Overview
Every successful online entrepreneur knows that outsourcing is a great way to scale a business. By hiring freelance experts in specific areas, they can free up their time to focus on core tasks and continue growing their businesses.
For example, outsourcing blog post writing for an affiliate marketing blog, video editing for a Youtube channel, and voice-over narration services or logo design can have many benefits.
One of the key benefits of outsourcing is that it saves entrepreneurs time and energy. They can concentrate on other important aspects of their businesses, such as SEO, marketing, or thinking up new ideas.
Two companies that help businesses find freelancers are Fiverr and Upwork. In our report, we’ll match up Fiverr VS Upwork and discuss the many benefits and features of each.
Let’s get started.
What Is Fiverr?
Fiverr is an online freelance marketplace that allows businesses and individuals to find and hire freelancers for various projects, including design, writing, programming, and marketing.
If you’re looking for professional and creative services, you can find amazing Fiverr artists for SEO, animation, Fiverr voice over acting, video editing, and logo design. With Fiverr, you can find talented individuals to help you create the perfect project for your business or personal needs.
Freelancers create profiles on the platform to showcase their skills and offer their services to potential clients. Companies and individuals can search for freelancers based on their skills, experience, and feedback from previous clients. Business owners can communicate with freelancers and manage projects through the platform.
Fiverr operates on a transaction-based model, charging a fee for each project completed through the platform.
If you’d like to know more about selling on Etsy and using SEO tools, read our Top 5 Etsy SEOs: eRank, Marmalead, EverBee, Alura, EtsyHunt.
What Is Upwork?
Upwork is a leading online freelance marketplace that connects businesses and individuals with skilled freelancers from around the world. Upwork offers a range of services, including web development, writing, design, marketing, and more.
The platform allows clients to search for freelancers based on their skills, experience, and feedback from previous clients.
Clients can communicate with freelancers, manage projects, and make payments through the Upwork platform.
Like Fiverr, Upwork operates on a fee-based model and charges a percentage of the project value as its service fee.
The platform also provides a comprehensive payment protection system and dispute resolution process to ensure that both clients and freelancers have a positive experience.
Fiverr VS Upwork: What’s The Difference?
Here is a comparison table between Fiverr and Upwork:
| Feature | Fiverr | Upwork |
| Service Offerings | Fiverr primarily focuses on freelancers offering digital services, such as design, writing, programming, and marketing. | Upwork offers a broader range of services, including both digital and non-digital services. It also has a larger pool of freelancers, including professionals with experience in IT, HR, and legal services. |
| Project Types | Fiverr is suitable for smaller projects or those with a defined scope. | Upwork is ideal for larger and more complex projects and ongoing work or projects with an undefined scope. |
| Freelancer Screening | Fiverr has a moderate screening process for freelancers. | Upwork has a more rigorous screening process for freelancers, including background checks and skill tests. |
| Pricing | Fiverr charges a small fee for each transaction. | Upwork charges a fee that is a percentage of the project value, with the fee proportion decreasing as the project value increases. |
| Payment Protection | Fiverr offers a secure payment system and dispute resolution process. | Upwork offers a comprehensive payment protection system and dispute resolution process, including escrow services. |
How Does Fiverr Work?
If you are an online business owner looking to hire freelancers through Fiverr, here is how it works:
- Create an account: Start by creating a free account on Fiverr. You will be asked to provide your basic information, including your name, email address, and password.
- Search for freelancers: Use the platform’s search function to find freelancers with the skills you need for your project. You can search by keyword, category, location, and more.
- Review freelancer profiles: Once you have found some suitable freelancers, look at their profiles to see their portfolios, ratings, and reviews from past clients.
- Contact freelancers: Send a message to the freelancers you are interested in working with to discuss the details of your project and ensure that they are available and able to complete the work you need.
- Place an order: Once you have agreed on the terms and scope of the project, you can place an order through the Fiverr platform. This will include the agreed-upon price, timeline, and any additional requirements or specifications.
