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Re: New Rate Tip Feature

Community Manager
Lena E Community Manager Member Since: Apr 7, 2015
1 of 42

One of the tricky parts of freelancing is figuring out what costs you should propose for open projects. We often see freelancers who continue to propose low rates, even after successfully winning and delivering on projects. Based on their skills, experience and proven track record on these types of projects, they could be charging and earning more, but maybe they just don’t know it.

 

To help provide a benchmark for these freelancers, in some cases we will begin displaying a “Rate Tip” on the proposal page rate calculator. Upwork’s Rate Tip is a data point that freelancers can choose to use when deciding what to bid, but it’s by no means prescriptive. Freelancers are always free to bid what they want. Here’s an example of what it will look like:

 

widget_12072015.png

This feature will be tested with a small subset of freelancers over the coming weeks. As we review adoption of this feature, feedback and the impact it has on freelancer earnings, we’ll evaluate introducing this feature to more freelancers over time.

 

Here is how it works: The amount is calculated specifically for you and the client. The widget will take into account:

 

    • Rates paid on similar jobs in this specific category and subcategory
    • The freelancer experience level this client is looking to hire
    • Your rates and experience from all of your work on Upwork
    • Supply and demand in this category and subcategory

 

Choosing to go with the Rate Tip is completely optional. As is the case today, we don’t offer any assurances that you will be awarded the project at all, let alone at the Rate Tip amount.

 

We want to see you succeed. Success comes in the form of winning projects and earning more on this and the next project. Our hope is this feature can provide some of you with a bit more information to consider as you’re evaluating the next great opportunity on Upwork.

 

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Community Guru
Julianne G Member Since: Oct 21, 2015
2 of 42

Ultimately, I guess it depends on what factors go into how you determine this average price, and I question the legitimacy of quantifying someone's skills and experience.

 

I understand that UpWork wants everyone to succeed.  Unfortunately, that just isn't going to happen.  Everyone can't succeed.  Not everyone has the tools to succeed.  Not everyone even has the ambition to succeed.  One of the things you need to be able to do in order to survive as a freelancer is accurately assess the marketplace and the services you provide.  This is almost as important as the quality of your product (or service).

 

The problem with this proposed feature is that target markets vary widely--we don't all cater to the same audience.  Tag and Casio may both sell watches...  but they are targeting entirely different market segments.  No one with a Casio budget is even dreaming of a Tag, and no one with the budget of a Tag would consider a Casio. The price of one has nothing to do with the price of the other.

 

And so what you are doing is trying to blend incompatible targets to average out the prices, and then suggesting that providers use that when determining their prices.  But Casio will never be able to use an average price that is skewed upward by Rolex.  And Tag is in no way restricted by the average skewed downward when determining theirs. 

 

I realize you're not attempting to restrict what price people place on their bids, but you might be giving someone a faulty picture of the market by including this info.

 

Community Manager
Garnor M Community Manager Member Since: Oct 29, 2014
3 of 42

Hi Julianne,

Thanks for the input. An important clarification -a key factor in the Rate Tip is the freelancer's individual work history. In other words, this is a suggestion that we're calculating exclusively for you. We're not averaging out prices, but instead looking at an individual's skill set, experience and work history to determine if they may in fact benefit from this additional consideration point.  

 

Another key input is the client's budget and work history. So, if you're submitting a proposal to someone with that Casio budget (who has historically paid that Casio budget), our system detects this and isn't going to offer a Rate Tip way beyond that range (i.e. a budget meant for a Tag shopper).

Ace Contributor
Ani M Member Since: Nov 1, 2015
4 of 42

How do we volunteer to be a tester?  I would love to see this in action.

Community Guru
Preston H Member Since: Nov 24, 2014
5 of 42

From what I can see, this rate tip idea is a very cool idea. It is offering advice, and is optional, so I don't see a downside to it.

 

This looks like something designed to increase Upwork profits, with a side effect of increasing a contractor's earnings as well.

Community Guru
Jean S Member Since: Oct 22, 2007
6 of 42

A Rate Tip might be more effective on the Client side. Tell THEM what the going rate shoud be.

 

I run a business and as such it is up to me to calculate what I need to earn and charge. I don't think I need a computer algorithm to tell me how to run my business.

Community Guru
Petra R Member Since: Aug 3, 2011
7 of 42

@Jean S wrote:

 

I run a business and as such it is up to me to calculate what I need to earn and charge. I don't think I need a computer algorithm to tell me how to run my business.


 You don't, I don't..... Many do...

Moderator
Valeria K Moderator Member Since: Mar 6, 2014
8 of 42

@Jean S wrote:

A Rate Tip might be more effective on the Client side. Tell THEM what the going rate shoud be.

 


Hi Jean,

 

We already have similar information available for clients, when they post jobs in certain categories:

 

Screenshot_14.png

~ Valeria
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Community Guru
David G Member Since: Oct 6, 2011
9 of 42

@Valeria K wrote:
We already have similar information available for clients, when they post jobs in certain categories:

 

Screenshot_14.png


 Going by the posts that request an expert and include a budget, I don't think clients are paying much attention to this. I've seen a lot of jobs where clients want an expert but their budget is way too low.

Active Member
Joy M Member Since: Oct 28, 2015
10 of 42

I think a better way to regulate prices on Upwork, for the benefit of freelancers and Upwork itself would be to determine the rates for the different categories of freelancers, and to set it in such a manner that if a cleint wanted an expert, then he could not hire below a given rate.  

 

On the other hand, if he or she wanted an entry level freelancer then he could not hire above a certain rate.

 

On the same note, if a freelancer set his or her profile as an expert, the his rate cannot go lower than the set value, and if the freelancer set it as entry level, then the rate would not go higher than the given value.  

 

The same would apply for Intermediate category.

 

This sort of rule I think would regulate the market accordingly and prevent clients from posting expert jobs and hiring freelancers at $3/hr.  

 

A similar sort of rule could be applied for Fixed Price jobs.

 

Freelancers would still have the freedom to choose which category they felt suited their skill level and experience.  It would be up to the client to decide if the freelancer was worth the rate, and select the right candidate accordingly.

 

Just a suggestion, which can be made better, I hope.

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