Best Guide to Create a Microjob Marketplace like Fiverr and Thumbtack

Best Guide to Create a Microjob Marketplace like Fiverr and Thumbtack

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Since the beginning of the 21st century, the global workforce has shown an increased preference for independent jobs. Earlier individual freelancers only accepted contractual work because of reasons such as unemployment and inflation. But today they favor doing them over conventional career paths because of benefits such as better work-life balance and more autonomy in the job. This change in work preferences led to the rise of micro job websites and marketplaces. 

A micro job marketplace is a platform where service seekers can find thousands of freelancers for doing small gigs or micro-jobs such as graphic designing, programming, marketing, or even home services like plumbing, electrician, cleaning, roofing, and HVAC. Once the micro job ends, the freelancer can select another micro-job and adjust it in their work schedule. The micro-job industry is also expected to flourish in the upcoming years. 

If we consider the freelance market, its estimated market size is expected to grow from $4.9 billion to $11.7 billion in the projected period 2022-2028. On the other hand, the handyman services market is also doing well with a Compound Annual Growth Rate (CAGR) of 16.5% in the forecast period 2023-2028. Considering the ease of finding jobs that micro-job marketplaces bring, it is safe to say that the industry holds lucrative opportunities for entrepreneurship.

This article will guide you through how you build your micro-job marketplace and enter the industry most efficiently.

Market Overview

The growth statistics of the micro-job industry are quite astonishing and highlight the profitability of launching a micro-job marketplace very affirmingly. There are also a few incumbents in the industry to take inspiration from. These incumbents are mentioned in the following table.

Fiverr 2010 $367 million
Toptal 2010 $167 million
UpWork 2013 $780 million 
Freelancer 2009 $34.4 million

Moreover, as per the Freelancing in America Report,70% of freelancers claim to find jobs through online marketplace. We have also provided a detailed breakdown of the most demanded freelance services on micro-job marketplaces like Fiverr and UpWork.

For exploring the freelance market of different geographic regions or planning a cross-border operations marketplace, you should have a look at the following growth rates:

Country Wise Microjob Market Growth Rates (2023)
USA 78% (Estimated)
Canada 71%
Australia 86%
Spain 66%
Argentina 66%
Mexico 72%
Japan 87%
India 160%
Philippines 208%
Hong Kong 79%
Pakistan 69%

Business Models of Micro-Job Marketplaces

To build a micro-job marketplace, it is essential to select a feasible business model that you can easily promote and follow for years. Additionally, the model should be easy to incorporate into your website. At the same time, you need to ensure that the business model is market-fit, which can also be a hybrid model – one of the three feasible models mentioned below.

1. Direct Hiring Model

In the direct hiring model, service seekers visit your micro-job website and browse freelancer profiles. When selecting a freelancer, seekers can directly invite them for a job.

Workflow Reference for the Direct Hiring Model

  • Step 1: Multiple freelancers sign up on the marketplace and create detailed freelancer profiles. 
  • Step 2: Customers browse freelancer profiles and select a freelancer.
  • Step 3: To book a freelancer, they pay their hourly charges on the marketplace.
  • Step 4: The freelancer delivers the job.

2. Job Posting and Bidding Model

In the second model, service seekers upload jobs, gigs, or tasks on the platform and freelancers place their bids after reviewing those jobs. If a bid gets selected, that freelancer gets hired for the job. 

Workflow Reference for the Job Posting and Bidding Model

  • Step 1: Customers upload detailed job listings on the marketplace.
  • Step 2: Service seekers browse those listings and send a proposal inclusive of the bid.
  • Step 3: After reviewing different proposals, customers select a freelancer and pay the fees on the platform.
  • Step 4: The freelancer delivers the job.

3. The Hybrid Model

Due to consumer preferences and market trends, it has become essential to provide both direct hiring and job posting models on a single platform. Not only doing so will help you meet user expectations, but will also provide you with a competitive edge.

