PeoplePerHour vs Freelancer: Differences You Need to Know

In today’s dynamic gig economy, choosing the right platform to launch or grow your freelance career is crucial. With numerous options available, it can be challenging to determine which one suits your needs best. In this article, we’ll be comparing two popular freelance platforms, PeoplePerHour vs Freelancer, shedding light on their key differences and unique features. By understanding the intricacies of PeoplePerHour vs Freelancer, you’ll be better equipped to make an informed decision and select the platform that best aligns with your professional goals and skill set. So, let’s dive in and discover what sets these platforms apart!

What is PeoplePerHour and what is Freelancer?

PeoplePerHour and Freelancer are online marketplaces that connect freelancers with clients seeking their services. Both platforms enable professionals from various industries to offer their expertise, while clients can post projects and hire freelancers to complete tasks. Here’s a brief overview of each platform:

PeoplePerHour: Founded in 2007, PeoplePerHour is a UK-based freelance marketplace that caters to a diverse range of industries, including web development, graphic design, writing, marketing, and more. The platform emphasizes quality by screening freelancers and ensuring that they meet certain criteria before allowing them to offer their services. PeoplePerHour uses an escrow system to ensure secure transactions and offers a range of features such as project management tools, proposal reviews, and invoicing.

Freelancer: Launched in 2009, Freelancer is an Australian-based platform with a massive global user base. It covers a broad spectrum of industries and skills, from IT and software development to design, writing, and marketing. Freelancer operates on a bidding system, where freelancers compete for projects by submitting proposals. The platform offers various membership plans, each with its own set of benefits, such as a fixed number of bids per month and access to premium projects. Freelancer also provides an escrow service to ensure the security of payments between clients and freelancers.

Both PeoplePerHour and Freelancer aim to provide freelancers with opportunities to find work and grow their businesses, while offering clients an efficient way to find talented professionals to complete their projects. However, they differ in terms of features, fees, and focus, making it essential for freelancers and clients to weigh the pros and cons of each platform before making a decision.

Key differences between PeoplePerHour and Freelancer

While both PeoplePerHour and Freelancer serve as platforms for connecting freelancers with clients, they have some key differences that may influence your decision when choosing between them. Here are the most notable differences between the two platforms:

1. Platform focus: PeoplePerHour tends to focus on quality over quantity, with a rigorous screening process for freelancers before they can join the platform. This ensures a higher standard of work for clients. In contrast, Freelancer has a more open approach, allowing a vast number of freelancers to join the platform, which may result in varying levels of quality.
2. Project bidding system: Freelancer utilizes a bidding system, where freelancers submit proposals to compete for projects. This competitive model may lead to lower prices for clients but can also create a race-to-the-bottom situation for freelancers. PeoplePerHour uses a hybrid model, with some projects available for bidding and others for direct purchase, called Hourlies, where freelancers set a fixed price for specific services.
3. Fees: Both platforms charge freelancers and clients fees for their services, but the structures differ. PeoplePerHour charges a sliding scale fee for freelancers, which decreases as they earn more on the platform. It also charges a small processing fee to clients. Freelancer, on the other hand, has a more complex fee structure, with different fees for fixed-price and hourly projects, as well as various membership plans that provide additional benefits to freelancers.
4. Geographic focus: PeoplePerHour is based in the UK and tends to cater more to the European market, although it does have a global presence. Freelancer, based in Australia, has a more extensive global reach and user base, which can result in a wider variety of projects and clients.
5. Customer support: PeoplePerHour is known for its responsive and dedicated customer support, which is crucial for resolving any issues that may arise during the course of a project. Freelancer also offers customer support, but it has received mixed reviews from users, with some reporting difficulties in getting timely assistance or resolving disputes.
6. User interface and experience: PeoplePerHour has a streamlined user interface, making it easy for freelancers and clients to navigate the platform, manage projects, and communicate with each other. Freelancer’s interface is more complex due to its various features and membership options, which may take some time for new users to get accustomed to.
7. Escrow system: Both platforms use an escrow system to protect the interests of clients and freelancers. PeoplePerHour’s escrow system ensures that funds are held securely until the client is satisfied with the work delivered. Similarly, Freelancer’s escrow system, called the Milestone Payment System, safeguards payments until the project is completed and approved by the client.

