How to Start Your Dream Freelance Marketplace Platform Now?

Last Updated on March 26, 2025

You’ve got an idea to create a website similar to Upwork or Fiverr. While it may sound ambitious, it’s not impossible.

The freelance economy is growing fast. More and more professionals are choosing the flexibility and freedom of independent work, and by 2027, 50.9% of the U.S. workforce—around 86.5 million people—will be freelancing.

While industry giants like Upwork, Guru, Fiverr, and Thumbtack dominate the scene, there’s still plenty of room for new players who can carve out a niche (more on this later in the article).

In this guide, we’ll walk you through every step of building a freelance marketplace like Fiverr from scratch. You will learn how to refine your idea, develop must-have features for your marketplace, and successfully launch and scale your platform.

10 Steps to Start a Freelance Marketplace Platform

Identify a strong freelance marketplace idea

The first step in building a freelance marketplace is identifying a solid idea. To do that, look at the problems freelancers and clients face on existing platforms and think about how you can make things easier for them. Your idea might come from your experience, what you see happening in the freelance community, or emerging trends. Recently, more than 1.57 billion people worldwide are freelancers, making up 47% of the global workforce.

 

For example, here’s how FreeUp identified their marketplace idea: Connor Gillivan and Nathan Hirsch, the founders of FreeUp, got frustrated with how much time they spent searching, vetting, and interviewing freelancers on big platforms. So, they created FreeUp—a marketplace that makes it easier for online business owners to find and hire vetted freelancers specifically in e-commerce, marketing, and advertising. 

 

Alternatively, you can talk to freelancers and their clients directly. Ask them about their pain points and what they wish was easier. Forums could be a source of intel as well: for example, the subreddit for Upwork clients and freelancers is big and active.

 

This research will help you uncover gaps in the market where current platforms fall short, whether it’s a more efficient way to match skills with projects or a system that streamlines payments and improves security.

 

Whichever idea you land on, it’s essential that your freelance marketplace:

 

• Solves a real problem for both clients and freelancers.
• Targets a large enough market to meet your business goals.
• Has a sufficient number of freelancers and clients within the chosen niche.

Go to Step-by-Step Guide to Building a Platform like Fiverr to learn more about finding a new marketplace idea. 

Choose the right marketplace business model

This is the stage where you figure out how your freelance marketplace will generate revenue. At Sharetribe, we researched the top 100 marketplaces in the world and found that most platforms use one or more of these six revenue models:

• Commission
• Subscription
• Listing fees
• Lead fees
• Freemium models
• Featured listings.

The commission-based model is the most common for freelance marketplaces. In this model, the platform charges a percentage of the total transaction value in commission. Most marketplaces have a fee for both sides: for example, Upwork, Guru, and Fiverr all charge both the freelancers and the clients a fee for a completed transaction on the platform. 51% of the top 100 marketplaces thrive by taking a cut out of the transactions they process.

 

The size of fees can differ greatly, and there’s room for differentiation here: for example, Toptal charges all of its fees from the clients, nothing from freelancers. 

 

Also, some platforms combine two or more business models, such as lead fees or subscriptions, with the commission model. For instance, while Upwork primarily uses a commission model, it complements it with lead fees. Freelancers pay to get “Connects” that serve as a credit to submit proposals. If you want to launch a freelance marketplace like Fiverr, you need to know how different Fiverr is from other freelance marketplaces. 

 

Similarly, Freelancer.com and Guru complement the commission model with lead fees. Freelancers are given limited free bids monthly and have the option to purchase more. Upwork charges freelancers 5-20% commission based on their total earnings with a client, while Fiverr takes 20% from every transaction.

 

If you’re considering the commission model, here are three important things to think about:

 

• Who will you charge? Will it be the freelancers or the clients, or both?
• How much will you charge? You’ll need to decide what percentage of each transaction you’ll take. (Here’s our guide to marketplace pricing.)
• How will you prevent users from avoiding your platform’s payment system? Ensuring that all transactions go through your platform is essential for consistent revenue. (Here’s our guide to avoiding platform leakage.)

Start with a focused scope

While early freelance marketplaces like Upwork and Freelancer.com succeeded with a generalist approach, the market has changed significantly since their launch. Today, new entrants need a more focused strategy to stand out.

