Battle Of The Freelance Platforms: Fiverr vs. UpWork
In the old days, folks left their rural lives and flocked to the cities to find employment opportunities. Those days are gone. Today, we migrate from regular nine-to-five jobs to the world wide web, in search of a better life.
The COVID pandemic forced millions of workers to re-evaluate their careers and make tough choices. I should know, I was one of them. It wasn’t a good time for anyone. The lockdown showed us that we can’t rely on conventional methods of earning a living anymore. In the modern world, you have to think digitally.
Being self-employed is by far the best way to forge the life you want. You set your own hours, charge your desired rates, choose who you want to work with and get to spend more time doing the things you love.
There are many platforms out there that allow freelancers to find clients and build their online businesses. Today’s post is about Fiverr and Upwork, two freelance platforms that provide a space for people like you and me to sell our skills. We will compare the two and see who wins the battle of the freelance platforms.
In this article, I will highlight the pros and cons of both platforms and try to make your decision a little easier.
Fiverr vs Upwork: Opening An Account
Opening an account with either platform is basically the same. However, when I opened my accounts, I found that setting up a Fiverr profile was slightly easier. An Upwork profile takes longer to complete as there are more formalities to navigate through. Filling out the required tax information also takes longer on Upwork than on Fiverr. Both platforms are free, so you can start your freelance career with very little cost.
Features and Structure
Both Fiverr and Upwork boast similar features. They both let you set up a freelancer profile which includes a profile pic, a portfolio of samples, a title, description, tags and a freelance rate.The biggest difference is that, on Fiverr, you need to create gigs. Gigs are specialized skills and services that you provide, for example, blog writing, web design, transcription, etc. Each gig has three price tiers to maximize your earning potential.
Fiverr then lists your gig in its ranking system so buyers can find you when they search for freelancers to work with. You can use SEO techniques to improve your chances of getting seen and hired. Upwork has a different system. You set up your profile and showcase your skillset more like a resume.
You then have to search for projects that buyers post on the platform and submit a proposal in order to get hired. Upwork recently added a feature similar to Fiverr’s three-tiered gigs setup. It’s not as effective as Fiverr’s gigs yet, but time will tell.
Fees and Payments
Service fees are a not desirable, I know, but I don’t mind it too much because the platform has to cover costs and make a profit somehow. Fiverr charges a 20% fee for completed gigs. Upwork also charges 20%, but if you earn $500 or more from a client, then the fee is reduced to 10%. On Fiverr, as I said before, gigs are structured into three tiers and you can charge a higher rate for each tier.
Whereas, on Upwork, you can charge either per project, per hour or per milestone. I find this option to be better because it allows you to potentially make more money by charging the client an hourly rate. Both platforms allow you to raise your rates whenever you want.
This is advisable from time to time as you gain more experience or upgrade your skillset. Upwork has an added feature where the client has to deposit the funds first. This is then held in escrow until you submit your project for approval.
Costs
While Fiverr is completely free for freelancers to work on, Upwork, on the other hand, has a hidden cost. I didn’t know about this until I was working on Upwork for about a month.
Upwork has a credit system known as “connects”. It works like this: Each month you are given 20 credits which you can use to submit proposals. When clients come on to Upwork and post projects, freelancers can submit proposals for these projects. Every project requires a certain amount of credits to submit a proposal. Some projects require 3 connects, some require 5, and so on, depending on the complexity of the job.
Once you use up the allotted monthly credits, you can’t submit any more proposals unless you buy more credits. This is the major downside of Upwork. The cost is small, but it does add up and it limits the number of proposals you can submit if you’re on a tight budget. As a freelancer just starting out, a tight budget is actually no budget at all, am I right?
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Customer Support
In an ideal world, we can all go about our business without any conflicts or technical issues. But, sadly, this is Earth. We’re not that lucky. This means there will be conflicts and there will be technical issues which spring up out of nowhere to ruin your day. When they do, you want customer support to be there for you. Upwork’s customer support is pretty good. I’ve only had one issue with a client and it was sorted out within two days.
The customer support over at Fiverr is not too bad, but they do tend to side with the buyer in most cases. In fact, there have been instances where freelancers had their accounts suspended without warning or explanation due to customer complaints. So keep that in mind.
Withdrawing Your Earnings
Now we get to the juicy bit - getting paid. Not much to say here. Overall, withdrawing your earnings is easy and hassle-free on both platforms. Upwork and Fiverr offer various options to withdraw your available funds, like PayPal and bank wire. I haven't had any issues with getting paid on Upwork or Fiverr, so I think you’re good either way. No worries.
Conclusion
Okay, now you’re probably screaming, “Choose one, so I can get started!”
Fair enough, here goes. If I’m forced to choose a winner, then I have to go with the one that has raked in more money for me and that is Upwork. I’ve landed more high-paying clients on Upwork than on Fiverr. I actually prefer the escrow system that Upwork uses, and the ability to charge per milestone ensures that you get paid as you progress through the project.
Upwork and Fiverr are two great platforms to use for your freelance services. They both have pros and cons. Ultimately, it boils down to your preferences and business needs. If you prefer setting up a profile and using SEO practices to let clients find you, then Fiverr is your friend. On the other hand, if you are comfortable with writing proposals and paying a small amount each month to submit them, then by all means choose Upwork.
There is a third option, however. You don’t have to choose one over the other. At least not right away. My advice is to open accounts on both platforms, try them out for a month or two and then go with the one that serves you best.
That concludes this exploration of the freelance giants. Keep working on your craft, stay motivated and make sure you provide real value to your clients.
Related:
4 Metrics When Considering Success As A Freelancer or Small Business Owner
Finding Your Authentic Voice as a Freelance Writer: Strategies for Developing a Unique Writing Style
How A Freelancer Business Coach Can Help Jumpstart Your Business
Meet The Writer!
Greetings. My name is Edwin Kannemeyer (or just Ed or Edi). I’m a freelance writer, living the write-life to the fullest. Currently, I lay my pen down in the self-improvement niche, with a focus on working parents. Helping people work from home and live happy, fulfilling lives is my goal as a writer. I would love to hear from you, so get in touch with me on LinkedIn or edikannemeyer@gmail.com
