When reviewing freelance gig platforms we recommend the first item you consider is total cost. Many of the large gig platforms charge very aggressive rates; some as high as 27-28% of every dollar. Thus, if you are working on a gig platform charging such a high rate, we would recommend that you consider a slow plan to migrate off it. Over time you should make more money. With every dollar you earn (everything being equal) the buyer and seller are paying double the transaction fees of low-cost gig platforms (only 12%). That is substantial, especially over several years.
Now that the low-cost platforms are starting to see real traffic growth and a significant increase in buyers, it will still be awhile until we see mass migration of gig providers. It is our belief, based on history, that the low-cost platforms will start growing faster than the high-priced legacy platforms. We realize this is comparing David to Goliath but in time the lower cost platforms almost always win. The question is which one will be able to maximize the opportunity and execute the situation better.
Since this market is just forming there are not many participants, but over time it will become a crowded field, especially after a low-cost gig platform starts gaining critical mass.
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The buyers are moving at close to a 2-1 ratio, according to Freelance Global Gigs (FGG) Low Cost Marketplace, as they are signing up at about double the rate of sellers. Please understand the buyers do not have the same risks. For example, the number of visits on FGG Low Cost Marketplace is up over 350% in the last three months alone. FGG now appears to be achieving the same growth curve as its parent, Communal News, which has over 2 million visits and grew 1,000% in the last nine month alone.
The beautiful news for FGG Low Cost Marketplace is that this is mostly organic because FGG is only spending $5 a day for total advertising– the same as Communal News– only enough to make Google rankings happy.
The largest gig platform spends almost 50% of their revenues on advertising. That’s a major reason why they have to charge so much. It is not an organic model. With so much in advertising needed to create the growth, this is the main reason why they are chronically unprofitable; they charge significant more to pay for the aggressive advertising.
With their very high cost, combined with the aggressive advertising, we would postulate their financial models will eventually collapse. This will accelerate the migration from very expensive gig platforms to the discounted model.
Why is this discount gig platform growing so fast in visits?
A successful gig site needs to be more than just a discounted model. If history is any guide, the best discount platform would be a solution that offers more in total, such as:
- Global languages;
- Connection to a fast growing global newspaper with article like this, which will be in both Google and Facebook News; and
- Very low priced.
The best very low-cost platform in our opinion is FGG Low Cost Marketplace. They achieved robust traffic growth in only a few months, and are now seeing well over 300% growth in viewers over only a three month period.
They are the first gig platform to integrate into the world’s largest news providers, providing links, news, and traffic while increasing awareness to their website. With FGG, the newest gigs receive over 200,000 related news links. Each gig is translated and published into 100 languages. Again, they publish each gig in every major language.
FGG Low Cost Marketplace has a one-time total charge of 12% of sales, with no other fees. FGG 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 should accelerate their total migration.
Freelance gig providers would achieve the greatest benefit by moving to a low-cost option with deeply discounted fees, but the question is, “will enough of them push for a change that will increase their income and improve the industry?” Until this low-cost migration starts, a single company will continue charging outrageous prices, pulling out more advertising dollars by overcharging the little guy.