The COVID-19 pandemic radically changed the way we live, and even how we work. In a survey of 4,000 professionals, Upwork found that about 10 million Americans are interested in freelancing.
The independent workforce is now far bigger than that: MBO Partners' 2026 State of Independence research counts a record 74.9 million Americans earning income independently.
The pandemic has driven many to realize that there is more value in working remotely or flexibly. And this isn't happening only in the United States.
All over the world, freelancers reportedly make up around a third of the global workforce (one estimate counts roughly 1.2 billion people).
By 2023, this number was expected to rise, as the global gig economy was projected to generate $455 billion in value.
By 2023, this number was expected to rise, as the global gig economy was projected to generate $455 billion in value.
These gigs have sustained 3.42 million users on Fiverr, one of the most popular freelance marketplaces globally.
In 2010, it took Fiverr only one year to rack up $1 million in gross merchandise value. By 2021, Fiverr reported a 57% increase in revenue, to almost $300 million for the year.
Some thoughts and advice if you want to build an online marketplace like Fiverr.
In short
- Fiverr's buyers fell to 2.7 million by mid-2026 while spend per buyer rose to $368, as AI absorbs cheap, quick gigs and demand moves to bigger projects.
- Fiverr charges sellers 20% and buyers a 5.5% fee plus $3 on orders under $100, about 28% in total, so a lower commission or flat plan is an easy edge.
- Pick a niche where trust, local presence or real expertise matter, such as tradespeople, tutors, event staff or specialist B2B services, not cheap gigs.
- Let freelancers set their own prices and choose their clients, since the EU platform-work directive presumes employment when a platform controls the work.
- At launch, vet freelancers, offer escrow, build good profiles and search, and grow both sides with reduced early fees and referral rewards.
Part of the guide Starting a marketplace
Deep Dive on Freelancing on an Online Marketplace
Fiverr pioneered Service-as-a-Product to "create an on-demand, e-commerce-like experience that makes working with freelancers as easy as buying something on Amazon."
And its business model uses a two-pronged approach that targets both buyers and sellers.
Since its launch, it's exhibited a clear vision. It's used in 160 countries today, but the platform believes the addressable market for freelancing gigs in the US alone exceeds $100B.
There are about a hundred freelance marketplaces globally, and Fiverr, Upwork, and Toptal are leading the pack.
To start, one might look at what worked for these freelance marketplaces. That doesn't mean you need to copy it, but it can provide helpful insights into why the model has been a success.
For instance, Fiverr uses a rating system to make sure that gig buyers can easily see the quality of the work of sellers. This helps buyers decide which freelancer to hire for their needs.
Before you dive in, here are some additional points on industry knowledge.
- It is also believed that almost 40% of full-time employees have a side gig that gives them more work-life balance and freedom in choosing their assignments.
Find Problems That Your Online Marketplace Can Address in Freelancing
Fiverr is profitable, but that doesn't mean it's perfect. There are many gaps between how it's being used or offered and the perceived value that buyers or sellers (or both) get.
One fundamental limitation is the lack of quality control on the platform. Anyone can sign up, post gigs and sell their skills or expertise.
The buyer might be out to con people, or the seller might not be very skilled. Another drawback is that beginners often can't compete with more tenured sellers on the platform.
Signing up is easy, but buyers understandably opt for more experienced sellers.
Additionally, Fiverr charges quite a lot. While it already charges buyers, it also takes a 20% commission off sellers.
Additionally, Fiverr charges quite a lot. While it already charges buyers, it also takes a 20% commission off sellers.
There are also cases where seller reviews are manipulated to land more gigs.
And more importantly, the platform has to field some serious ethical questions, particularly how its business model might put sellers from poorer economies at a significant disadvantage.
Beyond Fiverr, the world of freelancing also naturally has problems. In a survey among 1,800 participants, the freelancing community FreelancerMap.com found that 68% of respondents said that finding clients is their top struggle.
Next came two other struggles: achieving work-life balance and asking gig buyers for more competitive rates.
On top of these, 71% of freelancers struggle with saving money because of the inconsistency of their incomes, while 59% live from paycheck to paycheck.
In designing your freelance marketplace, you won't be able to solve all these issues, but keep them in mind.
Knowing about current gaps in the market will help inform how you design your marketplace so that you can offer a platform that addresses the main pain points of the freelancing world.
In the end, you might create something that is different from Fiverr, not a copy of it.
