RST Software
Editorial Team
Magdalena Jackiewicz
Reviewed by a tech expert

Building an online services marketplace like Fiverr – demystified

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Recent years have witnessed a remarkable surge in the popularity of professional services marketplaces, such as Fiverr. These platforms, which encompass a wide range of services including tattoo design, audio editing, and tax consulting, have fundamentally transformed the way companies and service providers connect.

The advent of the COVID-19 pandemic played a pivotal role in accelerating this trend, as businesses globally sought remote and flexible solutions for service needs. Online marketplaces like Fiverr offer unparalleled access to a diverse pool of global talent, presenting a cost-effective and efficient alternative to traditional service procurement methods.

Interested in tapping into this rapidly expanding market? Our comprehensive guide details how to create a website akin to Fiverr. It addresses common challenges such as building user trust, ensuring platform security, and providing a seamless user experience from the start.

What is a services marketplace?

A services marketplace is an innovative online platform that serves as a bridge between skilled service providers and those seeking their services. It streamlines the process of finding, hiring, and paying for a wide array of services, ranging from home maintenance to professional consulting. 

This type of marketplace functions as a digital intermediary, offering tools like secure payment systems, comprehensive user ratings, and direct messaging options, which facilitate a smooth and reliable exchange. Not only does it provide convenience and efficiency for users, but it also opens up broader opportunities for service providers to expand their reach and showcase their skills. 

By bringing a diverse range of services under one digital roof, these marketplaces have revolutionized the way we access and offer services in the modern digital landscape.

Why should you create a services marketplace?

Why should you create a marketplace? The short answer is: because it is all the rage now, and the entry threshold for building a marketplace is relatively low. Since the COVID outbreak, services marketplaces have been flourishing, and VCs have noticed this trend. Let’s take a closer look at the types of platforms and the pros of owning one.

Types of services marketplaces

There are many types of services marketplaces. Some you may have encountered without even realizing that they fall into this category. Uber is a textbook example. The platform offers transportation services by private drivers to their clients. Other services marketplaces might not be as easy to recognize.


Here, businesses and individuals can access a global network of freelancers providing a wide range of services, starting at a couple of dollars. Users can find and hire professionals for tasks such as graphic design, writing, programming, legal advisory and more.

Fiverr (discussed further) is unquestionably a leader in this industry, but other platforms are also experiencing tremendous growth in popularity. Although they share many similarities with Fiverr, they have their own unique advantages, too.

  • Upwork: features a unique bidding system, allowing freelancers to bid on projects.
  • Guru: known for its professionalism and security.
  • PeoplePerHour: offers enhanced protection against scams.
  • Toptal: provides access exclusively to top-tier talent.
  • Freelancer: focuses on affordability and hourly rates.
  • Truelancer: known for its customized workflow.
  • 99designs: specializes in graphic design services.


The term “rental marketplace platform” refers to an online rental marketplace in which individuals or businesses can list properties or goods for rent. We can distinguish the following:

  • Property Rentals (e.g., Airbnb,, Zillow): These platforms allow users to list and rent properties.
  • Transportation Rentals (e.g.,, Getaround): Offer vehicle rental services.
  • Electronic Device Rentals (e.g., Grover): Specialize in renting out electronic gadgets.
  • Tool Rentals (e.g., Focus on hardware and tool rentals.


An e-learning marketplace is an online platform that facilitates connections between students and instructors who offer a wide variety of educational courses. These platforms function as digital education marketplaces, providing a vast selection of courses covering various subjects and skill levels. The courses are available to students remotely and at their own pace. Examples of popular e-learning marketplaces include Udemy, Domestika, Coursera and Skillshare.

Home services marketplaces

Using these platforms, homeowners are able to find reliable home-related service providers online. Tasks usually include cleaning, cooking, nursing, home improvement, painting, plumbing, electrical work, etc. Users can search for proper specialists, read reviews about their work, and compare prices. TaskRabbit, Handy and Thumbtack, among others, are the most prominent marketplaces for services.

