Freelancing platforms are the marketplaces that make a bridge between clients & freelancers. The freelancing platform ensures the security of money both for freelancers & clients.
How freelancing platforms work
Step-1: These platforms are websites where both freelancers & clients create accounts. The client posts jobs and freelancers make bids or apply for the job.
Step-2: After getting a few proposals, clients discuss with preferred freelancers and hire whom they want.
Step-3: Before hiring, the client pays money to the platform. The platform keeps the money in an escrow.
Step-4: Once the freelancer completes the job and delivers it, the buyer checks the work and approves it upon checking (if the buyer doesn’t have any complaints).
Step-5: After approving the work, the freelancing platform releases the fund to the freelancer.
Step-6: Then the buyer leaves feedback & ratings to the freelancer and also the freelancer does the same.
The process ends here. There is no way to dispute after accepting a delivery/order.
Aside from posting jobs, the buyers can also browse for profiles (freelancers) & services (gigs) and directly hire or buy any services. But the ultimate process is the same.
WHAT IS THE BENEFIT OF THE PLATFORM
They generate most of their revenues from freelancers. The freelancing platform takes a 20% commission from freelancers before they release the fund.
Also, they charge 2% – 3% to the buyers upfront and for getting any job done.
And these two are their main income source.
What if the client is not happy with the freelancer’s work?
In this case, the client has the option to ask for revisions. If the freelancer also failed to make successful revisions, then the client raises/creates a ticket.
After creating the ticket, the customer support checks for necessary things and generally refunds the money to the buyer.
The refunded money goes to the buyer’s balance. But the marketplace or the platform does not make the refund to the buyer’s bank or credit card. However, the buyer can use the money to hire another freelancer.
And the freelancer (generally) gets a penalty such as level demotion, a decrease in job success score, order completion rate, etc.
NAME OF THE FREELANCING PLATFORMS
There are a lot of them such as Upwork, Freelancer.Com, People Per Hour, Fiverr, Guru, etc. See more about freelancing platforms »
Freelancing platforms don’t do the actual jobs but they ensure the security of money. The actual job is done by freelancers.
But the client has nothing to do if a certain freelancer takes the money and runs away or does not complete the job as promised.
Also, they ensure the opposite as well. For example, if a buyer disappears after getting his/her job done and does not make payment to the freelancer.
These are the places where the freelancing platform comes into play.