What can you really learn about the gig economy in two weeks? This article, a requirement of MKGT 5523, is the result of lessons learned through designing a gig service through Fiverr.com; there are three main points:
One - The gig economy exists:
You may be asking the question – is this guy dense? Well, probably, but it is surprising for many to find that the gig economy exists in the scale it does. And not only does it exist, but according to some, it is completely changing the world of employment, or really unemployment, as we know it. Micha Kaufman, co-founder and CEO of Fiverr.com says that “it could be the force that saves the American worker.” (Kaufman, n.d.)
Kaufman is hardly alone. The lackluster growth in the US economy has led many others to say that gigs are the future. In fact, a recent case study on alternative work arrangements, co-authored by Harvard and Princeton Professors, concludes, “that the share of workers in alternative work arrangements in their main job increased by 5.7 percentage points (or by over 50 percent) from 2005 to 2015. A striking implication of these estimates is that all of the net employment growth in the U.S. economy from 2005 to 2015 appears to have occurred in alternative work arrangements.” (Katz & Krueger, 2016)
So what exactly is the gig economy? According to the Cambridge Dictionary, a gig is a job that only lasts for a short period of time. It could be writing a freelance article, designing a company logo, doing a voiceover, or even providing marriage advice. The gig economy is an economy filled with independent service providers working on short term gigs without a direct traditional employer/employee relationship. “You could be a handyman one day, a cleaner the next or simply picking up groceries. It's immensely attractive for the fledgling entrepreneur to make one of these businesses too--you're able to create jobs out of thin air to deliver whatever service you want to deliver with the touch of a button.”(Zitron, 2016) Micha Kaufman’s Fiverr.com is one of the fastest growing platforms for buyers and sellers of gigs to meet and conduct their transactions. According to Fiverr.com, there have been over 4.2million gigs since 2010 and almost one billion email exchanges in 2015 alone.
Two - Your mom doesn’t work here:
The gig economy is a challenging place. Individuals who are not disciplined self-starters will struggle to make it. “Unlike the corporate world, in the gig economy there’s no one imposing goals. Or prodding you to make them bigger and more audacious. Or tracking your progress. Or infusing your days with urgency to achieve your goals. It’s on you; so if you’re not particularly into big urgent goals, success will be hard to come by!” (Murphy, 2016) The easiest thing about the online gig economy is how anyone can do it. If you can follow instructions, you can put a job on Fiverr.com. As such, it is so easy, it’s actually hard. Gig sellers often find themselves completely unprepared. There are thousands of people posting gigs thinking they will stand out only to dissolve into the abyss of unnoticed gigs. Others, who will offer the same service, but with better design, marketing and appeal, will make a small fortune. For those that stand out, they will find a new passion in being self-employed; others will turn back to the security of a corporate job. As Jonathan Ortmans of the Kaufman foundation says, “Best of all, being their own boss exposes individuals to the essence of entrepreneurship and warms them to the notion of calculated risk-taking, which they may then choose to fully embrace, take as a skill to an established business, or for many avoid at all costs.” (Ortmans, 2016)
If you are going to be successful on Fiverr.com, or really in any business, no one is going to do it for you. You will have to drag your own rear out of bed and work hard to make sells. Focus on customer service, take pride in what you do, and pay attention to the details.
Three - Marketing is Key:
Marketing is the key to selling in a gig economy; even more so on Fiverr.com. In an online marketplace of millions of people, a seller cannot focus on everyone. Demographics certainly matter. If, for instance, a seller specializes in helping North African immigrants apply for a United States Visa then a gig should probably be written in Arabic as well as English. He must identify the right segments and target his marketing efforts accordingly; “identifying and satisfying the right market segments is often the key to marketing success.” (Kotler & Keller, 2012)
Strategy is crucial. Fiverr.com provides options to expand a sellers offering through three packages. Each package offers a few more services by upgrading the buyer and producing more revenue on each sell. Part of the strategy is knowing the buyer. What makes the offer valuable to the buyer? Why would they pay someone else for help? In the aforementioned example the seller would know that the buyer probably needs help securing the right documents and might need specific instructions. Chances are the buyer is rushed and offering a premium service, with all documents and step-by-step instructions all in 48 hours would be an upgrade a buyer would value.
The gig should be uncluttered, detailed, well designed and reasonably priced. The details matter! There are thousands in the United States alone who could provide the same service. In other words, what will make the seller stand out. Once the gig is correctly positioned, a seller should use every marketing channel reasonably at his disposal. This would certainly include social media, blogs, and websites. Paying for Google traffic could also prove vital.
In conclusion, the gig economy is more than Fiverr.com. It is a revolution. The ability to connect buyers and sellers across the globe, on an individual basis, should not be ignored. In fact, it should be embraced
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