The 3 biggest problems with freelancing online
Technology has changed the world dramatically. One way is allowing traditional freelancers to work remotely and not have to hassle with finding customers. Online freelancing services like Fiverr and Upwork bring the customers to the freelancers! It all seems great right? Uhm well…
Problem #1: Getting started
I created a Fiverr account in 2018 and created a gig offering to program simple Python programs. I’d heard about Fiverr from watching countless YouTube videos sponsored by Fiverr. I was excited. As a high schooler, it was great to think of the prospects of having a little extra cash! Unfortunately this excitement evaporated quickly.
Days, weeks, months, no orders. Not even a message. In actual fact, it took just under 4 years for me to get my first message from a potential buyer. By that point I had forgotten about Fiverr. Fortunately, I just so happened to have email notifications turned on, otherwise I wouldn’t have even known someone had contacted me.
I understand programming services on Fiverr is a very saturated market, but I would expect to wait less than 4 years to receive an order! The problem here is the control that Fiverr has over how your gig is shown to users. You have no control, the success of your freelancing is determined by the Fiverr algorithm.
I’ve had a similar experience with Upwork.
Problem #2: The fees
Both Fiverr and Upwork take 20% of the sale price, leaving the freelancer with the remaining 80%. While I understand that the company has to make money as well, I wish this rate was dependant on the sale price. Prices for services offered can vary wildly from $5 to $20,000. 20% of $5 is $1, which is very palatable as a freelancer, but 20% of $20,000 is $4,000! This seems a bit excessive.
It would be better if the rate decreased as the price increased. I would suggest 5%-10% of $20,000. This would definitely leave the freelancer more satisfied!
Problem #3: Withdrawal methods
Fiverr offers a feeless withdrawal to PayPal, withdrawal to Payoneer for a fee and withdrawal to your Fiverr balance (with Upwork offering very similar options). Very few people will be withdrawing to their Fiverr balance as they will want to spend their hard earned money elsewhere as well and most people will opt out of paying withdrawal fees to Payoneer on top of the 20% Fiverr fees. This leaves PayPal as the only option.
PayPal, in certain countries, works brilliantly. It allows you to pay almost anywhere. However, as a South African, PayPal is a very inconvenient place to have your money. In South Africa, you cannot withdraw your PayPal balance to any bank account, only to bank accounts of one specific bank (which, of course, I do not have an account with). This makes it near impossible for me to easy withdraw my PayPal balance and with limited websites that accept PayPal it makes it very difficult to spend the money I worked so hard, and waited 4 years, to make!
Please freelancing services, offer better withdrawal methods!
In conclusion
If these few problems of freelancing were fixed, freelancing would be a much better experience. Eliminating these issues will not only make me and countless other freelancers happier, but will most certainly help companies such as Fiverr and Upwork.
P.S.
Just so I don’t have to wait another 4 years for my next order on Fiverr, shameless plug, http://www.fiverr.com/gideonweiss :)
