You are determined to start a small business but you can’t afford it all. Because, the primary elements of starting your business website such as logo design, content writing, site design, maintenance, etc. Now you can do these things in two ways. First, you hire some people who will work for you from 9am to 5pm (which is expensive and you have to hire permanently). Another way is outsourcing which is relatively cheap and you can hire people according to the project. I will compare two such outsourcing marketplace: Fiverr Vs Upwork.
Outsourcing is an integral part of successful business management. Outsourcing enables you to run a more profitable small business because it allows you to focus on tasks that will focus on the most important part of you. For example, if you own a retail business, you can concentrate on picking new and attractive products while outsourcing tasks like maintenance or design.
Hiring a person (called a freelancer) for outsourcing work is risky. Moreover, hiring an unfamiliar freelancer on an unfamiliar platform is something more complicated. For many people, it comes down to Fiverr vs Upwork, when you haven’t used their services before, or you are unsure about how they work, choosing a freelancing service is just as difficult as choosing a freelancer.
In this guide, I will give you a clear idea about Fiverr vs Upwork. We have made in-depth comparisons on the value of each platform, quality of work, usability, and much more, as well as how they stack up against each other. Before we go into my deep comparison of Fiverr vs Upwork, let’s start with a brief overview of each.
Fiverr vs Upwork: At a Glance
If you are unaware of one or both of these platforms, here is a brief summary of how they work and what clients or business owners can expect.
Fiverr (Founded by Micha Kaufman and Shai Wininger in 2010) was one of the first gig marketplaces where clients or business owners can buy any service with “Five” or $5 (although it is no longer limited to $5 only). Initially, it exclusively specialized in digital services, since then Fiverr has expanded to include other freelance business opportunities such as consulting, management, and administrative support – not to mention “weird work” like cooking lessons or online tutoring.
Upwork (formerly oDesk) merged with Elance and oDesk in 2015 to take on the new name.
It has since become the world’s largest freelance marketplace in all business services – administration, finance, design, content creation, legal, marketing, and even engineering. Although not working on “lifestyle” gigs like Fiverr. However, an advanced feature of Upwork is that both buyers and sellers can post so that clients can browse the profiles of freelancers while freelancers can browse the job postings of clients.
Fiverr and Upwork Working Module
As I mentioned above, Fiverr is the first gig selling freelancing marketplace that has a total of nine categories (Graphics & Design, Digital Marketing, Writing & Translation, Video &, Animation, Music & Audio, Programming & Tech, Business, Lifestyle, Data, Trending) and many sub-categories like WordPress, Logo design, and much more.
In Fiverr, there are two parties: One group who is buying services (is known as Gig) is called buyer or client and another group who is selling services is a seller or freelancer.
Fiverr sellers have been measured by a total five-level:
New: When someone starts a journey on Fiverr and has a gig, they don’t have to meet any specific requirements and are automatically marked as new sellers.
Level One: The Level One status is an automated process. If a seller is active for at least 60 days, completes 10 orders (all time), earns up to $400 or more, has a 4.7-star rating, a 90% response rate, a 90% order completion rate, achieve a 90% on-time delivery score.
Level Two: Fulfill level one requirement plus earn over $2000 and complete at least 50 orders.
Top-Rated: The top-rated seller level is the highest-ranking that can be achieved on Fiverr and it is a recognition for all your hard work. An editorial team manually reviews performance over the past 60 days and rewards you at this level when a freelancer meets the following requirements:
- Active on at least 180 days
- Complete at least 100 orders (all time)
- Earn $20,000 or more
- Maintain a 4.7-star rating over 60 days
- 90% order completion & response rate
- No warnings over 30 days
Fiverr Pro: Fiverr Pro Fiverr takes both selling and buying experience to the next level. The most skillful team in Fiverr that manages normally quality work for its business buyers. Fiverr business buyers are not price-sensitive and pay more for quality work.
