Most days, the team at The Freelance Informer spots a LinkedIn or X post about clients ghosting freelancers or refusing to pay them on time. For these two reasons alone, some freelancers believe working via platforms is a safer bet. However, when freelancers are beholden to a platform, they’re still at risk for account disablement and unresolved payment disputes.
In this article, we outline what you should consider when choosing between working via a platform or through your own network or website.
Risks every freelancer takes if they solely work via platforms
Every platform will have terms and conditions that freelancers (sellers) and buyers must abide by.
For example, Fiverr disables freelancer accounts for violating its Terms of Service, which includes actions like sending unsolicited offers, engaging in illegal activities (obviously), managing multiple accounts, geolocation/residing in a country under sanctions or facing payment disputes. Other reasons include poor quality work, copyright infringement, or security concerns, including suspicious activity or unusual payment activity.
Yet, one violation that is a grey area is attempting to conduct business outside of Fiverr, including transactions or communication off the platform.
One worrying violation is payment disputes. If a freelancer has a dispute with a Fiverr platform buyer that is not resolved, it could lead to account suspension. In some cases, legitimate seller activity may be flagged as suspicious due to algorithm errors.
What if you forget your login details? Unusual login attempts, not completing required ID verification or providing necessary financial documents, can also mean you’ve lost access.
The consequences of account disablement for a freelancer could lead to loss of access, meaning they can no longer log in to their account and access their profile or assignments. Any funds in the account may be frozen and the freelancer may need to follow specific procedures to withdraw them, if possible.
Then, even if everything is resolved, Fiverr may prevent the user from creating new accounts with the same details.
Platforms v. your own brand: what you need to know
With these risks come some upside. The same goes for working through your own marketing efforts and brand. If you have been working solely on platforms or through your own efforts, here are some things to consider.
You may find a combination of the two works best, especially if you want to test the platform waters for the first time or if you have been a fixed-term contractor working through recruitment agencies and umbrella companies.
Working via a freelance job platform
Pros:
- Access to a large client pool: Platforms connect freelancers with a vast number of potential clients and projects they might not otherwise find.
- Built-in payment protection: Most platforms offer secure payment systems and dispute resolution, reducing the risk of non-payment.
- Reduced marketing effort (initially): Freelancers can often find work without extensive self-promotion, especially when starting out.
- Project management tools: Many platforms provide integrated tools for communication, file sharing, and project tracking.
- Reputation building (platform-specific): Positive reviews and completed projects on a platform can help build credibility within that ecosystem. Yet, they can also hurt your reputation if a client has a complaint or expects more than what was commissioned.
- Variety of work: Platforms often list a diverse range of projects, allowing freelancers to explore different types of work.
Cons:
- Platform fees/commissions: Platforms typically take a percentage of the freelancer’s earnings, which can significantly reduce net income.
- High competition: The large pool of freelancers can lead to intense competition for projects, often driving down rates.
- Race to the bottom pricing: Some clients on platforms prioritise the lowest bid, making it difficult to charge premium rates.
- Lack of direct client relationship: The platform often acts as an intermediary, which can limit direct communication and long-term client relationships.
- Dependence on platform rules: Freelancers are subject to the platform’s terms of service, which can change and impact their business.
- Limited personal branding: It can be harder to establish a strong, independent personal brand when operating primarily within a platform’s ecosystem.
- Payment delays: While secure, payment processing on platforms can sometimes have delays.
Sources: Quora, Upwork
Working solely through your personal brand
Pros:
- Higher earning potential: No platform fees mean freelancers retain 100% of their earnings.
- Full control over pricing: Freelancers can set their own rates based on their value and experience.
- Direct client relationships: Building direct relationships fosters trust, loyalty, and often leads to repeat business and referrals.
- Stronger personal brand: Allows for complete control over branding, messaging, and reputation, leading to greater long-term recognition.
- More autonomy and flexibility: Freelancers have complete control over their work process, client selection, and business strategy.
- Higher quality clients: Often, clients who seek freelancers directly are looking for specialized skills and are willing to pay for quality.
- Long-term engagements: Direct relationships are more likely to lead to ongoing projects and retainer agreements.
Sources: Robin Waite, Better Proposals, Upwork, Freelance Fam
Cons:
- Significant marketing and sales effort: Requires continuous effort in networking, content creation, social media presence, and direct outreach to find clients.
- No built-in payment protection: Freelancers are responsible for their own contracts and payment collection, increasing the risk of non-payment.
- Time-consuming client acquisition: Building a client base from scratch can take a considerable amount of time and effort.
- Requires business Acumen: Freelancers need to handle all aspects of their business, including invoicing, legal, and financial management.
- Slower Start for New Freelancers: It can be challenging to secure initial clients without a pre-existing network or portfolio.
- Potential for Isolation: Without a platform’s community, freelancers might feel more isolated.
- Higher Risk: More responsibility falls on the freelancer for all aspects of their business, including managing risks.
Sources: Business Formations, Jamie Brindle, Prestige Group
How to choose?
The choice between working via freelance platforms or building a personal brand hinges on your individual goals and the stage of your freelancing career. While platforms offer immediate access to work if you get chosen and built-in protections, building your own brand promises greater autonomy, higher earning potential, and more meaningful, long-term client relationships.
With both options available, you can try both simultaneously and see what works depending on the project type. Platforms can be a great place to try new types of work before launching services via your own website and make a name for yourself.
