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Upwork Vs. Freelancer Vs. Fiverr
There are several websites that allow you to outsource one-off jobs to freelancers. The number of such sites is increasing, spurred by an uptick in specializations.
Elance, the oldest of these sites, started out in 1999. Interestingly, the website took its name from a Harvard Business Review article, The Dawn of the E-Lance Economy. It was originally envisaged as a platform for outsourcing IT work but soon evolved to include other sectors as well. In 2013, it merged with a competitor, oDesk, and was re-branded as Upwork.
Freelancer is another website that came about in 2009. Back then, Elance only allowed payments to be made in USD, which put freelancers based outside the United States at a disadvantage. At the time, many countries had limits on the amount of foreign currency that can be received and converted to local currency, and this setup limited the capability of freelancers on Elance to bid on projects. Freelancer resolved the problem by allowing payments to be made in local currencies.
Another big player, Fiverr was established in 2010. Setting itself apart from its 2 biggest competitors, Fiverr aimed to provide high quality work at low prices. The starting rate for the projects posted in the site was USD 5, which was a boon for many cash-strapped individuals and companies alike.
A Paradigm Shift in the Workforce: Why Freelancing is the Way to Go
Outsourcing work to freelancers has several advantages. Companies continue to choose freelancers and source some work through online platforms because:
1. It is cheaper compared to hiring a full-time employee.
Competition is fierce in the freelancing world, be it in terms of quality or rates. Freelancers can charge what it costs to hire a full-time employee, but to encourage clients to outsource work instead of hiring new in-house staff, they refrain from quoting high rates. Freelancers charge their clients depending on the work that needs to be done, and the price they demand can be quite inexpensive compared to the cost of hiring and training new employees and providing them with full benefits.
Aside from saving on expenses, companies that work with freelancers save time. Freelancers tend to have a much shorter turnaround time compared to full-time employees, which can help clients cut costs when it comes to spending on man hours.
If you choose to outsource your work to freelancers in the Philippines, you stand to save even more. The Economist rates Filipinos as among the best speakers of business English in the world. This allows them to communicate clearly with their clients and reduce instances of misunderstanding, especially when bidding for or discussing the specifics of the project. At the same time, the Philippines ranks among the bottom 3 worldwide when it comes to wages, so clients are more likely to make the most of their budget if they choose to outsource to freelancers based in the country.
2. It results to consistent and high quality work.
Freelancers often specialize in the specific kind of work that they do. They invest time and effort in improving a particular skillset, which they then market on freelancing websites. In order to build their portfolio, they bid on assignments that are matched to their talents and skills, a practice that helps them gain more experience and improve the way they manage and execute their projects. Plus, in order to retain their clients and justify their rates, many freelancers make the effort to maintain a consistent quality of work.
3. It allows clients to get more work done.
Unlike full-time employees, freelancers are typically not bound by regular work hours. While many freelancers certainly take on projects that are billed by the hour, many also opt to be paid depending on the volume or the specific demands of the project. As such, clients can assign the project to freelancers in the evening and come back to a completed output the next day. Freelancers can work during off-peak hours, weekends, and holidays. Clients that combine the use of full-time employees and freelancers with flexible hours or part-time employees are able to ensure 24/7 business continuity.
The 3 Most Popular Freelancing Sites Active Now
Upwork, Freelancer, and Fiverr are the three most active and popular freelancing websites worldwide. Upwork has over 12 million freelancers registered with it, as well as 5 million clients. Some 3 million jobs are posted every year, with USD 1 billion changing hands. It is the largest freelancing site in the world.
Freelancer has 21 million users across the world. It won the Best Employment Website award in 2015, a feat which it repeated the following year. Fiverr has 3 million services listed on their website. Unlike other freelancing sites where clients post their projects and freelancers bid on them, on Fiverr, freelancers list their services and rate them between USD 5 and USD 500. Clients with projects can then approach the freelancers and directly negotiate for their services.
How it works
Clients post their projects and jobs on Freelancer for free. From here, they have 2 options: invite freelancers to bid on the project, or look at freelancer profiles themselves and make an offer to the ones that meet their requirements. Those who choose to go through with the bidding process are free to select the best ‘technical’ bid, meaning they don’t have to choose the freelancer with the lowest rate, but the one with the ‘best’ quote for the job. This may mean going with a freelancer who has higher rates and skills that are a much better fit for a particular project.
The website’s users respond in real time, and projects usually get bidders in a matter of minutes. Once the client awards the project to a freelancer, the 2 of them can communicate constantly through the website to discuss the particulars of the project and to set each other’s expectations. Freelancer allows users to chat, share files, and collaborate while on the go.