Ultimately, the choice between PeoplePerHour and Freelancer depends on your preferences and the specific needs of your freelance business or project requirements. It’s essential to consider factors such as fees, project types, platform focus, and user experience when making your decision. By understanding the key differences between these platforms, you can select the one that best aligns with your professional goals and helps you thrive in the competitive freelance market.

Pros of PeoplePerHour over Freelancer

There are several advantages of choosing PeoplePerHour over Freelancer, which may make it a more suitable platform for certain freelancers and clients. Some of the pros of PeoplePerHour include:

1. Quality focus: PeoplePerHour places a strong emphasis on the quality of its freelancers through its rigorous screening process. This ensures that clients have access to a pool of skilled and experienced professionals, which can lead to more successful projects and better work satisfaction.
2. Hourlies feature: PeoplePerHour offers the Hourlies option, where freelancers can sell pre-packaged services at a fixed price. This can be an attractive alternative to the competitive bidding system, giving freelancers the opportunity to showcase their skills and experience without having to compete on price alone.
3. Responsive customer support: PeoplePerHour is known for its dedicated and helpful customer support, which can be crucial in resolving issues, handling disputes, and ensuring a smooth workflow between freelancers and clients.
4. Streamlined user interface: The user-friendly interface of PeoplePerHour makes it easy to navigate and manage projects, leading to a better overall experience for both freelancers and clients.
5. Sliding scale fees: The sliding scale fee system in PeoplePerHour is designed to reward freelancers as they earn more on the platform. As freelancers’ earnings increase, their fees decrease, providing an incentive to continue working on the platform.
6. European market focus: PeoplePerHour’s strong presence in the European market can be an advantage for freelancers and clients who prefer working with professionals from the region or require specific knowledge of European markets.
7. Quality-control measures: PeoplePerHour’s proposal review system helps to ensure that submitted proposals meet specific quality standards, making it easier for clients to find the most suitable freelancer for their projects. This also encourages freelancers to put more effort into crafting high-quality proposals, increasing their chances of winning projects.
8. Secure payments: PeoplePerHour’s escrow system ensures that client funds are held securely until the work is completed and approved, providing a sense of security for both freelancers and clients.
9. Smaller, curated pool of freelancers: With its focus on quality, PeoplePerHour has a smaller but more curated pool of freelancers compared to Freelancer. This can make it easier for clients to find the right professional for their projects and for freelancers to stand out among the competition.

While PeoplePerHour offers several advantages over Freelancer, it’s essential to consider your specific needs, goals, and preferences when choosing a platform. Both platforms have their strengths, and the right choice depends on the factors that matter most to you as a freelancer or client.

Cons of PeoplePerHour compared to Freelancer

Despite its advantages, PeoplePerHour also has some drawbacks compared to Freelancer. Here are some cons to consider when evaluating the two platforms:

1. Smaller user base: PeoplePerHour has a smaller user base compared to Freelancer, which may result in fewer project opportunities for freelancers and a smaller pool of talent for clients to choose from.
2. Limited global reach: While PeoplePerHour has a strong presence in the European market, its global reach may be more limited compared to Freelancer. This could be a disadvantage for freelancers and clients looking to work with professionals from different regions or seeking diverse project opportunities.
3. No free bidding: Unlike Freelancer, which offers a limited number of free bids per month, PeoplePerHour requires freelancers to purchase proposal credits in order to submit proposals for client projects. This can increase the cost of finding work for freelancers, particularly those just starting on the platform.
4. Fewer features and membership options: PeoplePerHour has a more straightforward approach to its platform, with fewer features and membership options compared to Freelancer. While this can make it easier to navigate, some freelancers and clients may find the platform lacks certain tools or benefits that they require.
5. Higher fees for lower earnings: Although PeoplePerHour’s sliding scale fee system rewards freelancers as they earn more on the platform, those with lower earnings may experience higher fees compared to some other platforms, including Freelancer.
6. More competitive environment: Given PeoplePerHour’s focus on quality and its smaller pool of freelancers, competition for projects can be intense. This may make it more challenging for new or less experienced freelancers to secure projects.

When comparing PeoplePerHour and Freelancer, it’s essential to weigh the pros and cons of each platform and consider which features and benefits best align with your needs as a freelancer or client. By understanding the drawbacks and advantages of both platforms, you can make a more informed decision and choose the platform that best supports your professional goals.

