How do freelancing platforms work? — Types of Freelancing


I am sure that after reading my previous guide, most you people have chosen your skills and now you are looking forward to signing up for different freelancing platforms. Some of you have created profiles as well.

But, don’t you think that we should understand the working functionality of these platforms before hunting for jobs.

Let’s take an example, Linda is a medium user and she is unaware of freelancing.

One day, she happens to read my freelancing guide on Marketing Mesh. With high motivation and energy level, she gets started on a freelance platform like Upwork.

Somehow, she manages to get her profile approved on Upwork. After her profile gets approved, she receives 20 connects from Upwork to start bidding on the jobs available on her screen.

Without even understanding the working functionality and art of selling proposals, she keeps on sending them.

After sometime when she tries to send another job proposal, she comes to know that she ran out of connects and to send further proposals she needs to buy connects.

The bottom line… Don’t be like Linda, understand the working functionality of freelance platforms. Before you get started on Freelancing it is important to understand its types and the working mechanism as well.

Let’s get started with the types first.

Types of Freelancing:

As per my experience, there are two types of Freelancing.

  1. Direct Freelancing
  2. Platform Freelancing

1. Direct Freelancing

In Direct Freelancing, a person develops a direct relationship with a buyer. In this type of freelancing, there are no third-party (such as Fiverr, Upwork) means.

For example, there are many Facebook groups for graphics designing, content writing, web development, etc. Let’s suppose if a latent buyer posts a job about freelancing in a graphics designing group, suppose that I got the job and completed the task.

Sounds good? right?

But what if the buyer doesn’t pay me? What I am going to do with the work I’ve done for him. We can’t risk going behind that person that is why direct freelancing is a bit uncomfortable for freelancers.

This is the major drawback of direct freelancing as there is no security of payment.

And that is the reason why freelancers are encouraged to do Platform Freelancing.

1. Platform Freelancing

In Platform Freelancing, a third-party platform is involved. For example, Fiverr, Upwork, Freelancer, etc. In platform freelancing, the payment method of buyers is verified. Freelancing Platforms make sure that you receive your payment after the job completion.

These platforms charge 20% of your total earnings. But, still, these are awesome to maintain a connection with trusted buyers and high-quality sellers.

There is no further types of Direct Freelancing, but Platform Freelancing is furthermore divided into four types. Let’s take a look at those types.

  • Bid/win: In this type, sellers post jobs at different platforms that support this type of Platform Freelancing, the freelancers are allowed to send proposals on the jobs posted by sellers. This type of Platform Freelancing has some cons, here we need to apply again and again for different jobs. Also, the client needs to read every job proposal from start to end. Upwork is a popular example of Bid/Win freelancing.
  • Service Shop: Service Shop means you need to start a shop to represent your services. For example, let’s suppose you have a skill such as writing, designing logos, etc, then you can start your own virtual shop. An example of such a platform is
  • Contest: This type resembles Bid/Win. If a buyer is looking for a logo design for his company, then he will post the job as a contest. All the freelancers will start making the logo design without even getting asigned to the job. Doesn’t it sound interesting? Yes, it is interesting. All the freelancers participating in the contest will perform the same job but Only one freelancer will get paid, the one who successfully satisfies the buyer. A major example is
  • The King of all types: Let me explain this type. This kind of platform examines your skills before allowing you to get in as a freelancer. For example, if in case you are a designer then first you will be tested, interviewed, and then you will be given a task so that your skills can be tested. If you successfully pass the test then, you won’t need to apply on any job, the platform will find you top-notch jobs by itself. Sounds good? Right? An example of such a platform is Toptal, Dribble.

What is Group Work and why we should emphasize it?

Everyone is an expert in limited number of skills, no one can achieve or provide every service. There are various jobs that need multiple freelancers and this is where the concept of group work takes place. You can collaborate with other freelancers and thus, you can develop a group so that you can secure jobs at a greater number.

The example of Group Work is CloudPeeps, YouTeam, etc.

Final Words:

This is how different freelancing platforms work and are categorized. I hope that you will like this article, if yes then make sure to drop down your comments in the response section. Also, make sure to follow our publication. Cheers!

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