Upwork vs Fiverr Which Freelance Platform Pays More

However, unlike in many other things, there is no straightforward answer to this question because it all boils down to selling strategy and the type of clients you choose to collaborate with.In terms of platform structure, buyer behavior and recent trends, however, Upwork beats Fiverr in terms of income.

Below, we cover the exact reasons for that difference and situations where Fiverr may bring you more profit.

Why Upwork Earns More (Unless…)

There is one main thing that differentiates the two platforms’ business models and significantly impacts their fee structures.

Fiverr Fees Structure

A flat 20% commission rate from every job you complete. That means if your buyer hired you for $5,000 worth of work, the Fiverr platform gets its $1,000 share.

Upwork Fees Structure

Since May 2020, Upwork operates under a flat 10% fee for every freelancer across all of their contracts. However, Upwork uses the Connects currency to let freelancers participate in job bidding process – you have to buy tokens (for $0.15 each) to send proposals, and the amount of those spent will impact your effective fee. For example, if you spend 6 Connects ($0.90) out of $10,000, your effective fee rate will be 11%.

The Bottom Line

In case you make $10,000 on Fiverr and $10,000 on Upwork during a single month, you will have to write checks for $2,000 and $1,100 respectively – meaning Upwork pays better by $900.

Average Project Sizes (Winner: Upwork)

The nature of the buyer also defines the maximum price you could charge.

Buyers on Upwork

Mostly companies, corporations, or organizations seeking ongoing freelance talent. The average size of a project on Upwork is $800, and over 30% of the projects cost over $1,000.

Buyers on Fiverr

The type of clients here resembles “gig workers” who use Fiverr like an online catalog. Instead of entering into any long-term commitments, they simply order a certain type of deliverable (a logo, voiceover, etc.). Although Fiverr launched a program called “Pro”, the average budget of a single buyer per year is considerably lower.

How Many Hours Do You Want To Spend?

The choice of your selling style may influence the choice of platform.

Retainer Contracts

Upwork gives you a chance to get an hourly contract with automatic weekly payments and milestones. In this case, it’s relatively easy to find yourself a company who agrees to pay you monthly retainers (like $2,000).

Multiple Orders

In case you have a knack for delivering several small tasks incredibly fast (like removing background from 50 images), you should consider working on Fiverr. Once your Gig ranks well enough, orders will come on their own and won’t require your constant attention. In other words, thanks to automation, you’ll be able to earn considerable money daily by delivering many small orders.

Upwork vs Fiverr Comparison

Platform Upwork Fiverr

Type of Clients Companies/organizations Gig buyers

Maximizing Your Potential

Retainer clients Productized Volume

Effective Commission Fee (Without Additional Costs) 11-13%

20%

Conclusion

If you have skills involving strategy, management, and highly customized solutions (web dev, fractional marketing, consultancy), Upwork will pay you better.

If you have skills related to standardized, repeatable work (video edit, translations, graphic templates), where you can optimize and automate your workflow, Fiverr can give Upwork a fight and leave you as profitable in terms of income.

Frequently Asked Questions (FAQ)

Do I need to pay for using these services?

Fiverr doesn’t ask you for anything until you get paid for your work; the platform will get its 20% cut. Upwork is also free – just sign up and create a profile. However, to start receiving gigs, you will have to buy some Connects (tokens you use to send proposals).

How fast am I going to get paid?

Upwork releases funds faster; in case of hourly contracts, the money is transferred to your bank account weekly. The only thing Upwork does is holding your earnings for 5 days as a safety measure. On Fiverr, you are allowed to withdraw money from your wallet after 14 days from finishing a project (or 7 if you are a top-rated seller).

Can a beginner earn a full-time income on one of these platforms?

Sure – yet the approach is quite different for each of the platforms. To become a full-time freelancer on Upwork, try to get 2-3 high-paying monthly retainers. In the case of Fiverr, you have to automate your work or get accepted in the “Pro” program, as it allows you to increase your earnings.

Am I allowed to use both Upwork and Fiverr simultaneously?

Yes – there’s absolutely nothing preventing you from doing that. Feel free to maintain your ongoing jobs on Upwork while having multiple Gigs posted on Fiverr to get occasional, small orders. One thing that you cannot do is switch clients between platforms and get paid personally; otherwise, you’ll break terms of service of both.

Which platform offers better security?

Both platforms protect you, yet Upwork has something extra. By using their hourly tracking app (Team App), you will be guaranteed payment even in case of failed payments (as long as you are still doing the job and reporting your progress). Fiverr protects you with escrow system, but their customer support leans more towards the buyer in most cases.