- Manage the project: Use the Fiverr platform to communicate with the freelancer, share files and feedback, and monitor the project’s progress.
- Pay the freelancer: Upon completion of the project, you will be prompted to pay the freelancer through the Fiverr platform. The platform will deduct its service fee, and the remaining amount will be paid directly to the freelancer.
Using Fiverr, you can access a large pool of skilled freelancers from around the world and easily manage projects, all within one platform.
If you want to learn more about dropshipping as a low-cost start-up business idea, read our How To Start Dropshipping For Free.
How Does Upwork Work?
If you are an online business owner looking to hire freelancers through Upwork, here is how it works:
- Create an account: Start by creating a free account on Upwork. You will be asked to provide your basic information, including your name, email address, and password.
- Post a job: Once you have created your account, you can post a job to the Upwork platform. You will need to provide a detailed description of the project, including the skills you are looking for and the budget for the project.
- Review proposals: Freelancers with the skills you are looking for will respond to your job posting with proposals. Review each proposal, the freelancer’s portfolio, ratings, and feedback from previous clients.
- Hire a freelancer: Once you have reviewed the proposals, you can select the freelancer you want to hire and send them an invitation to join your project.
- Manage the project: Use the Upwork platform to communicate with the freelancer, share files and feedback, and monitor the project’s progress.
- Pay the freelancer: Upon completion of the project, you will be prompted to pay the freelancer through the Upwork platform. The platform will deduct its service fee, and the remaining amount will be paid directly to the freelancer.
By using Upwork, you have access to a vast pool of skilled freelancers from around the world and can manage projects easily and confidently, all within one platform.
Fiverr VS Upwork: Other Features
Here is a comparison of the quality of freelancers’ work, rating systems, and dispute resolution methods of Fiverr VS Upwork:
The Quality Of Freelancers’ Work
Fiverr: Freelancers on Fiverr offer a wide range of services, from simple tasks to complex projects. The quality of work can vary, but Fiverr has a robust review and ratings system that can help you assess the quality of a freelancer’s work.
Upwork: Upwork also offers a wide range of services, with a large pool of highly skilled freelancers. The platform has a rigorous screening process to ensure that freelancers meet specific standards. Clients can review the freelancer’s portfolio and feedback from previous clients to assess their quality of work.
Rating Systems
Fiverr: Fiverr uses a five-star rating system, where clients can rate the freelancer based on the quality of work, communication, and overall experience. Freelancers’ ratings are displayed on their profiles, and clients can use these ratings to determine the quality of work they can expect.
Upwork: On Upwork, clients can evaluate freelancers by assigning them a rating of 1 to 5 stars based on their job performance, how well they communicate, and their general experience. The ratings are shown on the freelancers’ profiles, allowing clients to use them as a guide to assess the quality of work they might receive.
Dispute Resolution Method
Fiverr: Fiverr has a comprehensive dispute resolution process to ensure clients and freelancers have a positive experience. If there is an issue with the project, clients can open a dispute and work with the Fiverr support team to resolve the issue.
Upwork: Upwork also has a comprehensive dispute resolution process in place, including a payment protection system that helps protect clients’ funds until they are satisfied with the work delivered. If there is an issue with the project, clients can open a dispute and work with the Upwork support team to resolve the issue.
Fiverr and Upwork offer high-quality services and robust systems to ensure that clients and freelancers have a positive experience.
However, clients may want to consider factors such as the type of project they need to complete, the budget, and the pool of available freelancers when choosing between these two platforms.
Fiverr VS Upwork: Pricing
Here is a comparison table between Fiverr and Upwork fees after the most recent changes:
| Feature | Fiverr | Upwork |
| Freelancer Service Fee | Fiverr charges a service fee of 20% of the total cost of the gig. | Upwork charges a fee of 20% for the first $500 billed with the client, 10% for total billings between $500.01 and $10,000, and 5% for total billings over $10,000. |
| Payment Processing Fees | Fiverr charges buyers a payment processing fee of 5.5% or $2 for transactions of $50 or less. | Upwork charges a payment processing fee of 5% (or a 3% payment processing fee for eligible clients using bank ACH payments.) |
| Membership | No membership fee | Both clients and freelancers can sign up for free, but freelancers have the option to purchase a Freelancer Plus membership for $14.99/mo. |
Keep in mind that fee schedules change over time, and we try our best to provide the most recent information available.