 

Early generalist platforms benefited from less competition across online service niches. Additionally, venture investors were more willing to fund based on the size of the total market rather than demanding early traction. Now, however, investors prioritize real user engagement and growth over just a large potential market. The global freelance market is projected to reach $12 billion by 2028, with niche platforms growing 30% faster than generalist ones.

 

Because of this shift, it’s critically important for new freelance marketplace startups to focus their limited resources on a specific niche. Replicating the broad, generalist approach of major platforms like Upwork is both capital-intensive and highly competitive, making it difficult for smaller, newer players.

 

Focusing your scope could mean:

• Targeting a specific industry or skill set for your marketplace.
• Concentrating on a particular geographic region.
• Solving a specific problem within the freelance ecosystem.

 

Starting with a niche doesn’t limit your growth potential. In fact, once you’ve gained traction and built a solid reputation in your initial focus area, you can gradually expand into related skills or industries or continue to add more geographic locations. This approach allows you to grow sustainably while maintaining a strong foundation.

Also read: Launching a Freelance Marketplace Using a Readymade Fiverr Like App

Pre-validate your marketplace idea

Before investing significant time and resources into building your freelance marketplace, it’s crucial to pre-validate your idea. Pre-validating your marketplace idea helps ensure the problem you want to solve truly exists and that there’s real market demand for your platform.

 

Here are some steps to pre-validate your idea:

 

• Talk directly to your target audience, both in person and online. Ask them if they’re experiencing the problem you’ve identified and how they’re currently solving it. Then, pitch a prototype of your solution and gather their feedback.
• Adapt based on feedback. If what you hear doesn’t align with your assumptions, adjust your approach and validate again. The goal is to continuously refine your idea based on real-world input.

More than 90% of startups fail due to a lack of market demand—validating your idea early is crucial. When it comes to specific questions, open-ended ones tend to yield the best insights. Some useful questions include:

 

• How do you currently find freelance marketplaces? Is it easy to find jobs or clients?
• How do you vet the competence of clients or freelancers?
• Could you handle more jobs or clients than you currently have?
• How do your clients typically find you?

The goal of pre-validation isn’t to guarantee success but to gather enough evidence to justify moving forward. Be ready to iterate on your concept based on the feedback you receive—it’s all part of the process.

Build a marketplace platform, starting with an MVP

A Minimum Viable Platform (MVP) is a version of your marketplace that includes just enough features to attract early adopters and validate your core value proposition. The point is to get your idea out into the world as early as possible to start learning from real users.

 

At the very beginning, your solution could even be as simple as a spreadsheet and lots of manual work to connect the two sides. This helps you get to the market fast, avoid unnecessary development work, and learn about your audience.

 

For example, when Charles Armitage, co-founder of the healthcare staffing marketplace Florence started out, he spent months and a lot of money on a website that didn’t even have the basic features they needed. In the end, he had to roll back to using just a Google sheet. Companies that launch an MVP are 35% more likely to secure early funding and customer traction. If you want to know about the cost of building one, read the cost to build a Fiverr or Upwork-like freelance marketplace

 

Sophie Adelman, co-founder of WhiteHat (rebranded as Multiverse) and ex-Hired, also talks about the advantages of starting simple: 

 

“If you build a tech product before you understand what you need, you end up building something that doesn’t work. So, I think that those organizations that don’t start by using spreadsheets and whiteboards are missing a trick, because you learn a huge amount, and it allows you to to know when pain points are in your process.”

 

Another great option for your MVP is Sharetribe. Its no-code marketplace builder could get the first version of your freelance marketplace live in a matter of days. Our solution also has the benefit that once you’ve validated your idea and are ready to develop your platform further, you can easily add custom-developed designs, features, and functionalities on top of your MVP.

 

Sharetribe Console branding settings with the color picker open. On the left, a sidebar with all the tools.

Sharetribe’s admin view, Console, is where you build and manage your marketplace.

Onboard your first freelancers 

Most marketplaces face the classic chicken-and-egg problem: should you focus on attracting clients or freelancers first? You need freelancers to fulfill clients’ jobs, but you also need the promise of clients to attract freelancers.