Workflow Reference for the Hybrid Model

  • Step 1: Customers upload detailed job listings on the marketplace.
  • Step 2: They wait to receive proposals on those jobs and in the meanwhile, can also browse freelancer profiles for direct hiring.
  • Step 3: In case of direct hiring, they invite the freelancer to the uploaded job, who then sends their own proposal.
  • Step 4: The service seeker can compare this proposal with other proposals or directly hire the freelancer

Microjob Marketplace Software with Job Posting and Direct Hiring Support

Revenue Model of Micro-Job Marketplace

As the entire micro-job marketplace model works online, it is easily accessible by a lot of consumers, service providers, and other entrepreneurs. This accessibility offers more revenue-generation models than traditional businesses where the physical boundaries remain a primary limitation. Some of the viable revenue generation strategies that you can implement on your micro job marketplace are:

  • Booking Commission: You can charge a booking commission for every booking that takes place on your marketplace
  • Featured Listings: Featured listings are paid listings that appear at the very top of the search results or at highlighted spaces on your website. You can charge top-rated service providers for displaying their featured listings
  • Display Ads: These refer to the common ad spaces on your marketplace website, including the homepage banner and other inner collections. You can charge both third-party local businesses and service providers to display their ads
  • Subscription Packages: You can create monthly recurring service packages for both service providers and seekers, offering them extra benefits on your marketplace

Core Features Required on Your Marketplace

To develop a micro-job marketplace, it is essential to understand the features and functionalities that you require in your solution. Not only will these help you develop a market-fit solution but also provide a general cost estimate of the software. A readymade solution with all these features will further simplify and shorten the entire development process.

  • Detailed Profile Creation: Your micro-job marketplace software should allow users to create detailed freelancer profiles inclusive of their skills, spoken languages, experience, portfolio, and more. 
  • Multiple Job Types: Customers on a micro-job marketplace tend to upload jobs in various types and categories, some of them are:
  • Public Jobs: These are visible to everyone
  • Private Jobs: Only visible to a few selected or shortlisted freelancers
  • Fixed Price Jobs: The service charges are fixed in this type of job (mostly used for getting the market price-match)
  • Biddable Jobs: Where multiple freelancers place their bids on a single job

Thus, to cater to all such requirements, your micro-job software should support all these job types.

  • Direct Hiring: In the direct hiring module, customers are able to hire freelancers directly after viewing their profiles. This saves the trouble of waiting for bids and reviewing them.
  • Service Packages: To simplify direct hiring operations without exploiting freelancers’ privacy by integrating a time tracker, the marketplace software should allow freelancers to create different service packages. These packages will include several options such as the service delivered, tasks covered, number of revisions, pricing, and more. Based on their requirements, clients can select the package most suitable for them. 
  • Bidding Module: In contrast to direct hiring, the bidding module is immensely helpful in starting a screening process for a job. The freelancer that best matches the customer’s requirements and provides the best value for money gets selected for the job.
  • Custom Task Categories: The micro-job marketplace software should allow you to create multiple task categories that freelancers can use to register. Although the software will have many pre-built categories, this option gives the marketplace owner the flexibility to accommodate the marketplace with any future trends and in-demand skills.
  • Dynamic Registration Forms: For successful registration, the registration form should collect different information from varying professions. E.g., portfolios from graphic designers, writing samples for writers, traffic generation reports from digital marketers, and equipment details from photographers. This can be easily implemented with the help of dynamic registration forms that allow the marketplace owner to personalize the form for different trade professions. 
  • Job Cancellation Window: If a customer cancels a job after the freelancer has started working on the project, this may lead to several losses for the freelancer. To prevent any such instances, the marketplace software requires a job cancellation window. This window will be defined by the admin and once the window is over, the customer cannot cancel the job. Another benefit of having the cancellation window option is that it will prevent all external communications and dealings between the client and the freelancer.
  • Order Management: The order management option will help the marketplace owner receive real-time updates on all orders. The owner can also see the total invoice, selected freelancer, customer, and job details. Additionally, the owner will have access to all completed, in-progress and pending orders.
  • Company Listing: To diversify your freelance marketplace operations, you can also let private companies and businesses register themselves on the marketplace. Those companies can further create freelancer profiles and bid on project-level jobs.
  • Commission Settings: Commission charges are the primary source of earning for micro-job marketplace owners. The marketplace software that you select should allow you to set your own commission rate.
  • Payment Withdrawal Settings: To maintain a healthy cash flow on the marketplace and balance to initiate refunds, you need the necessary earnings withdrawal features like minimum withdrawal threshold and minimum withdrawal interval. 
  • Multi-Lingual Support: Multilingual support will allow your freelancers to select multiple spoken languages on your platform. Doing so will help you provide a better service experience to customers and target a diverse audience.

