More than 100,000 people have been laid off in the tech industry this year, leaving many to explore freelance work. To address this shift, LinkedIn launched its freelance marketplace in 2021. At a time when other platforms are struggling, the Microsoft-owned company is beginning to share insights into the progress of this venture.
Growth in Users and Services Requests
LinkedIn reports that 10 million people have created pages on its Services Marketplace, reflecting a 48% increase over the past year. Requests for services—although not actual transactions—have also surged, now averaging eight requests per minute, marking a 65% year-over-year increase.
Although LinkedIn has over 1 billion registered users, only 1% currently engage with its freelance marketplace. Buyer interest is harder to gauge, as the company does not disclose sales figures, the amount of work completed, or trends within the marketplace.
How LinkedIn Stands Among Competitors
Evaluating LinkedIn’s progress is challenging due to limited data. Competitors like Fiverr and Upwork, both publicly traded, do not publish the number of freelancers on their platforms, focusing instead on buyers—estimated at around 4 million on Fiverr and 868,000 on Upwork. Freelancers on these platforms likely range from hundreds of thousands to millions.
The freelance surge followed the COVID-19 pandemic, with platforms like Fiverr and Upwork seeing stock price increases as more workers opted for flexible employment. Similarly, businesses began relying more heavily on on-demand work to meet shifting needs. However, by 2024, these platforms are rethinking their business models amid waning demand as many workers return to full-time jobs or leave freelance work altogether. This trend could evolve further with the rise of AI services, and we’ll keep you updated on such changes.
LinkedIn’s Focus on Engagement and Revenue Growth
LinkedIn’s decision to share its 10 million user milestone suggests optimism about freelancing despite modest adoption. While the company has hinted at potential future pricing models, for now, it aims to drive engagement and encourage premium subscriptions through its marketplace, notes NIX Solutions.
Freelancers can boost their profile visibility with a Premium Business subscription, known as a Service Page. LinkedIn reports a 51% increase in premium subscriptions this fiscal year, generating $1.7 billion in revenue—a small but meaningful part of the company’s total earnings of over $16 billion last fiscal year.