So much of what we write about in terms of SaaS software is targeted at local businesses with employees. And we are often asked about the TAM for those tools. We usually exclude freelancers and very small businesses from those estimates. After all, they’re unlikely to spend more than $500 per month on software.
So we read with interest that the freelancer marketplace Fiverr International — an NYSE-listed company — announced that it’s rolling out a suite of back-office tools to support that large and growing freelancer market.
Fiverr Workspace is positioned as a comprehensive suite for freelancers. Fiverr already offers a marketplace for small businesses. And many SMBs and freelancers go there to find tools to help run their businesses.
“While many members of our community run their business solely using the Fiverr marketplace, we know that this is not the case for everyone and that some people have freelance businesses that they run independently,” said Yonat Burlin, Fiverr’s director of the Workspace. “Now, with Fiverr Workspace, they’ll be able to connect the two and manage all of their revenue streams through one easy-to-use platform.”
Over 4 Million Served
We haven’t covered Fiverr very closely over the years. So we picked up a few basics from its website. Launched in 2010, Fiverr’s platform is about connecting businesses of all sizes with skilled freelancers.
The company offers digital services in some 500 categories, across nine verticals. For example, graphic design, digital marketing, programming, video, and animation. Fiverr says 4 million businesses have bought freelance services in more than 160 countries through June 2021.
Workspace will include solutions like new payment options for retainer projects — with automated invoice generation at specified intervals. Users can customize the payment tool to reflect each user’s brand. Additional features include automated tax preparation that takes a deeper dive than previously available on the platform, as well as access to financial consultants.
Here’s the thing. Just last week Fiverr shelled out $95 million to buy Israeli-based online freelancers company Stoke.
Stoke is a 30-person company that lets companies build a directory of online and offline talent, track their budgets and work-related milestones, while also offering guidance on tax, legal, and workforce classification compliance.
“The Stoke acquisition made complete sense on multiple levels,” said Fiverr Cofounder and CEO Micha Kaufman.
“It supports Fiverr’s move upmarket and allows us to engage with much larger customers. It allows Fiverr to offer software solutions to businesses that already have freelancers that they work with and now can manage them easily. And it allows Fiverr to pair its marketplace talent with large customers that need access to freelancers they still do not yet have a relationship with.”
Priced to Move
Something else. The company is now integrating AND.CO into the Fiverr marketplace with Workspace and will make their business management capabilities more powerful, more flexible, and more user-friendly while maintaining the same experience current customers have come to know and love.
Fiverr Workspace costs $24 per month for an unlimited version and $216 for an annual subscription. This pricing will certainly encourage adoption. Other similar-sounding solutions retail for a lot more money. We’ll keep an eye on Fiverr and see how the company develops and performs in the coming months.