Developing a Microjob Marketplace

After selecting your preferred business model and identifying the key features, we can move forward with the development process.

Step 1: Select a Micro-job Marketplace Software

There are multiple approaches to developing your micro job marketplace. While traditional development includes bespoke development from scratch, the modern approach involves using readymade software. Let’s discuss them both for proper evaluation:

Bespoke Development

The bespoke development approach includes searching for a software development firm, selecting your tech stack, and paying for the waterfall or agile development process on an hourly basis. As everything is required to be developed from scratch, the overall cost of the project is very high. Moreover, the development time frame is also quite long. Even after the completion of the project, there remains the risk of developing a solution that may fail to meet the purpose. 

Using Readymade Solutions

The modern approach to software development, i.e., using a readymade software has made the entire development process considerably easier and cost-efficient for all entrepreneurs. In the freelancing industry, there are a few no-code and low-code solutions available that you can use to create and deploy your marketplace. These include both SaaS solutions and Self-hosted solutions. While the former are hosted on the software provider’s very own servers, the latter provide the hosting server choice to the entrepreneur. Due to this, we often see limitations in the number of listings and transactions in SaaS solutions, whereas self-hosted solutions are fully customizable.

Bespoke Development vs Readymade Solution: Time and Cost Analysis

A micro-job marketplace is a complex software that includes various interfaces and numerous web pages. On top of it, the marketplace requires vast functions to operate. Thus, the overall timeframe to custom develop the software can take up to 1000 hours or even more. On the other hand, readymade solutions come with all essential features and webpages pre-built into the software. As the marketplace owner, you only need to configure readymade software. Because of this, readymade solutions can help you get started with your business operations within 2-4 business days.

For an accurate cost evaluation, check out the following table.

Development Approach Cost Estimate

In USD

Analysis
Bespoke Development $50,000 – $200,000 Micro job marketplace is a complex solution, including hundreds of pages, multiple interfaces, and a plethora of features. As this approach also includes hourly development costs, it is very expensive.
SaaS Software $5,000 – $15,000 for 5 years SaaS software come with all basic features built into the software. However, they have lifetime recurring costs with numerous limitations related to transactions, listings, and features on all primary packages.

(For a fair evaluation with other development approaches, we have considered SaaS software’s 5 years of cost)
Self-Hosted Software $2,000 – $10,000 for lifetime Self-hosted solutions come with all basic and advanced features and a lifetime license. Additionally, as the software is hosted on your selected hosting server, there are no limitations on listings and transactions. This makes self-hosted software highly scalable and cost-effective in the long run. 

 

Step 2: Deploy and Configure Marketplace Software

While SaaS software is already deployed on the software provider’s server, the other two approaches require you to deploy it on your own server. This can either be an on-premise server installed in your work premises or a reliable third-party server like Amazon Web Services or Bluehost. Our best recommendation is to select a fast server with high security to ensure quick load times, 100% uptime, and invulnerability to cyber attacks.

Once deployed, you need to configure the following settings and web pages on your marketplace.

