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Freelancing in 2023 is the primary mode of income for many. At the same time, it’s becoming a preferred way of finding employees for businesses too. According to a report by Zippia, the active number of freelancers was 70.4 Million in the USA in 2022, and 36% of the manpower of the United States participated in freelance jobs. From entry-level to executive, the demand for freelancers is touching the sky.
In such a scenario, freelance marketplaces become the hotspot for all freelancers. It’s the best and most convenient way for employers and freelancers to connect. Upwork is one of the freelance marketplaces. Its popularity has grown to a point where it generated a revenue of $160.9 million only in the first quarter of 2023!
It brings us to the question of whether you should invest in a freelance marketplace like Upwork? It is definitely an opportunity for businesses to generate enormous revenue. But, how do you begin? We have it all sorted out for you.
Are you looking to build a freelance marketplace like Upwork? Hyperlocal Cloud can help you achieve a top-notch freelance marketplace like Upwork, built with modern technology and equipped with all attributes.
So here in this blog, we will discuss how to build a freelance marketplace like Upwork. Along with the development process, we will also discuss some essential features you need to have in your freelance marketplace. Let’s get started and learn how it works and how you can achieve it.
Let’s take a look at the future of the freelance marketplace.
Image Source: - Statista
As freelance is a double-sided platform where a company posts its project requirements and hires a talented pool with the required skill set, the working model of the freelance marketplace is complex. But let’s simplify it for you.
So let's go through the sources from which Upwork generates income:
Now let’s understand it in brief:
Upwork earns revenue by charging a service fee based on the delegated work from their clients. The platform has two types of clients who delegate the work to freelancers:
With such kinds of clients, Upwork charges an adjustable fee that depends on the total amount charged for the job. In this phase, every type of contract is considered based on their project catalog. Let us show an amount scale and percentage for better understanding:
Upwork negotiates with the clients on each contract in the enterprise-level client category. After obtaining the total sum, the amount that needs to be charged is calculated.
Upwork generates an amount from their clients by the following steps:
There are two additional factors from which Upwork earns income:
Connects are virtual asset tokens given to freelancers to bid on their desired roles. At the time of registration, a few connections are given for free. When the initial number of connections approaches the limit, a freelancer has to pay to avail of more connections.
Upwork allows other organizations to advertise on their platform. They earn money here on the basis of Cost Per Click (CPC), Cost Per thousand (CPM), and Cost per Acquisition (CPA).
Hyperlocal Cloud helps you attain a freelance marketplace like Upwork, which will cater to your business needs.
Here are the top 5 marketplaces and their latest revenue updates:
|Upwork||$618.3 Million||Upwork is a global online marketplace that connects businesses with freelancers. Upwork offers a wide variety of freelance services, including web development, graphic design, writing, and marketing|
|Fiverr||$337.4 Million||Fiverr is an online marketplace that connects businesses with freelancers who offer services for as little as $5. Fiverr offers various freelance services, including logo design, video editing, and social media marketing.|
|Freelance.com||$315.5 Million||Freelance.com is an online marketplace that connects businesses with freelancers. Freelance.com offers various freelance services, including web development, graphic design, writing, and marketing.|
|PeoplePerHour||$5 Million||PeoplePerHour is an online marketplace that connects businesses with freelancers. PeoplePerHour offers various freelance services, including web development, graphic design, writing, and marketing.|
|Hubstaff Talent||$13.6 Million||Hubstaff Talent is a freelance marketplace that is part of the Hubstaff suite of productivity tools. It connects businesses with freelancers for a variety of projects, including software development, marketing, and design.|
The revenue number above reflects how successful your freelance marketplace can be in the future, which also gives you a reason to invest in a freelance marketplace like Upwork.
Our top-tier feature of the freelance marketplace is like Upwork, so it's time to be aware of the development process of the freelance marketplace like Upwork:
To survive in this cutthroat competition, you need to know your audience and occupy your niche. Decide whom you will provide the service to; businessmen, multinational companies, start-ups, or students. You will also need to understand their needs and pay attention to what they are looking for. There are thousands of marketplaces, so you need to know ‘why’ yours will stand out.
