Gig platforms came into prominence with the rising popularity of solopreneurship. Many clients consider them a go-to place for finding help with their projects, and freelancers are joining them hoping to find work without much effort. Not everything is as good as it looks, though.
What are gig platforms?
Anytime you search for some freelancer tips on how to get clients, one of the first recommendations will be to join gig platforms like Fiverr, Upwork, or PeoplePerHour. Knowledge-based solopreneurs will probably have to look for other, more specialized platforms that target clients from their niche - there are a few for language tutors, therapists, and so on.
Gig platforms connect freelancers with clients and help clients find the service providers they need. These platforms act as intermediaries between you and the client, taking a commission from all transactions. That's why the whole process and any communication usually have to be conducted on the platform - otherwise, they would have no control over the transaction and no way to get a commission. Gig platforms protect both buyers and sellers, making it possible for people worldwide to work together without fear of being defrauded or not getting paid.
Some are better, some worse, but most share the same traits, advantages, and disadvantages.
Advantages
The biggest advantage of these platforms is that you can immediately get your profile in front of hundreds or thousands of potential clients interested in your offer. You don't have to look for clients - they will (or should) come to you. If the combination of your expertise and hourly rate will stand out among the others and offer a good value, the clients will come.
Since these platforms handle all transactions, you don't have to worry about issuing and sending invoices - they will take care of all this, and all you will see is money pouring in. Then, you can request to have this accumulated sum sent to your bank account.
💡 Keep in mind
As always, the beginnings are hardest. When you have zero reviews, getting the first few clients may be very difficult. After that, the potential clients will trust you much more.
Disadvantages
The problem with many of these platforms is that clients often see them as a budget option. Each platform is different, though, and you'll have to figure out whether its main selling point is cheap labor or something else. Sometimes, the low hourly rates are a natural consequence of high competition, especially in services that can be done from anywhere in the world. Different living costs in various countries mean that an acceptable hourly rate for a person from Country A can be nowhere near sufficient for someone from Country B. If you're from a well-off country, you may struggle to compete with people from more low-income countries or areas. It also has to be mentioned that whatever you make will be reduced by the platform's commission, which can be anywhere between 5% - 35%. Considering that the rates you'll be able to charge on these platforms will probably be average at best, having them cut even further will make for a significantly smaller paycheck.
Getting business on these platforms isn't easy, either. New members wait a long time for someone to take a chance on them - why would clients choose someone with no reviews when they have many more proven alternatives available? If you want to accelerate the process, you'll have to substantially undercut all proven competitors who offer services on a comparable level, accept a few clients looking for a budget option, get some good reviews, and then hopefully raise the prices.
Even if you can make the financial part work, there is still one obstacle you unfortunately can't do anything about. Whatever reputation you build on a given platform isn't really yours - it's confined to the platform. If the platform increases its commissions to an unacceptable level or shuts down, or you decide to leave it for another reason, you can't take anything with you - all good reviews will stay there.
Freelancers on these platforms usually operate under nicknames or first names only, so unless you decide to break the rules and tell your clients who you are, they won't have an idea - and the same goes for you - unless you can't deduct it from the work you're doing for them, you'll have no idea who your clients are either. So, if you've been exclusively operating on these platforms for three years and decide to leave them and start finding and working with clients directly, you'll start with a clean slate.
If you want to build a network of clients or a personal brand, operating on these platforms won't help you at all. You can't have your website or social media profiles listed in your profile. There will also be no word of mouth possible, which many solopreneurs rely on to bring them new business.
Is it for you?
Finding gig platforms in your industry that target serious clients willing to pay a solid hourly rate can make for a nice side income, but we don't recommend treating it as anything more than that. Being entirely dependent on them would put you in a very bad situation if their rules, commissions, or favorability with clients suddenly changed.
Building your own brand and network under your own name and using your own communication channels will be much more satisfying going forward. You can keep all your income and gradually reap the benefits of your growing reputation. If you'd like to start moving into the influencer direction and selling digital products like courses, plans, or templates, having a wide audience that knows you and trusts you is an absolute must.
Remember
👉 One of the main reasons clients use gig platforms is low prices.
👉 The reputation you build on a gig platform isn't really yours.
👉 Most clients don't trust freelancers with no reviews.
👉 Whatever you make will be reduced by a gig platform's commission.
👉 Gig platforms can be great as a side income if you don't have enough clients of your own.
👉 Building an independent personal brand will pay off in the long run.
Homework
1️⃣ Find gig platforms that specialize in your field.
2️⃣ Before creating a profile, browse the profiles of other freelancers and see how you compare skill- and price-wise.
3️⃣ Find information about the commission the platform takes and calculate how it compares to the rates you charge clients you find on your own.
👏 You nailed it!
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