martinz1995
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- Jan 12, 2022
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Hi so I am building a service based platform business similar to Uber Eats, Lyft, Upwork etc.
From what i've seen there are 2 main models
1. Percentage e.g. Upwork charges a small percentage 5-10% of clients booked. This can mean that profit varies, it can be a large profit if it is a large booking, or a small profit. However it is much safer for freelancers, as they only pay if they make a booking. However the issue is that many freelancers on Upwork, take the conversation OFF Upwork, meaning that essentially Upwork isn't able to capture that percentage of the deal.
2. Pay per lead - this is a model like Bark.com. Freelancers choose to pay for credit packages which allows access to contact information of leads e.g. name, email, phone number. So for example if they pay $100, they have have 100 credits and to contact each lead it'll cost say for example 5 credits. The benefit to this is that freelancers can take the conversation OFF the platform because they have to pay to even access the lead information. However, it is riskier for freelancers because there is no guarantee the lead will become a client.
My question is - which model is better to choose?
From what i've seen there are 2 main models
1. Percentage e.g. Upwork charges a small percentage 5-10% of clients booked. This can mean that profit varies, it can be a large profit if it is a large booking, or a small profit. However it is much safer for freelancers, as they only pay if they make a booking. However the issue is that many freelancers on Upwork, take the conversation OFF Upwork, meaning that essentially Upwork isn't able to capture that percentage of the deal.
2. Pay per lead - this is a model like Bark.com. Freelancers choose to pay for credit packages which allows access to contact information of leads e.g. name, email, phone number. So for example if they pay $100, they have have 100 credits and to contact each lead it'll cost say for example 5 credits. The benefit to this is that freelancers can take the conversation OFF the platform because they have to pay to even access the lead information. However, it is riskier for freelancers because there is no guarantee the lead will become a client.
My question is - which model is better to choose?
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