What is the purpose of freelance platforms?

An analysis of freelance platforms – What is the purpose of freelance platforms?

In order to shed more light on the freelancing world, we have put together a series of short blogs specifically on the topic of freelance platforms; their workings, benefits and shortfalls as wells as their cost. We hope that this series will give you better insights into how freelance platforms function and how you can use it to further your freelancing career.

A freelance platform is a digital marketplace where qualified freelancers and buyers meet – freelancers can showcase their skills and buyers who need those specific skills can hire freelancers.

Freelancing has grown dramatically over the past couple of years and is predicted to expand even more in the years to come. It is expected that by 2030 up to 80% of the global workforce would comprise of freelancers. Freelancing is no longer considered a side-line job, a way to earn some extra money, to many it has now become a primary income stream.

There are a number of reasons for the massive growth in the freelance space, one is that the traditional 9 to 5 office job is no longer congruent with the everchanging, fast-paced, digitally interconnected world. Second is the development of advanced freelance platforms which has made it easier for freelancers to find work and for companies to find freelancers with the desired skills.

A report published by Accenture in 2017 identified 100 of Fortune 500 companies that use freelance platforms. This clearly shows that not only small businesses use freelance platforms. As freelancing grows so does the attention of big businesses, as they are finding it easier and more convenient to source the right talent on freelance platforms.


What is the purpose of freelance platforms?

The purpose of a freelance platform is two pronged. Firstly, businesses, both big and small, can source the best talent across the world. They are not limited to any location and there is no need for permanent employment. This makes it very convenient and cost-effective for businesses as freelancing is on a per project basis. Secondly, freelancers have an opportunity to create a profile and showcase their talent and experience. They are able to attract buyers from anywhere in the world and communicate directly with them.

Here is a short list of what a freelance platform is and what they can offer:

  1. View Freelancer Profiles. Freelance platforms display freelancer profiles which showcases their skills, experience, qualifications and rate which helps businesses find the right freelancers. These profiles help businesses to shortlist candidates that have the required skill and experience.
  2. Progress Tracking. Freelance platforms have progress tracking tools to help track freelancers’ work.
  3. Real-Time Communication. Freelance platforms provide chat functionality to facilitate communication between freelancers and the buyers so that all job specifications are clearly communicated.
  4. Secure Payments. Payments are only released once the job has been successfully completed to the buyer’s satisfaction. This is security to the freelancer as they are guaranteed to receive payment. It is also peace of mind for the buyer as they know payment will only be released once the job is complete.
  5. Rating System. The buyer is able to rate the freelancer once the job is complete. This is beneficial for both the freelancer and the buyer as higher ratings is an indication of higher quality work and reliable service which results in more conversions for the freelancer and serves as an indicator for buyers.

This is Part 1 in a series of blogs to help you understand what freelance platforms are. In the next blog we will be discussing why you should use a freelance platform such GigMastery.com.