Design Your Online Marketplace Features and Identify Your Unique Selling Proposition (USP)
Here comes the fun part.
After spotting problems that plague freelancers, you can establish which features you'd want for your online marketplace for freelancers and gig buyers.
First, understand why people freelance and what they hope to get out of it.
According to an article posted in Harvard Business Review, one in two workers expects to freelance by 2028.
In research among 200+ freelancers in the US, the authors found that successful freelancers, first of all, know their worth.
In addition, they know how to build loyalty while still pursuing fresh experiences that get them out of their comfort zones.
Your online marketplace can give them these benefits with the right features.
But what kind of features do freelancers want?
Freelancer Jon Younger compiled features that freelancers want in a Forbes article, and at the top of the list is having access to personal marketing support.
Freelancer Jon Younger compiled features that freelancers want in a Forbes article, and at the top of the list is having access to personal marketing support.
You could also offer ways to build technical and soft skills, as Fiverr does with its Learn from Fiverr program.
Further, you might consider allowing freelancers to receive performance feedback, business reviews, coaching and updates on market trends.
Some freelance marketplaces like Fiverr already offer these features.
This is where you can come in. Through this process, you get to separate yourself from the competition.
Template
Value proposition worksheet for both sides of a marketplace
Fill it in once for sellers and once for buyers before you write your home page, ads or outreach messages, then rewrite it whenever you change your niche.
If you cannot fill in 'What annoys them' from real conversations, run interviews before you write any marketing copy. More free tools →
Choose Your Freelancing Marketplace Monetization Model
Fiverr earns primarily through three monetization models: transaction fees, course sales, and software subscriptions.
Fiverr takes a 20% commission from sellers for service and transaction fees while also charging buyers 5.5% of transaction costs plus a $3 fee on orders under $100.
The platform also offers a business feature, where companies can gain access to the most qualified freelancers on their website for $149 a year, with up to 50 users per account.
In addition, Fiverr offers professional courses by experts, which range from the basics of viral marketing to building your website through WordPress.
Software subscriptions are also available for businesses that want to manage their teams and process client requests. This is available as a free offering and a paid service at $24 a month.
Take a moment to think about how you might want to monetize your freelancing marketplace.
You can monetize such a freelancing platform by charging a registration fee for buyers and sellers of gigs, exacting a commission from every transaction, or offering subscriptions to value-added features.
You can monetize such a freelancing platform by charging a registration fee for buyers and sellers of gigs, exacting a commission from every transaction, or offering subscriptions to value-added features.
Similarly, you can boost certain gigs or sellers through sponsored listings, make money off third-party advertising, or leverage paid services or features.
Finding a suitable model depends on what you want to achieve versus what value you offer to your users. Your monetization method doesn't have to be set in stone. You can grow and change how you earn as your online marketplace develops.
Calculator
Which way of charging earns more for your marketplace?
The same sellers and listings, charged four different ways. Change the numbers to your market: the share who pay is the honest guess that decides it.
Revenue a month for each model on its own. Many marketplaces mix them: free listings with paid promotions is the most common start, because it keeps listings coming in. More free tools →
Fiverr in 2026: What Its Latest Numbers Teach Marketplace Builders
The freelance market changed a lot after this article was first written in 2023, and Fiverr's own reports show how. Fiverr says AI is absorbing the high-volume, low-value tasks that used to be a big part of its business, and it has responded by moving toward bigger projects. In September 2025 it cut about 250 jobs, 30% of its staff, to become what its CEO called an "AI-first company" (The Register, 16 September 2025).
| Fiverr metric | End of 2024 | Mid-2026 |
|---|---|---|
| Annual active buyers | 3.6 million | 2.7 million (down 21.9% year over year) |
| Annual spend per buyer | $302 | $368 (up 15.6%) |
| Marketplace take rate (12 months) | 27.6% | 28.0% |
| Revenue | $391.5M (full year 2024) | $356-372M forecast for 2026 (down 14-17%) |
Sources: Fiverr's Q4 and full-year 2024 results and Q2 2026 results (29 July 2026).
The table shows fewer buyers, each spending more. In Q2 2026, marketplace revenue fell 15.5% to $63.1 million, while revenue from Fiverr's other services grew 2% to $34.6 million. Fiverr reports that the number of clients completing projects of $1,000 or more grew 13% year over year. Its CEO, Micha Kaufman, says that while AI absorbs high-volume, low-value tasks, it is also creating demand for longer projects.
