Fiverr vs. Upwork:
By the end of this article, it will be clear how much of a difference there is between Upwork and Fiverr.
The Comparison of Fiverr and Upwork:
Upwork:
- Attracts 43 million monthly visitors
- Ideal for hiring professional freelancers for longer projects
- Focuses on highly in-demand remote work skills
- Generally considered more expensive for quality services
- Freelancers may be restricted from certain over-saturated niches
- Involves multiple fees to complete a transaction
- Client/Employer focused, where employers post projects and freelancers compete for the job
- Freelancers must pay to maintain a good standing account
Fiverr:
- Attracts 35.95 million monthly visitors
- Best suited for short-term or one-time gigs
- Offers a wide range of services and skills
- Offers cheap services but quality can vary
- Freelancers can offer remote services
- Only charges a one-time 20% fee for completed paid gigs
- Freelancer focused, where buyers come to find freelancers
- Freelancers may post their services for free.
Upwork Overview
Upwork was established in 2015 as a result of the merger between oDesk and Elance in 2013. With headquarters in California, USA, it has become one of the largest freelance platforms connecting businesses with skilled professionals. Currently, it has over five million clients and 18 million registered freelancers, with an annual report of three million jobs worth over $1 billion posted on the platform in 2020.
Upwork is a great option for both employers seeking to hire freelancers and freelancers looking to build a long-term career.
The Upwork Process
The process of finding work on Upwork is centered around the employer. The employer must create a job posting and sign up for a free account if they do not already have one. If you want to have both employer and freelancer accounts, you will need separate email addresses for each.
Employer Setup
Upwork offers a guide for clients, which includes 4 short training modules on online work, attracting top talent, vetting profiles, and hiring good freelancers. After linking your payment method with your account, you can start hiring freelancers immediately.
There is no cost for setting up a client account, but it is worth noting that there is a 3% processing and administration fee on every payment you make. The Basic package is the most commonly used by 95% of potential employers, but there are upgrades available for larger companies that hire many freelancers.
Freelancer Setup
To become a freelancer on Upwork, you must ensure that the skills you offer are available on the platform. If you offer popular skills like software development, customer service, content writing, or graphic design, there should not be any issues.
The sign-up process is straightforward, but if you are applying to a highly competitive niche like content writing, you may need to prove your quality through a vetting process. Unlike the old Elance system, freelancers using Upwork must pay for bids to maintain their account, as well as a 5% to 20% fee to Upwork, and the "Connections" currency to apply to job postings and contact employers
Connections cost 15 cents each and are usually sold in bundles, with the first 60 Connections being free.
Advantages and Disadvantages of Upwork
Upwork offers larger job postings, making it an ideal
platform for freelancers who are seeking higher paying jobs. It is also a
popular platform to find freelance jobs that may lead to full-time remote
positions. For employers, it is a reliable platform to find experienced and
skilled freelancers.
Advantages:
No cost:
Upwork is free to join and provides 60 free connections to bid on jobs.
Bid on work:
Freelancers can apply for jobs they are interested in, giving them some control
over the type of work they receive and enabling them to be proactive.
Upwork Premium:
Freelancers can upgrade to Upwork Premium as they build their portfolio, which
offers added benefits such as better support and job recommendations at no
extra cost.
Client ratings:
When bidding on jobs, freelancers can review the ratings from previous
freelancers, providing them with a better understanding of the client and their
work ethics. However, Upwork is a highly competitive platform, with the
competition increasing in recent years. This can make it difficult for new
freelancers to get approved, and even after approval, there is still tough
competition for the available jobs.
Disadvantages:
Account bans:
Upwork has the authority to ban an account without prior notice.
Client-oriented platform:
There are more freelancers on Upwork than there are jobs available, putting the
clients in a strong position to select the freelancers they want. This means
that established freelancers have a better chance of getting jobs over newer
ones. Read our full Upwork review in the related article.
Fiverr Overview
Fiverr started in 2010 as a platform for clients to hire freelancers for $5
per project. However, it has since evolved, allowing freelancers to set their
own prices for a variety of services including design and development. The
platform receives nearly 35 million visitors per month and facilitates about 1
million transactions each month.
Getting Started on Fiverr
To start as a freelancer, you can sign up for a free account, with a fee
only when you sell a gig. Once you complete your profile, you can create one or
more gigs to offer and if there's demand for your services, you're ready to go.
For buyers or employers, the process is to search for a freelancer on the
platform by selecting the highest-rated ones that fit your budget and hiring
the one that best meets your needs.
Fiverr Pro
Fiverr also offers a "Pro" program for established freelancers
with good ratings. This provides access to higher-end services and a more
professional environment, similar to what you might find on platforms like
Upwork. However, not all freelancers are eligible to join Fiverr Pro and a
vetting process is required.
Advantages and Disadvantages of Fiverr
The sign-up process on Fiverr is simple and there's no skill test or vetting
process required. This makes it accessible for anyone to offer their services.
