Fiverr shifts to hourly freelance hiring platform

Fiverr introduces hourly rates, a profession catalogue, and AI search tools. We weigh up the pros and cons for freelancers

Fiverr, the freelance services platform, has introduces several features aimed at attracting businesses seeking long-term collaboration with skilled freelancers, including the introduction of hourly rates, a professions catalogue, business partners, a satisfaction guarantee, and a loyalty programme. While these changes aim to cater to evolving business needs, they also present a mixed bag for freelancers.

One of the most notable changes is the introduction of hourly rates for Fiverr Pro freelancers. Micha Kaufman, Fiverr’s founder and CEO, believes this new flexibility is designed to address the changing nature of work, where projects often evolve over time or require recurring consultations. For freelancers, this presents both opportunities and challenges.

Pros:

• Long-term projects: Hourly rates open doors for freelancers to secure long-term projects, providing greater stability and predictability compared to one-off gigs.
• Recurring revenue: The potential for recurring income through ongoing hourly engagements can create a more reliable income stream.
• Increased earning potential: Hourly rates may lead to higher earnings for projects that would have been undervalued under the previous fixed-price model.

Cons:

• Pricing challenges: Determining a fair hourly rate that aligns with market value and covers expenses can be a complex task for freelancers.
• Time tracking: The need for accurate time tracking can introduce additional administrative overhead for freelancers.
• Competition: The introduction of hourly rates may intensify competition among freelancers, especially if businesses become more price-sensitive or new to the freelance economy and expect something for nothing.

What is the Fiverr Professions Catalogue?

In addition to hourly rates, Fiverr is introducing a new professions catalogue, allowing customers to search for freelancers by profession and skills. This could be a positive development for freelancers, as it enhances their visibility and enables them to showcase their expertise beyond individual services.

The platform’s AI-powered search tools could benefit freelancers by reducing administrative burdens and increasing their chances of being discovered by potential clients.

However, the increased focus on long-term engagements and complex projects may not suit all freelancers. Some may prefer the flexibility and variety of short-term, fixed-price gigs. Additionally, the introduction of Fiverr-trained business partners to manage projects could raise concerns for freelancers who value direct client communication and autonomy.

Will freelancers welcome the change?

Overall, Fiverr’s Summer Product Release signals a significant shift in the platform’s approach to freelance work. While it presents exciting opportunities for freelancers seeking long-term collaborations and greater income stability, it also introduces challenges related to pricing, time tracking, and competition. Freelancers will need to adapt to these changes and carefully evaluate how the new features align with their individual goals and preferences.

As Micha Kaufman aptly said, “Major shifts in the workplace…demand new solutions.” Whether these solutions ultimately benefit all freelancers on the platform remains to be seen.

The Freelance Informer welcomes constructive feedback from freelancers and hiring companies on their experience of the new Fiverr programmes and hourly rate service.