Pros of Freelancer over PeoplePerHour

Freelancer offers several advantages over PeoplePerHour, making it a more suitable choice for some freelancers and clients. Here are some of the pros of Freelancer compared to PeoplePerHour:

1. Larger user base: Freelancer has a vast global user base, offering a greater number of project opportunities for freelancers and a wider pool of talent for clients to choose from.
2. Broader global reach: With its extensive global presence, Freelancer provides more opportunities for freelancers and clients to connect with professionals from different regions and access diverse project opportunities.
3. Free bidding: Freelancer allows freelancers to submit a limited number of bids for projects each month for free, unlike PeoplePerHour, which requires the purchase of proposal credits. This makes it more cost-effective for freelancers, especially those who are new to the platform.
4. More features and membership options: Freelancer offers various membership plans and additional features, such as premium project access and increased bid limits. This flexibility can be beneficial for freelancers looking to customize their experience on the platform to suit their specific needs.
5. Competitive pricing for clients: The bidding system on Freelancer encourages competition among freelancers, which can lead to more competitive pricing for clients. This can help clients find skilled professionals at lower rates compared to platforms with fixed pricing structures.
6. Milestone Payment System: Freelancer’s escrow system, called the Milestone Payment System, helps protect both clients and freelancers by ensuring that funds are held securely until the project is completed and approved by the client.
7. Skill tests and certifications: Freelancer offers skill tests and certifications that freelancers can take to showcase their expertise in specific areas, helping them stand out from the competition and increasing their chances of winning projects.
8. Greater variety of projects: With its larger user base and global reach, Freelancer offers a more diverse range of projects, spanning various industries and skill levels. This can be beneficial for freelancers looking for unique opportunities or clients with specific project requirements.
9. Active community and forums: Freelancer has an active community and forums where freelancers and clients can exchange ideas, share experiences, and seek advice. This can be helpful for networking, learning, and problem-solving.
10. Comprehensive project management tools: Freelancer offers a range of project management tools, such as workstream features, chat functionalities, and project tracking, to help clients and freelancers manage their projects efficiently and effectively.

Cons of Freelancer compared to PeoplePerHour

While Freelancer has its advantages, there are also some drawbacks when compared to PeoplePerHour. Here are some cons to consider when evaluating the two platforms:

1. Varying quality of freelancers: Due to the vast number of freelancers on the platform, the quality of work and experience levels can vary significantly. This may require clients to spend more time sifting through proposals to find the right professional for their project.
2. Competitive bidding system: Freelancer’s bidding system can sometimes result in a race-to-the-bottom situation where freelancers compete on price, potentially compromising the quality of work. This can make it challenging for freelancers to secure projects with fair compensation.
3. Complex fee structure: Freelancer’s fee structure can be more complicated than PeoplePerHour’s, with different fees for fixed-price and hourly projects, as well as membership plans. This may require additional time and effort to understand and manage costs.
4. Mixed customer support experiences: While Freelancer offers customer support, users have reported mixed experiences, with some struggling to receive timely assistance or resolve disputes effectively.
5. Learning curve: Due to its various features and membership options, Freelancer’s interface can be more complex than PeoplePerHour’s, which may take some time for new users to get accustomed to.
6. Potential for spam and low-quality proposals: With its large user base and competitive bidding system, Freelancer can sometimes attract spam and low-quality proposals. This may require additional effort from clients to filter through proposals and identify suitable freelancers for their projects.

Situations when PeoplePerHour is better than Freelancer

There are several situations when PeoplePerHour may be a better choice than Freelancer for both freelancers and clients. Some of these scenarios include:

1. Emphasis on quality: If you’re a client seeking high-quality freelancers or a freelancer looking to work with clients who prioritize quality over price, PeoplePerHour’s focus on vetting and maintaining a curated pool of professionals might be more appealing.
2. European market focus: If you’re a freelancer or client seeking opportunities or professionals within the European market, PeoplePerHour’s strong presence in this region can provide better access to relevant projects and talent.
3. Fixed-price services: If you’re a freelancer who prefers offering fixed-price services without having to participate in a bidding process, PeoplePerHour’s Hourlies feature can be a more suitable option, allowing you to showcase your skills and experience at a predetermined price.
4. Ease of use: If you value a user-friendly platform with a straightforward interface and a simpler fee structure, PeoplePerHour’s streamlined approach may be more appealing compared to Freelancer’s more complex interface and membership options.
5. Responsive customer support: If reliable and responsive customer support is a top priority, PeoplePerHour’s reputation for providing dedicated assistance may be an important factor in choosing this platform over Freelancer.
6. Less competition: If you’re a freelancer looking to stand out among a smaller pool of professionals, PeoplePerHour’s curated community can offer a more manageable level of competition compared to Freelancer’s vast user base.

