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Why Is Fiverr Valued Higher Than UpWork?

Last updated on September 28, 2022 @ 10:08 pm

Fiverr is a popular online marketplace that connects freelancers with businesses that need their services. Businesses can post projects and freelancers can bid on them. Fiverr takes a percentage of the total project cost as its fee.

UpWork is another online marketplace for freelancers and businesses, but it operates differently than Fiverr. UpWork charges freelancers a percentage of their earnings, rather than businesses. This means that freelancers keep more of their earnings when they use UpWork.

So why is Fiverr valued higher than UpWork? There are a few reasons.

PRO TIP: Fiverr is a great platform for freelancers, but there are a few things to be aware of before using it.

1. Fiverr takes a 20% cut of your earnings, while Upwork only takes a 10% cut. This means that you’ll need to make more money on Fiverr to make the same amount as you would on Upwork.

2. Fiverr also has a lower quality of work overall. This is because there are more low-priced gigs available, and less quality control than on Upwork.

3. Finally, Fiverr can be quite slow in paying out earnings. This is because they hold payments for 21 days before releasing them to you. This can be frustrating if you’re used to getting paid out immediately on other platforms.

First, Fiverr has been around longer than UpWork. It was founded in 2010, while UpWork was founded in 2015. This gives Fiverr a first-mover advantage and a larger user base.

Second, Fiverr has a more diversified business model. In addition to connecting freelancers with businesses, it also offers other services such as Fiverr Pro and Fiverr Learn. This gives it a more resilient business model than UpWork, which is solely focused on connecting freelancers with businesses.

Third, Fiverr has been growing faster than UpWork. In 2018, Fiverr’s revenue grew by 48%, while UpWork’s revenue only grew by 28%. This faster growth rate is another reason why investors are valuing Fiverr higher than UpWork.

So there you have it! These are the main reasons why Fiverr is valued higher than UpWork.

Madison Geldart

Madison Geldart

Cloud infrastructure engineer and tech mess solver.