 

Most successful marketplaces solve this by focusing on the supply side first. The thinking is that the supply side is easier to attract even when there’s no demand yet, whereas the demand needs to see high-quality supply to get interested in the marketplace.

 

In the context of freelance marketplaces, freelancers are often seen as the supply and clients as the demand.

 

So, how do you find these first freelancers? Here are a few places you could look:

 

• Online groups and communities: Engage in Facebook groups, LinkedIn communities, Reddit forums, or niche online platforms where freelancers in your target industry gather.
• Offline groups and communities: Attend local meet-ups, participate in industry-specific conferences, or host events to connect with potential freelancers in person.
• Paid search engine ads: Use targeted ads with a small budget to reach freelancers who may be actively searching for work opportunities.
• Cold-calling and direct outreach: Though more time-intensive, reaching out directly to freelancers through email or phone can give you a personal touch that attracts high-quality talent.

Once you’ve identified potential freelancers, use the following tactics to get them to sign up:

 

• Clearly communicate your unique value proposition—explain how your platform helps them get more work and serves them better than existing solutions.
• Communicate how you’re planning to find and onboard clients, highlighting the potential for demand. 
• Offer exclusivity: communicate that your marketplace only lets in the top tier of freelancers.
• Offer them better tools to manage and bill for their work.
• Offer discounts or other financial incentives to be an early adopter.

If you can provide an exceptional experience for your first few freelancers, they’re likely to refer others to your platform. At this stage, focus on quality over quantity. As you onboard freelancers, it’s crucial to pre-vet them for quality, skills, and identity. You can implement vetting processes like skill tests, ID verification, or portfolio reviews to ensure you’re only accepting the best talent. This helps ensure that when you bring in your first clients, both sides will have a smooth experience collaborating through your platform.

Also read: Benefits of Developing a Freelance Marketplace Like Upwork

Launch your marketplace to the clients

Once your initial freelance base is in place, you can open your marketplace to the clients. However, remember that this first launch doesn’t have to be a big, flashy event—what you need is just enough demand to satisfy your initial supply and ensure that transactions start happening. This helps you test your platform, iron out any issues, and build a loyal user base.

 

Here are some effective strategies for finding clients:

 

• Leverage your network: Reach out to personal and professional connections who might benefit from your platform.
• Targeted outreach: Engage with online communities, social media groups, or forums where your ideal clients are active.
• Run online ads: Use paid advertising to target clients who are most likely to need your services.
• Introduce referral programs to incentivize word-of-mouth growth.

For instance, in our interview with FreeUp, founder Connor Gillivan shared that their first clients were so satisfied that they began referring colleagues and fellow business owners.

 

To build on this momentum, FreeUp introduced a referral program, paying $0.50 for every hour billed to a user who joined through a referral. This strategy became one of their most effective growth channels, helping them gain visibility in key media outlets.

 

Finally, don’t forget to actively monitor and engage with your early users. Offer excellent support and be responsive to their needs. This feedback loop can help you refine your marketplace in its early stages, leading to a stronger launch overall.

 

Reach problem-solution fit

Reaching problem-solution fit means you’ve successfully identified a real problem in the market and created a solution that effectively meets the needs of both clients and freelancers. At this stage, your platform should be facilitating consistent transactions between supply (freelancers) and demand (clients) and generating revenue from those transactions.

 

It’s important to note that reaching problem-solution fit doesn’t necessarily mean your marketplace is profitable yet, but there should be promising signs that you’re on the right track.

 

Here’s what problem-solution fit looks like:

 

• You’re consistently facilitating transactions between freelancers and clients.
• You’re generating revenue from those transactions, even if it’s not yet at a large scale.

If you don’t see signs of problem-solution fit, it’s time to reevaluate and iterate on your approach. The best way to do this is by asking your users for feedback. Consider the following:

 

• Do users clearly understand your platform’s purpose? If not, you may need to refine how you communicate your value proposition.
• Are you attracting freelancers with the right skill sets that match what clients are looking for? Or, are there enough job opportunities for freelancers?
• If you have enough users but they’re struggling to find suitable matches, it may be a sign to revisit your matching process or algorithm.

 

Triangle composed of dashed lines with arrows and the words “learn”, “build”, and “improve” in each corner, illustrating how to develop a marketplace in an iterative approach.