Delivery platforms

These are platforms that connect businesses and individuals with on-demand delivery providers. These marketplaces streamline the process of shipping goods, food, or other items by connecting senders with local couriers or delivery drivers. 

  • General Delivery (e.g., DoorDash, Postmates): Connect users with local couriers for various delivery needs.
  • Food and Product Delivery (e.g., Uber Eats, Glovo): These platforms specialize in delivering both food and products, optimizing routes and offering real-time tracking.

Each of these marketplaces has transformed how we access and provide services, making it easier and more efficient to connect service providers with those who need them.

Advantages of building a services marketplace

Building an online services marketplace offers several strategic advantages that can make it a highly profitable and sustainable business model. These benefits stem from its operational efficiency, global scalability, and flexibility. Here's an improved overview of these advantages:

Diverse revenue streams

  • Commission-based model: like Fiverr, most service marketplaces earn by taking a percentage of each transaction. This model aligns the platform's success with that of its users, as higher transaction volumes directly translate to higher revenues.
  • Premium features and subscriptions: marketplaces can offer enhanced listings, subscription-based premium services, or additional tools for a fee, adding another layer to their revenue.
  • Advertising and partnerships: platforms can monetize through targeted advertising and strategic partnerships, leveraging their user base for additional income.

High scalability with low variable costs

  • The digital nature of service marketplaces allows them to expand rapidly without a corresponding increase in operational costs. This scalability is crucial in quickly adapting to growing numbers of users and transactions, fostering rapid growth with relatively fixed overheads.

Global market access

  • By operating online, these marketplaces can tap into a worldwide audience of both service providers and consumers. This global reach not only expands the customer base but also diversifies the services offered, catering to a wide array of needs and preferences.
  • Word-of-mouth and referrals, especially in a well-connected digital landscape, can significantly lower marketing costs while increasing the platform's visibility and credibility.

Agility and adaptability

  • Service marketplaces have the flexibility to quickly adapt their offerings to current market trends, demands, and technological advancements. This adaptability is particularly valuable in rapidly evolving sectors or niche industries, allowing platforms to stay relevant and competitive.

Elimination of inventory risks

  • Unlike traditional retail businesses, service marketplaces do not require physical inventory. This absence of inventory significantly reduces the risks associated with stock management, such as overstocking, understocking, or obsolescence.

These advantages position online service marketplaces as robust business models in the digital age, capable of leveraging technology for efficient operation, wide reach, and dynamic growth. They offer a platform for diverse services, meeting the needs of a global audience while maintaining operational efficiency and flexibility.

Challenges of starting a services marketplace

Starting a services marketplace presents a unique set of challenges that can be complex and demanding. These obstacles must be navigated carefully to establish and maintain a successful platform. Here's an enhanced perspective on these challenges:

Building and maintaining trust

Trust is the cornerstone of any marketplace, especially one based on services. Establishing this trust with both service providers and consumers is a time-intensive and often costly endeavor. It involves implementing stringent verification processes, ensuring user security, and fostering a sense of community and reliability.

Quality control of services

Maintaining a high standard of services is critical for customer retention and reputation. This requires robust mechanisms to monitor, evaluate, and ensure the quality of services offered by freelancers or service providers. Consistent quality control is vital to prevent the deterioration of service standards, which can quickly lead to customer dissatisfaction.

Competing with established players

Breaking into a market with well-established competitors like Fiverr and Thumbtack can be daunting. These platforms already have a large, loyal user base, making it challenging for new entrants to attract both service providers and consumers.

Compliance with regulations

Navigating the myriad of local laws, licenses, and regulations across different regions is a significant hurdle. Compliance is essential not just for legal operation but also for building trust with users who expect a platform to adhere to local and international standards.

User experience and payment processing

Developing a user-friendly interface is crucial for user retention. The platform should be intuitive, easy to navigate, and visually appealing.

Secure and efficient payment processing is a must. This involves not just the security of transactions but also the flexibility to handle different payment methods and currencies, especially in a global marketplace.

