Fiverr vs. Upwork: Which is better?

Upwork vs. Fiverr

Fiverr and Upwork. These two green logo companies have made a name for themselves as the go-to spots for connecting freelancers with clients. But which one is right for you?

On paper, both promise to simplify freelancing, but their approaches are very different.

Whether you’re a freelancer who wants to get paid more for your skills or a client looking for top-tier talent, you need to understand what sets them apart.

Fiverr and Upwork each have strengths and weaknesses, and this article will shed light on them, helping you make a more informed decision!

And yes, I have used both platforms as a client and a freelancer. I'm unbiased, unsponsored, and (even though this is off-topic) unbothered.

TL;DR

Fiverr is great for quick tasks due to its transparent pricing. Its gig-based system makes it easy to browse options, compare prices, and hire instantly.

Hire on Fiverr if you need a logo, quick writing work, and have a tight budget.

For larger, more complex projects, hire on Upwork. It's ideal for highly specialized skills or collaborative work like app development or digital marketing campaigns.

Upwork's bidding system lets you review proposals and pick the best freelancer.

If you're a freelancer, Fiverr helps newbies build portfolios with smaller gigs, while Upwork is a better fit for experienced pros who want long-term, high-value projects.

Neither platform is better—it depends on your project, budget, and style.

Frequently asked questions (FAQs)

1. Which has more opportunities?

Upwork offers more job opportunities, particularly for higher-budget, long-term contracts. Fiverr has a higher volume of smaller, short-term gigs, though.

2. Which platform has the highest fee?

Fiverr charges a flat 20% commission on all transactions, while Upwork has a 10% flat fee.

3. Which is better for beginners?

Fiverr is more beginner-friendly due to its simpler onboarding process and lower entry barriers. Upwork requires a more detailed profile and competitive bidding.

4. Are they safe?

Both Fiverr and Upwork offer secure payment processing, escrow systems, and dispute resolution services to protect both freelancers and clients. They also monitor their platforms for fraudulent activities and enforce strict policies to maintain a safe working environment.

How they work

Fiverr and Upwork offer unique ways to connect freelancers with clients.

Fiverr keeps it simple. Freelancers, known as sellers, set up gigs, offering everything from basic tasks to premium services.

Clients, known as buyers, browse these gigs, pick what fits their needs, and purchase the services they need.

Once a gig is purchased, the seller completes the work within the specified timeframe, and the payment is released upon approval by the buyer. It's quick and flexible!

That said, Fiverr's focus on affordability can sometimes undervalue freelancers, so if you are one, it's important you know your worth and position yourself accordingly.

On the other hand, Upwork operates on a more traditional job marketplace model where clients post job listings detailing their project requirements.

Freelancers then submit proposals, outlining their qualifications, experience, and price. Clients review the proposals and select the freelancer that best fits their needs.

Once hired, freelancers and clients collaborate through Upwork’s platform, using its tools for communication, time tracking, and payment processing.

The competition on Upwork is fierce, and fees can be costly, especially for newbies. While Fiverr thrives on quick gigs, Upwork is better for longer, more formal collaborations.

Main differences

1. Pricing models

Fiverr’s pricing is straightforward, with freelancers setting fixed prices for their services.

Clients know the cost upfront, which includes the freelancer's rate and Fiverr’s commission.

Upwork uses a bidding system where freelancers submit proposals with their rates.

This allows for more negotiation and flexibility, but it also leads to price competition among freelancers.

2. Client-freelancer relationship

On Fiverr, the relationship is more transactional, with a focus on one-off gigs. Freelancers and clients may have minimal interaction outside of the service purchased.

In contrast, Upwork fosters longer-term relationships, often leading to ongoing projects or repeat work.

Upwork’s structure supports more communication between freelancers and clients, allowing for collaboration on more complex projects.

3. Job posting and application process

Fiverr simplifies the process for clients by allowing them to purchase services directly from listings without the need to post a job or review proposals.

Upwork requires clients to post job listings and review multiple proposals before hiring a freelancer, which is time-consuming but offers more control.

4. Service flexibility

Fiverr is ideal for well-defined services that can be packaged neatly, such as designing a logo or writing an article.

Upwork offers more flexibility and supports a wide range of project types.

Businesses looking for long-term collaboration hire developers for ongoing app maintenance or digital marketing pros to run ad campaigns.

Pricing, fees, commissions and payment structures

How much you pay or earn depends heavily on the platform you choose.

On Fiverr, it's all about gigs. Freelancers (or sellers) set fixed prices for their services, which can range from a few bucks to thousands.

Many gigs offer basic, standard, and premium tiers, giving clients plenty of options. However, Fiverr takes a 20% cut from everything freelancers earn—no exceptions.

The good news is that payments are secure. Fiverr holds client payments in escrow until the job is done and approved.

Once the process is complete, freelancers can cash out through PayPal or bank transfer. Standard withdrawals take 14 days to clear unless you pay extra for instant access.

It's different on Upwork. Freelancers set their own rates, whether hourly or project-based, and clients can negotiate during the proposal process—so there's room for flexibility.

Upwork recently introduced a flat 10% service fee for all freelancers and agencies, replacing the old sliding scale.

This flat rate applies to all contracts, whether hourly, fixed-price or via the Project Catalog. Clients, on the other hand, pay a 5% service fee on all payments to freelancers.

