Individuals around the globe are turning their focus to the gig economy. With the World Bank data showcasing at least 46.7% as self-employed, the importance of freelancing has surged on a global scale. This means increasing demand for platforms that help companies and freelancers connect in a hassle-free manner.
Fiverr and Freelancer are two such websites that make it all come together. Both these platforms offer multiple services from a wide range of industries. The real question in this Fiverr vs Freelancer debate is, which one is a better option?
In this blog, we’ll dig up the nature of services offered on these two websites and you can then choose the right fit for your business needs in this Fiverr vs Freelancer debate.
Fiverr vs Freelancer Comparison Table
| Feature | Fiverr | Freelancer |
| Established | 2010 | 2009 |
| Operating Model | Freelancers create pre-defined service packages (gigs) | Clients post jobs, freelancers bid on projects |
| Project Type | Primarily suited for small, well-defined projects | Suitable for all project sizes, from small to large and complex |
| Pricing Structure | Fixed-price per gig | Fixed-price or hourly contracts |
| Freelancer Fees | 20% | Up to 10% or $5 (whichever is higher) for fixed-price projects, 10% for hourly projects |
| Client Fees | 5.5% service fee, additional fees for smaller orders | 3% or $3 (whichever is higher) for fixed-price projects, 3% for hourly projects |
| Benefits for Freelancers | Easy to set up gigs and showcase services | Access to a wider range of project opportunities |
| Benefits for Clients | Browse pre-defined services and readily available talent | Receive proposals and select freelancers based on skills and budget |
| Drawbacks for Freelancers | Limited flexibility in pricing (no hourly contracts) | Lower earning potential due to service fees |
| Drawbacks for Clients | Less control over project scope | Creative usernames can lead to difficulty verifying freelancer credentials |
| Ideal for | Clients with clear project needs and a fixed budget | Clients seeking diverse talent and detailed project proposals |
| Number of Users | Over 4 million registered employers, 380,000+ active sellers | Over 64 million registered users |
| Job Categories | 700+ | 2,700+ |
Choosing the Right Fit: Fiverr Vs Freelancer
Fiverr
Fiverr was established in 2010 and is based in Israel. Initially, the website featured freelance services for only $5, which increased its appeal within the market. Eventually, the company expanded into offering projects starting at all sorts of price levels in 11 separate categories of work.
While many other freelancing platforms like Freelancer, Upwork, and Toptal, focus on client posting, job listings, and receiving proposals, Fiverr operates differently. Here, freelancers, or sellers, create specific service packages called “gigs.” Buyers then browse these gigs to find services that match their needs. While Fiverr allows buyers to post requests and receive offers, its unique seller-first approach, wherein freelancers post their services on their own is the most common way to connect on the platform.
This structure simplifies the hiring process and allows buyers to explore a wide range of ready-made services before selecting the one that fits their requirements.
Why Choose Fiverr?
While choosing Fiverr will give a wide range of benefits, we have compiled them into 4 points. Let’s understand why you should opt for Fiverr for your gig job or while choosing the best freelancer for your projects.
1. 0 to No Upfront Service Fee
Fiverr will not charge you any fees to start listing your services. Instead, a particular fee is deducted from your payout once the gig is completed, making it easier for freelancers to start offering their services without initial costs.
2. Secure Payment System
Fiverr offers escrow-based payment protection. This means that the employer’s funds are held safely until the seller has completed and delivered the project. It also incentivizes freelancers to meet quality standards as well as ensure that the project is delivered on time.
3. Flexible Payment Options
Fiverr supports a wide range of payment methods, allowing both buyers and sellers to conduct transactions easily, regardless of location. This flexibility enhances convenience for freelancers and businesses around the globe.
These points highlight the benefits of collaborating with Fiverr but you can also have a better understanding of its importance through a few relevant statistics:
- Registered Employers (Buyers): Over 4 million
- Active Sellers: More than 380,000
- Available Job Categories: 700+ (including the newly added AI services category)
- Monthly Website Visits: 85+ million
What’s The Downside?
1. No Hourly Contracts
The platform operates completely on flat-rate services, which means that hourly contracts are not available. This can limit the flexibility of a freelancer who may want to charge based on the total time spent that he/she has spent on the project rather than a fixed price.