Situations when Freelancer is better than PeoplePerHour

There are several situations when Freelancer may be a better choice than PeoplePerHour for both freelancers and clients. Some of these scenarios include:

1. Larger user base: If you’re a client looking for a more extensive pool of talent to choose from, or a freelancer seeking more project opportunities, Freelancer’s vast user base and global reach can provide a broader range of options.
2. Diverse project types: If you’re a freelancer or client interested in working on projects from various industries and skill levels, Freelancer’s larger user base and global presence can offer a greater variety of opportunities.
3. Free bidding: If you’re a freelancer who prefers not to purchase proposal credits, Freelancer’s limited free bidding system can be a more cost-effective option for finding work, especially for those who are new to the platform.
4. Customizable membership options: If you’re a freelancer seeking additional features or benefits, such as increased bid limits or premium project access, Freelancer’s range of membership plans can provide more flexibility and customization to suit your specific needs.
5. Skill tests and certifications: If you’re a freelancer who wants to showcase your expertise in specific areas through skill tests and certifications, Freelancer offers this feature, which can help you stand out from the competition and increase your chances of winning projects.
6. Competitive pricing for clients: If you’re a client with a tight budget, Freelancer’s competitive bidding system may help you find skilled professionals at more affordable rates compared to platforms with fixed pricing structures.
7. Active community and forums: If you’re a freelancer or client who values networking, learning, and problem-solving through interaction with an active community, Freelancer’s forums and community can provide a helpful resource.

PeoplePerHour vs Freelancer Summary

Both PeoplePerHour and Freelancer have their own distinct advantages and drawbacks, making each platform more suitable for specific situations, preferences, and needs. PeoplePerHour’s focus on quality and a curated pool of freelancers, as well as its European market emphasis and user-friendly interface, make it an ideal choice for clients seeking high-quality professionals and freelancers looking for a less competitive environment. On the other hand, Freelancer’s vast user base, diverse project opportunities, and customizable membership options cater to a wider audience, offering more flexibility for both clients and freelancers.

When deciding between PeoplePerHour and Freelancer, it’s essential to consider your unique requirements, goals, and priorities. By understanding the key differences between these platforms and assessing how they align with your specific needs, you can make an informed decision and choose the platform that best supports your professional goals and helps you succeed in the competitive freelance market.

Aspect	PeoplePerHour	Freelancer
Geographic location	UK-based platform	Australian-based platform
Quality control and freelancer quantity	Emphasizes quality by screening freelancers	Allows a vast number of freelancers to join
Project acquisition model	Uses a hybrid model for projects (bidding and fixed price)	Operates on a bidding system
Fee structure	Charges a sliding scale fee for freelancers, decreasing as they earn more	Has a complex fee structure with different fees for fixed-price and hourly projects
Market focus	Tends to cater more to the European market	Has a more extensive global reach and user base
Customer support	Known for its responsive and dedicated customer support	Mixed reviews for customer support
User interface and experience	Streamlined user interface	More complex interface due to various features and membership options
Payment security	Secure transactions with an escrow system	Provides an escrow service called the Milestone Payment System
Pros	Strong emphasis on quality, Offers the Hourlies option for fixed-price services, Known for responsive customer support	Larger user base, Broader global reach, Allows free bidding for a limited number of projects each month
Cons	Smaller user base, Limited global reach, No free bidding, Higher fees for lower earnings, More competitive environment	Varying quality of freelancers, Competitive bidding system, Complex fee structure, Mixed customer support experiences, Potential for spam and low-quality proposals
Situations where better	Emphasis on quality, European market focus, Fixed-price services, Ease of use, Responsive customer support, Less competition	Larger user base, Diverse project types, Free bidding, Customizable membership options, Competitive pricing for clients, Active community and forums