Freelancer vs agency vs marketplace
A freelancer suits a focused project and direct contact, an agency suits larger work that needs a team and a managed process, and a marketplace suits finding several candidates and comparing them in one place. The right choice depends on your scope, budget, time and how much you want to manage yourself.
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None of these routes is better in every case. This guide describes how each one works in general, so you can match the route to your project. It does not rate any specific company.
The three routes at a glance
| Topic | Freelancer directly | Agency | Marketplace |
|---|---|---|---|
| How you find them | Network, referrals, own search | Their sales team, referrals, own search | Post a project or search, then compare candidates |
| Who does the work | One person | A team with several roles | Usually one independent person or a small team |
| Management | You manage the relationship | The agency often provides a project manager | You manage, with platform tools to help |
| Typical overhead | Lower | Higher, because of team and management | Varies, platform fees may apply |
| Flexibility | High, easy to change plans | Often formal change processes | High, many options to choose from |
| Risk if the person is unavailable | Higher, single point of failure | Lower, others can step in | Depends on the individual you pick |
| Payment protection | What you agree yourself | Contract terms | Often provided by the platform, check the rules |
How you find them
- Freelancer directly
- Network, referrals, own search
- Agency
- Their sales team, referrals, own search
- Marketplace
- Post a project or search, then compare candidates
Who does the work
- Freelancer directly
- One person
- Agency
- A team with several roles
- Marketplace
- Usually one independent person or a small team
Management
- Freelancer directly
- You manage the relationship
- Agency
- The agency often provides a project manager
- Marketplace
- You manage, with platform tools to help
Typical overhead
- Freelancer directly
- Lower
- Agency
- Higher, because of team and management
- Marketplace
- Varies, platform fees may apply
Flexibility
- Freelancer directly
- High, easy to change plans
- Agency
- Often formal change processes
- Marketplace
- High, many options to choose from
Risk if the person is unavailable
- Freelancer directly
- Higher, single point of failure
- Agency
- Lower, others can step in
- Marketplace
- Depends on the individual you pick
Payment protection
- Freelancer directly
- What you agree yourself
- Agency
- Contract terms
- Marketplace
- Often provided by the platform, check the rules
These are general patterns. Individual freelancers, agencies and platforms differ, so always read the terms.
When a freelancer fits
- The scope is clear and not huge, such as one project, one feature set or one fix.
- You want direct contact with the person writing the code.
- You are comfortable writing a brief and reviewing work yourself.
The main risk is dependence on one person. Ask how they handle illness, holidays and handover, and make sure you receive the code and accounts.
When an agency fits
- The project needs design, development, testing and project management together.
- You prefer one contract and one contact for a larger effort.
- You value process and documentation, and your budget supports the overhead.
Ask who will actually work on your project, and how changes to scope are priced.
When a marketplace fits
- You do not yet know who to hire and want several proposals to compare.
- You want payment handling and project tools built in.
- Your project is well defined enough to describe in a brief.
Marketplaces differ in how they vet people, how they protect payments and what they charge. Read how each one works before posting.
How ErdiBuilds fits in
ErdiBuilds is an open marketplace where clients post app, SaaS, website and game projects, see which independent developers from the EU fit best based on what they have already built, and pay per milestone. You post a project and receive proposals with a match score and plain reasons. Each milestone is funded before work starts and runs 1, 2, 3, 4, 6 or 8 weeks. Verified means an ErdiBuilds admin has reviewed the developer and approved the profile by hand. Developers are independent professionals, not our employees. See how it works and, for specific platforms, the comparison pages.
A simple way to decide
- Write your scope. If you cannot, start with a project brief.
- Decide how much management you want to do yourself.
- Set a budget range. Compare it with how each route typically works.
- Ask two or three candidates from your chosen route the same questions.
- Start with a small first step before committing to everything.
Frequently asked questions
Which route is the cheapest?
It depends on scope and the people involved. Overhead tends to be lower with individuals and higher with managed teams, but compare actual proposals rather than assumptions.
Link to this answerWhich route is the safest?
Safety comes from clear scope, staged payments, written ownership and verified work history, whichever route you pick. See how to hire a developer safely.
Link to this answerCan I switch route later?
Yes, if you own the code and have access to all accounts. Keep documentation current and use a repository you control.
Link to this answerHow do I know if I need a team?
If your project needs design, several platforms and ongoing management at once, a team can help. A focused first version often needs only one skilled person.
Link to this answerWhat about small fixes?
A single freelancer is often the quickest fit. See fix bugs.
Link to this answerRelated pages
- How to Hire an App Developer, Step by StepA clear process for hiring an app developer: define the job, choose where to look, compare proposals, check fit and start with a small milestone.
- How to Hire a Developer SafelyHire a developer with confidence: pay per milestone, fund before work starts, keep payments on one platform, and get access to your code as you go.
- Fixed Price vs Hourly for Software ProjectsFixed price suits clear scopes, hourly suits open ones. See how each model handles risk, change and control, and when milestones give you the best of both.
- Upwork alternatives for app and SaaS buildsUpwork alternatives for app, SaaS, website and game projects: ErdiBuilds, Fiverr, Toptal, Malt, Freelancer.com and Contra, with sourced facts.
- How it worksFrom idea to finished project, step by step.