Could a soon-to-be-launched social freelance network replace fee-based freelancer platforms?
As the cost of living crisis rages on, a reported 47% of UK adults are looking for a side hustle to cope with the impact that a spiralling economy, tax rises and rocketing inflation are having on their day-to-day living costs.
One recent survey revealed that ‘5.2 million workers have already taken on an additional job to help pay for the increased cost of living and another 10 million plan to, in response to rising costs’ and it’s estimated that ‘a third of businesses with fewer than ten employees are now run as side hustles, compared to 20.8 per cent in March 2020’ with millennials (under 35’s) leading the way.
Platform fees: how much are they eating into your earnings?
Freelance life can be equally liberating and financially unnerving, which is why it can be disappointing when some freelancer job platforms can take up to 20% of the money a freelancer makes. This loss of earnings is “a counterintuitive concept” considering the current economic climate and why individuals go freelance in the first place. That’s according to Indiana (Indy) Gregg, the founder of Wedo, a 6-in-one app platform set to be launched in January 2023.
The aim of the app is so independent workers can efficiently run their freelance businesses, build teams, manage their businesses and keep more money. Gregg says uncertain economic times in the midst of a post-pandemic world mean anything but a conventional office-based 9-to-5 workday.
Gregg references that side hustles generate £72 billion for the UK economy and the most recent spike in those seeking side hustle opportunities outside of the traditional realm of full-time employment was originally fuelled by those furloughed in the initial Covid-19 pandemic lockdowns and compounded further by an uncertain economy.
“This, coupled with people reassessing their work-life balance and stepping further toward personal fulfilment and autonomy means that the humble side hustle is here to stay,” says Gregg.
She continues, “Taking the leap towards freelance working can be hugely liberating, but it can also be a daunting prospect as it comes with an element of risk. With 52% of the global workforce projected to be freelance by 2027, it’s important that the self-employed feel empowered, supported and connected to enable them and their business to thrive.”
The app aims to offer:
- A commission-free marketplace
- A library of premium apps including 4K video conferencing, chat, banking, invoicing, project, event management
- Virtual office in a box where users can access tax advice, pay bills, pensions, office space, training and hiring
- A social network allowing users to be discovered, search for skills and partnerships, collaborate and recommend.
After a successful $2.5M seed raise in 2021, Wedo is raising its second round, with a number of commitments already secured.
How much do freelancer platforms charge freelancers?
Fiverr:
20% on all orders
Upwork:
20% for $0-500
10% for $500.01-10,000
5% for $10,000+
People Per Hour:
20% for $0-350
7.5% for $350.01-7,000
3.5% for $7,000+
Freelancer.com:
10% or $5 (whichever is greater)
10% per milestone for hourly rate jobs
Source: Sophical Content