- At this time, Fiverr Pro sellers have the following categories:
- Graphic and Design
- Programming and Tech
- Writing and Translation
- Video and Animation
- Digital Marketing
- Music and Audio
Like Fiverr, Upwork is another top freelancing marketplace that has a total of nine categories (Design & Creative, Sales & Marketing, Writing & Translation, Admin &, Customer Support, Finance & Accounting, Legal, HR & Training, Engineering & Architecture) and many sub-categories like WordPress Developer, Logo Designer, Mathematics Specialists and much more.
Like the Fiverr marketplace, Upwork has two groups named freelancer and client.
Upwork examines the qualifications of freelancers through the Upwork Talent Badge.
Upwork’s talent badges highlight the proven or specialized freelancers at Upwork. Freelancers and agencies acquire these badges at Upwork for great reviews and best performance or through a rigorous screening process. A freelancer or agency can get four types of talent badges with the following requirements:
Rising Talent: Rising Talent is a primary level member or agency of the Upwork marketplace. For these, 100% complete profile with signs of great experience prior to Upwork, positive performance, including submitting high-quality proposals and being selected for jobs.
Top Rated: Top Rated highlights freelancers and agencies who have made a good reputation on Upwork by earning positive feedback from their clients, time after time. They represent the top 10% of talent on Upwork. These types of freelancers or agencies have demonstrated consistent high-quality work with multiple clients, a Job Success Score of at least 90%, an up-to-date and complete freelancer or agency profile, strong earnings history.
Top-rated plus: Top Rated Plus highlights freelancers and agencies with proven success in large or long-term contracts. They have gained a strong reputation at Upwork, receiving positive feedback over time, including work on high-value contracts. They represent the top 3% of performers in Upwork. Freelancers have over $10k and agencies over $20k in total earnings over the last 12 months. Have worked or are working on one or more major contracts in the last 12 months without negative results.
Expert-Vetted: Expert-Vetted highlights talent that has gone through a thorough pre-screening by experts in their field. These elite class freelancers have been evaluated by our technical Talent Managers for their expertise and excellent soft skills. They represent the top 1% of talent on Upwork. Freelancers in Web, Mobile, and Software Development; Design and Creative; and Sales and Marketing can become Expert-Vetted. Selected through a rigorous pre-screening process by Talent Managers and experts. Expert-Vetted freelancer has strong soft skills including reliable execution and excellent communication.
Fiverr vs Upwork: A Full Comparison
Whether you consider Upwork or Fiverr as a platform for hiring a freelancer, there are many more considerations to consider such as security, payment options, price, and quality. For some, the quality and value of the work are paramount, while for others it is not a matter of value, and how the platforms communication system, etc. Read our full comparison to find what you need to know or scroll down to continue reading.
Fiverr vs Upwork: The Pricing
Low price + high quality = outstanding deal with Fiverr
Frankly, Fiverr is cheap. This may not always but many gigs cost only $5, so it would not be wrong to call it cheap.
If you review works like WordPress or logo design, you will find that $5 projects are quite decent, since in some countries $ 5 is a fair bit of money. In other words, justify sellers by their past work, not their pricing alone.
Upwork also has some freelancers who are willing to work at a fairly cheap rate, but not so cheap and it is usually on an hourly basis. The work may take longer than expected and you may end up with a bill that is bigger than you expected. Fortunately, many freelancers also offer fixed-rate packages for their services.
Fiverr charges a $2 fee for all purchases up to $40. So, if a client buys the service for $5, the total cost is $7. Above $40, the fee increases significantly up to 5%. So, if it costs you $1,000 to design a website, then Upwork will be a little cheaper, though not too much.
At Upwork, almost all fees are paid by freelancers. You, as a client, pay only a 3% payment processing fee, which is quite standard for many online services around the world. However, it is known that Upwork freelancers often increase their prices to cover their fees.
Both platforms do not offer buyers any financial incentives (bonuses or discounts) for maintaining relationships with certain freelancers. But it makes it easier to rehire sellers you’ve worked with before and it’s great because you can trust and expect good consistent results.