Clients don’t need to pay upfront on Freelancer; they only need to pay once the project is done and completed to their requirements. If the project is a complex one and if the freelancer is unwilling to risk hours on the promise of getting paid at the end, they can talk about breaking it down into several smaller projects. The client can arrange to pay the freelancers based on the milestones and goals they achieve. All payments are made through a highly secured and encrypted state-of-the-art system. Should any user encounter any problem, they can contact Freelancer support round the clock.
Is it worth it?
Some of the clients who tried using Freelancer say that they had to part with their money first before engaging with a freelancer. Others say that the website has a lot to improve on when it comes to technical problems. There are also some people who encounter a few issues with billing, like a client who found that he was billed twice for creating a duplicate milestone. While the client disputed the charge, they were not able to outsource anymore work or leave a rating to the freelancer, who the client said did an excellent job on the project.
Freelancers who use the site also face similar problems. Some complain about missing milestones and money. Some say that the website is not very helpful in resolving these discrepancies. Just like clients, freelancers can leave reviews on the profile of those who hired them. Some take advantage of this system by leaving a bad rating, telling the other person that the rating will be edited as soon as they leave a stellar rating on the original rater’s profile.
How it works
Fiverr offers a very simple system of finding freelancers. Instead of inviting clients to post projects and freelancers to bid, it serves as a kind of directory for freelancers, or what the website calls ‘sellers.’ The website has a number of categories and subcategories, and most of these feature specialists in the creative industry. The sellers under each subcategory are listed in order of their star ratings and the number of reviews their previous clients left on their profile. The seller’s profile also includes the list of services or specializations they offer.
Is it worth it?
Going through Fiverr is a good decision if the project needs creative people for short-term or one-off engagements. However, one should note that the website offers limited categories: graphics and design, digital marketing, writing and translation, video and animation, music and audio, programming and tech, business, and fun and lifestyle.
Some freelancers stay away from Fiverr because the website allows buyers to cancel the project and get their money back even after the work has been completed. Some buyers or clients also say that a few sellers post their best work on the website but deliver low quality work in reality. This seems to be one of the reasons why only few sellers have 5-star ratings and excellent feedback from buyers.
How it works
Just like Freelancer, Upwork allows clients to post their projects on the website. The platform then matches the project with a list of freelancers that specialize in that particular field of work. This makes it easier for clients to search for available people; if they have to do it manually, they’d have to sift through the millions of freelancers registered on the website. To help clients choose the right people, Upwork indicates the skills and percentage of projects completed on the freelancer’s profile, and sometimes even the amount of money they earned through the website. The client can review and compare the profiles sent to them, and even interview the freelancer personally before making their choice.
The website allows file sharing and various forms of communication. The website is used to prepare invoice and process payments, and it offers clients Upwork Protection, which guarantees that clients won’t have to pay for assignments they did not commission or authorize. Clients with a premium Upwork account receive hand-picked freelancer profiles as well as the service of a dedicated account manager.
Is it worth it?
There are a lot of freelancers on the website, so some clients comment that only a certain percent of the people there are really experts on what they do. Clients who choose poorly might end up hiring people who don’t have the right set of skills for their project. But there are many freelancers and clients on the website; as long as people keep on their toes when searching, they can always find another person or project that fits their bill.
Should Clients and Freelancers Use Any of These Services?
Freelancer’s website should be ironed out to minimize the technical issues that both clients and freelancers complain about. The site also enforces a limit on bids, and freelancers are only allowed up to 10 bids at the same time. This discourages some freelancers from using the website.
Upwork and Fiverr offer freelancers and clients with plenty of options. Fiverr has many options for clients who are looking for creative professionals. Upwork, on the other hand, has a more diverse category of talents and projects and offers free membership. However, freelancers need to know that they have to pay a minimal amount whenever they bid on a project.
To choose the right platform for their work and projects, freelancers and clients should examine the safety procedures implemented on each website. Can they protect themselves if a client refuses to pay for a job that has been completed to their instructions or if a freelancer sends an invoice for a job they didn’t do or complete? How responsive is the website’s customer support service, and can they help users effectively resolve issues and get what they’re due?
Hiring freelancers offers a lot of practical benefits to clients, but finding the right freelancer for the job can be a grueling process. To make sure both client and freelancer are on the same page, they need to clearly communicate the requirements of the project and the capabilities, limitations, and expectations of each party. Clients must take every effort to get to know the freelancer they plan to hire by checking their credentials and interviewing them properly. While seeing 5 stars on a freelancer’s profile is a good sign, clients still need to be reasonably cautious and check in on the project’s progress from time to time.
Finally, it is worth noting that hiring freelancers is a great option for one-off jobs and short contracts. If you want to ensure long-term business continuity, then you should look into outsourcing instead. Coupled with the right strategies and resources, setting your sights on a highly dependable virtual workforce is key to sustainably enhancing your company’s productivity while slashing the cost of running and expanding the business.