As you’ll soon find out via email, we’ve finalized timing on the new sliding service fee and payment processing fee changes we announced here. This timeline involves two key dates, June 7th and 21st, with significant updates to note.
On June 7
Freelancers: We will only be rolling out the new sliding fee structure on contracts in the Database Administration category. This means any new contracts started after this date in the Database Administration category will be subject to the new fee structure.
Clients: If you are eligible for the $25 flat monthly fee you will be notified on June 7th, and can begin to opt into the monthly fee option.
On June 21
Freelancers: The new 20% / 10% / 5% sliding service fee will go live to all categories and you will begin seeing these fees applied on new contracts in all job categories after this date.
Clients: The payment processing fee of 2.75% will start getting applied on all payments after this date.
Where can I find out more?
- Find more information about the sliding service fee on our freelancer pricing page
- You can view your lifetime billings with each of your clients here
- FAQs on the pricing announcement can be found here
- Find more information on payment processing fees on our client pricing page
- FAQs on the payment fee can be found here
If you have any questions about the timeline, let us know.
Seriously, 20%. Even 10% is more than what I was paying on Elance at 8.75%.
This is a bad business decision and you are driving both clients and freelancers to use other platforms.
- At the old rates, 10% x billing rate = 11.11% x net revenue.
- At the new rates, 20% x billing rate = 25% x net revenue.
So if you figure billing rates from target net return, as I do, that's about a 14% difference in the markup. Or are you using a different calculation?
Thanks and best,
p.s. Of course, your could raise your rates now to test the waters. I raised mine when the announcement was made.
Michael, here's my 11% calculation.
With the 10% rate, if you book $100, you make $90.
With a 20% rate, if you book $111 (11% increase), you make $111x0.8 = $88.80.
Not quite the same, but close enough and thought I'd give clients a bit of a break.
Freelancers brace yourself, a high hit coming soon from Upwork and also from clients. What we freelancers think that we will raise our fee to some extend to cover up the raise. But clients are also thinking pay low rate to freelancers to cover the $25 and 2.75% processing fee from Freelancers.
At the end, both parties are trying to get the maximum from other, who know who will win this battle freelancer or clients. By the way, Upwork is in win-win situation.