Jul 30, 2016 01:22:00 PM by Brad B
We are a small employer, thinking of increasing our usage of upwork, and esp international. We use some consultants not on upwork (over $10,000 in billings per year). If we get them to join, is there a program where they could pay less than 5% under our umbrella. What is the minimum we would have to spend per year to make that happen.
Jul 30, 2016 04:30:19 PM by Wendy C
Valeria, would Brad's umbrella cover his existing but new to U freelancers re the 5%?
Jul 30, 2016 10:50:30 PM by Valeria K
Wendy,
5% fee will apply if freelancer's lifetime billings with the client on Upwork are over $10,000.
Jul 31, 2016 06:19:22 AM by Brad B
You misunderstood. I think 5% is TOO MUCH to pay if billings are say over $25,000 to a single consultant. It should be more like 1.0-2.5% at that level. Upwork is not providing any services other than paying the consultant, esp if we ask our consultants to join upwork.
Jul 30, 2016 02:50:09 PM by Petra R
@Brad B wrote:We are a small employer, thinking of increasing our usage of upwork, and esp international. We use some consultants not on upwork (over $10,000 in billings per year). If we get them to join, is there a program where they could pay less than 5% under our umbrella. What is the minimum we would have to spend per year to make that happen.
The service fee is 20% for earnings from one client up to $ 500
10% for earnings from $ 500 to $ 10 000
5 % for earnings from $ 10 000 and over.
For freelancers working with Enterprise clients the fee is always 10% (no 20% and no 5% tiers)
Jul 31, 2016 06:26:51 AM by Brad B
Thanks for the answer. We wouldn't ask our consultants to join upwork if they pay 5-10%. If we pay them 50,000 in billings per year, we're better off to continue to wire them $ monthly. That a consultant pays 5% is too high in my opinion for these larger contracts. Upwork is great for sourcing smaller jobs, not the larger ones under this pricing. Thanks.
Jul 31, 2016 09:05:42 AM by Jennifer M
It's an escrow service. If you're paying them regularly then they don't need the protection I suppose. Escrow services offer security that they apparently don't need from you.
5% is pretty cheap. Last time I checked other places they wanted 20% on escrow. Insurance ain't cheap. That's basically what they would be paying for.
Jul 31, 2016 09:20:00 AM by Brad B
You make a good point Jennifer. I was really talking about our freelanchers, esp international ones, that we already use regualrly --and not souced from upwork. Wanted to manage in 1 place. Sounds like not upwork for that, too expensive for our freelancers and too expensive for us for to add 5% as we pay top of scale now. It's just a billing transaction cost, which is why 1.5-2.5% makes more sense for freelancers we pay over $25,000 per year to. Thanks if upwork ever make a push to get clients to add their contractors and lowers rate is some annual minimum, let us know!
Jul 31, 2016 09:09:28 AM by Rene K
Brad, don't forget that on top of the fees paid by the contractors that were discussed above, you will also be charged another 2.5% on all payments.
How new pricing works for clients - frequently asked questions
Jul 31, 2016 09:15:43 AM by Brad B
Yes, but we would pay direct from bank (ACH payment). That's $25 a payment on Upwork I believe (same as a wire for us). I guess I was just looking to manage our freelanchers, esp international ones, that we already use regualrly and not from upwork, in one place. Sounds like not upwork for that, to expensive for freelancer.