. The name 'Fiverr' originated from the platform’s initial $5 price point for services. However, the platform has since evolved to allow freelancers to set their own rates, with some charging hundreds or even thousands of dollars per project.

One of Fiverr’s unique features is the use of “gigs.” Freelancers offer services in the form of pre-packaged gigs that clients can purchase. Each gig typically includes a fixed price and a specific set of delivery requirements. For example, a graphic designer might offer a gig for designing a logo, which would include a set number of revisions and the delivery of the final logo files.

Overview Of Upwork

Upwork is another global freelancing platform that was founded in 2015 through a merger of Elance and oDesk. The platform offers a wide range of services, including web development, writing, graphic design, accounting, and more. Unlike Fiverr, Upwork does not use pre-packaged gigs, but instead, freelancers create profiles that highlights their skills, experience, and hourly rates, and clients can then search for freelancers that meet their needs.

One of Upwork’s unique features is its integrated messaging system, which allows clients and freelancers to communicate directly within the platform. This feature is especially useful for ongoing projects where frequent communication is necessary.

Pricing Model

When comparing the two freelancing websites, the pricing model for each website stands out on their own as each site has a completely different user experience. Fiverr uses a fixed-price model, where freelancers offer pre-packaged services at a fixed rate and can be beneficial for both clients and freelancers for its simplicity.

In contrast, Upwork uses an hourly pricing model, where freelancers charge an hourly rate for their services, which can be beneficial for both clients and freelancers in terms of flexibility. For their freelancers, it allows them to charge for the exact amount of time they spend on a project and can potentially lead to higher earnings.

Types Of Services

Both Fiverr and Upwork offer a wide range of services from developing creative pieces of art to writing up legal documents. However, the way these services are offered differs between the platforms. Fiverr uses a categorized system, while Upwork allows freelancers to offer their services in a more open-ended manner.

Fiverr Services

Fiverr offers a vast service catalogue where users are able to browse through their desired categories and choose various pre-packaged options that meets their needs. This is useful for freelancers have already determined which category and subcategories their gigs fit into, but for new freelancers they would need some time to explore all the different options in order to understand which service can potentially help them reach a larger audience.

Upwork Services

The open-ended service model used by Upwork can be beneficial for clients who have more complex or custom projects. While Upwork’s catalogue of services isn’t as large as Fiverr’s, they keep it simple and general enough where it allows users to search for freelancers who have specific skills and experience that match their needs. For new freelancers, they would need to complete their profile and showcase their skills and experience in a more detailed and customized manner.

Payment and Fees

Naturally, both Fiverr and Upwork charge every freelancer a set of fees for using their platforms. To be straight and to the point, Fiverr charges a flat service fee of 20% of the total order amount from the freelancer’s earnings, while Upwork charges a sliding fee based on the freelancer’s earnings that ranges from 5% to 20%.

Fiverr’s fee structure can be seen as a disadvantage for new freelancers, as it takes a significant portion of their earnings. However, the platform does offer various features and tools to help freelancers increase their sales and potential earnings. Meanwhile, Upwork’s sliding fee structure can be beneficial for freelancers who earn a higher income, however the platform is more competitive considering how most offers are obtained through experience.

Both platforms offer secure payment systems to ensure that freelancers are paid for their work and clients receive the agreed-upon services. In addition, the payment clearance for both freelancing websites take around a couple of days.

User Experience

The user experience and interface on Fiverr and Upwork differs in various ways and while this can be subjective than objective, each website has their advantages. Fiverr’s platform is designed to be more user-friendly, with a simple interface that allows users to quickly find what they are looking for. It also offers various features and tools to help freelancers increase their sales and improve their services, such as ratings and reviews, analytics, and a mobile app.

Meanwhile, Upwork’s platform is designed to be more professional, with a more complex interface that may require some time to get used to. However, the platform offers various features and tools that are designed to help clients and freelancers find and manage projects more efficiently. These include project management tools, time tracking tools, and a messaging system.

TL;DR

Both Fiverr and Upwork offer unique features and benefits for freelancers to set up their freelancing shop. Fiverr’s pre-packaged gig model and fixed-price model can be beneficial for freelancers who want to offer their services in a practical and standardized manner. Meanwhile Upwork’s open-ended service model and hourly pricing model can be beneficial for freelancers who want to charge for the exact amount of time they spend on a project.

Ultimately, the choice between Fiverr and Upwork will depend on the specific needs and preferences of each user, but for new freelancers, Fiverr will be more user friendly for new up-and-coming freelancers. If you liked what you read and want to see more content like this, be sure to follow for more related content!