For instance, a graphic designer hired for a very complicated redesign project might spend many hours more than he or she had estimated. In this case, if the contract doesn’t include hourly costs, the professional may end up working extra hours without getting paid.
2. High Service Fees
Fiverr takes away 20% of the entire earnings, and because of that, freelancers may have to raise their fees to cover up for the amount lost. Also, as an employer, a 5.5% service fee is charged which makes it a bit costly.
For instance, it charges freelancers a 20% fee on their total earnings. Employers, on the other hand, have to pay a 5.5% fee on their purchases, with an additional $2.50 fee if the orders are under $75. Moreover, clients purchasing gigs priced below $50 are charged an extra $2, making smaller transactions more costly.
When to Choose Fiverr?
Fiverr is a good option for you if you are looking for a professional in creative sectors like digital marketing or creative writing. The platform functions like a directory where professionals set their prices and offer services packaged into easy-to-browse listings. This means that as an employer, you can explore various gig offerings and select freelancers based on predefined services and pricing. However, in this, Fiverr vs. Freelancer comparison, it’s worth mentioning that Fiverr takes 20% commission amount from the total earnings, and because of this, freelancers might charge more than normal to cover the lost amount. Furthermore, as an employer, you will incur a 5.5% service fee on the project price, which might make the deal a bit pricey.
Also Read: Top Alternatives to Fiverr
Freelancer.com
Freelancer is a company registered in Australia in 2009. It boasts over 75 million users and more than 23 million jobs posted. The site offers unlimited opportunities for clients and freelancers to collaborate when hiring and searching for suitable job opportunities.
For instance, clients can review work samples of various professionals before choosing the right fit for the project. Moreover, they can select location-specific freelancers based on the project requirements.
Why Choose Freelancer?
1. Recruiter Assistance
By paying an extra fee of $11.95, clients can take advantage of the platform’s recruiter service, where an assigned executive helps find the right talent for the project. This will not only save time but also ensure the quality of the job done.
2. Lower Fees
Freelancer offers one of the lowest service charges in the industry with a maximum of 15% for freelancers and just 3% or $3 for employers. As such, it is, more economical than its competitors and enables both freelancers and clients to retain much of their earnings and budgets.
Here are a few more facts to underscore the reliability of Freelancer as a platform:
- Users Registered: Over 64 million freelancers and employers
- Job Categories Available: 2,700+ (including AI specialists)
- Monthly Website Visits: 7.5+ million
Why It Might Not Work?
1. Service Fees for Both Parties
One of the downsides of Freelancer is that it charges both the employer and the freelancer, which might become more noticeable for smaller projects.
For instance, when it comes to fixed-price contracts, employers are charged 3% or $3, whichever is higher, and with hourly contracts, the fee is 3%. However, Freelancer does have an enterprise package that can help employers save money without any access, monthly, or annual fees.
2. Usernames
Freelancer allows creative usernames, which can confuse clients verifying credentials. This approach can create a more approachable atmosphere and while it may be sound it can lead to confusion.
For example, a creative writer might use a username like “ArtisticWizard,” which doesn’t reflect their actual name, leading to confusion for clients looking to verify credentials.
When to Choose Freelancer?
Freelancer is a better platform for clients who want to provide detailed job postings and can enable freelancers to bid on their projects. This ultimately makes the employer approachable.
Moreover, when considering Fiverr vs. Freelancer, the latter also offers a diverse selection of talent, making it a strong alternative to the former. The platform’s fee is comparatively lower at around 10% or $5 for fixed-price projects and 10% for hourly projects for freelancers. This cost structure makes Freelancer a more budget-friendly choice for employers looking to hire top talent.
Conclusion
The choice of selecting the right platform for your project will ultimately depend on your budget, job requirements, and ability to negotiate terms and conditions. While both, Fiverr and Freelancer offer competitive services, the key differences mentioned above will easily help you in choosing the right fit when considering Fiverr vs. Freelancer. Moreover, make sure to consider aspects like payment structures, types of services offered, and the level of control you want over the hiring process. By analyzing these factors, you can confidently select a platform that aligns with your project goals and facilitates a smooth collaboration with freelancers.
