Here is the Fiverr vs Upwork detailed comparison
In this era where remote work is becoming the new norm, freelance job platforms such as Upwork and Fiverr have emerged as a beacon of hope for many. They are not just platforms; they are gateways to endless opportunities, making it incredibly easy for anyone, anywhere to find work that aligns with their skills and passions. Truly, these platforms are revolutionizing the way we perceive and engage in work!
This piece will thoroughly examine the advantages and disadvantages of both Upwork and Fiverr platforms. Regardless of your final choice between Upwork or Fiverr, we will also guide you on how utilizing a Wise Business account can aid in receiving payments and reducing costs on currency exchanges.
Fiverr vs Upwork: Quick Summary
Both Upwork and Fiverr are platforms that connect freelancers with job opportunities online.
They provide an extensive range of services, including web design, copywriting, and logo creation. Freelancers create profiles on each platform to enable potential clients to discover them and evaluate their work.
Some important distinctions:
- When it comes to larger projects and establishing long-term relationships, Upwork is typically the preferred platform. On the other hand, Fiverr is more suitable for smaller tasks that don’t involve extensive communication between you and the freelancer.
- Upwork requires additional setup time as it involves posting your project in detail and thoroughly vetting applicants.
- Fiverr’s marketplace structure simplifies the process of finding what you need quickly.
- On Fiverr, clients can easily find specific services without the need to post a job.
- On Upwork, clients typically need to provide a detailed job description and then wait for freelancers to submit their applications.
Upwork or Fiverr: Comparison
Now that you have gained some additional knowledge about each platform, let us examine their comparative aspects in terms of the essential features of a freelance job board.
How do they operate and what is the process for signing up?
Signing up for Upwork is a slightly more intricate process compared to Fiverr. To become a member, you will be required to fill out an application and provide information about your skills and experience. On the contrary, Fiverr only necessitates a simple signup procedure without any additional questions or applications needed. Allow us to elaborate on the process in greater detail below.
Upwork
To register on Upwork, you will need to create an account and provide all the essential information about yourself and your skills in your profile. This includes details like your education, experience, portfolio items, and more.
To be eligible for job positions, it is crucial to ensure that your profile is at least 60% complete. This entails uploading a photo of yourself, writing an overview about yourself, providing a comprehensive work history, specifying your job title (e.g., Designer or Writer), and adding at least one skill tag (e.g., video editing). Moreover, you can also explore other sections such as indicating your expertise level, showcasing language proficiency, and setting your desired hourly rate.
After creating your profile, you can begin searching the job board to find your first job opportunity. If you come across a posting that matches your skills and interests, you will need to submit a cover letter, specify your proposed rate, and possibly respond to any questions that the client has requested freelancers to answer.
Each job posting will require a specific amount of Connects, which is the currency used by Upwork. Freelancer Basic accounts receive 10 free Connects per month, while Freelancer Plus accounts receive 80. In addition to this, the Freelancer Plus account offers additional benefits such as a personalized profile URL, visibility of competitor bids, and more. It is also possible to earn Connects in certain situations or purchase them at a rate of $0.15 USD each.
There are instances where the use of Connects may not be necessary. For instance, if a client extends an invitation for you to bid, presents you with an offer, or procures a Project Catalog project from you.
Upwork has recently introduced competitor bids, which allow you to enhance your proposal and increase its visibility to clients. This feature operates similarly to an auction system, where you can bid Connects in order to secure one of the top three spots.
Fiverr
Fiverr sets itself apart from Upwork by being an open marketplace that caters to freelancers. Unlike Upwork, Fiverr doesn’t require you to provide extensive profile information or write cover letters. Instead, you’ll go through a brief onboarding process where you can add details about your training, work experience, and skills.
After you have signed up and clicked on “Become a Seller”, the next step is to create a “Gig”. A Gig is essentially a service that you offer to clients. When creating your Gig, make sure to include the title of your service (all starting with “I will…”), its cost, the type of service it falls under, relevant search tags, and any additional information or images that you would like to add.
In addition, you have the option to provide various packages at varying prices, such as a Basic, Standard, and Premium package. Each package enables you to specify the inclusions, whether it be revisions, one sketch, specific file formats, or any other offerings. Furthermore, you will have the opportunity to indicate the estimated delivery time.
After completing the necessary steps, your Gig will be visible in the Fiverr search engine, allowing clients to easily discover your services. Interested individuals can reach out to you for more information and place an order if they are satisfied with your Gig. Clients will also have the opportunity to explore your portfolio, FAQ section, and most notably, read through your reviews.
Hiring a freelancer
When it comes to hiring a freelancer, both Upwork and Fiverr have their own unique approaches to help you find the perfect person for your job. On Upwork, you have the option to browse through profiles of highly skilled professionals and reach out to them directly. Alternatively, you can also post a job listing and allow freelancers to apply. With Fiverr, on the other hand, you will need to explore gig listings created by the freelancers themselves and then initiate contact if their services catch your interest.
