Please note that hard working freelancers like us are the core of this platform and we are not stupids. Now what will happen is that I will be forced to look for other more profitable platforms. I am sure that I will earn less the first year but I am confident that from the next year onwards I will start earning same or more again. But what will happen to Upwork? It will loose my $5k+ annual fees forever plus the value I bring to the platform.
And lets do some Maths now. Lets say 1000 freelancers like me who are earning $50k+ per year move to a different platform taking away their clients and value. Upwork will loose $50M+ business and $5M+ profits (@10%). And of course loss of established freelancers is also going to be a big loss bringing down overall value of Upwork. And needless to say while freelancers and clients will have to suffer from this in short term, its Upwork which is going to loose long term and may be forever. Now I just took example of 1000 freelancers, Upwork is upsetting millions of freelancers here with this.
Yes, lack of good clients and more jobs has been the issue with other platforms. But your decision to include 2.75% charges for clients as well is not making clients happy either. So clients will also look for more profitable platforms. And established freelancers like me can always move our clients to different platforms if we want to, both existing and future clients, and in most of the cases Upwork won't even know it.
Please note that its freelancers like us who maintain relationships with clients and do the actual work and NOT Upwork. In quick time Upwork will loose a lot of clients and freelancers. And soon Upwork will be facing a new competitor. may be Upwork will try to merge it as well just like it did with Elance (saddest thing that happened in my freelancing career).
My intension of writing this comment is not to treathen anyone but I am just trying to put my point and show my frustration. There is no way I can work with 20% cut and I will have to look for other solutions. And so will many other freelancers. I request Upwork to re-consider the decision.
@john b wrote:
I hire freelancers on Upwork. I'm not at all happy about paying a 2.75% fee...and I'm very concerned that all the good freelancers will leave.
Some are threatening to but it is a very small percentage compared to how many freelancers are here. Some will stomp their feet and move on. Some see the reasoning behind it and adjust accordingly.
Its not just the 2.75% fee.... the now not-so-excited freelancer will be charging you (the-clients) 10% more due to the raise in the CUT of their earned money by UpWork
100 USD commision out of 500 USD project, for just providing a platform. And you say you are not making money.
Its all the hard work we do.
So good so far, if we could do work for our clients we could even raise a same platform with only marginal commision so that the site could run.
@Rich P wrote:
For those interested, we'll share some more details on where we make money and where we don't in the upcoming town hall.
Please do it asap. In fact, you should have done that BEFORE increasing the rates. You should have explained the need to increase fees by SHOWING TANGIBLE NUMBERS, not writing endless paragraphs of useless text.
I would really be interested to see what you profitability threshold is. And what is your understanding of a "small contract"? Obviously, $500 is considered "small" if you are charging 20% on it.
The effective rate on a $1000 contract is 15%! It is not only people with small contracts who will suffer, it's everyone.
Please PROVE that your decision to increase fees is rational. I have never been able to get any real data from Upwork representatives, just empty phrases they learned by heart. It will be a miracle if you are able to prove your point with strong arguments.
Really looking forward to it.