With over 100,000 layoffs in the tech industry alone this year, many professionals are shifting away from traditional full-time work—whether by choice or circumstance. In response to this changing landscape, LinkedIn launched its Services Marketplace in 2021, aiming to capture the growing trend of freelancing. Now, at a time when other freelancer platforms are recalibrating their business strategies, the Microsoft-owned company has revealed its first major update on this initiative’s progress.
A Milestone in Freelancing: 10 Million Strong
LinkedIn announced that 10 million freelancers have set up Service Pages on its marketplace, a sharp 48% increase over the past year. While the platform isn’t yet sharing specifics about completed commercial transactions, the volume of service requests—clients expressing interest in hiring freelancers—paints a positive picture. Service requests are surging, averaging eight per minute and showing a 65% year-over-year growth.
While this is a promising development, it’s essential to frame this achievement within LinkedIn’s broader ecosystem. With over 1 billion users on the platform, the Services Marketplace still only represents about 1% of LinkedIn’s total user base. It’s a niche offering compared to the platform’s vast professional network, but a significant one, especially given the economic shifts pushing more people toward freelance work.
How Does LinkedIn Stack Up?
Comparing LinkedIn’s freelancing marketplace to other well-established platforms like Fiverr and Upwork is no simple task. Neither of these companies provides exact figures on the number of sellers using their platforms, focusing instead on the buyer side. Fiverr and Upwork boast around 4 million and 868,000 buyers, respectively. The actual number of freelancers on these platforms is estimated to be in the hundreds of thousands to several million, meaning LinkedIn’s 10 million freelancers could be a substantial addition to the global gig economy.
What sets LinkedIn apart is the opportunity to tap into its pre-existing user base of professionals. Many freelancers already use LinkedIn for networking, personal branding, and lead generation. By offering a formal marketplace for services, LinkedIn is further integrating freelancing into its professional ecosystem.
A Post-Pandemic Shift in Freelancing
LinkedIn’s push into the freelancing world comes on the heels of a larger trend that began in the wake of the COVID-19 pandemic. As businesses adjusted to remote work and on-demand talent models, platforms like Fiverr and Upwork saw unprecedented growth. Stock prices soared as companies increasingly sought out flexible, freelance talent to meet their needs.
However, fast forward to 2024, and we see a different landscape. Many of these freelancer platforms are feeling the pressure of declining demand, as professionals return to more stable, full-time roles and businesses scale back on hiring freelancers. To combat this, platforms have started adjusting their pricing models—raising “take rates” (the platform’s cut from each transaction) to maintain revenue levels.
LinkedIn’s decision to publicize its 10 million milestone at this juncture is significant. It shows that despite broader market challenges, the company sees freelancing as a key growth opportunity—a sentiment shared by many experts, particularly as AI services continue to gain traction and reshape the workforce in the coming years.
Monetization and Future Growth
Although LinkedIn has yet to roll out formal pricing structures for freelancers on its Services Marketplace, the platform is focusing on growing engagement and leveraging this freelancer network to boost its Premium subscriptions. Currently, users who opt for the Premium Business tier can enhance their exposure by showcasing their freelance profiles—referred to as Service Pages—more prominently. This approach seems to be working. LinkedIn reports that premium subscriptions are up 51% this fiscal year, generating $1.7 billion in revenue.
It’s clear that while the Services Marketplace is still a relatively small component of LinkedIn’s overall business, it’s playing an important role in the company’s strategy to enhance user engagement and drive subscription revenue. To put it in perspective, LinkedIn’s total revenue for the last fiscal year was over $16 billion, meaning premium subscriptions represent just over 10% of its business.
The Road Ahead for LinkedIn’s Freelancer Marketplace
As LinkedIn continues to build out its Services Marketplace, several opportunities—and challenges—lie ahead. With plans to eventually incorporate more structured pricing models, LinkedIn is positioning itself to compete more directly with established freelance platforms. However, the unique advantage LinkedIn brings to the table is its integrated professional ecosystem. For freelancers, being able to manage their brand, network, and find new clients all within a single platform is a compelling proposition.
Moreover, as AI technology becomes more prominent, LinkedIn’s Marketplace could evolve into a hub for AI-driven freelance services, offering businesses access to cutting-edge talent. In many ways, LinkedIn is just scratching the surface of what its Services Marketplace can achieve, particularly in a rapidly shifting digital economy.
In a world where the lines between full-time work and freelancing continue to blur, LinkedIn’s 10 million freelancers represent not just a milestone for the company, but a broader indication of how the nature of work is evolving. For freelancers, businesses, and LinkedIn itself, the future of freelancing holds immense potential.
