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Charging me to make a payment? Are you kidding?

Active Member
Erin M Member Since: May 3, 2016
31 of 118

@Jennifer M wrote:

@Erin M wrote:

Oh, there's no way I'm ever going to pay Upwork a fee so I can pay someone else. Period. End of story. Not one dime. 

 

When I get the current projects wrapped up, I'm moving to a different platform. It'll suck, but I don't pay fees so I can pay someone.

 

I don't pay bank fees or ATM fees either, before you ask. :-) 


You realize that you pay a fee to a CC company as a merchant, right?  That's how they make their money. Some smaller merchants will even discount prices if you pay them cash because they don't have to pay the CC fees.


Correct. *I* pay those fees. Paying to get paid is significantly different than paying a fee to be able to pay someone. Do you understand the distinction?

If Upwork wants to accept payments, they need to pay those fees just like I do. Why do they think their business is more important than mine? If they were the only game in town, they could play that game, but they're not.

Active Member
Lorraine G Member Since: May 3, 2016
32 of 118

How can you charge fees to both sides? And abosrbant fees to boot. These fees are higher than the cost of doing the work in many cases.   

 

The only profit now will be for Upwork.

 

The freelancers will loose work as it is cost prohibited. If you caluclate all the fees into a small job, the fees are higher than the cost of getting the work done. The way I see it, If the freelancer and client adds the fees to the job Upwork is no longer a resource for talent. The client can hire local people and "save" money.

 

Its the freelancers on UpWork that will be on the loosing side of this. The smaller jobs and milestones will no longer exist on Upwork for the freelancers.

 

 

 

 

 

Community Guru
Joachim M Member Since: Mar 23, 2015
33 of 118

@Lorraine G wrote:

How can you charge fees to both sides? And abosrbant fees to boot. These fees are higher than the cost of doing the work in many cases.   

 

The only profit now will be for Upwork.

 

 

Its the freelancers on UpWork that will be on the loosing side of this. The smaller jobs and milestones will no longer exist on Upwork for the freelancers.

 


 Lorraine,

 

As a freelancer I don't even quote on jobs with a budget of less than $25. Each quote costs $2 (one Dollar per connect), the amount of free connects is limited. 

Active Member
Mike B Member Since: May 3, 2016
34 of 118

I am a client. I feel the pain for the providers, but with my long term ongoing project that has been going steady for about 3 or 4 years I will also need to pay an additional 2.5%. You might not think thats much, but I have about $30,000 - $40,000 spent with elance and now upwork. I am not going to pay an additional fee as a client either, you are already KILLING the providers. So just to give feedback from a buyer point of view you are going to lose me as a customer as of June 1. I will find another platform like FREELANCER to do my project with.  What a greedy company!

Ace Contributor
Mohamad A Member Since: Aug 29, 2015
35 of 118

As a client on this site, Upwork is not indispensible to me. Effective instantly, I will shift my recruitment to other freelancing sites, while honoring the fact that I have to stick to Upwork for 2 years for my trusted freelancers from the site. This boycott is the most effective mean we have to protest these hikes.

This 2.75% payment is absurd, even when taken out of the context of having increased freelancer deductions.

Active Member
Benjamin B Member Since: Jan 10, 2016
36 of 118

On small contracts UpWork has raised fees on Freelancers by 100% and added a processing fee to Clients of 2.75% and I don't think this is reasonable.

 

Sure, if you make over $10,000 with a single client you can reduce your current fee y 50%, but I haven't paid any single contracter $10,000 since I have been using UpWork or back on eLance.

 

 

I think its clear why we aren't happy about this so I won't lay out the same argument again.

 

Customer support told me, "To this point, Upwork has subsidized the costs of processing payments on the platform. With this change, clients making payments on Upwork will be paying a portion of this cost. Doing so will ensure we’re able to continue investing in the fast and secure payment processing you’ve come to count on.

 

Sure UpWork has been eating the cost of processing payments.  So does every other business.  I take credit cards and I don't (actually by my merchant accoiunt contract I can't) pass those fees onto my customers.  Its a cost of doing business and the argument is condescending.

 

If UpWork is failing as a business and needs to generate more revenue to stay afloat that would be a better argument and I would be more compelled to accept it.  But this just sounds like greed.

 

An Unhappy customer...

Community Leader
Charlie E Member Since: Aug 2, 2015
37 of 118

I'd say probably less than 0.00000001% of jobs on Upwork will ever exceed the $10k threshold. 

 

In other words, I see this as a cash grab. Upworks reasoning for the increase in fees was that jobs under $500 cost them money. 

 

Well, Elance thrived for 10 or so years with fees of 8.75% and was a profitable company from the looks of it. 

 

So why all of a sudden can Upwork not make money on jobs under $500?

 

Simple, a tremendous amount of debt and a huge decline in active users. 

 

If you look at Upwork's web traffic, you can see it is down by a lot since the start of the year. 

Moderator
Vladimir G Moderator Member Since: Oct 31, 2014
38 of 118

Hi Charlie,

 

I can confirm that a growing number of freelancers earn $10,000 or more with a single client, and represent a sizable portion of earnings on Upwork. 

 

Though it’s never an easy time to change pricing, one size fits all pricing does not serve our customers well. Freelancers and clients have requested a fee decrease on large, repeat projects to continue growing their businesses on Upwork. To ensure our community’s growth in the long term, we are updating how our pricing is balanced to help provide better outcomes for all.

Active Member
Dave K Member Since: Jun 14, 2016
39 of 118

@Vladimir G wrote:

Hi Charlie,

 

I can confirm that a growing number of freelancers earn $10,000 or more with a single client, and represent a sizable portion of earnings on Upwork. 

 

Though it’s never an easy time to change pricing, one size fits all pricing does not serve our customers well. Freelancers and clients have requested a fee decrease on large, repeat projects to continue growing their businesses on Upwork. To ensure our community’s growth in the long term, we are updating how our pricing is balanced to help provide better outcomes for all.


What is Upwork doing to dissuade clients from posting ridiculous $5 and $10 projects? Budgets like this are so low they are not only insulting to any contractor but also make your website look a place for cheap clients to congregate. It hurts and cheapens the entire creative community to allow this. Now, you want to essentially penalize us in the form of 20% fees for working on lower budget projects.

Active Member
Steve V Member Since: Jun 15, 2016
40 of 118

Instead of saying a specious statement like "a growing number" why don't ytou actually give us the percentage? I bet it is less than 5 percent of all jobs. I will no longer post new jobs for freelancers on Upwork.

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