I have been on multiple freelancing platforms and based on my personal experience, freelancers from developing economies are charging less compared to their counterparts form developed economies. While bidding on jobs, freelancers are from developing countries are also bidding with a lower amount. Selling for lower fees and bidding for lesser amount make people believe that there is a global disparity in freelance earnings.
Contrary to the belief that freelancers from developing countries earn less, I believe freelancers from low tier countries are earning significantly well on platforms like Fiverr and Upwork. This phenomenon is partly due to the purchasing power parity, where the value of money varies across countries. Freelancers from lower-tier countries may charge lower rates due to this economic difference, allowing them to leverage the value of USD. For instance, when someone in the US earns $5, it would not mean much but for someone in India, $5 would be something. With a solid reputation, freelancers, regardless of their location, can command competitive rates similar to those from developed countries.
Contrary to the belief that freelancers from developing countries earn less, I believe freelancers from low tier countries are earning significantly well on platforms like Fiverr and Upwork. This phenomenon is partly due to the purchasing power parity, where the value of money varies across countries. Freelancers from lower-tier countries may charge lower rates due to this economic difference, allowing them to leverage the value of USD. For instance, when someone in the US earns $5, it would not mean much but for someone in India, $5 would be something. With a solid reputation, freelancers, regardless of their location, can command competitive rates similar to those from developed countries.