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.
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.
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.