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- 📚️ Ultimate Freelance Guide: Talent Platforms
📚️ Ultimate Freelance Guide: Talent Platforms
Your "marketplace" is probably a network and your "community" is a database.
Freelancing is an increasingly popular option for both professionals and businesses. The world of Freelance Platforms is booming.
Based on what I’m seeing in the market, platforms are popping up every day with counts in the thousands let alone agencies in the hundreds of thousands.
Reports suggest the U.S. Freelance Platform market will reach $500 billion in 2024 and there will be 90.1 million freelancers by 2028.
Whether you're a freelancer looking to expand your client base or a company seeking flexible talent solutions, understanding the landscape of these platforms is crucial for navigating the future of work.
So what even are freelance platforms? Let’s go over a few important aspects.
Marketplaces vs. Networks vs. Agencies
Verticalized vs. Horizontal
Platform Pros and Cons
Marketplaces & Networks & Agencies, oh my!
Much to my chagrin, these terms are often used interchangeably. Your "marketplace" is probably a network and your "community" is likely a database.
There are some subtle differences between freelance marketplaces and networks.
Marketplaces | Networks | |
---|---|---|
🚦 Openness | Do not gate interactions between companies and freelancers - they can see each other and interact freely | Act as a matching intermediary between companies and freelancers - they cannot see each other and interact freely |
🙅 Screening | Allow anyone to join either side of the marketplace - neither companies nor freelancers have to go through screening | Have a screening or assessment process for one or both sides of their network - ex. talent must pass tests to be accepted |
💰️ Revenue | Marketplaces are inherently multi-modal - they have many revenue streams offering products and services to both clients and freelancers | Networks typically only make money when a match occurs between clients and freelancers - this is usually a “rake” (% markup on services) |
🤝 Trust | Quality and trust are owned by the users - “social proof” like star ratings and reviews appear publicly to vouch for service providers. If anyone is unhappy, that’s on you - you chose that person. | Since the network controls the screening and match functions, ownership of quality and trust is with the network. If anyone is unhappy, they have to fix it. |
So what about agencies? These often look and smell a lot like talent networks but there are a few differences there, too.
Networks | Agencies | |
---|---|---|
🪑 Bench | Talent are freelancers and contractors in a network - if they are not working, they are not getting paid | Talent are employees of the agency - if there is no client work, they are still getting paid (they are on a “bench”) |
📈 Size | Networks scale more easily as they are not cost-constrained with talent-side growth - liquidity is still important but not as costly | Agencies have to manage their employee utilization rates really carefully - if they don’t, they have ongoing costs to maintain salaries |
⚖️ Classification | Because freelancers and contractors are independent workers, there may be employment classification risk for companies hiring workers through the network | Because workers are employees at the agency, hiring companies don’t experience the same employment classification risk that networks and marketplaces do |
🤑 Pricing | Networks are known to operate on time and materials models - hourly rates marked up | Agencies have typically operated on a project and milestone model or a retainer-based model |
Bonus - What is a freelance community?
While we’re nitpicking on terms, if your talent-side members cannot see and interact with each other it is not a community it is a database.
Communities have many-to-many relationships (members to members).
Databases have one-to-many relationships (platform to members).
Here’s a visualization of what I mean.
Verticalization
Large horizontal marketplaces are being disrupted by vertical marketplaces. Verticalization means honing in on an inefficient category and enhancing the quality of the user experience.
Verticalization typically solves user experience issues by tailoring the experience to the nuances in that particular subcategory.
Examples of verticalization
Craigslist > Airbnb - Enhanced trust, information sharing, and assurances that relate specifically to apartment rentals
UberEats > Slice - Specific to pizza, customers can search for more enhanced topping and dough selections
LinkedIn > Behance - Designers have a more comprehensive way of showcasing their talent and expertise
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/7840c8a3-176c-4fd0-8f47-7ab4197a107f/Screen_Shot_2024-07-20_at_1.00.05_PM.png?t=1721476809)
Pros and Cons of Platforms
Why do platforms exist and why might companies or workers choose to use them? In reality, companies and freelancers really don’t need platforms - they can and do find each other directly already.
Platforms for Workers
✅ Pros
| ❌ Cons
|
For Companies
✅ Pros
| ❌ Cons
|
TLDR?
Online freelance platforms and marketplaces are reshaping the way work gets done.
As the industry evolves, we're seeing a trend towards more specialized, vertical marketplaces that can offer tailored experiences for both freelancers and clients.
Whether you're a freelancer looking to expand your client base or a company seeking flexible talent solutions, understanding the landscape of these platforms is crucial for navigating the future of work.
Hey Talent Platform Leaders! Are you going to forward this to your teams?
(I know you will you silly goose, you do it all the time lol I can see when you do 😉 )
🙏 Please ask them to subscribe when you forward it.
Lets shape and educate your workforce together.
That’s all for now, pals. See ya next week.