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Freelancer Marketplace ‘Upwork’ – In Push To Build $10B In Freelancer Revenues

Elance-oDesk merger comes as the company pushes to build annual freelancer revenues on the platform from $1 billion today to $10 billion six years from now.As per Stephane Kasriel,CEO of Upwork,its a complete relaunch of the Elance-a billion dollar frelancer marketplace.oDesk and Elance started out as separate platforms. They announced their merger in December 2013.

In its push for growth, Upwork faces competition from a growing number of other freelance platforms, ranging from general marketplaces such as Freelancer.com and People Per Hour to industry-specific ones, such as 99 Designs. Upwork is looking to gain an edge by enabling clients to hire freelancers more quickly.One of the challenges to growth facing many freelancing platforms is that because they are global, freelancers in countries where wages are on the high end of the scale, such as the U.S., must compete against those in parts of the world where the cost of living is much lower. That can drive down pay. As a result, many highly compensated freelancers don’t use platforms, opting to find all of their work through word of mouth.

If a platform could attract a greater share of freelancers who command top rates, it would likely gain a major edge, because the platforms generally take a cut in each project. For instance, Elance charges someone who hires a freelancer on the site an 8.75% service fee, so if the freelancer bid $500 on a job, the client would pay $547.95, once the 8.75% service fee–$47.95—was tacked on. oDesk charged clients 10%.Business Model of ‘Upwork’ has been taken steps to make sure its best-rated freelancers have high visibility and to ensure they have a steady flow of work.As per CEO words,”One of the goals of this real time platform is to be able to make the hiring much more relationship- driven, which is really aligned with high end work.”

I recommend software developer and designer to build parallel revenue stream along with their regular jobs though sources like Upwork. Even you can think to be full time freelancer gradually.Definitely, 21st Century has a prosperous destiny.

Ref : http://www.forbes.com/sites/elainepofeldt/2015/05/05/elance-odesk-becomes-upwork-today-odesk-brand-gets-phased-out/

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