Freelance Marketplaces: Why You Should Think Twice Before Joining
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Understanding the Pitfalls of Freelance Marketplaces
It's been a year since I last engaged with Upwork, which might surprise those familiar with my previous top-rated freelancer status. However, my experiences have led me to realize that there are far more effective ways to attract freelance clients, leaving platforms like Upwork at the bottom of my list.
During my tenure on Upwork, I earned over $5,000 for approximately 130 hours of work, having submitted 15 proposals: 12 were cold applications, while the other 3 came from offline contacts who preferred to use Upwork to formalize our agreements. Notably, I did not win any contracts through cold applications.
In retrospect, my reliance on Upwork stemmed from two main reasons: 1) the platform provided some level of protection against non-paying clients, and 2) I believed it was essential for establishing my credibility as a freelancer. While these points hold some validity, they didn't justify the considerable effort required to sustain a living. Now, a year later, I’m comfortably earning from freelancing, and while I appreciate the confidence Upwork instilled in me, I would strongly recommend against relying on freelance marketplaces for a sustainable career.
Let's explore the reasons why.
Section 1.1 Why It's Challenging to Stand Out
Freelance marketplaces resemble job boards, and unfortunately, they are often ineffective. Reports indicate that Upwork boasts over 12 million registered freelancers, but there are only around 145,400 core clients available to hire them. A core client is defined as someone who has spent at least $5,000 on the platform and has engaged in activity within the last year.
The numbers reveal a significant imbalance, leading to intense competition. To cope, many freelancers resort to underbidding, drastically lowering their rates in hopes of securing gigs. This practice not only depresses wages but also makes it exceedingly difficult to find work, particularly for newcomers who lack client reviews.
Section 1.2 Employers Have Alternatives
It's essential to remember that employers are human and likely possess their own professional networks. Most potential clients can compile a list of candidates before even posting a job on a freelance site.
Throughout my experience on Upwork, every contract I secured originated from clients who reached out to me through LinkedIn, where I actively share my knowledge and insights. In essence, your prospective employers often have alternative methods for finding talent and are more inclined to hire individuals they connect with directly.