Elance was a great workplace, but nowadays this is a reality
Upwork, address this problem, and don't go after the freelancers. These guys ruin your workplace. They drive the prices down and change the behavior of other great clients.
Don't let clients post jobs unless they have payment method verified.
Freelancers pay for bids, make clients pay for posting their jobs. If they really need a project completed they will happily pay e.g. 5$ for a job posting.
Don't let them post multiple projects (usually the same) especially when they have few projects open.
Make reporting more efficient. I have reported many projects like the above and nothing happened. E.g. if 10 freelancers report you on a project for the same reason, e.g. low price, then an Upwork employee will contact you and advise you, or if you keep doing so, you will be banned.
Add better minimum budget and rates for fixed and hourly rate projects.
Change the client mentality, "Get great quality work for a fraction of cost". Clients publish jobs for 5$ and they act as they pay you 500$. They are not paying as, they are buying as a coffee!
Freelancers try to provide a great profile. with avatar image, description, work history, portfolio, tests etc. and you treat as bad Upwork. On the other hand somebody who doesn't provide any information about him, can post a 5$ project. Are these the clients you want to bring on Upwork? Did your marketing campaign succeed on that client? Is it my fault I can't make this guy pay me 500.01$ so I can have a normal rate?
Lastly, please give us some statistics. What percentage of all contracts are those below 500$ and what percentage those above 10.000$? How much revenue do you earn from each?
I hope this new policy will be cancelled as soon as possible.
I also noticed those jobs that don't HIRE or even INTERVIEW anyone. It seems to me that it is there just to eat up available CONNECTS and when you don't have enough CONNECTS then you buy. Oh No! I hope I am wrong!
For clients to find and pay talented freelancers, you have to keep your talented freelancers.
Have you considered, rather than upping the fee freelancers pay, trying to cut the costs for smaller contracts? Perhaps you could do what we're encouraged to do: Offer tiers of service to encourage people to spend more or to find freelancers they can commit to. Perhaps clients who want small jobs should not have the same level of costly protection that larger paying clients do.
Or something. Anything. Perhaps kick some ideas around.
Because--as freelancers--we very much DO understand the need to charge what is necessary for your business to run. Of course we understand that. We understand that people want to pay less than what we charge, but sometims they don't get their way.
What we don't understand is being INSULTED. And this is beyond insulting. If I were to double what I charge a client, I would have to give them an explanation that convinced them it was worth it.
I don't believe any of us are convinced you are somehow giving us something that is 100% better than what we were paying before. What I think we're convinced of--at the moment--please change our minds!--is that you do not care if we starve, that you think us desperate and weak, and that you simply think the easiest way to make more money is to stick it to the group you find most vulnerable. It's highly, highly insulting.
And if you tell me you're "sorry I feel that way," so help me...
I'm new to UpWork. Before that, I freelanced all on my own. It was nice to find a website with all of the clients in one place. It was nice enough that even though 10% seemed steep, I'd pay it. But it's not 20% nice.
What are you offering us? Convince us. I'm sure your job is very hard. So is mine--and I need to know why you're entitled to a hundred percent increase in fees.
There are many great thoughts here - thank you for sharing them. We kicked around many ideas on how to keep small projects on the platform without losing money on them - we shared these ideas and got feedback from some of our freelancers and clients. In no means was this change meant to be an insult.
As you state, Upwork is a business and we need to make sure that we cover our costs. As are each of you. I could try to convince you of the rationale of our decision - and we will go into more details on this in our Town Hall meetings. My pitch to you is to stick around until June, try new strategies to make sure that you are covering your costs. We will do our part and continue to attract larger clients with longer term project needs.
I hope that helps a little and thanks again for your feedback.
i just read your message regarding change fee structure. i don,t think it is for freelancers up-work changing fee structure for their personal benefit. there is more then 70 to 80% client on up-work who just want to pay $500 for projects. and you are going to increase the fee on this range of project. we are mid level worker. most of project come under $100 to $500. you can not give any grantee to any contractor for long term work. you cannot force anyone client to long term work.you asking about 5% fee if your contract go more then $10000, you should asked that we have increase the fee on $500. are you kidding with us? can every client spend this money. i have 4 clients who want to pay 100 to 500 per project then what i can do. just you will get more commission and i will lose 10% from each.only 20% client on up-work have long term work so only 20% contractor can get this benefit what about other..? did you think about other 80%. mostly mostly even new comers work under $500,you know about it.now they will pay more fee and less earning. what is a very bad idea. this is not for us this is for your personal interest . up-work know that they can earn more if they increase the commission short term project bc z lot of worker doing jobs on small projects i strongly oppose your this steps. i am not happy what you are going to do. this is oppose the mid level workers.no-one can accept your this decision. specially individual freelancer like me. there should be same fee for all type of project or find any other solution.please just do not think about yourself also think about those who work hard and earn and paying you 10% of their earning and now too much 20%. this really very bad idea.My client who was goig to hire me now have left up-work, he is going for any other platform, bcz he do not wnt to pay extra. like that lot of small level client will left the up-work bcz no ready to pay extra. 20% is tooooo much. i also have long teerm client, but i canno be depend on one client. i need more work for more money bcz log terms client do not provide regular work. there is gap some time i need to wait for one or two month within this gap i work for other short terms client. it will dificult to manage after rising fee,for example now if client paid me $500 then your service fee is $50 and i got $450 after change the pricing rule i will got $400, i will lose $100......! this is big benefit for you and big damage for me. i directly lose my $50.do you know what is the value of $50. you cannot not convert or force every proejct to long term when client not want this. there is mostly one time and short proejct from $50 to 400.
Please review your Decision
This might sound like a very elementary solution but if Upwork loses money on small contracts why keep allowing clients to post them? I can guarantee you freelancers don't like small contracts either.
I personally get offended when I read a job offer that says: Looking for a freelancer who will provide me with an epic score for my project and also make my podcast sound awesome. I have provided links to what I have in mind (links to Chariots of Fire and NPR.org). We will need you to do 3 episodes a week and we want the files back in 24 hours. It should only take an hour if you know what you're doing. BUDGET: $10
Why not impose a higher contract minimum for the clients and those who are looking for cheaper work can go to Fiverr?
That's a valid question - we could have done this, but it seemed a little extreme to eliminate this segment of jobs. Stephane will expand on our rationale in the Town Hall discussions.