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Pricing Announcement Follow-Up

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@Rich P wrote:

Hi Janeen,

 

I'm sorry as I didn't mean to insult you or anyone else here.  I'm just stating what's true - we lose money on jobs <$500.  We want Upwork to be around for a long-time and by raising our rates to 20% on these relationships- while decreasing the rates to 5% on relationships with lifetime earnings over $10,000 - we help ensure this.


Then Upwork's strategy was complety wrong. Cheap freelancers around the globe have been invited, have come here full of hope and worked for 3 USD per hour or less. Some even have done 1-Dollar-jobs. If 500 USD is a financial loss for Upwork already, what about 1 USD, invoiced and processed? Without further data it is obvious that this cannot work. Now Upwork wants to attract large clients and this is a complete different target group and it seems that most of the freelancers do not fit in Upworks's strategy anymore. Then Upwork has to say this and develop an exit strategy for those who are not welcome here any more. We all had to commit that we work for our clients on Upwork for 2 years and are tied to Upwork's TOS.

Active Member
Megan S Member Since: Feb 18, 2015
92 of 1,295

You guys are insane. I've done work with UpWork since it was ODesk, what at least five years now. Actually, I first found it in 2008 worked awhile and then left and came back.  I've only had 1 client where I made more than $10,000 and that was because I worked on payroll full-time for them and only them. 

 

If there are other freelancers out there making $10,000 I'd like to know about it, I'm betting there aren't. The ones making that much with one client have to be running businesses and paying their own employees or working for just 1 client.

 

Plus I've paid $10 for the last several months---for your monthly connects fee but I have steady been at 210 connects the whole time. No connects added--cause your max is 210....But I didn't want to lose my 210 connects....and start back at square 1.  With this new price increase---this is all insane.  

 

I'm a top rated freelancer, with a 97% success rate. I don't need any more clients right now I've got more work than I can handle and I TURN DOWN INVITES EVERY WEEK FROM CLIENTS WHO FOUND ME. Including spam people who I then have to block. I'm interviewed and hired more often than most on UpWork according to your stats page. I've been with the platform over 5 years. I recommended UpWork to hundreds of people over the years. I won't any longer.

 

It seems to me you guys are catering to the big clients and teams of freelancers and forget the little people who made this company what it is. You're leaving those of us who do small jobs with multiple clients no choice but to go elsewhere. I won't be taking on any new clients once the new pricing starts because by taking 20% from me you STEAL the little bit of profit I make on new clients who I take a chance on because I never know who's going to be long term.  It doesn't pay to take on new clients anymore. I will stick with the clients I have because the fee won't change and because you have me locked into an insane 24 month after work stops agreement. I will cancel your greedy $10 a month fee because I won't need my connects as I'm not going to be taking on any more new clients.  I will find a new platform or find clients on my own instead of paying you guys to sit in your offices and make up new pricing plans to gouge the little guys.  

 

You haven't listened to ANYTHING that was said by any of the freelancers who disagree with your pricing structure.  I don't know why you will even bother with a town hall. 

 

To my fellow freelancers:  They are collecting $10 EVERY MONTH from me in addition to the FEE They take for EVERY SINGLE JOB I DO EVERY WEEK.  It's sometimes more than $100 every month---just from me.  So let's just say on average UPWORK gets $110 from me.  UPWork has what 10 million freelancers?  So that's....hmm....Eleven hundred million dollars---EVERY MONTH that they get already.  And they want more.  Something is fishy in Denmark folks.

 

Active Member
Megan S Member Since: Feb 18, 2015
93 of 1,295

OH WAIT!!! I Forgot the biggest scam of all. They take the money from the client and hold it in their accounts during the "ESCROW" period, right?  What 5 days?  Sometimes longer than that?  So jobs that I get done same day, I still have to wait 5 days to get my money and another 2 days for it to hit my bank.  

 

Guess what folks?  That money that Upwork "holds" in Escrow?  They probably are able to collect INTEREST on it for those 5 days or however long it's held.  So they are making money off of us little folks there too.

