Start A Freelance Marketplace Business - Business Ideas
Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.
A freelancing marketplace is a platform that helps companies find and hire independent professionals for temporary jobs or special projects. How freelancing platforms work is simple.
When a client posts a job on the freelancing platform, interested freelancers will send proposals requesting the client's consideration for the task. The client will hire a favorite candidate and create a contract, which includes funding the escrow account so that all parties feel secure.
Upon completion of the task, the freelancer submits to the client via the freelancing platform and requests payment release by the client. Once the client is satisfied, the next step is the release of escrowed funds to the freelancers.
At this point, the contract may remain open, or both parties can decide to close the contract.
The corporate world has changed more in the past few years. Today's generation of workers prefer working remotely, and most have given up the idea of a full-time job in a corporate office. According to experts, more than 50% of the US workforce will shift to freelancing in the next few years. Therefore, freelancing platforms like Upwork will register more users over the coming years.
As the freelancing economy continues growing, we must keep our fingers on the pulse of this current trend.
Are you looking for a futuristic business idea you can embrace today? How about starting a freelancer marketplace? Building a freelancer marketplace is not as difficult as it may seem.
To start, choose a business niche and decide on the marketplace business model. Then, come up with a list of requirements, and create a visual identity and user interface for your freelance marketplace. As soon as the graphic design is at hand and your product is in action, begin the rapid prototyping process. Finally, test and launch the platform.
Starting a freelance marketplace business requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell freelance marketplace service, or selling freelance marketplace service online, you can use this page as a guide for everything you'll need to know.
Key Stats
Startup Costs
| Min Startup Costs | Max Startup Costs | |
|---|---|---|
|
Office Space Expenses |
$0 |
$7,000 |
|
Training & Education Expenses |
$0 |
$1,000 |
|
Software Expenses |
$0 |
$594 |
|
Advertising & Marketing Costs |
$0 |
$2,750 |
|
Website Costs |
$13 |
$215 |
|
Specific Industry Expenses |
$0 |
$100 |
|
Total Startup Costs |
$13 |
$11,659 |
Case Studies
•
$100K/mo
•
$16K/mo
•
$32K/mo
•
$100/mo
Successful Businesses
| Business | URL | Rank | |
|---|---|---|---|
|
|
fiverr |
fiverr.com |
187 |
|
|
Microworkers |
microworkers.com |
6,451 |
|
|
Legiit |
legiit.com |
12,210 |
|
|
Refrens |
refrens.com |
19,644 |
|
|
Afluencer |
afluencer.com |
70,358 |
|
|
Toogit: Find Freelance Jobs Online |
toogit.com |
70,766 |
|
|
WorkChest |
workchest.com |
76,685 |
|
|
YouTeam |
youteam.io |
93,419 |
|
|
Flexiple |
flexiple.com |
110,173 |
|
|
Quickengigs |
quickengigs.com |
115,393 |
|
|
Heyluu |
heyluu.com |
121,288 |
Pros & Cons
| Pros | Description |
|---|---|
|
Flexibility |
You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own. |
|
Ability to start your business from home |
It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning! |
|
Little startup costs required |
The cost to start a freelance marketplace business costs significantly less money than most businesses, ranging anywhere from 12 to 11,659. |
|
Rewarding work |
Starting a freelance marketplace business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about. |
|
Scalable |
With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers. |
|
Traffic to your website |
A freelance marketplace business gives people a reason to visit your website and to keep coming back to you! |
| Cons | Description |
|---|---|
|
Crowded Space |
Competition is high when it comes to your freelance marketplace business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies. |
|
Constant maintenance of publication |
You may find yourself constantly needing to update your freelance marketplace business in order to stay relevant for your audience and for those searching on google. |
|
Lack of benefits |
With a freelance marketplace business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming. |
|
Isolation |
Often times, as a freelance marketplace business, you typically work alone and do not have much face-to-face interaction with other team members. |
|
Taxes |
As a freelance marketplace business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it. |
|
No safety net |
Typically, as a freelance marketplace business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times. |
Marketing Ideas
-
1
Affiliate Program
Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.
Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.
The affiliate typically gets a unique link where clicks and conversions can be tracked.
-
2
Direct Sales
Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.
For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.
-
3
Word of mouth
Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.
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- 4,818 founder case studies
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- 8,628 business ideas
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- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
