Elance survived for years staying bugless with 8.75% fees. Upwork which was previsouly Odesk was going good with 10% before the Elance-Odesk merge. But now after the merge they had to do extra work to make the platform fancy and buggy which has also made it hard to maintain (both maintaining fancy and buggy is expensive it seem for Upwork). So now they need 20% fees for most of the projects. This is certainly going to bring their profits up by 90% and bring loss to 99% + freelancers here.
But then what can we do? This is the no 1 freelancing platform right now which is far ahead of others it seems. So its only good for the managers to satisfy their corporate greed and make as much as they can caring nill for the freelancers.
So you're charging us for the "Top Rated" badge? And clients have been finding us on the platform as before? I wasn't consulted in the "Consultations" you purport to have had.
You are punishing every freelancer with this move.
You have just given the majority a 13.6% cut in earnings.
How would you feel if you had your take home pay cut by 13.6%?
Even thsoe who have long term high earning realtionships need to replenish clients and renew their client base... for which they are penalized with a 20% charge.
Here's how it works in reality:
Freelancer gross earning $100
Service fee $10
Net = $88
Freelancer gross earning $100
Service fee $20
VAT = $4
Net = $76
$12 reduction on $88 = 13.6% cut in earnings
Please do not do us (or yourselves) the diservice of trying to justify this move as anything other than an attempt to prop up a failing business strategy. When Elancers were forced to move here, you were told how poor a business strategy the Upwork model is. This move is proof that the Upwork business model is a bust.
I am absolutely certain that you are not punishing us, but simply robbing us out of our hard earned money. Like I am certain that you carefully checked statistic, and realized that like 99% of the jobs are below 500$.
And, I'm not wrong, calculation shown as example at your circular mail shows different story.
for 600$ job you are taking 20% from 500, meaning 100$, and 10% for 100, meaning 10$. That is total of 110$, making total of 19%.
So, for 1000$ job, your fee would be 150$, and that is 15%, So, don't take us for the fools joggling with statistical math that we passed at Calculus 1.
I brought two clients that I found on Internet to Up-Work , because it was simpler to pay 10% and not to think about problems of being payed or not. But, for 20%, that will happen again like when hell freezes over.
Not to mention that decision like that would significantly reduce level of loyalty, or fear of being caught.
I believe that this decision will have strong negative impact to you, and urge you to reconsider.
Maybe solution would be to charge directly to clients, for instance
If job offer is 600$, you should have a client page stating following:
-Freelancers offer: 600$
-UP-Work fee: 120 $
But, you are not really willing to do so, right?
The Upwork move is a bad one. You say it is to cover the transaction fees... In fact we don't care, it is your problem to optimize your transaction fees. It is not a move for your clients, it is a move for your investor.
Fortunately your are not the only company where I can find freelancer.
Garner, I think upwork goofed on this one. This IS A PUNISHMENT. Some of us rely on upwork for at least some of their income. Many of us don't have the opportunity to take a one-time client and make them a repeat business client because they don't need repeat business. You're just taxing an extra 10% of this revenue stream without giving us anything in return except the carrot at the 10k mark. Would you like an extra 10% of your earnings taken from you? I am canceling my premium account with you guys because it seems that no matter how much money I make you, its never enough.