A business model for your application will attract revenues and sales in your business. It will help improve customer engagement and communication and drive better sales in the business. Here are some delivery models you can choose from:
|Selling Fees||Charge an amount on each job finalized on your freelancing marketplace.|
|Subscription Model||Offer exclusive features where users will pay monthly or yearly fees to avail them.|
|Payment Processing model||It will let you charge a certain percentage of the users on each transaction.|
|3rd Party Ads||Advertise other brands on your application, and earn here via PPC and PTC.|
|Freemium model||Offer a free collection of services, which will expand with the subscription fee.|
|Deposit model||Charge a deposit amount, which can be released after satisfactory work.|
|Custom price||Allow businesses to set a custom price, which can then be customized based on the scale of work.|
The designing part of your freelance marketplace like Upwork consists of developing a look of your application, UI/UX designing, analysis, wireframing, and creating a prototype. The design part of your application needs to be attractive and color balanced for all users.
The development part of your freelance marketplace, like Upwork, falls into three steps:
The front end development of an application is the process of adding life in the design of the application. The process of front end development includes developing animations, maintaining hue & color, logo placement, font integrations, and symmetric UI development. All other application pages, like signup/login and service pages, also fall under this development process.
The back-end development of your freelance marketplace like Upwork includes firewall protection, data management, operation syntax, server-side rendering, communication between third-parties applications, etc.
APIs are an Application Programming Interface that help bring data of a particular organization or enterprise. It also communicates between the user’s request and the server. For instance, you can integrate MNCs' and companies' data using APIs to help your users find better leads and top freelance talents.
After completing the deployment process, the testing phase of your freelance marketplace ensures all the embedded features and functionalities are working properly and have no bugs or errors. If any error or bug occurs, the development team must fix it on the spot so the app can run properly.
The launch of your freelance marketplace, like Upwork, ends the development process. After launching, you can work on scaling it to provide the best book marketing services to your targeted audience.
At Hyperlocal Cloud, you can achieve a freelance marketplace like Upwork that will enhance sales in your business.
Here are some of the important features you must have in your freelance marketplace, like Upwork:
|For Admins||For Freelancers||For Job Providers|
|Management Dashboard||Easy Registration & Login||Registration & Authorization|
|Project Management||Profile Setup||User Dashboard|
|Rate Chart||Bidding Mechanism||Freelancer Search|
|Activity Control||Time Track||Messaging|
|Configurations||CV Management||Review & Rating|
|Manage Securities||Advance Job Search||Job posting|
|Profile Moderation||Super Gig||Rate card|
Now let’s understand how you can benefit your business with our freelance marketplace solution, like Upwork:
Freelance marketplaces can generate significant revenue from various sources, including service fees, advertisements, or 3rd party integrations.
Freelance marketplaces are relatively easy to scale. As the number of users and transactions grows, the revenue potential also grows.
Freelance marketplaces can be started with relatively low start-up costs. The main costs involved are the platform's development and marketing.
Freelance marketplaces can reach a global audience. This means that there is a large potential pool of users and freelancers to tap into.
Anyone can start a freelance marketplace. This means there is a lot of competition, but it also means a lot of opportunity.
The development of your freelance marketplace, like Upwork, starts from $8,000, and this amount is expected to rise higher or go lower based on your requirements.
The development cost for your freelance marketplace, like Upwork, varies depending on factors. Let’s understand them in brief:
|Development||The development cost will vary depending on the size, complexity, tech stacks, number of manpower, etc.|
|Design||The design cost varies depending on the level of customization you require. It also varies on pixel quality, paid images, paid coloring tools, etc.|
|Marketing||The marketing cost depends on your targeted audience and the channel you use to get them.|
Investing in a freelance marketplace like the Upwork app can be a life-changing decision for an entrepreneur. That’s why it is recommended you get your app development done by a first-grade marketplace app development company to get a top-notch solution on a freelance marketplace like Upwork. As you know, with the future scope of the freelance marketplace and the rising demand for talented people, you can provide a solution to companies and other organizations and help them find a talent pool. It will also open a way to earn millions in your business. So what are you waiting for? Get started today.