In the ever-evolving world of work, LinkedIn’s Services Marketplace has become a quiet yet powerful player. Launched in 2021, the marketplace aims to capture a growing segment of the workforce—freelancers and independent contractors—particularly as traditional full-time jobs become less of a default choice for many. Fast forward to 2024, and LinkedIn has hit a new milestone: over 10 million people have signed up as freelancers on its platform.
This figure marks a 48% increase in freelance sign-ups over the past year alone. According to LinkedIn, service requests—though not necessarily finalized gigs—are also on the rise, averaging eight per minute, up 65% year-over-year. However, while these numbers may sound impressive, they come with a few caveats.
Behind the Numbers: LinkedIn’s Freelance Growth in Context
With LinkedIn’s total user base exceeding 1 billion, the freelance marketplace accounts for just 1% of all users. More tellingly, LinkedIn hasn’t disclosed key metrics that would provide deeper insight, such as how many freelance gigs have actually been completed or the average earnings for freelancers. This absence of data leaves some ambiguity around how effective the platform truly is at connecting freelancers with paid opportunities.
For comparison, LinkedIn’s major competitors in the freelance space—Fiverr and Upwork—also hold their cards close when it comes to sharing the number of sellers. Instead, they highlight buyer numbers, with Fiverr hosting around 4 million buyers and Upwork approximately 868,000. Freelancers on these platforms are estimated to number anywhere between hundreds of thousands to millions, making it tricky to assess LinkedIn’s performance relative to these industry giants.
A Pandemic-Era Bet
LinkedIn’s foray into freelancing came as many tech workers re-evaluated their careers in the wake of mass layoffs and shifting job landscapes. Since the start of 2024, more than 100,000 employees have been laid off in the tech industry alone, with many turning to freelancing either by necessity or by choice. LinkedIn’s Services Marketplace provided an outlet for these professionals, but it remains a modest part of its overall business strategy.
In the early days of the pandemic, freelance platforms like Fiverr and Upwork enjoyed significant tailwinds as businesses leaned into on-demand models, giving freelancers plenty of opportunities. However, by 2024, these platforms, like LinkedIn’s, have seen a drop in demand. In response, companies have recalibrated their business models and increased “take rates” to keep revenues steady as more workers return to full-time employment.
LinkedIn’s Next Move: Building Engagement and Premium Subscriptions
Despite the shifting tides in the freelance economy, LinkedIn appears committed to the marketplace. Its announcement of 10 million freelancers signals a long-term play, even as competitors face headwinds. One strategy to maintain growth has been to tie freelancing opportunities with its premium business tier, allowing subscribers to boost their exposure and increase the likelihood of securing gigs. LinkedIn reports a 51% increase in premium business subscriptions this fiscal year, contributing $1.7 billion to its total revenue, which stands at $16 billion.
While LinkedIn continues to build out its freelance platform, it remains to be seen how the company will evolve this space. It has hinted at plans to incorporate more formal pricing structures, which could make the platform more attractive to serious freelancers and businesses alike.
As freelancing continues to play an integral role in shaping the modern workforce, LinkedIn’s bet on its Services Marketplace could pay off in the long run—especially as more knowledge workers seek flexible work arrangements.
