The work environment has changed with freelancing, online platforms have paved the way for freelancers to promote and sell their services to clients from anywhere in the world. Upwork and Fiverr are two of the most popular options that give freelancers unique opportunities, while focusing on different types of freelancers.
Whether you are just starting your freelance journey, or looking to increase your client base as a seasoned freelancer, you may find yourself asking if Upwork or Fiverr is better. In this article, we will analyze the comparison of Upwork and Fiverr with regard to fees, communication, income potential, client relationships, and types of work best fit for both. This will give you a better idea of which option is the best fit for your freelance career.
Upwork
Upwork is one of the largest platforms for freelance work, placing professionals with companies around the world. It functions on a job posting system in which clients describe the project, the client lists budgets, then freelancers send proposals to apply for the job. You can select hourly contracts, which pay a steady amount every week; alternatively, you can pick fixed price projects which are for one-off projects. Payments for projects are held by the escrow system, which helps freelancers know the money is there for them. One of the biggest benefits to working on Upwork is the opportunity to find long-term contracts, which can be good for income stability. The competition to find work is high, and may take a while to get your first job, however once you get your profile going with a few contracts and good reviews, you should be able to build from there.
Fiverr
Fiverr operates on a gig-based system where services are listed by freelancers – for instance, designing a logo, writing blog posts, or editing videos. Clients can browse through gigs and purchase services directly, which means success relies on visibility and how services are presented. Having a strong gig description, transparent and authentic pricing, and obtaining positive reviews will help freelancers stand apart from their competition. While Fiverr had established itself as a marketplace for $5 freelance services, we now see that freelancers with portfolios and in-demand skills command significantly more. Because Fiverr is particularly appealing to clients who want to obtain fast services on short “defined” projects, it offers freelancers an opportunity to engage in side hustles or as specialists. However, due to the limited length the projects on Fiverr, and the clients have to take away to focus, pricing can often be driven down given the competition, making it more difficult to develop lasting client relationships in comparison to Upwork.
Comparing Fees and Payment Structures
Platform fees can greatly affect freelancers. On Fiverr, the service fee is fixed at 20% of every transaction. It does not matter if the project transaction is for $50 or $1,000, Fiverr gets 20% and the freelancer has the remaining 80% after the fee is removed. Upwork, on the other hand, uses a tiered fee structure. Freelancers pay:
- 20% service fee on the first $500 billed to the client.
- 10% for total billings between $500.01 and $10,000 for that same client.
- 5% for all billings over $10,000 with that client.
Essentially, the fee structure rewards freelancers for long-term relationships with clients in that the fees eventually go down over time. To illustrate, a freelancer who has a repetitive project on a monthly basis with a client using a retainer will pay less fees than that of Fiverr. In terms of payment processing time and invoice payment timelines, Fiverr does process payment after a 14-day process while Upwork pays for hourly contracts on a weekly basis instead. But for fixed-price contracts on Upwork, payment is only released after a milestone is approved by the client, which arguably the flow of income can be more predictable.
Building Client Relationships
Upwork emphasizes lasting professional relationships. After signing a contract with a client, both the freelancer and the client have the option of converting communications to tools like Slack or email for easier collaboration. This makes it simple for the freelancer to start becoming part of a client’s workflow, which can switch into larger workflow-based engagements in the future. Fiverr stands apart from Upwork in that the communication on the platform remains on the platform, given that most gigs are single jobs rather than ongoing contracts. This can often mean a relationship can end at project delivery unless a client returns with additional orders.
Earning Potential
Fiverr is designed for individuals wishing to make money, but it is taking time and multiple strong reviews for a freelancer to begin to make money in a crowded marketplace. Many move up in price over time as they get established with reviews. Upwork has larger contracts and recurring projects and is more appealing to freelancers than Fiverr. This is especially the case for those working in fields such as software development or marketing. Depending on the scale of freelance work, Fiverr is better for side hustlers. Upwork is the better avenue for freelancers looking to pursue something full time while growing their earning potential.
Communication and Project Management
Successful freelance work is dependent on smooth communication. Upwork accommodates short and long-term agreement options, awarding freelance workers and clients flexibility with integrating communication into their established systems. Clients may onboard freelancers into their working structure while allowing for freelancers to become part of the team.
Fiverr, while still functional for fast-paced projects, does not allow for this kind of flexibility. Communication is streamlined but also confined purely on the platform. This structure keeps both parties protected but may come with feeling “boxed in” when trying to discuss a more complicated project that requires a longer back-and-forth communication until the right outcome is reached.
Advantages and Disadvantages of Using Them Both
Upwork Advantages
- Lower fees over time after reoccurring clients
- Stronger protections for freelancers through contract initiation and escrow deterrents.
- More exposure to long-term working professional relationships
- Higher earnings for making premium services
Upwork Disadvantages
- With a majority of the work market being competitive, there are fewer jobs on the site for newly started freelancers
- Proposal system feels time consuming at times
Fiverr Advantages
- Easier entry for beginners without hassle for setup
- Quick payments after the gig is approved
- Great for one-off niche service work
Fiverr Disadvantages
- Flat 20% fee on all of the projects across the board
- Less opportunity for continuing ongoing client relationships
- Price pressure for competitiveness in services
FAQs
Q1: What is the best for connoisseurs: Upwork or Fiverr?
For those who are new to freelancing, Fiverr will often be an easier setup. Upwork can be more difficult to begin with because it competes with many freelancers, so it is important to write full proposals before beginning your freelance work. However, once you grow your freelance business Upwork offers more potential for long term growth.
Q2: Can I use Upwork and Fiverr at the same time?
Many freelancers use both platforms. Users often find it beneficial to use Fiverr to reach clients all over the world for small, quick gigs to make cash. Most people use Upwork as a freelance site for clients and bigger orders.
Q3: Which platform pays faster?
Fiverr pays you 14 days after your order is completed. Upwork pays you weekly on hourly contracts, and for fixed-price projects Upwork releases payments for milestones when the client accepts.
Q4: Do clients pay more on Upwork or Fiverr?
Clients typically pay more on Upwork, especially for long-term or big projects. Fiverr clients are usually looking for smaller projects that fit within their budget, but the top sellers can charge those prices for very specific gigs and projects.
Q5: Which platform is safer for freelancers?
Both of the platforms offer protections, but Upwork’s contracts and protections offer a higher sense of structure. Fiverr structure protects you in the payment as well but is often less formal when it comes to long projects.
Conclusion
The decision to choose between Upwork and Fiverr is based on your aspirational goals with freelance work. For anyone aspiring to build a long-term career with continuous and unique income, and building relationships with clients that are contractual, Upwork will be more suited for those people to do meaningful work.
If the goal is simply stated as to engage in some side gigs, and the freelance process is a trial-and-error leisure process to engage with, or the service you provide is a unique specialization category of work, feel free to engage with Fiverr. It is a process that is easier to engage in the process of freelance work.
So, if you ask this question, it would not be a bad idea to try both out, while simply delineating Fiverr as short-term specialized augmentation and Upwork for larger, more long-term contracts. The approach also allows for growth in both future opportunities and business experience overall, while keeping an agenda for financial earnings as the digital economy continues to develop.
