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.

[raselahmed8]

Petra R Wrote:

Nichola L wrote:

Clients pay a 3% processing fee to Upwork (unless they are enterprise clients or under a different Upwork agreement). 

On Direct Contracts, Clients used to pay nothing. Then Upwork quietly changed that and now charges clients between nothing and some percent. 

Hello Petra R,

You are right, I have sent a direct contract to the client on May 13, 2021. I didn't any message like this. Even I did not any update from UpWork about the direct contract fee.

So how can I talk with Upwork regarding this?

Regards,

Riyad

[raselahmed8]

Nichola L wrote:

Clients pay a 3% processing fee to Upwork (unless they are enterprise clients or under a different Upwork agreement). 

On Direct Contracts, Clients used to pay nothing. Then Upwork quietly changed that and now charges clients between nothing and some percent. 

Hello Petra R,

You are right, I have sent a direct contract to the client on May 13, 2021. I didn't any message like this. Even I did not any update from UpWork about the direct contract fee.

So how can I talk with Upwork regarding this?

Regards,

Riyad

[g_vasilevski]

Hi Md Riyad,

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. Your client won’t have to create an Upwork account, keeping the experience easy to use for them.

Currently, if a Direct Contract is funded using PayPal or credit/debit card, the payment processing fee for the client will be 3%. If it's funded with ACH, it will be $0.50. That said, we are currently analyzing our pricing structure. If it changes we will be sure to update all communications, Help articles, etc., to share any changes to the fee structure. Thank you.

[petra_r]

Would it not have been a good idea to inform freelancers of this (significant) change before making it? Upwork used to push the direct contract idea by stating that there was no (!!) charge for the client. It makes affected freelancers look stupid (at best) or dishonest (at worst) if they have told the client there will be no charge and then there is a charge after all at such a late stage of the process.

[andrea_maria_s]

Hello!

I have a client outside of Upwork, and I'm thinking about a direct contract option. I have read this somewhere in the descriprion area: 

"Billing method must be PayPal, ACH bank transfers, or credit card."

Does that mean that I wouldn't be able to receive payments via Payoneer from that specific client?

Thank you!

Andrea

[VladimirG]

Hi Andrea,

To clarify, freelancers receive payment on direct contract in the same way as they do on regular contract, with funds being reflected in their Upwork balance. If you use Payoneer as a withdrawal method you'll be able to withdraw earnings from direct contracts in the same way as you do from regular contracts.

If you're referring to whether clients can set up and use a Payoneer card as a billing method, the answer is no. You can find more information about acceptable billing method on Upwork in this Help article. I'd like to note that when it comes to direct contracts, clients can use either PayPal or credit card as a billing method. 

Please let me know if you need further clarification or assistance.

[andrea_maria_s]

Thank you Vladimir! That’s the perfect answer to my question!

[rainmaker1145]

Is the direct contract to someone that is currently on Upwork or off-Upwork?

[AndreaG]

Hi Clinton,

Thanks for your question! Direct Contracts cannot be used with clients who already have an account on Upwork.

[d2bbbe24]

There is no option to request payment from client in direct contract. I dont know why it is not giving me option. I have completed the work and now want to submit it but i cannot find the option anywhere.

[AleksandarD]

Hi Rida,

There's no request for payment on Hourly contracts. Once your hours have been submitted for an invoice, payment will be reflected in your Upwork balance the following Friday as long as your client doesn’t dispute the hours. You can check this help article for more information.

Thank you.