Pros & Cons of Freelancing Platforms

Should I use a Freelancing Platform?

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Using freelance platforms like Upwork and Freelancer can have its advantages and disadvantages. Here are 4 pros and cons of using a freelance platform to find clients.

Pros:

1. Client Pool

With platforms like Upwork and Fiverr, you instantly gain access to clients looking for the services that you can provide. being able to tap into a global marketplace of clients could give you the exposure to run your freelancing company.

2. Ease of use

These platforms offer a user-friendly interface and streamlined processes for finding and applying for jobs, submitting proposals, and receiving payment.

3. Payment Protection

Freelance platforms usually offer payment protection services. These services usually have the clients deposit the agreed-upon funds into escrow accounts, ensuring freelancers get paid after providing the service.

4. Ratings & Feedback

Clients have the option to provide ratings and feedback on freelancers, which in return can build credibility and attract more business. Freelancers also can leave ratings and feedback to help other independent contractors avoid difficult clients.

Cons:

1. High Competition

Freelance platforms usually have a large pool of freelancers competing for the same jobs. This can become a high barrier to entry for new freelancers that do not have ratings and reviews on the platform. Large pools of talent can also lead to freelancers offering lower rates and difficulty finding work.

2. High Fees

Freelance platforms charge fees for using the platform that usually surmounts a certain percentage of the freelancer's earnings. Once you have found a client that you perform repetitive work with, this can cut into your profit margin.

3. Client Interaction

Client interaction, or lack thereof, can be one of the cons when working with a freelance platform. At times you might only have one conversation with a prospect before agreeing to work together for a few months or longer on a project. This can make it challenging for relationship building and figuring out if this client is right for you.

4. Flexibility

Freelance platforms can have strict rules and policies that limit a freelancer's ability to negotiate terms and conditions with a client. Freelance Platforms will talk you through some of the common rules.

Overall, freelance platforms can be a useful tool for finding work and building a freelance business, but freelancers should be aware of the pros and cons and choose the platforms that best fit their needs and preferences.