Upwork Business Model: How Upwork Works & What Is Upwork Clone?

1
Upwork Business Model How
Upwork Works What Is Upwork Clone?
Code Brew Labs
2
Know Your Risk Profile
Upwork is a popular freelancer marketplace that
came into existence with the merger of two
freelancing companies, Elance and oDesk, in
2015. The company Elance was originally founded
by Srini Anumolu and Beerud Sheth. Similarly,
oDesk was founded by Odyaaeas Tsatalos and
Stratis Karamanlakis. After 18 months of the
merger of these two companies, Upwork came into
existence. The basic idea behind building Upwork
was to connect businesses with freelancers to
complete business projects. A freelancer
marketplace platform involves two parties the
employers and freelance candidates. Upwork
popularized the freelancer marketplaces among
both the parties.
3
Benefits Of Freelancer Marketplaces For
Businesses/Employers
Using freelancer marketplaces, employers can find
more accurate talent for their
businesses. Employers get access to a wide pool
of qualified professionals who meet the
prerequisite criteria of the project. Employers
have the benefit of choosing an affordable
candidate to get the job done. They have access
to check previous work submitted by the
candidates and choose the right candidate
accordingly. Employers need to pay only for the
work being assigned which is a more affordable
option as compared to permanent employment.
4
Benefits Of Freelancer Marketplaces For
Freelancers
Candidates get a wide exposure to their skills
while having the liberty to work at their
comfort. Freelancers may get a chance to work
with their desired employers irrespective of
their location. Freelancer marketplaces offer secu
re payment options based on escrow systems to
ensure timely payments. Freelancer candidates
enjoy a work-life balance due to the flexibility
of taking up a job at their preferred time.
5
The popularity of freelancer marketplace is
quiet eminent from the growth of Upwork.
Here are some key Upwork stats
There are 145.4 thousand core active clients at
Upwork who spend at least 5000 per year. In the
FY 2020, Upwork reported revenue of
373.63M. Upworks revenue has grown at a CAGR of
22.4 over the past 4 years. In 2020,
approximately 1500 freelancers engaged on Upwork
indicating 50 increase from freelancer count in
2018.
6
What Is Upwork Business Model?
Upwork business model is governed by the idea of
getting work done for a business without hiring
a permanent employee. Businesses or employers
post about their task requirements on Upwork.
Upwork analyzes the task requirements and
matches them to the right freelancers. Employers
can check the candidate profiles, reviews and
bids before interviewing the top
candidates. Upwork also offers a chat option to
allow employers and freelancers discuss about
projects, share files and collaborate on
projects. Invoicing and payments for work happen
with Upwork protection so that employers have to
pay only for authorized work.
7
Userflow Of Upwork Business Model
Employers Client Portal Of Upwork Sign up post
a job requirement. Freelancers post bids and
proposals on job requirements. Employers can use
the Upwork platform to schedule calls and
interview candidates. Employers can track hourly
work progress so they have to pay only for
actual time spent on work.
Freelancers
Freelancers Portal Of Upwork Click on the button
Become A Freelancer to get started. Create a
profile and Upwork matches them to right job
postings. They can check the job postings and
post bids. Once accepted, freelancers can choose f
rom multiple payment options including hourly
and fixed paid.
8
How Does Upwork Earn Upwork Revenue Model
Upwork has raised a total of 168.8M in 12
funding rounds. Apart from funding, the Upwork
revenue model has two revenue streams Commission
From The Freelancers Upwork charges 20
commission for the first 500 a freelancer
charges to an employer. Moving forward, the
freelancer has to pay 10 commission for
billings between 501 to 10,000 and 5 for
billings above 10,000. Different Membership
Plans For Employers Upwork offers 2 types of
membership plans to employers Basic and Plus.
The basic package is free and employers can get
3 freelancer proposals for a job posting. The
plus package costs 49.99/month and the employer
has access to a dedicated account manager and 15
proposals per job posting.
9
Wrapping Up
Now that you have in-depth knowledge about the
Upwork business model and Upwork revenue model,
you are ready to launch your own Upwork clone.
Post COVID-19, the number of professionals
switching to freelancing has increased and this
indicates a tremendous increase in opportunities
for gig marketplaces or freelancer marketplaces,
as they are more commonly known. Before starting
developing an Upwork-like app, know more about
knick knacks of Upwork like app development such
as features of Upwork clone, cost of developing
Upwork clone, etc. We have got answers to all
these questions at Code Brew Labs. Lets Connect!
10
Lets Connect!
Phone Number 1 929 575 5459
Email Address business_at_code-brew.com
Website www.code-brew.com