How To Create A Freelance Marketplace

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

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. In this guide, we’ll explore the key features, strategies, and business models needed to create a scalable platform for freelancers and clients alike.

1. Types of freelance marketplaces to consider

Freelance platforms cater to different needs for freelancers and businesses seeking hires. This overview includes different types of platforms to help understand their operations and cater to different needs.

I. Niche-specific marketplace

Example: 99designs focuses on graphic design and branding, while Catalant provides vetted premier business strategy consultants.

Such platforms cater to industries such as technology, marketing and legal services among many others, targeting highly competent individuals to bridge the gap with businesses that require specific knowledge.

II. Peer-to-Peer (P2P) freelance marketplace

Example: TaskRabbit is a P2P platform where clients hire freelancers for localized tasks like home repairs, cleaning, or furniture assembly.

This model emphasizes direct connections between clients and freelancers, allowing them to negotiate terms, set their own prices, and build relationships with minimal platform intervention.

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.

IV. Local or regional freelance marketplace

Example: PeoplePerHour allows clients to hire freelancers for local and international projects, but with a focus on users from the UK and Europe.

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.

2. Must-have features in a freelance marketplace

While developing a freelance platform like Upwork, several essential elements can help your platform stand out, and target businesses and freelancers equally efficiently. 

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 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.

3. Key steps to start a freelance marketplace with Shipturtle

Starting a freelance marketplace requires a structured approach, combining technical setup, strategic planning, and understanding your target market’s needs. Here’s a step-by-step guide to help you launch your platform successfully:

• Step 1: Choose the right platform
• Step 2: Set up a cart platform and multi-vendor plugin
• Step 3: Customize workflows for your business needs
• Step 4: Add integrations using open API

Step 1: Choose the right platform

The first step in building a freelance marketplace is selecting an e-commerce platform that supports multi-vendor capabilities. Popular options like Shopify, WooCommerce, and Magento allow you to set up an online store with multi-vendor features, enabling multiple freelancers to offer their services or products.

• Shopify is ideal for entrepreneurs looking for ease of use, with its wide range of apps and plugins.
• WooCommerce is perfect if you're looking for a WordPress-based solution with greater customization options and flexibility.

Step 2: Set up a cart platform and multi-vendor plugin

Once you’ve chosen your platform, you need to set up the core of your marketplace: the cart system. This will allow buyers to add services or products from different vendors into a single cart, simplifying the checkout process.

• Plugins like Shipturtle allow your registered users to create their service profile, upload products, and manage their orders, while you (as the platform owner) manage the overall marketplace.
• These plugins typically offer features like commission management, vendor analytics, product catalog management, and secure payment processing.

Step 3: Customize workflows for your business needs

Next, tailor your platform’s workflows to match the specific needs of your marketplace. This includes adjusting the way vendors onboard, the payment processing system, the order management process, and customer support channels.

• 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

To make your freelance marketplace more efficient, integrating third-party tools and services can streamline operations.

• 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. Many marketplace plugins include this functionality, but you can also add specialized systems tailored to the unique nature of your marketplace.

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

4. Launch a freelance marketplace in less than 48 hours

Using pre-built e-commerce platforms and multi-vendor 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 have help you build a service-based marketplace 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.