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Table Of Contents  The Online Freelancing Guide
 >  An Analysis and Review of Popular Online Freelancing Marketplace Sites
      >  Criteria for Choosing Online Freelancing Marketplace Sites

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Project Discipline Focus
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Payment Methods and Mechanisms
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Fees
(Page 3 of 4)

Comparing Fee Structures

Because of the wide variability in fee structures, it is not possible to objectively compare the costs of using freelancing sites. In addition to the point made just above—sometimes higher costs are worth it if you get higher income as a result—the costs themselves depend largely on how you use the sites.

One issue is project volume. The more projects you do, the more likely you are to care about variable costs like transaction fees, and the less about fixed costs such as membership charges. In contrast, those who do not use a site very much may not care about high transaction fees but could find high monthly charges a deterrent.

Consider two freelance marketplaces, one of which charges $25 a month to be a member and 10% on all projects, and another that has no membership fee but charges a 15% trans­action fee. A little quick math and you can see that the breakeven between these is $500—if you do less than that per month you’re better off with the site that has the higher trans­action fee; more than that per month and you’ll save money on the site with the paid membership.

Bidding fees also seem to bother some freelancers much more than others. If you are in a competitive field and doing a large number of smaller projects, you may literally place over a hundred proposals a month and those bidding charges can add up. On the other hand, some well-established freelancers never exceed their monthly allotments and so never have to buy additional bids.


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Payment Methods and Mechanisms
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