Fiverr Pricing Example
Fiverr primarily earns revenue through transaction-based fees. When buyers place an order, they pay the Gig price plus a 5.5% service fee, with a minimum fee of $2 (As of March 2021).
So, if the Gig is priced at $100, the cost for the buyer is $105.50.
Upon completion of the order, Fiverr releases 80% of the Gig price to the seller, which comes to $80.
If the purchase amount is less than $50, a $2 small order fee is added.
Thus, if the Gig is priced at $10, the buyer pays $12. The seller gets $8.
Upwork Pricing Example
Upwork’s fee structure is based on earnings per client. It includes the following:
- 20% service fee for earnings between $0-$500
- 10% service fee for earnings between $500.01-$10,000
- 5% service fee for earnings of $10,000.01 or more.
It’s important to note that these fees apply to each individual client’s earnings, and a new client will be charged a 20% fee until their earnings reach the next threshold, even if the freelancer has already reached a lower fee level with another client.
In addition to these fees, a flat 5% fee is charged per transaction, with a discounted 3% fee available for eligible clients in the US.
So, if the Gig is priced at $100, the cost for the buyer is $105.
Upon completion of the order, Upwork releases 80% of the Gig price to the seller, which comes to $80.
If the purchase amount is $1000 for a new client, the client pays $1050. And the seller gets $850.
Upwork also has an option for hourly billing.
Upwork Freelancer Plus for $14.99premium plan offers more ‘Connects’ for freelancers, among other features. ‘Connects’ are tokens needed to submit proposals and generate leads.
Fiver VS Upwork: Which Is Better?
The choice between Fiverr VS Upwork can depend on various factors, such as the type and scope of your project, the qualifications of freelancers required, and budget.
Fiverr is known for offering low-cost services, and most of its sellers make less than $500 per month, according to a report by Priceonomics.
Upwork, on the other hand, has a more diverse pool of freelancers from all over the world, with a higher percentage of them having a college or postgraduate degree and offering a more comprehensive range of skills.
The way each platform works also differs, with Fiverr being based on freelancers advertising their skills, while on Upwork, clients post a job for freelancers to bid on.
Choose Fiverr if the following is important to you and your project:
- Ease of use: Fiverr has a simple and user-friendly interface, making it easy for buyers to navigate and find the right gig for their needs.
- Fixed prices: With Fiverr, many gig prices are fixed, making it easier for buyers to budget and manage their costs.
- Wide range of services: Fiverr offers a wide range of services, including graphic design, writing, video production, and more, which makes it a good choice for buyers looking for creative and digital work.
- Quick and easy process: Fiverr’s gig-based system allows for a quick and easy process for buyers without bidding, contracts, or negotiations.
- Budget-friendly option: With gigs starting at just $5, Fiverr can be a more budget-friendly option for small projects, as compared to Upwork’s bidding system, which can result in higher prices.
Choose Upwork if the following is important to you and your project:
- Size and Scale: Upwork has a much larger pool of freelancers and projects than Fiverr, making it easier for clients to find the right person for their job.
- Diverse Talent Pool: Upwork has a more diverse range of professionals from various fields and industries, allowing clients to find specialists for their specific needs.
- Robust Project Management Tools: Upwork has a more robust set of project management tools, including time tracking, invoicing, and collaboration features, making it easier for clients and freelancers to work together efficiently.
- Increased Security: Upwork has a more stringent verification process for freelancers, helping to ensure the security of client information and payment. Upwork provides a secure payment system to reduce the risk of fraud.
- Customer Support: Upwork has a more extensive support system, including a dedicated support team and resources to help clients and freelancers navigate the platform and resolve any issues that may arise. On the other hand, Fiverr may have limited support options, particularly for clients.
