LinkedIn reports that 10 million people have registered as freelancers in its services marketplace.

This year, over 100,000 people have lost their jobs in the tech industry, and whether by choice or circumstance, at least some of them are not returning to full-time work. To capitalize on this trend, LinkedIn launched a marketplace for freelancers in 2021. At a time when other platforms of this kind are facing challenges, the Microsoft-owned company has shared a significant update on its performance.

To date, around 10 million users have created profiles in the LinkedIn Services Marketplace, representing a 48% increase over the last year. Additionally, service requests are on the rise, averaging eight per minute and showing a 65% increase compared to the previous year. To put this data in context, LinkedIn currently has over 1 billion registered users, meaning that the freelancer marketplace has captured the interest of only 1% of its user base. However, information about buyer interest is not as clear; the platform has not revealed how many services are being sold or details about pricing or seller trends.

Comparing LinkedIn's performance with that of its competitors is complicated. For example, Fiverr and Upwork, two major players in the market, do not officially disclose how many sellers they have on their platforms, focusing instead on the number of buyers, which amounts to approximately 4 million and 868,000, respectively. Estimates of the number of freelancers on these platforms vary widely and can range from hundreds of thousands to millions.

LinkedIn's initial goal for its services marketplace was to build a new business and service for its users, leveraging the new work environment that emerged after the COVID-19 pandemic. During that time, shares of Fiverr and Upwork were on the rise as many knowledge workers opted for more flexible work arrangements, and companies were shifting towards "on-demand" models to meet their needs.

However, as we move towards 2024, freelancing markets are adjusting their business models after observing a decline in demand. They are increasing their "commission rates" to maintain their revenue, while more people are choosing stable jobs or moving away from these platforms. Nevertheless, there is a possibility that this could change if the use of artificial intelligence services develops in the coming years.

The fact that LinkedIn has reached 10 million profiles and is publicly communicating this is significant. It indicates that the company still sees an opportunity in the freelancing world, despite the modest progress made so far. Although the company has plans to establish more formal pricing in the future, it is currently using its freelancer platform to encourage engagement and promote its premium subscriptions. Users who pay for a Premium Business subscription can increase the visibility of their freelancer profile (known as the Services Page on LinkedIn). LinkedIn has indicated that premium subscriptions have grown by 51% this fiscal year, representing $1.7 billion in revenue. However, this figure remains a small part of the overall picture, given that the company generated over $16 billion in the last fiscal year.