What fees look like today
- Fiverr: sellers pay a flat 20% commission (tips included), and buyers pay a 5.5% service fee plus a $3 small-order fee on orders under $100 (FreelanceCompare, updated February 2026). On average, the two sides together pay Fiverr about 28% of marketplace spending.
- Upwork: since 1 May 2025, freelancers pay a variable fee of 0-15% per contract. On the Basic plan, clients pay a 5% marketplace fee (3% for eligible U.S. clients paying by bank transfer) plus a one-time contract fee of $0.99-$14.99 (GoLance, June 2026).
What this means for your marketplace
- Don't compete on cheap, quick gigs. That is the segment AI is shrinking. Choose a niche where trust, local presence, licensing or real expertise matter, such as tradespeople, tutors, event staff or specialist B2B services.
- Price below the giants. With the big platforms taking around 28% of each transaction, a lower commission or a flat monthly listing plan is an easy difference to explain to sellers.
- Build trust into payments. Higher-value projects need ratings and safer payment. On Yclas, for example, payments go straight to your own Stripe or PayPal account, and you can add Escrow.com checkout, seller ratings, paid featured listings and monthly plans for professionals.
Upwork's 2026 Numbers, the New Platform-Work Rules and a Launch Checklist
This page also replaces our older guide to building classified marketplaces for freelancers and gig workers. Its most useful parts are below: how Upwork compares with Fiverr today, the new rules for platform work in the EU and the US, and a short checklist for launching a freelance marketplace.
Upwork and Fiverr side by side
| Metric (Q2 2026) | Upwork | Fiverr |
|---|---|---|
| Clients / buyers | 763,000 active clients, down 4% year over year | 2.7 million annual active buyers, down 21.9% (from 3.4 million) |
| Spend per customer | $5,230 GSV per active client, up 5% | $368 annual spend per buyer, up 15.6% |
| Volume / revenue | Gross services volume $966.4 million, down 4% | Revenue $97.8 million, down 10.0% |
| AI effect | GSV from AI-related work up more than 22% | Management says AI is absorbing high-volume, low-value transactional tasks |
Sources: Upwork Q2 2026 results (10 August 2026) and Fiverr Q2 2026 results (29 July 2026).
Both leaders have fewer customers, but each customer spends more. At Upwork, AI-related work is the category that's growing. A board for a related skill set, such as data labeling in one language or AI implementation for small firms, can find buyers the generalists serve poorly.
The rules are changing too
In the EU, Directive (EU) 2024/2831 on platform work (adopted 23 October 2024) must be written into national law by 2 December 2026. Where a platform directs and controls the work, the worker is legally presumed to be an employee, and the platform has to prove otherwise. Decisions to suspend or close a worker's account must be taken by a human, with a written explanation. In the US, the Department of Labor's 2024 independent-contractor rule still applies. On 26 February 2026 the department proposed a new rule (comments closed 28 April 2026), so expect further changes.
The practical takeaway: a classifieds-style marketplace, where freelancers set their own prices, choose their clients and talk to them directly, puts you on the safer side of these rules. Once the platform assigns jobs, sets rates or rates workers by algorithm, it starts to look like an employer.
A launch checklist for a freelance marketplace
- Vet freelancers. Review portfolios, hold interviews or ask freelancers to pass specific tests. Toptal built its brand on a strict vetting process that gives clients access to only the top 3% of freelancers.
- Offer escrow. The client deposits funds before work begins, and the freelancer is paid once the job is completed successfully.
- Make profiles and search work. Freelancers need detailed profiles with their skills, portfolio and reviews, and clients need advanced search filters to find the right person quickly.
- Grow both sides together. Attract freelancers with reduced fees for the first few months or a spot on the homepage, run ads aimed at businesses that hire freelancers, and reward users who refer new freelancers or clients.
- Bring clients back. Clients who use the platform once and never return leave freelancers without steady work. Discounts on future projects and job suggestions based on past activity help.
- Be open about fees. Explain your fees, policies and services clearly on the site.
Build with Yclas Marketplaces
Want to start? Launch your online marketplace today with an easy-to-use platform to help you build what you want.
Yclas offers various templates for different needs, with features that you can customize according to your specifications. With or without coding skills, you can go live today!
One of the exciting things is that you can test how to communicate the value of your platform early without having to make a huge investment upfront.
Thinking of starting a buy-and-sell site of your own? See our marketplace website builder, software for a second-hand marketplace and how to start an online marketplace.
