Freelance marketplace Industry: Growth statistics, Business Ideas & Future Opportunities
“Earn money online” seems to be the tagline that has caught on with the younger generation. The freelancing economy is currently on the rise and many entrepreneurs are looking to capitalize in this particular sector. The emerging economies of China, India, and Brazil seem ideal platforms for the Freelancing sector but doubts still persist on the long-term sustainability of this economy. This article aims to shed some light on the freelance marketplace economy and the numerous possibilities it upholds.
Freelance Economy and its continued ascension
Currently, 34% of the American workforce comprises of Freelancers. Nearly 70% of the current freelancers believe that technology has made it easier for them to discover work in their field. This is partly due to the increase in web and app development, there are many variants allowing freelancers to specialize in a specific segment. The current number of freelancers are expected grow by 50% by the year of 2020. This means freelance work might soon replace traditional 9-5 jobs
So what’s a General freelance marketplace?
This a broad term commonly used. General freelance marketplaces are the biggest and the most full-fledged platforms. They house various functions such as Web, content development, marketing & design. Since these are the industry’s first trendsetters, these marketplaces got early established brand recognition. Gradually due to funding, the much larger players built huge platforms which are capable of satisfying a huge range of client and freelancer needs. These initial freelance marketplaces used bidding concept to let businesses and common people hire the right candidate for their projects. Agriya’s Getlancer Bidding – Freelancer clone script implemented the concept to let entrepreneurs develop a niche freelance bidding platform.
Characteristics of a General Freelance marketplace
- Ever expanding user base with a wide variety of skill sets
- Established platform with good brand recognition
- Definitive financing options
- Basic Freemium model which will help in monetization of the existing user base
What does Niche Freelance Marketplace actually mean?
Many are under a common belief that most of the service related market come under a single category however, it’s not true. Over a period of time, certain services became more specific which encouraged entrepreneurs to become the main simulators behind the growth of the niche marketplace. “Niche” markets tend to follow similar patterns as the other more complete competitors but they simply offer a high quality of talent specific to a certain area of expertise.
Characteristics of a Niche Freelance Marketplace
- Marketplace structure is creative and flexible allowing it to customize itself to target a specific audience.
- Since most of the services are specialty services, they always command a brand premium
- Being specific to certain segments, there is a natural inclination to learn from the problems customers have with a general marketplace.
- Offers competitive advantage to the early market entrants.
Common Business/revenue models practiced in the Freelance Industry
For every transaction, the marketplace takes a cut of each transaction generated through the platform. It also tends to scale well, the more sales it generates, the more revenue it gets generated. The company charges a service fee for successfully matching buyers, sellers, hosts, guests & borrowers. The fee usually varies from 5% to 40% depending on the value of the transaction and the services provided.
In this model, professionals usually send quotes to customers. Based on the specific needs of the project the platform facilitates the interaction between the customers and the professionals. Professionals who are interested and available, make bids for customers to choose from. Customers can Sign up to the platform for free, however, the company charges professionals to send quotes to customers.
Similar to other subscription methods, customers are billed on a recurring basis and receive their services at the same time every month or as per their convenience. The benefit in this model is that once a customer signs up, there are high chances that they will stick around. Generally, the company offers a range of subscription plans at different prices based on the frequency of use and the number of goods desired.
As the numbers tend to grow, the freelancing economy will also be noticing the shift in varieties of businesses involved. In the present scenario, we see a lot of freelancers working in small and medium-scale enterprises, however, this is bound to change as big players will eventually cave into the demand. If you are willing to jump into the Freelancing bandwagon and start your own freelance website, there are numerous ready-made scripts available in the market which can be readily implemented. Agriya’s Getlancer – Freelance marketplace scripts are recently updated and custom made for entrepreneurs, with this you can develop a niche freelance website according to your specific area of interest & expertise.