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Fiverr vs Upwork: Which is Better for Freelancers?

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In 2021, about 55% of the US population listened to a podcast. People associate its popularity with the ease of its accessibility and consumption. Others even use it to sell digital products.

Compared to radio content, podcast content has an expansive variety. Listeners can freely choose the kind of content they want and tune into it anytime.

Another reason podcasts are becoming so popular is due to Spotify. While this audio streaming platform was not the first to host podcasts, it opened podcasting to all its users in 2018. It is something competitors like Apple Music have not done before.

If you want to ride the podcast train, Spotify might be the best platform to use right now. Feel free to use these tips if you are planning to become a podcast host:

The demand to hire freelancers

Despite the whopping competition, experts find that the number of freelancers will climb to 86.5 million by 2027. 

Freelancing did not originate in the modern age, but the Internet propelled its expansive growth. If you wish to become a freelancer, there are two places on the World Wide Web that you should visit: Fiverr and Upwork.

If you want to know which one is better, keep on reading.

Fiverr Logo

What is Fiverr?

Fiverr is an Israeli website for freelancing launched in 2010. It hosts listings for online jobs that are typically one-off gigs. This online platform functions as a freelance marketplace.

Since there is no middle during the hiring process, the freelancer and the client can directly coordinate to set terms and conditions.

How does Fiverr work as a freelance platform?

Fiverr allows freelancers to set up “gigs” where they can offer services for a specific price. Freelancers may set their prices as low as $5.

The freelancer will receive 80% of the total order value whenever a freelance work is completed. If the freelancer sets up a $5 gig, they will receive $4 as their share.

Do you want to be a top seller on Fiverr? Your freelancer profile must be an active seller for at least 180 days. Additionally, you should accomplish at least 100 orders. With these sales, you should have earned at least $20,000 already.

What jobs are offered on Fiverr?

There are different kinds of Fiverr freelancers. As of 2022, this freelance market covers more than 500 service categories

On its home page, Fiverr features nine marketplace categories. These categories include:

  • Business
  • Data
  • Digital marketing 
  • Graphic design 
  • Lifestyle
  • Music and audio
  • Programming and tech
  • Video and animation
  • Writing and translation

Each category covers smaller subcategories. For example, the graphic and design category has logo design, web design, and fashion options.

How much does it cost to use Fiverr?

Setting up a Fiverr account is free. Both freelancers and clients can create profiles to browse the marketplace. 

Fiverr does not require payments for freelancers to post jobs. As said earlier, freelancers will earn 80% of the order value upon accomplishment of the gig.

In contrast to freelancers, clients or buyers have to secure their payment before they can make an order.

For buyers, they have to pay first before making an order. Fiverr sets a $1 processing fee for $20 gigs and below. For those that exceed the $20 mark, the website charges 5% of the purchase value.

How much does it cost to use Fiverr?

Setting up a Fiverr account is free. Both freelancers and clients can create profiles to browse the marketplace. 

Fiverr does not require payments for freelancers to post jobs. As said earlier, freelancers will earn 80% of the order value upon accomplishment of the gig.

In contrast to freelancers, clients or buyers have to secure their payment before they can make an order.

For buyers, they have to pay first before making an order. Fiverr sets a $1 processing fee for $20 gigs and below. For those that exceed the $20 mark, the website charges 5% of the purchase value.

The pros and cons of Fiverr differ depending on your needs and goals. This blog focuses on the advantageous and disadvantageous effects on freelancers.

Pros of using Fiverr

1. Comprehensive features. Unlike other platforms, Fiver is simple and user-friendly. The instructions are clear enough for any user to understand.

Fiverr has also created a help center to answer frequently asked questions about its features.

2. Secure transactions. Fiverr is an excellent freelancing platform because it safeguards its users’ confidentiality. Fiver guarantees that all financial transactions are protected, and none of the users’ personal information will be visible to third parties. 

3. Reliable source of income. Fiverr can be a reliable source of income. Although the competition is steeper, many Fiverr freelancers still earn at least $500 a month. Top sellers earn more than $2,000 monthly.

4. Convenient way to build a name. Once you accomplish a gig and your client is satisfied with the results, you will likely get a high rating. The more positive ratings you receive, the better your profile will look on clients. 

5. It is better for one-time gigs. Are you looking for short-term, contractual, or one-off assignments? Then, Fiverr is the right freelance platform for you. Fiverr’s orientation focuses more on providing services rather than connecting professionals with clients.