At this stage, the focus should be refinement rather than rapid growth. Scaling too early can expose flaws in your business model, making them harder to fix later. Instead, focus on improving your core offering based on user feedback, ensuring that your marketplace is truly solving the right problems for your target audience.

Also read: Top 10 Business Models for Your Freelance Marketplace App

Reach product-market fit

Achieving product-market fit means your freelance marketplace meets strong market demand, solving a real problem while showing potential for scalable growth and long-term success. This is the stage where your platform starts to resonate with users, and the foundations for growth are in place.

 

Key indicators of product-market fit include:

 

• Supply and demand liquidity: Clients can consistently find the services they need, and freelancers are successfully converting proposals into bookings.
• Favorable unit economics: Your customer acquisition costs are lower than your customer lifetime value.
• Optimized matchmaking and seamless transactions: The process of connecting clients and freelancers is efficient and smooth.
• Proven retention and repeat usage: Users are coming back and engaging with your platform regularly.

Among these, liquidity is the most important metric. Liquidity means both sides—clients and freelancers—can easily find what they’re looking for, leading to successful transactions.

 

Here are a few strategies to boost your marketplace’s liquidity:

 

• Direct sales: Actively reach out to potential clients and freelancers to build both sides of your marketplace.
• Marketplace SEO: Optimize your platform for search engines to attract organic traffic.
• Viral marketing: Encourage word-of-mouth referrals and social sharing to drive user growth.
• Network effects: As more users join, your platform becomes more valuable to everyone, creating a natural boost to liquidity.

If your goal is to build a major global freelance marketplace, this is the stage to develop a solid playbook. A large-scale marketplace will likely require external marketplace funding to support expansion.

 

Recall that investors are now more focused on profitability than just growth potential. So, to attract investment, you’ll need to demonstrate that your platform has achieved product-market fit and that you have a clear, replicable strategy for entering new markets.

 

Scale into new markets

Once you’ve achieved product-market fit, you can scale your freelance marketplace and capture a larger market share. Apply the playbook you’ve created and replicate the strategy to enter new markets.

 

There are three primary ways to scale:

 

• Adding a new location (e.g., a graphic designers’ freelance marketplace initially serving the US market expands to serve users in the UK.)
• Introducing a new category (A platform initially focused on web development services adds a new category for technical writing.)
• Targeting a new customer segment (A freelance marketplace initially for small businesses and startups begins targeting enterprise-level clients.)

However, when scaling into a new market, it’s crucial to follow these steps:

 

• Scale one market at a time: Avoid spreading yourself too thin by focusing on one market before moving to the next.
• Reach product-market fit in each market: Ensure your platform meets the needs of users in the new market before expanding further.
• Create a playbook of effective strategies: Document the approaches that worked in your initial market and adjust them as needed for new ones.

Repeat the process until you’ve achieved your business goals.

Also, before choosing your next market, conduct thorough research to understand how it differs from your initial one. Evaluate factors such as local competition, regulatory requirements, and cultural nuances that may impact the adoption of your platform. This careful analysis will help you make informed decisions and ensure a smoother expansion.

Read more: Key Features of a Successful Freelance Marketplace Platform Like Fiverr

Launch your Freelance Marketplace with Oyelabs

Turn your vision into reality with Oyelabs! Launch your own freelance marketplace app and connect businesses with top talent worldwide. Our expert team builds feature-rich, AI-powered platforms with secure payments, seamless communication, and smart freelancer-client matching. Whether you want a gig-based model like Fiverr or a project-driven approach like Upwork, we craft tailored solutions to fit your needs. Scale effortlessly with a sleek interface, real-time analytics, and powerful automation. Ready to disrupt the freelance industry? Let Oyelabs bring your idea to life—get in touch today and start building your dream platform!

Conclusion

Starting your dream freelance marketplace platform is an exciting journey that requires careful planning, the right technology, and a strong value proposition. By identifying a niche, choosing the best monetization strategy, and building a user-friendly platform, you can create a thriving marketplace like Fiverr or Upwork. Success comes from solving real problems for freelancers and clients while ensuring seamless transactions and a great user experience. Ready to bring your idea to life? Oyelabs specializes in building custom freelance marketplace apps with cutting-edge features. Let’s turn your vision into reality—contact Oyelabs today and start building your platform!