How to Create a Freelance Marketplace Like Upwork or Fiverr

Whether you're a startup aiming to redefine a niche, an established organization diversifying into new markets, or a professional passionate about bridging talent gaps, building a freelance marketplace presents a compelling opportunity.

This guide will help you explore the features of existing freelance websites like Upwork and Fiverr to incorporate, various types of freelance marketplace websites, and the business models needed to create a freelance marketplace.

1. What is a freelance service marketplace?

While freelance marketplaces are a subset of service marketplaces, the two serve distinct purposes and can complement each other within a broader service platform:

• A freelance marketplace is best suited for digital, remote, and knowledge-based services catering to businesses and startups worldwide. Example: Hiring a graphic designer, content writer, or developer for specific projects.
• A service marketplace excels in local, physical, or skill-based services designed for immediate or location-specific tasks. Example: Booking home cleaning, plumbing, beauty services, or legal consultations.

2. Types of freelance platforms to consider

The demand for freelance marketplaces has surged in recent years, driven by the growing gig economy and the shift toward remote and flexible work.

The global freelance industry is expected to reach a massive USD 14,389.7 million by 2030 via online platforms. Such freelance sites like Upwork create a talent marketplace where business owners can hire qualified workers for short-term engagements.

If you want to build a freelance platform, you can take inspiration from the existing marketplace business model:    

I. Reverse marketplace model

A reverse marketplace is an innovative business model that flips the traditional marketplace structure. In a conventional market, buyers browse and select from a variety of sellers offering services or products.

In a reverse marketplace, it is the buyers who list the tasks or services they require, and sellers (freelancers or service providers) respond with offers to fulfill those needs.

II. Niche-specific marketplace

Such platforms cater to industries such as technology, marketing, and legal services, among many others, and target highly competent individuals to bridge the gap with businesses that require specific knowledge. Another example is Catalant that provides vetted premier business strategy consultants.

III. Subscription-based freelance marketplace

This model involves freelancers or clients paying a subscription fee to access exclusive job opportunities or talent pools. It's great for clients who have ongoing needs and want to streamline their hiring process.

Toptal requires a $500 initial deposit from freelancers when they join the platform. This deposit is applied as a credit to the freelancer's first invoice.

Toptal also charges a service fee to freelancers, which varies based on the freelancer's skill level and the project requirements. Toptal reportedly takes a substantial percentage of the payment, often around 50%.

IV. Local or regional freelance marketplace

These platforms target specific geographic areas, connecting local freelancers with clients in the same region. This model is valuable if you want to cater to clients looking for region-specific expertise or for freelancers who understand local languages, regulations, or culture.

3. Top inspirations from websites like Upwork

Websites like Upwork inspire freelance marketplaces with features that enhance user experience, trust, and scalability. Key takeaways include:

I. User-friendly dashboard:

• ‍Client View:
  • Clients can easily post jobs with detailed descriptions, budgets, and timelines.
  • Advanced filters help clients find freelancers based on skills, experience, and ratings.

• ‍Freelancer View:
  • Freelancers can showcase portfolios, skills, and client feedback.
  • Personalized job suggestions based on profile and activity.

II. Real-time communication tools:

• Integrated chat for seamless client-freelancer communication.
• Built-in video call feature for interviews and meetings.

III. Secure payment system:

• Funds are held securely until project milestones are approved.
• Supports various payment options for global users.

IV. Work diary and time tracking:

• Logs hours worked with periodic screenshots to ensure transparency.
• Detailed reports of work activity for client review.

V. Ratings and reviews:

• Both clients and freelancers can leave reviews post-project, building trust within the community.

VI. Dispute resolution:

• Assistance for resolving conflicts between clients and freelancers.
• Professional mediation to ensure fair outcomes.

Must-have features in your freelance marketplace platform

Here's a breakdown of the top 7 essential features you should consider:

i. Registration

A seamless and user-friendly registration process is crucial for attracting freelancers and clients to your platform.

It should include:

• Simple sign-up options through email or social media accounts.
• Basic verification steps (email, phone number) for security.
• Separate registration processes for freelancers and clients will be used to tailor the experience accordingly.

ii. User profile

Profiles help build trust and credibility on both sides.

It should include:

• Detailed sections for skills, work experience, portfolio, and rates for freelancers.
• A business/organization profile with information on their industry, past projects, and hiring preferences.
• Profile verification options to increase transparency and trust (e.g., ID verification, LinkedIn integration).

iii. Job catalog

A well-organized job catalog encourages businesses to post and freelancers to browse through opportunities.

