Types of Freelancing marketplaces and How They Work
Today I will tell you the types of freelancing marketplaces. Before I tell you the types of freelancing marketplaces, it is important to know that how freelancing marketplaces actually work.
There are basically two ways that the freelancing marketplaces work i.e. Traditional and Non-traditional. These are the two global terms used to categorize the working of freelancing marketplaces.
1) Traditional Freelancing Marketplaces
Traditional freelancing marketplace work in a simple way, an employer comes to the freelancing marketplace and posts a project.
You as a freelancer bid on that project. The employer checks your profile, your bid and your response in the bid and then initiates a communication channel between you and him.
If your and the employer’s mentality syncs, he awards you the project. The employer pays you the amount after you complete the project. This is the way a traditional freelancing marketplaces works.
- Biggest traditional freelancing marketplace UpWork is the merger of Elance and Odesk.
Elance was the first one then the name of Elance was changes and acquired by Odesk. Then both sides were merged into one big website called UpWork.
UpWork is the biggest freelancing marketplace where approximately 200 projects are posted daily in different skill set!
- Second traditional freelance marketplace is freelancer.com. It is also a very big site where many projects are posted on daily basis.
- Third traditional freelance marketplace is guru.com. Millions of projects have been successfully complete on this site so far.
2) Non-Traditional Freelancing Marketplaces
A freelance marketplace named as Fiverr introduced the concept of non-traditional freelancing marketplace that got a big success.
People (freelancers) put their packages and services on Fiverr. Buyers visit their profile and check the services offered by them like price, videos, extra offer and hire your service.
When the buyer place the order the payment is shifted into the escrow. When you deliver your order as a seller (freelancer) and the buyer mark your order as delivered then the payment is shifted from escrow to you Fiverr account.
What is Escrow?
Escrow is basically a concept. When you get any project, until the project is marked as complete by the buyer, the payments stays with the freelancing marketplace.
It protects both parties of interest i.e. the buyer and the seller (freelancer).
Which type of freelancing marketplace should you choose?
Well you have to ask this question to yourself. On what type of freelancing marketplace you want to offer your services. According to me, you can work on both.
So what do you think that which type of freelancing marketplace is better for you? Tell us in the comments below.