Additionally, a one-time contract initiation fee of up to $4.95 was introduced in April 2023 for new contracts.

Clients in the U.S. who pay through a checking account enjoy a reduced 3% fee instead of the standard 5%.

For freelancers, Upwork's flat 10% fee is more competitive for larger projects but might feel steep for smaller gigs compared to Fiverr's commission structure.

Payments on Upwork are released weekly for hourly gigs, while fixed-price payouts depend on milestone approvals.

How clients find freelancers

Clients (or buyers) on Fiverr can find freelancers (or sellers) by browsing through categories or using the search function to find specific gigs.

The platform’s algorithm also suggests relevant gigs based on the buyer’s previous searches or purchases.

Fiverr’s gig format makes it easy for clients to compare services and select the best fit for their needs.

Clients on Upwork find freelancers by posting job listings and reviewing proposals from interested freelancers.

Upwork’s search feature also allows clients to directly invite freelancers to apply for their jobs, providing more control over the hiring process.

The platform’s detailed freelancer profiles, including portfolios and reviews, help clients make informed decisions.

Upwork's connects system

Upwork works with a unique system called connects, which are digital tokens freelancers use to submit proposals for job postings, unlike traditional bidding systems where submissions might be unlimited or unregulated.

Connects limit the number of proposals freelancers can submit, reducing spam applications.

This encourages freelancers to focus on well-suited opportunities, emphasizing quality applications over quantity, which benefits both freelancers and clients.

Connects help freelancers be more selective about the jobs they apply for and it also helps reduce spam applications, so clients don't have to spend endless hours going through proposals from freelancers who clearly aren't a good match.

Remember that Upwork wants to make the client's life as easy as possible, so this makes the hiring process easier for clients.

Imagine that a social media manager applies for a copywriting job. Even though he might know a thing or two about about copywriting, that's not his field of expertise!

That freelancer is probably not the best fit for the project, and it's unlikely the client will hire them for it.

Because each job posting requires connects to apply, it helps filter out less serious applications and ensures freelancers are genuinely interested in the jobs they apply for.

Freelancers start each month with 10 free connects but can buy more if needed, typically at $0.15 per connect. Connects also expire after one year if you don't use them.

However, keep in mind that if you are invited to a job post by a client, it doesn't cost you any connects to apply.

Also, if a freelancer submits a proposal and the job is canceled or if the client interviews them, they may be refunded their connects, which helps mitigate the cost of applying for jobs that never come to fruition posted by clients who end up not hiring anyone.

Constrastly, Fiverr's gig-based model allows clients to directly browse and purchase pre-defined services, making it ideal for people who want quick transactions without the need for negotiation or bidding.

Upwork's hourly contracts

One of the main differences between the two platforms is Upwork's unique hourly billing option.

Upwork allows freelancers to charge clients by the hour using its time-tracking tool, which records work hours and captures periodic screenshots.

This is ideal for projects with evolving requirements or unclear scopes. Hourly projects ensure flexibility, allowing clients to modify the scope without renegotiating a fixed price.

Payment protection ensures freelancers are paid for logged hours. Both Upwork and Fiverr offer fixed-price projects in which freelancers and clients agree on a set cost upfront.

This approach is suited for well-defined tasks with clear deliverables. However, Fiverr lacks an hourly billing option.

Any changes to a project on Fiverr usually require new agreements or additional payments, which can limit flexibility compared to Upwork's hourly option.

Pros and cons

Pros of using Fiverr:

• Clients know the cost upfront, which eliminates the need for negotiations and simplifies the transaction process.

• The onboarding process is straightforward. Freelancers can start selling services within minutes of creating an account, and clients can purchase services without any prior setup.

Cons of using Fiverr:

• Fiverr’s 20% commission on all transactions can reduce freelancers’ earnings, particularly for low-cost gigs.

• Fiverr’s focus on low-cost services can drive prices down, making it hard for freelancers to charge higher rates.

Pros of using Upwork

• The platform supports ongoing collaborations, helping freelancers build long-term relationships with clients.

• Upwork attracts more established businesses and higher-budget projects, making it ideal for experienced, top-rated freelancers.

• Upwork provides advanced tools for communication, time tracking, and project management, enhancing the freelancing experience.

• Upwork offers higher service quality, due to its rigorous freelancer vetting process. Freelancers go through a more detailed profile creation process, including skill tests and verifications, which helps ensure that only qualified pros are available for hire.

Cons of using Upwork

• Writing tailored proposals for each job application can be time-consuming and does not guarantee success.

• The onboarding process can be time-consuming and challenging for new freelancers. Clients also go through a more detailed process, including job postings and reviewing freelancer proposals, which can be daunting for beginners.

Which is better for freelancers?

For freelancers, the choice depends on your skills, experience, and preferred work style.

Fiverr is ideal if you prefer offering clearly defined services at fixed prices, while Upwork is better suited for freelancers who want long-term projects with higher-budgets.

Fiverr is more beginner friendly and easier to navigate, and experienced freelancers will prefer Upwork’s more extensive network and higher-paying clients.

Which is better for clients?

Clients should choose Fiverr if they need quick, affordable services with minimal involvement in the hiring process. Fiverr’s gig-based model is perfect for simple tasks.

Upwork is a better choice for clients who want more control over the hiring process and work closely with freelancers on complex or long-term projects.

Upwork allows clients to vet freelancers more thoroughly and negotiate terms, which can be beneficial for bigger projects.