Direct Contracts now live for all freelancers

[lenaellis]

To help grow and support your freelance business on and off Upwork, we are releasing Direct Contracts to all Upwork freelancers today. With this new release, we have also expanded the functionality to now include multiple milestones. 

Direct Contracts allows you to enter into fixed-price contracts with non-Upwork clients, offering access to Upwork's safety and security features with greater flexibility for your business. Freelancers can access their Direct Contracts by clicking on the new paper airplane icon next to notifications or directly here.

Here’s how it works: 

On the Direct Contracts page, freelancers will see the option to start a new Direct Contract and a list of all existing Direct Contracts along with the status of that contract.

The steps to start a new Direct Contract are very simple:

1. Enter your client’s details

2. Add either a single amount or create milestones with each amount

3. Review and send the contract

4. An email is sent to your client to begin

Your client will receive an email notifying them of your detailed proposal, along with some guidance on how the product works. 

Just like your other fixed-price contracts on Upwork, your client deposits project funds in escrow before the contract starts. You will see the status of the milestone listed below each one, so you will know when to begin working. When you’ve completed the contract or each milestone, you’ll request payment from your client. And with Direct Contracts, once they’ve accepted your request, the funds are released to you immediately, with no security period.

As a freelancer, you’ll pay a processing fee of 3.4% of the total contract amount, but you won’t pay any freelancer service fees to Upwork. It’s easy for your clients because they won’t have to create an Upwork account.  And with payment protection and dispute assistance, you can work confidently with your clients who are not on Upwork. 

Let us know if you have any questions.

[researchediting]

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Petra R wrote:

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The money earned through [Direct Contracts] is also not included in your total. Nor are the jobs. For direct contracts, Upwork merely acts as a payment processer.

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Upwork has here confirmed that Direct Contract transactions appear in the transaction history. I do not understand the logic of excluding them from earnings totals (or why Upwork's "merely" acting as a payment processor has any bearing on that question).

[sawsandaas19]

Hello,

This is my first hourly contract established via Upwork direct contracts. I logged in the hours last week but couldn't see them in my "work in progress" I thought because it is a direct contract. Today I checked my reports and I couldn't find it billed so I tried to request payment but couldn't find this button even!!

Thanks in advance
Sawsan D.

**Edited for Community Guidelines**

[AleksandarD]

Hi Sawsan,

Once your hours have been submitted for the invoice, payment will be reflected in your Upwork balance the following Friday as long as your client doesn’t dispute the hours. Please note that we automatically charge your client and process your payment each week.

I suggest checking out this help article in which you'll find more information about Direct Contracts.

Thank you.

[craftandsew75]

This is where confusion kicks in. I would like to know why Upwork has 2 contracts running instead of the DC in the first place. Most online work platforms DC style setups and have all monies deposited in Escrow and ONE billing fee, totted up at the end of the contract, so no intermittent billing after a week, 2 weeks etc...so you know exactly where you are and how much you'll be paid per job.

[craftandsew75]

Hi. Unfortunately, I'm a bit slow on the uptake. I understand how the DC works on here, but:
What are the type of clients or work sectors that would be willing to use this?
Who would you already know, that 'could' use this system albeit already reputable enough to work with you directly then you invoice them?
So, I guess I'm asking, if they're not already registered on this site, why would a client randomly do business on here?
Hope this makes sense.

[BojanS]

Hi Ruby,

Direct Contracts is a separate product from the rest of the Upwork marketplace and does not include the same features as traditional accounts. As a result, it does not cost us as much to offer and maintain, and we are able to extend those savings to you. In general, charging fees is a critical part of Upwork being able to continue to grow and bring new clients to our marketplace. With Direct Contracts, we only charge a payment processing fee because freelancers are bringing their own clients. Note: Direct Contracts cannot be used with clients who already have an account on Upwork.

As for regular contracts on the marketplace, please note that there are two types - Hourly and Fixed-Price. You can check this help article for more information.

You can also check Andrea's response here for more information about Hourly contracts.

Thank you!

[researchediting]

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Ruby B wrote:

So, I guess I'm asking, if they're not already registered on this site, why would a client randomly do business on here?

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Upwork is putting itself in competition with other third-party escrow services. Presumably even with a much lower commission, its take is competive for that market.

[craftandsew75]

I can understand that, but in order for it to work, you have to already know your client, so that said, personally, I wouldn't work with someone who wasn't reputable and wouldn't pay me for my work. The ones you don't know, I guess, would have to be registered on here, in order to contact you or vice versa and you can't use DC with them.

So my original message was asking,how would you use DC in the first place, in order to attract an 'outsider' to it?

[craftandsew75]

Can you give an example or a scenario how this can be used in real time please?

thanks.

[AndreaG]

Hi Ruby,

Thanks for your question. Freelancers have told us they’d like to have one secure place to invoice clients and receive payments. Direct Contracts makes it easy to get paid by your clients who don’t have a full account on Upwork and just need access to review your invoices and make payments. With Direct Contracts you also get the protection of escrow and if a dispute arises we will be happy to help.