First you need to understand gig platforms are a different category from freelance jobs. The whole concept, structure and solutions are uniquely different. So today we are only reviewing gig platforms.
The first thing you need to review and measure is the total cost of a gig platform. When you look at the total costs of the leading gig platforms today, it definitely has a price-shocking feel to it. For example the leading platform charges sellers 20%, then often adds on 5% more to the buyers, and then possibly an additional 2-3% for service fees. The total costs come in as high as 27-28%! That leaves only 73 cents of every dollar for the gig provider doing the actual work. That is just gut-wrenchingly high.
Why and how can a company charge so much?
The main reason is that they have a very large stable of solutions (gig providers) and buyers giving them a critical mass advantage as they are the ones that basically developed the gig platform. They captured the pole position and use it to aggressively profit from it.
Are there alternatives?
Yes, but most do not have anywhere close to the gig provider listings (critical mass) that the leader does.
Once the gig providers start migrating to low-priced platforms, then you will see many (maybe most) gig providers following suit, and the buyers will not be far behind. Most gig providers work on several platforms at the same time. For them, it is a critical mass game. They will focus where the majority of buyers are. If a low price or discounted service starts to gain small but strong migration, then you could see an avalanche of gig providers adding to the new discounted platform, because most if not all gig providers would love to be on a open low-cost platform. This is their long term goal. But, for today, gig providers need to pay their bills, and today’s discount platforms just do not provide enough buyers to support a real industry migration.
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What do gig buyers want?
They are in a better position then the gig providers. They often reach out and sign up at the discounted platforms. They are usually small companies and their livelihood is not involved so they migrate fluidly and usually follow the gig providers.
What discount gig platform would your recommend?
We believe the best discount platform would be one that can bring real value to the table and is also very low priced. We like gig platforms that are completely scalable while providing additional services– especially improvements that directly help the gig providers to ensure that they can generate enough of the income they would need in order for them to slowly migrate away from the very high-cost platform.
Historically in most industries we have always migrated to low-cost solutions, but remember even then the discounted platforms were measured in several ways– to be better total solutions, not just singularly fixated on price or cost.
We believe the best solution is the very low-cost platform Freelance Global Gigs (FGG) Low Cost Marketplace. They achieved robust traffic growth in only a few months after their parent become a Google News provider. Since then Facebook News began publishing their freelance global gig news. They are the first gig platform to use the globe’s largest news providers to distribute news, links, increase awareness, and traffic to the their website. They claim each and every new gig posted on their platform has over 200,000 related news links. They have used their news to promote gig providers and industries. If true, then they have amazing scalability!
(This article is one example of their news reach)
Freelance Global Gigs motto:
FGG Provides More and Costs Less !
With each gig (or gigs as they allow up to five which is a real plus for most gig providers), they have all gigs translated and published in all major languages, providing over 97% of global communications. Again, they publish each gig in over 100 separate global languages! This is incredibly scalable and tremendously helpful marketing for the small gig providers. As one gig entrepreneur said after reading his posts in many languages “it gives you an incredibly strong feeling of joy and self-esteem.“
Very Low Cost / Discount
FGG Low Cost Marketplace has a one-time total charge of 12% of sales with no fees. Freelance Global Gigs believes they offer the lowest gig platform, with no hidden charges (buyer and seller combined save over 120% compared to the leader in the industry!). This gives the gig provider increased income on each job, allowing far higher earnings and more profits, all of which would accelerate their total migration.
A gig provider claimed:
“Why should we be charged 27% when FGG is only 12%?”
So the real question is – will enough gig providers sign up at the FGG platform to really start a long term migration (new critical mass) to a low cost or discount gig platform?
We agree that FGG Low Cost Marketplace can leverage or scale their platform possibly better and faster than any company, especially for a discounted price model. The freelance gig providers would benefit the most by migrating to a service with deeply discounted fees, but are enough ready to take the needed step, knowing it would help improve their own and industry outlook? Only time will tell, but until this low-cost migration starts, a single company will continue charging obscene prices, continually squeezing the little guy in this captured industry.