Technological robustness

Investing in the latest technologies is essential for scalability, handling increased traffic, and efficient bug fixing. The technology stack should be chosen carefully to ensure it can support the growth and complexity of the marketplace over time.

Balancing supply and demand

One of the initial challenges is to balance the number of service providers with the number of consumers. A surplus on either side can lead to dissatisfaction and disengagement.

These challenges require careful planning, strategic investment, and continuous improvement. Success in building a services marketplace hinges not just on overcoming these initial hurdles but also on the ability to adapt and evolve in a dynamic and competitive environment.

Best business models for a services marketplace

Optimizing the business model is crucial for the success of a services marketplace. The choice of model significantly impacts revenue streams, user engagement, and overall market positioning. Here's an enhanced overview of popular business models for services marketplaces, along with their unique characteristics and examples:

  • Commission-based model (e.g. Fiverr): The marketplace earns a commission from each transaction between service providers and clients. This model is widely adopted due to its straightforward approach and alignment with the success of platform users.
  • Subscription model (e.g. Masterclass): Users pay a recurring fee (monthly or yearly) for access to the platform’s services. This model ensures a consistent revenue stream and is often used by platforms offering high-value or niche content.
  • Freemium model (e.g. OkCupid): Basic services are offered for free, while premium features or additional content are available for a fee. This model can attract a large user base and convert a portion of them to paying customers.
  • Lead generation model (e.g. HomeAdvisor): Service providers pay for leads or inquiries provided by the marketplace. This model is common in industries where the value of a single transaction or client relationship is high.
  • Listing fee model (e.g. Etsy): Providers pay a fee to list their services on the platform. Additional charges for featured or promoted listings can also be applied. This model is effective in marketplaces with a large number of small vendors or service providers.
  • Bid-based model (e.g. Upwork): Providers bid on projects posted by clients, who then select based on various criteria like price or expertise. This model fosters competitive pricing and choice for clients.
  • Reverse auction model (e.g. 99designs): Clients post projects, and service providers compete by offering the best deal through bidding. This model is particularly effective in creative industries where different providers can offer diverse solutions.
  • Affiliate marketing model: (e.g. Partnerstack): the marketplace earns commission by directing users to external services or products related to their offerings. This model can be a significant source of revenue, especially when aligned with the platform's core services.

Each of these models has its strengths and suits different types of marketplaces based on the nature of services offered, target audience, and overall market strategy. The choice of business model should align with the marketplace's goals, value proposition, and the needs of its users.

What is Fiverr?

Fiverr is an online marketplace for services that links clients with freelancers. Users can find a diverse selection of services there, such as writing, graphic design, business consulting, animating, programming, marketing, and many others.

What are the advantages of Fiverr for service providers? They can offer a wide range of services that can be delivered online, ranging from children’s book illustration to programming and business consulting. Fiverr provides them with an opportunity to showcase their talent and reach clients globally, breaking down geographical barriers. In addition, it facilitates effective communication with clients and offers secure payment options.

For clients, Fiverr provides, first and foremost, cost-effective access to a diverse pool of global talent. They can reach skilled professionals worldwide from any industry and hire them for a certain job without incurring the cost of cooperating with companies or hiring in-house specialists. They can find freelancers quickly based on their portfolios, ratings, and references. Transparent pricing and secure payments are additional pluses.

Fiverr’s business model

Fiverr’s business model is commission based. For each completed project, the marketplace charges freelancers a service fee, which is a percentage of the transaction amount. Fiverr generates additional revenue streams, offering premium features and subscription plans.

Fiverr Pro grants access to top freelancers and offers professional tools for various projects. Fiverr Certified allows for a branded marketplace of certified experts. Fiverr Enterprise is a subscription-based SaaS tool to manage freelancer collaboration, onboarding, payments, compliance, etc.

What features does a site like Fiverr need?

