If I compare 3rd quarter 2016 to 2019 I obtain the following results.
- cash receipts 3rd trimester of 2016 12,73M AUD
- cash receipts 3rd trimester of 2019 14,30M AUD
But we need to take currency fluctuation in consideration
- 3rd trimester of 2016 USD - AUD 1,33
- 3rd semester of 2019 USD - AUD 1,44
1,33 / 1,44 = 0,92 ( 1 - 0,92) = 0,08 = 8%
8% on average in favor of AUD currency exchange during third trimester 2019.
It is fair to say that the cash receipts of the 3rd trimester of 2016 would be 8% more if we take into consideration today's rate exchange.
This being said cash receipts today would be 12.730.000 AUD / 1,33 X 1,44 = 13.782.857 AUD
14.300.000 AUD 3tr 2019 - 13.782.857 = 517.143 AUD improvement in the last 11 trimesters or 0n average 47.013 AUD or on average 0,34% growth per trimester.
1,2 % yearly growth based on the calculations between the 3rd quarter 2016 / 2019.
I believe we can attribute the growth by changing the fee model and the expenses that are charged on the users' buyers - sellers.
Real growth is lacking at this level. The fee structure is extremely high if you calculate that the total gross payment volume for the 3rd quarter 2019 is 45.700.000 AUD and fees for the users come at 14.300.000 AUD
The fees that FREELANCER collects in the 3rd quarter of 2019 represent a stunning 31% of what the poor customers and freelancers have to absorb by a greedy FREELANCER.
I have no problem with a high fee structure but remember that many competitors are eager to compete for a lower cost. Also, it is in my opinion not that difficult to understand that clients will find backdoor solutions to avoid to pay FREELANCER the exuberant fees.
At this stage, FREELANCER should be a very competitive business that has a fee structure not exceeding 10% of gross payment volume.
Why?
Well, this would discourage competitors to compete in the same market and keep a higher level of customers/freelancers to the platform.
In conclusion, the fees of FREELANCER are 2/3 overpriced to become a market leader and gross volume should be 3 times higher for the 3RD quarter of 2019.
The time has stood still for once upon a time the number 1# of freelance internet jobs. Today they are way behind UPWORK and FIVERR. It will be difficult for FREELANCER to reverse the trend. In the USA they have more capital and better human resources to outperform FREELANCER in all angles of the business. FREELANCER has also expanded its line of business offering freelance jobs in an endless number of sectors. Most likely to compensate for the loss of business in the core activities where they were praised for once upon a time.
The other problem they face is the automatization / AI of the internet. Smaller projects are more and more ready to be used by nonskilled workers. This avoids paying a freelancer to get the job done. Platforms such as Shopify, Wix, Envato, logo designer... offer a wide range of products and services to bypass FREELANCER. Also, take into consideration that small business owners work with a limited number of platforms such as instagram, whatsapp, Fb, Google were in the past businesses did extra efforts to build stand-alone applications.
The ESCROW misery doesn't tell anything interesting other then catapult the GROSS PAYMENT for the Freelancer Group to almost 600 M for the first 9 months of 2019. But if tomorrow a Saudi Prince would want to buy a collectors car of 50 M AUD to a seller in EU then the FREELANCER GROUP G.P for the first 9Months would increase 8.3% but would FREELANCERS receipt be increased with 1%? The answer is NO!
We can calculate it in many ways but the numbers are poor and dangerously optimized to give it the best polish possible.
Maybe all FREELANCERS profits and up in the GOOGLES advertisement program. In that case, better buy google. They seem to be on top of the pyramid.
