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The Freelance Marketplace : What are the challenges businesses face & how can they be overcome?

By anjali kumari 15th June 2021

A freelance marketplace connects businesses with independent contractors that can perform some work remotely. Among online freelance businesses, websites such as Fiverr and Upwork (formerly known as Elance) have become very popular. Their service provides safe, convenient access to contractors for ad-hoc projects by providing a convenient and safe means for contracting experts remotely. A platform allows customers to find freelancers and agencies who offer a variety of services, including design, marketing, copywriting, and software development. 

Challenges with current freelance marketplace platforms

While freelance marketplaces have become the hotspots for gig workers to find side hustles, they come with their fair share of challenges. With less governance and control over the work, employers usually face conflicts with current freelance marketplaces. Let’s see how.

Not choosing the right professional

Freelancing is contingent-based work. Therefore, enterprises must find a professional who can deliver high-quality results within a deadline. For the end product to match with output expectations, a company needs to hire a qualified freelancer with a strong work ethic. Current marketplaces offer a myriad of options to choose from, which may lead the hiring process to run astray.

High charges and additional costs

Finding professional freelancers in a talent marketplace can be hefty. Hiring gig workers the conventional way may require you to pay a premium. Moreover, the seller’s quoted price may not correspond with the quality or the effort needed to complete the assignment. Having a personalized talent marketplace can help enterprises bypass the added costs and hire freelancers through a more standardized process.

Prevalence of fraud sellers

Some gig platforms in the market practice less control over their listings and service renderers profiles. This, in turn, makes room for possible fraudulent activity. Not every seller listed on freelance marketplaces offers genuine services, which can often result in employers getting scammed. For example, a service seller may demand payment through unusual routes or may commit identity theft. Staying clear of these rampant malevolent practices can be tough if you’re using a freelance marketplace. 

Commission charges

Freelance marketplaces are an attractive avenue to look for talent due to their cost-efficiency. However, most freelance platforms charge commissions that can eat into the costs you’re saving by hiring a freelance professional. This can make it impractical for companies to outsource work to freelancers and would rather have someone on payroll to do it since the commission charges often offset the savings that companies would otherwise enjoy.

Fake reviews about the sellers

A lot of freelance marketplaces are fiercely competitive due to the large number of professionals offering their services on the platform. Most platforms reward professionals with higher ratings and reviews by giving them more visibility and thereby more work. This could push a significant number of these professionals to fake reviews and inflate their ratings to seem attractive to potential customers. Companies who hire such freelancers are often left feeling disappointed with the quality of work delivered despite ratings and reviews seeming promising. It’s hard and might be impossible to tell fake reviews and ratings apart from legitimate ones. An internal marketplace for your company will give you control over the ratings and reviews, which can help you pick the right professional for the job.

Too many options to choose from

Most freelance marketplaces today are brimming with people looking for work, however, that’s a poor indicator of the quality of work delivered. People might bid on projects even though they might not have a background in them, or have the adequate skills to perform the tasks. This can leave customers confused with far too many offers to pick from and most of these offers aren’t worth the price. An internal talent marketplace can give your company control over vetting professionals to make sure they have the right skill profile for the services you require. Further, this can help you pick the best offers from verified, skilled professionals, saving you time and money without compromising on the quality of work.

Poor insight on past performance

Platforms that offer freelance services often lack a system that lets you gauge the performance of freelancers. Ratings and reviews posted by other customers can be misleading and irrelevant to your organization’s requirements. A talent marketplace custom-built for your company can help management take stock of how efficiently the freelancers can contribute to the company. Freelancers onboarded on your site will not only have the right skill set that you require but also be more familiar with the working of your company. This allows them to be better acquainted with the kind of results you expect and work towards delivering that. Better compliance with requirements and specific data points tailored to your needs will help you understand and gauge performance. 

Poor integration into existing teams

One of the major issues with freelance marketplaces today is the inability of remote workers to collaborate and integrate with existing teams working on a project. This leads to discord and a lack of coordination between people or teams working on the project and thereby reduces efficiency drastically. However, freelancers on your platform can help your teams integrate better with remote workers due to familiarity with processes and other company-specific ways of doing things.

Communication gap

Freelancers offering their services on generic marketplaces often face a communication gap with the client. The freelance professional will not be able to do their best if the platform doesn’t allow them to communicate with the client easily. This communication barrier can make it difficult for your work to be done as you intended it.S


Building a custom talent marketplace for your business is a great way to get more work done, faster and better. This can help your company save on precious time, money, and human resources while also being more efficient with the outcomes. Companies around the world are shifting focus to building a internal talent marketplace helping them achieve better results in tasks they have an aptitude for while relying on remote freelance platform to execute on-demand tasks.

 The pandemic has proven quite disastrous for businesses that failed to look for talent beyond their payroll. Hiring remote workers can help your business function even when your full-time staff is unable to work. A talent marketplace builder like Husky can help your business scale new heights in a matter of a few simple steps. Get in touch with us to find out how to go about building a custom freelance marketplace for your business.

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