Upwork
There are several methods to engage the services of a freelancer on Upwork.
These include:
- You have the option to purchase a Project Catalog project, where you can acquire pre-packaged services that have been created by freelancers.
- Job Posting: You have the opportunity to create and publish a job listing, allowing you to attract and receive applications from skilled freelancers.
- Browsing profiles: You have the option to browse through Upwork’s extensive collection of talented professionals and reach out to them directly if you are interested in their services.
- Talent Scout: When it comes to projects that span over a month, utilizing Talent Scout to engage with a recruiter can greatly assist you in discovering the top-notch and highly sought-after talent you are seeking.
Finding profiles and buying a project are relatively simple tasks. However, posting a job requires a few additional steps. Fortunately, Upwork simplifies the process by providing guidance at every stage of the job posting setup. Moreover, they utilize data science and AI to suggest a list of freelancers you can invite to apply if you’re interested.
Once you have given it some time, you will be able to review all the applicants and come to a decision. Following that, you can proceed with initiating a contract with the freelancer of your choice. This contract can either be fixed or based on an hourly rate.
If you appreciate a freelancer’s work, you have the option to book them on Fiverr. However, Upwork offers a seamless experience for establishing long-term contracts. Once an agreement is reached with the freelancer, Upwork provides various tools to facilitate collaboration and payment, including time tracking, invoicing, and messaging. Additionally, you can easily create Milestones on a fixed contract to break down projects into stages or initiate new projects altogether.
Fiverr
When it comes to hiring a freelancer, Fiverr offers a more straightforward approach. You have two options: you can either use the search function to find the right freelancer or post a request for them.
Using the search and side filters, you can easily browse through gig listings that have been created by the freelancers themselves. If you find a service that catches your interest, you have the option to message the freelancer directly and express your interest. Finally, you can make an offer to proceed with their services.
The gigs on Fiverr typically come with project descriptions and fixed cost breakdowns, ensuring that expectations are established and transparent from the beginning. If you come across something that aligns with your requirements and budget, you can immediately book the gig without any additional steps. What you see is what you get!
Alternatively, you have the option to post a request. In this case, you would describe the service you need, specify the category, desired timeframe, and your budget. After some time has passed, you can review offers and be redirected to relevant Gig pages.
Engaging in freelance work
If you’re interested in doing freelance work, have you considered Upwork and Fiverr? While they have some similarities, they also have different approaches.
One notable similarity is that both Upwork and Fiverr are well-regarded and reliable job boards. These platforms have been established for quite some time now – Upwork since 2013 and Fiverr since 2010 – which has allowed them to develop extensive client networks and refine their business models over the years.
Are there any differences?
On Fiverr, creatives who excel in delivering fast products or services such as voice-over work, illustrations, or jingles tend to thrive. On the other hand, Upwork is a platform where individuals with specialized skills and a need for long-term commitment can find success in completing projects like web design work or copywriting.
Upwork is also a great option for freelancers who want to grow their network and establish connections with clients for long-term collaborations. With Upwork’s messaging system, it becomes easier to engage in conversations with potential employers, allowing you to gain a clear understanding of their requirements before submitting your proposal.
While both platforms have freelancer ratings, it is worth mentioning that Upwork offers Talent Badges for freelancers. These badges are awarded to showcase their expertise and talent, and they are displayed next to their name on their profile for clients to see. For example, the Top Rated Plus badge has certain requirements that need to be met.
Badges enhance your prospects of attracting the attention of potential employers and acknowledge your commendable work.
Similar to Upwork, Fiverr has its own system of ratings known as Seller Levels, which are determined by monthly performance. These levels consist of New Seller, Level 1, Level 2, and Top Rated Seller, each with their specific criteria. As you climb higher in the rankings, clients are more inclined to book your services.
Reviews of Upwork and Fiverr
The reviews definitely speak for themselves. According to TrustRadius, Upwork has received a rating of 7.7 out of 10, while Fiverr has been rated at 7.3.
Upwork
Users on Upwork often highlight the following advantages:
- Consolidate tracking, billing, and conversations into a single, user-friendly platform
- Efficient solution for temporary staffing needs
- Secure and hassle-free payment system
- Access to a diverse pool of talent from around the world
- Enhance credibility with ratings and reviews
- Powerful search tool for an exceptional user experience
However, like anything else, there are also drawbacks. Let’s take a look at what some people had to say about Upwork:
- Fees and expenses for freelancers
- Freelancers are required to pay for Connects in order to apply for jobs
- It can be challenging to differentiate between high-quality freelancers in such a large pool
- The hiring process may take some time
- Reviews are not obligatory, resulting in insufficient follow-up or encouragement to leave reviews
Fiverr
Here are a few advantages of using Fiverr:
- Effortless communication and transaction system
- Talented individuals can connect with a global audience
- Budget-friendly
- Evaluates sellers using a star rating system
- Customers can create a curated list of their preferred sellers for future orders
Here are some disadvantages of Fiverr:
- Limits on images and descriptions
- Funds may require a waiting period
- A commission fee of 20% applies
- Website navigation can be challenging at times
- The security system might hinder communication between buyers and sellers
Getting Paid
And now, we have reached the crucial stage – receiving payment.