Advantages
Buyer-driven: As a freelancer, you don't have to actively search for jobs,
as buyers will approach you once you have a well-created gig and profile.
Free to use:
There's no sign-up fee and you can set up a gig for free to
sell to buyers.
Fiverr Pro:
The Pro version offers access to a higher-end professional
environment and more serious buyers, providing opportunities for long-lasting
relationships with employers.
Freelancer-defined scope:
When advertising your services, you have the
option to set pricing and other modifications like urgent delivery.
Disadvantages
Buyer-driven:
While this approach can be beneficial, if your gig setup is
not effective and you don't know how to sell your service, you may not receive
many job offers.
Commission:
Fiverr deducts a 20% commission from each payment, regardless of
the project size or your relationship with the buyer.
Comparing Verification Standards
Upwork and Fiverr both aim to provide an indication of the quality of a freelancer's skills, but their approaches differ greatly.
- Upwork has a rigorous verification process, where freelancers have to apply and pass multiple steps, including skill testing, to be accepted. They also have a Top-Rated freelancer category for those with a job success rate of 90% or higher and monthly earnings of at least $1,000, and a Rising Talent category for those who are close to being Top-Rated. However, the standards set by Upwork are sometimes considered arbitrary.
- Fiverr, on the other hand, does not verify all freelancers, except for the highly skilled ones who are part of the "Fiverr Pro" program. To become a Pro, freelancers have to go through a series of vetting processes and have a solid work history and portfolio. Pro freelancers are the most expensive on the platform and are marked as "Pro verified."
Both platforms have issues with fake profiles, so it's important to do your research on potential freelancers regardless of the platform you choose. However, Fiverr's community-based rating system is still effective, while Upwork's verification process has faced criticism.
Comparing Freelancer Profiles on Upwork and Fiverr
Upwork and Fiverr, two popular freelancing platforms, have different approaches when it comes to presenting a freelancer's profile. Upwork's profile resembles a LinkedIn profile and focuses on statistics, such as job completion rate, hours worked, earnings, and education and work history. On the other hand, Fiverr's interface focuses on the seller's gigs and encourages visually appealing portfolios to showcase their work.
Pricing Comparison
Fiverr offers lower prices, with many gigs priced at only $5. However, clients must evaluate sellers based on their work rather than just the price.
Upwork also has some freelancers who offer competitive rates, but they may not be as low as those on Fiverr. Typically, Upwork charges by the hour, so costs can add up quickly. Upwork freelancers also offer fixed-price packages for their services.
Clients on Upwork pay a 3% payment processing fee, while most of the fees are absorbed by the freelancers. On Fiverr, a $2 fee is added to purchases under $40, and a 5% fee for purchases over $40.
This means that for larger projects, Upwork might be the more cost-effective option. Neither platform provides financial incentives for clients to continue working with a specific freelancer, but both make it easy to rehire a freelancer from previous projects. Upwork and Fiverr both provide a measure of security for clients, holding funds in escrow until the client approves the work for fixed-price services.
Variety of Services
Upwork prioritizes the most in-demand remote services, offering a wide range of options for clients. It's a great platform for finding long-term jobs or large projects, and sometimes it's even the expectation. In terms of diversity,
Fiverr stands out, as it allows freelancers to list their unique offerings. From 20-second voiceovers to 3D printing to models posing with a company logo, there are thousands of unique services available on Fiverr.
Conflict Resolution
Both platforms have room for improvement in terms of resolving disputes. Both Upwork and Fiverr encourage clients and freelancers to resolve conflicts through direct communication. However, there have been reports of clients taking advantage of freelancers on both platforms and not paying them, even after mediation.
On Upwork, a dispute specialist provides a non-binding recommendation. On Fiverr, a representative will review the dispute and decide if a partial or full refund is deserved. In most cases, it's easy to avoid potential red flags and work goes smoothly. However, in rare cases, things can get complicated.
Upwork vs. Fiverr for Clients
For clients seeking established and trustworthy freelancers for long-term projects, Upwork is the preferred option. Here, you can find groups of professionals searching for long-term work or remote positions. If you're searching for a simple one-time task, Fiverr is a better choice, especially given its low prices.
Upwork vs. Fiverr for Freelancers
This will depend on what skills you have to offer. Upwork is a better platform for long-term, consistent remote work in fields like programming or writing. Building a good reputation on this platform can help employers find you and build a working relationship with you. If you offer quick one-time services such as sketching, modeling, or voice work, Fiverr would be a better platform for you. Upwork provides an app for tracking the time of hourly-based freelancers, but most freelancers do not like using it for fixed-price projects.
In conclusion
both Upwork and Fiverr are among the leading online platforms for freelance work. Understanding the key differences between them can help you determine which platform best suits your skills. The Upwork vs Fiverr debate largely depends on what you need. Both platforms have their own advantages and disadvantages, whether you're looking to earn money as a freelancer or hire a skilled freelancer to complete a task.