Overall, both platforms provide security measures for clients. For fixed-price services, all funds paid are generally credited to Upwork and Fiverr, respectively, until approved by the client. For an hourly rate, Upwork has a time tracking system that is used to ensure that freelancers get money for the time spent on your project. If anything goes wrong, a client can always file a dispute.
Winner: Fiverr. Despite the client-oriented fee structure, Fiverr is less expensive and offers more than the money spent – especially since almost all projects come at a fixed price. The rate per hour, at once, can get out of control.
Freelancer (seller) Verification Criteria
Both Fiverr and Upwork try to give you some idea of the quality of a freelancer’s work, but there are differences in selection, and, well … there is no such thing as a 100% perfect system.
Fiverr doesn’t actually verify its sellers- except “Pro” sellers. Anyone with a strong work history and a strong portfolio can apply to stay in the Pro program, where they have to go through multiple reviews. Fiverr Pro welcomes only high-skilled freelancers, whether they are new to the platform or Fiverr experts. However, pro gigs are by far the most expensive on this platform
You can tell who is a pro seller by the text “Pro Verified” from the price and gig list, or by selecting the “Pro Services” button, where you can see a list of top sellers:
For non-pro sellers, you rely on the community for quality assurance. After each gig ends, buyers review and rate sellers (and sellers rate buyers) so you can get an idea of how good their services are.
Upwork, on the other hand, is known for “over-verifying” all its freelancers. Freelancers need to apply on the platform, and not everyone is accepted (this may depend on demand in certain cases). Freelancers have to burn a lot of chalk to complete their profiles.
Upwork has a system for identifying and verifying its top-rated freelancers. Top-rated freelancers must have a job success rate of 90% or more, earn at least $1,000 per month, work actively on the platform for at least three months, and have certain other requirements.
Upwork verification processes are sometimes harmful because the values are somewhat arbitrary. In other words, many good freelancers don’t get a chance on the platform and other good ones get bored of signing up because it’s too much hassle. Moreover, those who know system games have a huge advantage. Bad, fake, and “imposter” profiles are still a problem in Upwork, even after all the verification.
Winner: Fiverr. Upwork’s verification systems seem to have boomeranged in most cases due to the removal of their skill tests, while Fiverr’s community-based rating system does most of its work. You should do research on potential freelancers, as every freelance platform has problems with fake profiles and bad freelancers.
There are some similarities between Upwork and Fiverr: each platform wants you to conduct your own business with freelancers. Both platforms have a dedicated section of the site to handle disputes and resolve various issues including dissatisfaction with late delivery or service.
Most freelancers want good ratings and reviews. However, it does not always go smoothly. In this case, the specific guideline and resolution options vary depending on the situation and they take up considerable space in the terms of service of each platform. It indicates: If you are not satisfied with the performance of a freelancer for any reason, you can report on platforms.
In Fiverr, this means that someone from Fiverr will look into your case and decide if you are eligible for a full or partial refund.
In Upwork, a “settlement specialist” will make a proposal that is not mandatory. However, if you refuse that proposal, that means bringing legal arbiters involved, and that can (currently) cost upwards of $800, with your percentage of the cost coming in at almost $300. The rest is spent by Upwork and the freelancer. Depending on what you spent on the original project, this may not be worth the expense.
Winner: Tie. Some people may prefer to have the option of legal arbitration, and others may not be able to imagine something more annoying and slower. This is something that will depend on how much you have already spent and are willing to spend to get some justice.
Final Conclusion: Fiverr vs Upwork
Hiring a freelancer at Fiverr is easy, and you get value, simplicity, and a clear price. This makes it a clear winner in my guide. Also, it is very difficult to compete with a platform where there is a seller for every conceivable budget. Some of these $5 sellers are actually pretty good.
Upwork is still (probably) a good choice if you prefer hourly rates and want to hire lots of people in the long run or for big projects: like software development. Also, they have some corporate-friendly features.
In the tutorial Fiverr Vs Upwork, I have tried to make a real comparison between two good marketplaces from my point of view. Which is the best Fiverr or Upwork for your online business or StartUps? Comment below.