Upwork
Receiving payment on Upwork is a straightforward process. You simply need to establish a withdrawal method for your earnings and ensure that your tax status is properly set up. The payment you receive will depend on the type of contract you have – whether it’s hourly, fixed-price, or a Project Catalog project.
For fixed-price contracts and Project Catalog contracts, your funds will be released once the project has been approved and completed. On the other hand, hourly contracts operate on a weekly billing cycle. It’s important to note that there is a 5-day security period for fixed-price and Project Catalog contracts, while hourly contracts have a 10-day security period.
Once these security periods have passed, you can easily withdraw your funds.
There are several options available for withdrawing your earnings. These include direct-to-bank transfers, wire transfers, and instant pay for freelancers based in the US. Additionally, Upwork offers a variety of third-party payment vendors that allow you to withdraw USD outside of the US. Some examples of these vendors include Wise, PayPal, Payoneer, and M-Pesa.
One of the advantages of using Upwork is its provision of an escrow system for fixed contracts, ensuring the safety and protection of both clients and freelancers. With this system in place, funds are securely held in trust until the job is successfully completed to the satisfaction of all parties involved.
Fiverr
When it comes to payment structure, Fiverr operates on a pay-per-order model. After completing your work, the client will make the payment to Fiverr, and 80% of the funds will be allocated to your account. Although Fiverr does not have a traditional escrow system like Upwork, there is a 14-day clearing period in place to ensure buyer satisfaction. However, it’s worth noting that certain top-rated sellers enjoy a shorter 7-day clearing period.
Once you have marked it as cleared, you have the option to withdraw your funds using PayPal, Fiverr Revenue Card, or bank transfer if you are located in the US. Unlike Upwork, you can withdraw funds in various currencies such as Australian Dollar, Canadian Dollar, USD, British Pound, Euro, and Israeli Shekel. However, please note that currency conversion rates may apply if you choose not to withdraw in USD.
Number of job opportunities and variety of job roles
Upwork has a competitive edge over Fiverr when it comes to job opportunities. It boasts a higher volume of projects posted at any given time, providing a wider range of options for freelancers. Additionally, Upwork offers various types of contracts including hourly, fixed-price, and Project Catalog contracts. The Project Catalog contract is particularly beneficial for larger or long-term projects as it allows you to conveniently monitor progress in one centralized location.
On the other hand, Fiverr lacks a Project Catalog and most contracts are fixed-price, making it less suitable for long-term projects. However, it does offer a wide range of 300 job categories catering to various talents and skill sets.
Upwork vs Fiverr Fees
While payment is hassle-free on both platforms, it is important to keep in mind that there are associated fees.
Upwork Fees
On Upwork, there is a flexible fee structure for different types of contracts. For projects with a value up to $500 USD, the fee percentage is 20%. If the project falls within the range of $500.01 – $10,000, the fee decreases to 10%. For projects exceeding $10,000.01 in value, the fee percentage is further reduced to 5%. As an example, if you are collaborating with a client on a project that will earn you $700, the service fee would be calculated as follows: 20% on the first $500 and 10% on the remaining $200. You can find more detailed information about Upwork fees by visiting their website.
Fiverr Fees
Fiverr charges a fixed commission of 20% on every purchase. Depending on the withdrawal method you select and your currency, there might be a fee ranging from 1 to 3 USD. Buyers are also subject to a service fee of 5.5% on the total purchase amount. Additionally, for purchases below 50 USD, an extra small order fee of 2 USD will be added.
Upwork – Pros and Cons
Upwork is an excellent platform for discovering job opportunities and connecting with clients. It provides a wider range of categories, skill sets, payment structures, and more compared to Fiverr. However, one drawback is that due to the abundance of opportunities on Upwork, you may frequently find yourself competing with numerous other freelancers for each job.
Fiverr – Pros and Cons
Fiverr provides a diverse array of services and categories, although it may have fewer opportunities compared to Upwork. However, the advantage is that Fiverr offers a significantly shorter turnaround time than Upwork, which can be advantageous for those seeking quick projects.
Conclusion
Fiverr and Upwork are excellent online freelancing platforms that provide opportunities to find jobs, build connections, and generate income. They offer a complimentary membership for creating freelancer profiles, robust security features, various payment options, and tiered levels. Moreover, both platforms cater to freelancers with diverse skills ranging from graphic design to songwriting and tax consulting.
If you’re looking for a wide range of job categories, Upwork and Fiverr are great options. However, if you prefer industry-specific platforms, consider joining Toptal, Behance, or Best Writing. We believe that this article has provided valuable insights to help you select the most suitable platform for your needs and pave the way for a successful freelancing career.
