Fiverr vs Freelancer

Over the past couple of years, COVID-19 has forced many companies to reconsider their traditional staffing including, outsourcing, offshore, and work-from-home options. As a result, the Fiverr vs Freelancer query is becoming more and more relevant for employers. These powerful platforms were at the origins of freelancing and have a long history in the industry.

Freelancer was launched in 2009 as an alternative to existing websites with only USD payments allowed. Such platforms were inconvenient for freelancers outside the US. At that time, many countries had restrictions on the amount of foreign exchange. This feature limited the ability of foreigners to bid on projects. This service supports payments in local currency.

Fiverr was founded in 2010. This platform aimed at providing great services at a reasonable cost. The starting rate for projects featured on the site was $5. This has been a boon for many individuals and companies with tight budgets.

What Is Fiverr?

fiverr logo

Fiverr is one of the best freelance services and popular websites in the USA with millions of visits every month. Fiverr has about a million transactions monthly. With its unique customization, the ability to manage your career in an independent way and unique services from $ 5, it looks more like a directory of freelancers offering their gigs than a place where an entrepreneur can post a job offer.

The platform lists sellers in different categories based on their ratings. There is a search function that allows you to narrow down the results by the type of task as well as by the rating of freelancers. This way, buyers can browse multiple categories and styles and find a freelancer, who is knowledgeable enough for their project. They can contact a freelancer or use the order form to present them with a brief.

fiverr interface

Fiverr: Strengths and Weaknesses

The widest range of skills and freelancer types. There you can find a variety of suggestions ranging from graphic design and freelance photography to dog walking or Amazon reviews. First of all, you should look for marketing or advertising services here.

Free for employers, no freelance subscriptions. This is one of the main advantages of the platform in the Fiverr and Freelancer comparison. You don't need to invest anything at the start. Even a merchant switch to Fiverr Pro for verification doesn’t require a membership fee. Fiverr Pro orders are charged the same way as Fiverr commission for the rest of the sellers.

Cheap offers. The website has become popular thanks to its $5 projects, but not all orders cost $5 sharp. Freelancers post fixed price offers on the site and clients can purchase these services. These gigs don’t require much negotiation as freelancers provide the volumes.

Allows you to create a "gig" of services in different price categories. Instead of allowing clients to post job offers on their platform, they give freelancers the opportunity to build a portfolio of what they do best. The gig starts at $ 5 and can go up to thousands for additional gigs.

Secure in-app communication channels let clients connect with freelancers via messages and even exchange documents.

The ranges of features and prices can be overwhelming and tedious when looking for a specific skill type. Fiverr deals with a large number of users, so you are solely responsible for getting what you need on time.

Freelancers typically charge between $5 and $10 per project. However, the amount of work can be deceiving, and you may end up paying that money for separate parts of larger projects.

Weaker security system. Fiverr is often considered a good place for scammers due to its lax security rules. There is no guarantee you will find a reliable seller. Nevertheless, clients can create ratings of freelancers and you can base your choice on them. Keep this in mind while comparing Fiverr vs Freelancer. 

Payments for freelancers. It can be time-consuming to withdraw funds. Besides, sellers receive only 80 % of the income when selling gigs. Some freelancers ignore this platform because it allows buyers to cancel the project and get their money back even after the work is done.

What Is Freelancer?

freelancer logo

It is a kind of directory for 14 million freelancers and a good choice to sign up if you have some extra money. It offers services and crowdsourcing to millions of users in virtually every country in the world.

Freelancer is based on premium memberships for both businesses and freelancers. Employers or clients can submit their projects to the Freelancer platform for free. They can then invite freelancers to bid or browse freelance portfolios and choose a specialist, who suits them best.

Time tracking using time management software is a central element of Freelancer's business model. Be ready to keep track of your work hours with a desktop app that also offers good protection and prevents overpricing. On the other hand, some freelancers may like the hourly option rather than a fixed price.

freelancer interface

Freelancer: Strengths and Weaknesses

One of the widest ranges of skill sets and types of freelancers. The IT community is quite strong here, and many developers are located in the USA or Australia. So, freelancers are trustworthy and can understand your requirements.

Escrow system for payment protection. However, you must set up your tasks and hire employees properly to make sure you are protected. Freelancer has an application for tracking tasks and deadlines. You can split your project and pay for it in stages and move to the next stage only after the previous one was accepted.

Slick dashboard for hiring matches job positions posted by clients with people capable of fulfilling the task. They help narrow down the search to make it easier for employers to select the best freelancers.

Freelancers can also apply for projects. In turn, sellers can send clients applications for jobs they specialize in. A client can communicate with freelancers in real-time to assess the progress of the projects.

The Preferred Freelancer incentive system is free but be ready to work hard for quantity and results since there are certain requirements within the period.

Hidden or non-obvious fees. Both a freelancer and an employer pay a commission, although it would be enough to charge for one party or transaction. Keep in mind that there are some hidden fees including currency conversion fees, or premium payments, such as paid promoting of your job posting’s visibility.

Many freelancers do not want to pay a commission if they have not earned anything yet, or are not confident in their abilities. You will see premium candidates and you can easily miss out on good freelancers who are free users and only make a few bids per month.

Subscription model pushes people towards paid membership, as new accounts simply dissolve in the search. As a result, you have to update your account. Standard and Premium members don’t pay project fees. But membership fees can go up to $200 per month.

For example, you can only submit 8 offers per month unless you sign up for a paid membership. Also, beware of the dreaded "inactive" commission if you use your account rarely.

The inflated average cost of the project is caused by the usage terms. Lots of performers simply add all fees and paid promotions to the final cost of their services.

What’s more, Freelancer brings all the skill levels of freelancers together, apart from the paid verification service. Don’t be surprised if clients choose a cheaper beginner freelancer. In this environment, highly skilled freelancers are often considered too expensive. You should keep this in mind when deciding what platform is the winner in the Fiverr vs Freelancer competition.

Fiverr vs Freelancer: Price

fiverr vs freelancer pricing

Freelancers and employers can sign up on Fiverr for free. But they only receive 80 % of the cost of completed tasks, 20 % is commission. Service charges are added at the time of purchase, covering administration fees. The service fee is currently 5.5 % of the purchase price. If the price is less than $50, you will pay an additional $2 fee.

Freelancer is free to sign up for employers. However, there are several monthly paid membership plans for freelancers starting at $0.99 per month; one plan includes a 30-day trial period:

Plus Membership Plan – from $7.96 / month.

Compared to Fiverr, Freelancer has a more confusing payment system. There are many different prices, transaction fees, and commission interest rates, falling into different categories. If you are a new user, it is quite difficult to define these categories to understand which fees are for freelancers and which are for employers.

Fiverr vs Freelancer – Who Wins?

Freelancer with a longer history could have been the winner if it hadn't prioritized paid users. Therefore, both platforms are equal in terms of price-performance ratio. We recommend starting with Fiverr and then switch to Freelancer. Another option is to use these platforms at the same time to get better career opportunities.

Freelancer is more suited for ongoing working relationships with the same freelancers. What's more, their payment structure allows for hourly rates or partial payment to cover certain stages in project fulfillment. It is great for long-term and complex projects.

Fiverr is faster and cheaper, which gives it a slight advantage over Freelancer for small one-off projects. If you aren’t sure about your abilities and don’t want to invest in the development of your account, you should opt for this platform.