Fiverr is designed to foster seamless cooperation between freelancers and clients, offering a range of features to enhance user experience:

  • User profiles: freelancers create detailed profiles, showcasing their expertise, portfolio, project history, ratings, promotional materials, and FAQs.
  • Gig listings: freelancers post “gigs” to describe their services, pricing, and delivery times. The 'Promoted Gigs' feature boosts gig visibility through paid advertising.
  • Service requests: buyers can post specific service requests, including details like project descriptions, timeframes, and budget.
  • Search and filters: a dynamic search function allows users to find services easily, with filters for budget, delivery time, and seller level.
  • Direct messaging: an integrated messaging system enables direct communication between buyers and sellers about project specifics.
  • Ordering system: buyers place orders based on gig descriptions, with a structured process for transactions, which are confined to the platform.
  • Ratings and reviews: after project completion, both parties can leave feedback, fostering trust and quality assurance.
  • Referral program: users earn Fiverr credits by referring new clients through email, personalization, or social media.
  • Fiverr anywhere: sellers can embed their gigs on external websites or social media, extending their market reach.
  • Fiverr learn: this educational feature offers courses and content to help freelancers enhance their skills.
  • Fiverr studios: aimed at facilitating collaboration on larger projects, this platform connects freelancers for joint ventures.

Each of these features is crafted to streamline the freelance process, from discovery and negotiation to project completion and review, ensuring a robust and user-friendly experience for both freelancers and clients.

Building a services marketplace like Fiverr in 6 stages

Building a services marketplace like Fiverr involves a strategic and structured approach. This process can be divided into six key stages, each focusing on different aspects of development and market positioning. Here’s an improved guide to building a services marketplace in these stages:

Step 1: Identify a Niche

Focusing on a specific niche helps in addressing targeted problems and serving a distinct audience. This specialization fosters deeper user engagement and sets your platform apart from broader marketplaces. Conduct market research to identify unmet needs or gaps in existing services. This could be based on industry, geography, or a unique approach to service delivery.

Step 2: Select a Business Model

Consider various business models such as commission-based, subscription, freemium, or a hybrid approach. A commission model often offers a quick start, aligning the platform's revenue with successful transactions.

Step 3: Develop a Proof of Concept (PoC)

Validate the feasibility of your concept technically and operationally. Utilize low-code or no-code platforms to create a basic prototype. This step helps in minimizing risk and investment during the initial phase.

Step 4: Create a Minimum Viable Product (MVP)

Launch a product with essential features to meet early user needs and gather feedback. Develop the MVP based on insights from the PoC. Focus on core functionalities that address the primary needs of your target audience.

Step 5: Achieve Product-Market Fit

Ensuring that the marketplace meets the demands of the market and has a sustainable user base. Initiate with a strong base of service providers. Promote your platform to attract clients. Continuously gather and analyze feedback from both providers and clients. Be prepared to adapt and evolve, possibly moving towards custom software solutions if needed.

Step 6: Scale the Product

Expand and enhance the platform to accommodate growing traffic and user demands. Scalability should be a core consideration. Depending on the marketplace's success and limitations of the initial build, developing a custom, scalable platform may be necessary.

In each stage, it’s crucial to focus on user experience, market trends, and technological advancements. Regularly collecting and acting on feedback is vital for continuous improvement and growth. Scalability, adaptability, and a strong understanding of your target market are key to creating a successful services marketplace.

Get started with your online service marketplace today

TIn a landscape where the service market is flourishing more than ever, the opportunity to establish a successful services marketplace is immense. Embarking on this journey can be a game-changer for your business, and RST is here to ensure you make the most of this thriving industry.

We've successfully launched numerous marketplaces, demonstrating our capability to navigate and excel in this dynamic industry. Understanding that each vision is unique, we offer solutions customized to your specific requirements. Whether it's leveraging ready-made platforms or developing custom software, we adapt to your needs.

Our commitment to using the latest technologies means your marketplace will be built on a foundation of innovation and robustness. From initial concept to launch and beyond, our team is dedicated to transforming your vision into a reality, with continuous support and guidance.

Your journey to creating a successful services marketplace should be as unique and visionary as your business idea. Reach out to RST, and let's embark on this exciting venture together. We're more than ready to help you carve your niche in this booming industry. Just reach out to us.

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