However, it’s important to keep in mind that the choice between Upwork VS Fiverr will depend on the specific needs and preferences of each buyer, as well as the type of project they are looking to complete.
Fiverr FAQs
What Is Fiverr?
Fiverr is a platform for freelance services where people can buy and sell various digital services like writing, design, programming, and more.
Is Fiverr Free To Use?
Fiverr is free to sign up and use as a buyer. As a seller, you’ll be charged a fee for each transaction you make.
How Much Does It Cost To Use Fiverr?
As a buyer, Fiverr is free to use. Fiverr charges buyers a 5.5% or a $2 processing fee for every transaction, plus a seller fee of 20% of the total cost of the order.
Can I Sell Anything On Fiverr?
Fiverr is mainly for digital services, but it also allows sellers to offer physical goods and custom merchandise as long as they’re legally allowed and comply with Fiverr’s policies.
How Do I Get Paid On Fiverr?
You can get paid on Fiverr via PayPal, direct deposit, or a Fiverr Revenue Card, which is a debit card provided by Fiverr.
How Does Fiverr Protect Buyers And Sellers?
Fiverr offers a secure platform with features like a dispute resolution system and buyer protection. Sellers are also required to deliver their services according to the terms agreed upon in the order, and buyers have the option to request revisions or a refund if they’re not satisfied.
How Long Does It Take To Receive Payment On Fiverr?
Payments are usually processed within 1-3 days, but the exact time frame can vary depending on the payment method used.
Can I Work On Fiverr As A Freelancer If I’m Not Based In The US?
Yes, Fiverr is a global platform, and freelancers from all over the world can offer their services on the site.
Upwork FAQs
What Is Upwork?
Upwork is a freelancing platform that connects businesses and clients with independent professionals for various projects and tasks.
Is Upwork Free To Use?
Upwork charges fees for certain services, such as connecting with new clients and accessing certain job postings. For freelancers, there is a fee of 20% on the first $500 earned with each client.
How Do I Get Paid On Upwork?
Clients can pay freelancers through Upwork’s platform using various payment methods such as PayPal, direct deposit, or a prepaid debit card.
How Does Upwork Protect Clients And Freelancers?
Upwork offers a secure platform with a dispute resolution process and a time-tracking system to ensure that clients and freelancers are protected.
How To Cancel Order On Fiverr?
- Log into your Fiverr account and navigate to the My Orders page.
- Find the order you wish to cancel and click Details.
- Click the Cancel Order button.
- Read the information about cancellation fees and click Continue.
- Choose a reason for the cancellation and click Submit.
- You will receive an email confirming that your order was canceled.
Can I Work On Upwork As A Freelancer If I’m Not Based In The US?
Yes, Upwork is a global platform, and freelancers worldwide can offer their services on the site.
How Do I Get Hired On Upwork?
To get hired on Upwork, you must create a profile, showcase your skills, and bid on job postings that match your expertise. Having a strong portfolio and positive feedback from previous clients is also important.
How Do I Find A Job On Upwork?
You can find jobs on Upwork by searching the job postings, using filters to refine your search, and bidding on projects that match your skills and experience.
What Kind Of Jobs Are Available On Upwork?
Upwork offers a wide range of jobs across various industries, including but not limited to web and mobile development, writing, design, digital marketing, customer service, and more.
Conclusion
Both Fiverr and Upwork have proven to be excellent platforms for finding talented freelancers who can help bring your creative ideas to life. These platforms offer a wide range of services, and their user-friendly interface makes it easy for anyone to find the perfect freelancer for their project.
Moreover, the benefits of sticking with a freelancer that satisfies you cannot be overemphasized. Building a long-term relationship with a reliable and skilled freelancer can save you time and money and lead to better results and a more stress-free experience.
With Fiverr, you can find a freelancer on a budget who meets your needs and exceeds your expectations, making it a valuable platform.
And with Upwork, you can find help for more complex projects requiring skilled specialists.