Cons of using Fiverr

1. Lower commission per transaction. As stated earlier, Fiverr charges 20% of the gig price. So regardless of how big or small the transaction is, freelancers cannot get the total price they set. 

In addition to the automatic 20% cut, freelancers complain about the processing fees that money transfer platforms charge on top of their Fiverr earnings.

2. Tight competition, especially for beginners. Fiverr has more than 800,000 freelancers coming from different parts of the world. Although Fiverr records about 50 million transactions per month, not all freelancers get to work and earn profitably.

Nowadays, beginners wait months to land their first gig. Their next gigs may not happen as often after that.

3. Quantity over quality. Because of the tough competition, many freelancers on Fiverr overwork themselves. Since a lot of them choose to lower their prices to the minimum to attract clients, they compensate for their earnings by taking too many gigs.

4. No contact outside Fiverr. Restricting communication between clients and freelancers outside Fiverr serves important security purposes. However, this policy prevents smaller and newbie freelancers from maintaining connections with previous clients.

It is more reassuring to keep on transacting with people you already know and trust when you are still starting.

upwork official logo

What is Upwork?

Upwork, previously known as Elance-oDesk, is an American freelance marketplace. Like Fiverr, users can either post a job that they can do or search for experts who can perform specific projects.

Recently, Upwork’s rising popularity pushed it to be part of the 2022 edition of TIME100 Most Influential Companies.

How does Upwork work compared to other freelancing sites?

Compared to other freelance platforms, Upwork implements a virtual currency called “Connects.” Each “Connect” will allow freelancers to apply for jobs or post projects.

Upwork has a unique payment scheme as well. Instead of bulk payments, payments can be made hourly or as often as when freelancers accomplish milestones set in the tasks.

What jobs are offered on Upwork?

There are at least 10,000 new jobs posted in Upwork daily. These jobs fall into either of these major categories: accounting and consulting, admin support, customer service, data science and analysis, design and creative, engineering and architecture, IT and networking, legal, sales and marketing, translation, web, mobile, and software development, and writing.

How much does it cost to use Upwork?

Registering with Upwork is free. However, the website imposes a service charge for every successful transaction. 

Earnings worth $500 and below have a 20% service fee. Earnings $10,000 and below have a 10% service fee. Finally, those exceeding $10,000 have a 5% service fee.

Pros of using Upwork

1. Better pay. Making money on Upwork is still a challenge, but the figures are more favorable. Statistics show that freelancers, especially those in the accounting, legal, marketing, and web or mobile development niches, earn more on Upwork than 70% of American workers.

2. Faster hiring. Most Upwork clients are looking for immediate hires. If they like your proposal, expect to work within a few days. 

3. Strong long-term relationship. Upwork has a specialized system for long-term contracts. To qualify, you need to have worked with a client for more than three months. They should also pay you regularly within the said time frame. Accomplished long-term contracts are good selling points in your profile.

Pros of using Upwork

1. Better pay. Making money on Upwork is still a challenge, but the figures are more favorable. Statistics show that freelancers, especially those in the accounting, legal, marketing, and web or mobile development niches, earn more on Upwork than 70% of American workers.

2. Faster hiring. Most Upwork clients are looking for immediate hires. If they like your proposal, expect to work within a few days. 

3. Strong long-term relationship. Upwork has a specialized system for long-term contracts. To qualify, you need to have worked with a client for more than three months. They should also pay you regularly within the said time frame. Accomplished long-term contracts are good selling points in your profile.

Cons of using Upwork

1. The cuts are high, too. Like Fiverr, Upwork’s cut in every transaction can rise to 20%. This amount is already hefty, considering there are other transaction fees that freelancers have to pay.

2. Difficult to use. Despite being among the most popular freelancing markets today, Upwork needs to improve its user interface. Some features are too complicated, causing problems during transactions.

3. You have to pay for more jobs. Freelancers have to use up to 6 “Connects” in sending proposals. Even by then, there is no guarantee of closing a deal.

Because of how often freelancers should apply, it is easy for them to blow their first 40 “Connects” and the ten free monthly “Connects” that follow. FYI, each “Connect” is $0.15.

Which freelancing platform is best for you?

Fiverr vs Upwork has been an ongoing clamor for a while. Whatever your choice is, the most crucial thing about freelancing is preparation. 

These two platforms are brimming with jobs you can explore, but you cannot land any if you are unprepared. So invest time and energy learning how to get started with freelance work.

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