 

 

I STAND CORRECTED.  ESCROW Accounts are by law required to be non-interest accounts. So if the money is going into an actual legal ESCROW account than they aren't collecting that interest.

Community Guru
Steven E. L Member Since: May 5, 2015
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@Megan S wrote:

OH WAIT!!! I Forgot the biggest scam of all. They take the money from the client and hold it in their accounts during the "ESCROW" period, right?  What 5 days?  Sometimes longer than that?  So jobs that I get done same day, I still have to wait 5 days to get my money and another 2 days for it to hit my bank.  

 

Guess what folks?  That money that Upwork "holds" in Escrow?  They probably are able to collect INTEREST on it for those 5 days or however long it's held.  So they are making money off of us little folks there too.


 False. Escrow accounts are required by law to be non-interest bearing accounts.

 

/conspiracytheoryoff

Ace Contributor
Nikolaos D Member Since: May 4, 2016
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You don't want to eliminate small jobs because they will go to other services like this well-known website where people do stuff for 5$.

 

You keep telling us that Upwork loses money in small projects but still have 5$ available. So, you lose money gaining 50 cents, and make money with 1$ profit. Really?

 

In conclusion, you want to be a fancy high class restaurant with great clients and staff, but still serve 5$ hotdogs.

Active Member
Monica J Member Since: May 4, 2016
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You hit the nail on the head!

Ace Contributor
Steven B Member Since: Aug 4, 2015
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Rich, I'm sorry, but I don't buy it.

 

I'm not accusing you of lying, because that would be inappropriate.  But I am suggesting that you haven't given this move full consideration.  

 

Lots of us have a large number of small, one-off contracts that are less than $500 in total.  Once the job is done, it's done.  If the job is done properly, the client does not need to come back.

 

What this change does then is it hits freelancers in that category, inexperienced freelancers, new freelancers, and other small-business-model freelancers the hardest, while giving favour and big breaks to the large, well-established players who look for the bigger contracts.

 

If you lose money on ever escrow transaction, then you need to come up with another way to solve that problem.  Perhaps not granting escrow protection on projects under a certain amount would be a solution. 

 

This will also hit the clients harder as well.  First, you're jacking up the charges they will have to pay to conducts transactions.  That's going to hurt.  Second, do you really think the rate increase you're ramming down our throats isn't going to get passed through to the client?  Of course it is!  Think of it like a tax - if the government increases tax on a product, that tax increase isn't absorbed by the party selling the product - ultimately, it's absorbed by the consumer.  

 

So this is going to hit everybody involved -  the small contractors who are doing this part-time, or just getting started, who need jobs to keep their bills paid at home, are going to suffer, because they won't feel they can raise their prices to compensate, so you're driving them out.  Contractors in the developing world will also experience that hit, because they too tend to bid lower.  So you're now hitting them harder as well.  

 

any way you look at this move, Rich, it just doesn't make sense.  It's going to kill Upwork.  

 

Mark my words.

Employee
Rich P Employee Member Since: Feb 17, 2015
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Thanks for sharing your point of view.  We obviously disagree, but your points make sense.  Thanks for being so civil about it!

 

Regarding "Second, do you really think the rate increase you're ramming down our throats isn't going to get passed through to the client?  Of course it is!  Think of it like a tax - if the government increases tax on a product, that tax increase isn't absorbed by the party selling the product - ultimately, it's absorbed by the consumer."

 

We do understand that we may see the cost of some projects increase as a result of this change.   As someone who hired on Elance and oDesk before joining the company, that's not a terrible thing.  In many cases, clients are getting a huge bargain.

Ace Contributor
Steven B Member Since: Aug 4, 2015
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Rich, there has got to be a better solution than this one.

 

Note to the Upwork community:  If anyone wants to contact me and discuss ideas and alternate solutions that upwork could pursue, please drop me a private message.

Ace Contributor
Lisa F Member Since: Apr 16, 2016
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I personally don't think they care to hear any solutions. All I have heard is reasons why this must move forward and not one real concern over the effect it is going to have.

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