1. Configure Payment Gateways

Some payment gateways may be pre-integrated in your software solution, you can simply activate those payment gateways and add your banking details. On the other hand, some readymade software may allow you to add more payment gateways. If you feel the need for the same, then you can select a payment gateway based on the following criteria:

  • Localization: Local payment gateways that are very well known in your target region hold an unmatched trust factor. It is safe to assume that your target audience will always prefer them over foreign or international payment gateways.
  • Uptime: Reliable payment gateways ensure a 24/7 uptime. This immensely reduces transaction failures on any type of eCommerce platform while also ensuring a positive customer experience.
  • Payment Processing Time: Payment gateways have varying payment processing times. While some can process payments within 2-4 days, others take up to a week. Some payment gateways also provide bulk payment processing at an additional cost, which processes all transactions within 12 hours. To maintain a healthy cash flow, integrating a gateway with minimum processing time is recommended.
  • Security: To ensure safe and secure transactions, global organizations have released several standards, protocols, regulations, and compliances. A few such security standards that should be present in your payment gateways are PCI DSS compliance for card payments, SSL encryption, TLS encryption, 3D Secure, tokenization, and Secure Electronic Transaction (SET).
  • Transaction Fee: Lastly, to process payments, each gateway charges a transaction fee. This fee can vary from gateway to gateway. This transaction fee along with the aforementioned criteria can help you find a cost-effective payment gateway for your micro-job marketplace business. 

2. Add Branding Elements

To provide your micro-job marketplace with an identity, set up all branding elements, which include logos, icons, slogans, social media handles, and other trademarks. All these elements will assist you in developing a recognizable marketplace. Additionally, you will also need to select a color scheme and a writing style that will remain consistent across all official channels including the marketplace, emails, social media platforms, and other marketing channels.

3. Set Up Website Content

Your micro-job marketplace content will help users receive a thorough understanding of your services. Additionally, it will help secure high SEO rankings on search engines. As per our evaluation, there are a few primary web pages whose content you need to set up:

  • Home Page
  • Micro-Jobs Listing Page
  • Freelancers Profiles Page 
  • Sign-up/Login Page
  • Freelancer Registration Page
  • Post a Job
  • About Us
  • Contact Us
  • How It Works
  • Services Offered
  • Help/FAQ
  • Cart/Checkout Page
  • Blog
  • Resources
  • Terms of Service
  • Privacy Policy
  • Testimonials
  • Newsletter Signup

Step 3: Test the Marketplace

Test the marketplace to verify whether all features are functioning as intended. Your micro-job marketplace will have 4 interfaces, which are:

  • User Front-End
  • Admin Dashboard
  • Freelancer Dashboard
  • Client Dashboard

To effectively check out the various features and functionalities in these interfaces along with the user experience, create a testing account and register yourself as the admin, customer, and client. Place an order on the user front-end while analyzing various sections of the interface, such as content blocks, buttons, scrolling, payment gateways, payment methods, transactions, cart, notifications, and more. 

After placing an order from the user front end, log in to the freelancer dashboard and mark status updates. These updates should be visible in the admin dashboard. Also test other features such as chat messenger, payment withdrawal settings, and more. You can also log in to the admin dashboard to see the placement of a new order. The same should be reflected in your earnings.  

Lastly, test the interlinking on the platform including navigation, social media handles, and external links. See whether all the forms are working as intended and as the customer or freelancer, you are easily able to fill in and submit the forms. 

Note: Selecting a tried and tested solution that has already been evaluated on the diverse use cases by the software provider can vastly reduce your testing efforts. Thus, it is wiser to carefully select your micro-job marketplace solution.   

Step 6: Promote and Grow

To start business operations, you need to onboard some freelancers. This can be done by providing various incentives to the first freelancers, such as zero commission rates and featured listing spaces on the marketplace. At the same time, you need to promote the micro job marketplace to attract customers. SEO will be beneficial in fulfilling this purpose. With accurate search terms (for example: hire graphic designer online), you can compete with other players in this space. 