It should include:

• Categories for different industries (e.g., web development, marketing, design).
• Clear job descriptions, budgets, and deadlines.
• Options for hourly or fixed-price contracts and the ability to sort or categorize jobs (urgent, new, trending).

iv. In-app chat

Communication is key to successful freelance projects, and an in-app chat system keeps everything within the platform.

It should include:

• Real-time messaging for freelancers and clients to discuss details, ask questions, and stay updated.
• Support for file sharing so users can exchange work samples, project details, etc.
• Push notifications to alert users of new messages, updates, or feedback.

v. Payment system

A secure and reliable payment system ensures trust and timely transactions for both freelancers and clients.

It should include:

• Multiple payment options (credit cards, PayPal, bank transfers).
• An escrow system that ensures freelancers get paid for their work once the job is complete and approved.
• Automatic invoicing and tax reporting features for easier financial management.
• Clear service fee breakdowns so users understand platform charges upfront.

vi. Review & feedback system

Building a reputation through reviews and feedback increases accountability and trust among users.

It should include:

• A rating system (stars, thumbs up/down) for both freelancers and clients after project completion.
• Written feedback options that allow both parties to share their experiences.
• Reputation scores, based on reviews, help users make informed decisions about who to hire or work with.

4. Build a freelancer marketplace platform using Shipturtle

Shipturtle is a robust multivendor marketplace builder designed to help e-commerce businesses expand and collaborate seamlessly. It integrates with platforms such as Shopify, WooCommerce, and more, providing tools to manage vendors, simplify shipping, and scale globally—without any revenue cuts.

With just four easy steps, you can build a website like Fiverr or a feature-packed freelancer marketplace like Upwork:

• Step 1: Choose the right website builder
• Step 2: Set up multivendor functionality
• Step 3: Customize workflows for your business needs
• Step 4: Add integrations using open API

Step 1: Choose the right website builder

Choose a platform that supports freelance marketplace features, such as profile creation, job posting, messaging, and payments. Shipturtle is a great multivendor tool that integrates with popular e-commerce builders like

Shopify, WooCommerce, or custom-built frameworks.

Step 2: Set up multivendor functionality

With Shipturtle, users can easily set up profiles via C2C functionality to showcase their portfolios, skills, and pricing. It also supports reviews, ratings, and category filters, enabling clients to find the right talent quickly.

If you're using a reverse marketplace model, the same could be replicated for buyers. Additionally, you can include a reverse-bidding system for freelancers to bid for the listed project.

Step 3: Customize workflows for your business needs

Shipturtle allows you to define workflows tailored for freelance projects—whether it's proposal submissions, milestone-based payments, or project tracking:

• Vendor Onboarding: Ensure that your platform has an intuitive onboarding process that allows vendors to easily create accounts, set up profiles, and start listing their services or products.
• Payment Flow: Customizing how payments are processed is essential. Consider integrating multi-payment options (e.g., PayPal, Stripe, bank transfers) and decide if you'll hold payments in escrow until the service is delivered or directly transfer payments to vendors upon order completion.
• Project Management Tools: If you're running a freelance marketplace, you'll need to integrate project management tools (e.g., task boards, milestones, collaboration tools) that allow clients and freelancers to track project progress.

Step 4: Integrations to enhance functionality

Shipturtle's open API framework supports integrations with tools for payments, messaging, and time tracking. It also connects with CRMs, analytics platforms, and AI-driven job-matching systems, ensuring scalability as your marketplace grows:

• Communication Tools: Implement chat or messaging integrations to allow direct communication between freelancers and clients. Tools like Slack, Zoom, or in-platform chat systems can make this easier.
• Invoicing and Tax Tools: Integrate invoicing software like QuickBooks or Xero to help vendors and clients easily handle billing. Consider automating tax calculations based on the geographic location of vendors and clients.
• Ratings and Reviews: Setting up review and rating systems allows clients to rate freelancers and leave feedback, creating a transparent system that builds trust.

Further, we ensure your marketplace complies with local regulations (such as GDPR and PCI compliance). You can integrate tools to handle disputes, refunds, and chargebacks to maintain a trustworthy platform.

5. Launch your marketplace in less than 48 hours.

Using pre-built e-commerce platforms and multivendor plugins, you can set up a functional freelance website quickly.

The key steps are choosing a platform, customizing workflows to suit your business, and integrating essential features like secure payments, project management, and communication tools. Marketing strategies like SEO and social media will help you attract your first users.

Shipturtle can help you build a service-based marketplace that is ready to connect freelancers and clients in just two days.

‍Book a free consultation to learn how you can use Shipturtle to match your business use case.