Arcnet’s main competitors are Upwork and Freelancer in the fiat world, and Ethlance, Coinlancer and Blocklancer in blockchain.
Upwork and Freelancer are two of the largest freelancer portals in the world with multi-billion-dollar capitalization, over 40 million combined users and a dynamically growing user base, testifying once again to the immense growth rate of the on-demand job market. These are also among the most expensive job markets, charging 5% to 20% on each transaction, and an additional percentage for credit card processing. In addition to a large set of common functions, Upwork focuses on providing easy interviewing and live chat features, and capitalizes on its comparatively recent enterprise solutions. Freelancer, on the other hand, highlights allowing applicants to place competitive bids, and is known for its extensive acquisitions through which it promptly increased its network to become the number one freelancer marketplace on globe.
Ethlance is the first freelance platform ever developed on blockchain. Based on Ethereum platform, it charges no fees, but users have to pay quite extensive gas fees, which considerably increases the cost of using the platform and largely accounts for the lack of consistent growth of the platform. Two other blockchain based freelancer markets are Coinlancer and Blocklancer, both of which are comparatively new and have been through their ICOs in December 2017 to January 2018 respectively. Both are based on Ethereum platform, but instead of gas fees these charge fixed percentage from each transaction.
While obviously facing a strong competition both on the fiat and crypto spaces, Arcnet has designed its model to capitalize on a number of competitive advantages:
- No fees: As of today, the only competitor which can boast a no-fee policy is Ethlance. Every other competitor charges users a percentage of income. As a rule, the “fiat” platforms, Upwork and Freelancer, charge larger – from 5% to 20%, while blockchain based platforms, Coinlancer and Blocklancer, charge a fixed 3%. Arcnet is a non-profit organization, and charges no fees on basic functions of the Arc network. The monetization policy of Arcnet is based on a complex mechanism of diverse sources of income, including priority packages, value added services and promotions, which offer users a large choice and allow full control over their expenses, if any. /
- Verifiable profiles. Faking and forging are as true in regard to job profiles and user accounts, as they are in relation to diplomas and certificates. An Upwork blogger once wrote that the number of fake profiles was rising and theft of portfolios and records was increasing “to the extent where literally no profile may be trusted anymore” ArcWork uses blockchain to allow every piece of information in the users’ profile to be verified by a respective employer, partner, issuer, or other relevant body.
- Multifunctionality. All competitors of Arcnet are very clearly focused on one and only function – providing a freelancer platform for on-demand jobs. Upwork and Freelancer also offer recruitment services, but those are in-built services, vs. independent businesses. In contrast, Arcnet offers a multifunctional network with three key services – job market, certification and recruitment, and with a potential to extent the list of services to cover other aspects of career development, such as training and education, enterprise solutions, and others. Among the many advantages of multifunctionality, two are key to our goals: 1. The independence and lack of interconnection among career constituents is counter-effective in that it devours some vital information that could otherwise serve to better inform career decisions and equip career building. The one-stop-shop approach where career constituents are brought together is not only considerably more convenient for users, but most importantly helps improve information, analysis, and overall career-development. 2. From the business perspective, multifunctionality diversifies sources of traction, with each functional nod sourcing users for the whole platform.
- Career and skill analysis: While competitors are focused on providing a job market where employers and freelancers find each other, Arcnet in addition highlights mechanisms for informed career decisions and professional longevity. A set of analytical tools help track the value of different skills of the user and provide tips and recommendations for career optimization and development. In a situation where the world is still lost between traditional education and unique labor-market realities, such information is both a guarantee of success in landing jobs, and a means to avoid costly career mistakes.
- Relationship building: In traditional job markets long-term relationship building between the employer and the freelancer are usually discouraged for the fear that the two will take their transactions off the marketplace to avoid associated costs. This in turn leads to the prevalence of quick job – lower quality relations over building reputation and trust. The highest quality freelancers as a rule prefer to find long-term clients directly and stay out of these marketplaces altogether. Similarly, clients usually go direct to find highest quality freelancers, while marketplaces are often retained for low-level jobs. The no-fee strategy and effective monetization model of Arcnet, combined with the exceptional feature of verifiable career records (certificates, job records, awards, etc.) create an incentive for both employers and quality service providers to build lasting cooperation within the platform and strive towards higher transparency.
- Own base and PoC: All competitors in blockchain space are based on the Ethereum platform. This bears some inherent risks, including the risk of extensive gas fees and mining issues related to the consistent increase in the price of Ether. In contrast, Arcnet has developed its own platform and is governed by PoC, which allows for much higher flexibility in network management, transaction-pricing, and other aspects of administration.
- API: Unlike its blockchain-based competitors, Arcnet provides open API for interested organizations to integrate and customize software to their needs. Ultimately, this leads to an increased reach and diversification of the overall portal and sustainable growth of its user-base.