Additionally, launch various markdown strategies to draw customers. These can either be discounts on the first three jobs or a referral bonus strategy. After customers find out the convenience of finding freelancers on your micro-job marketplace, you can expect them to become repeat customers and increase their customer lifetime value. 

As your marketplace will be comparatively new, you will need to focus your marketing efforts on paid campaigning as well. When your organic SEO presence grows strong, you can reduce your expenditure on paid campaigns. Doing so will help you stabilize your overall customer acquisition costs and reach the breakeven point faster.

Readymade Software with In-Built Marketing Features & SEO-Friendly Site Structure

Our Recommended Solution to Build a Micro-Job Marketplace

Yo!Gigs is a future-ready solution that is made to launch robust marketplaces like Fiverr, UpWork, Toptal, and Thumbtack. Its new version was launched in the year 2024, making it the most advanced micro-job marketplace software with industry-leading features including all the ones mentioned above. As Yo!Gigs is meticulously developed to help you with numerous marketplace use cases, it can be easily used to deliver, manage, and enhance freelancer and handyman services. 

Some other reasons to select Yo!Gigs are:

  • Dedicated features with industry-specific designs for freelancing and handyman marketplaces
  • For long-term business operations, Yo!Gigs comes with a lifetime usage license at a one-time cost. 
  • Yo!Gigs supports unlimited listings, transactions, and profile creations. 
  • To ensure uninterrupted business operations, Yo!Gigs comes with 12 months of free technical support 

Book a Personalized One-on-One Demo to Verify Yo!Gigs’ Functionalities

Conclusion

During times of adversity when unemployment increases, micro-job marketplaces emerge as the only solution to help talented professionals survive. The great economic recession of 2008 and the COVID-19 pandemic are evidence to that. However, once professionals get used to working on these marketplaces, they don’t want to switch back to traditional 9-5 jobs because of several benefits such as higher profit margins and work autonomy. Additionally, the change in the modern workforce mindset remains to be a strong growth factor for the marketplace industry. 

FAQs

Q 1: How Much Does It Cost to Start a Micro Job Website?

The cost of developing a micro job website depends on the selected software technology and development approach. Via the traditional development approach that is charged on a per-hour basis, the overall cost can range between $60,000-$150,000. Via the no-code or low-code development method, you can easily drop this cost to $3,000 – $40,000. 

Q 2: What are Some Common Challenges Faced by Micro Job Website Owners?

Onboarding freelancers is the primary challenge that micro job website owners face. Secondly, they also have to ensure a smooth browsing experience and secure payments. Along with these, ensuring job satisfaction via timely delivery and quality of the work is a must. All such problems can be easily dealt with by investing in a tried and tested readymade software. To discuss the challenges that FATbit’s Yo!Gigs helps micro job website owners deal with, get in touch with our industry experts.

Q 3: Can You Develop a Micro-job Marketplace for My Requirements?

Yes, at FATbit, we have a readymade micro job marketplace solution – Yo!Gigs. Revamped in the year 2024, Yo!Gigs is the most advanced job marketplace software that helps you deal with numerous use cases. It comes with next-gen features, supports 24/7 payments, and can help you seamlessly connect freelancers with customers. For more information or to get a price quote, contact our experts.

ketplace software that helps you deal with numerous use cases. It comes with next-gen features, supports 24/7 payments and can help you seamlessly connect freelancers with customers. For more information or to get a price quote, contact our experts.

Disclaimer: The Blog has been created with consideration and care. We strive to ensure that all information is as complete, correct, comprehensible, accurate and up-to-date as possible. Despite our continuing efforts, we cannot guarantee that the information made available is complete, correct, accurate or up-to-date. We advise - the readers should not take decisions completely based on the information and views shared by FATbit on its blog, readers should do their own research to further assure themselves before taking any commercial decision. The 3rd party trademarks, logos and screenshots of the websites and mobile applications are property of their respective owners, we are not directly associated with most of them.


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