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6d27ffdb
Community Member

Why are expenses subject to fees the same as bonus

I don't see why an expense reimbursement should be subject to the same fees as a bonus or salary payment. 20% seems obscene.

Surely an expense reimbursement should be charged at: expense + cost of bank fees + small admin fee?

 

Thanks

 

 

 

45 REPLIES 45

I apologize for my unwarranted sarcasm. I meant that the good people who
try to assist are also likely Upwork clients (presumptively) paying all the
same fees as the unknowledgeable clients.

Thank you

I am both a client and provider (I've actually stopped consulting due to health). Every policy and every system relies on assumptions, and it is the assumptions that determine everything. A correct assumption on Upwork's part is that the bulk of their business can be accomplished remotely, such as making phone calls, uploading data, providing translation or research, and delivering graphics. Thus, policies need to reflect what works for most cases.

 

Another assumption that many freelancers make, and that in my time with elance/Upwork I believe Upwork makes, is that all freelancing is alike. That is patently not true. One size does not fit all. I recall running across Upwork definitions of Beginner, Intermediate and Expert by hourly rate, applicable to all freelancers. An expert data entry clerk should be paid the same as an expert PhD in chemistry. Poppycock.

When a company faces an existential issue it typically seeks help from outside, seeking expertise and objectivity. Large companies may pay more than $1,000/hr for that expertise and objectivity. Travel to the client site is integral to providing the service. The client understands that travel to other locations may be necessary to support the work. Billing a client $6,700 for a $6,000 airline ticket is absurd; I won't invoice the added fee, and no client will pay it. If the work is contracted through Upwork, I spend $2,000 a month paying fees on expenses. The client sees this as a problem the consultant ought to be able to fix, and is correct. Except, if Upwork is involved, and all freelancing is the same, then I must spend a couple thousand a month for the privilege of doing the work, it's no different from office supplies.

Few top-tier management consultants will work with small businesses. Large businesses don't go to online job brokerages to find them. All of my major projects were done outside online brokerages, and there was never a thought of bringing them online. As long as Upwork treats all freelancing as identical, and has a section for business consulting, it will rarely see top talent take on Upwork jobs.

 

Bill makes a great point:

Most freelancing done on Upwork does NOT involve any reimbursable expenses.

 

As frustrating as the current "expense reimbursable limitations" may be for some freelancers... Those freelancers are a small minority compared to the the majority of freelancers who do their work without the need for such functionality.

 

And even among the freelancers whose work DOES involve expenses, for most of them it simply makes more sense to have the client directly pay for those expenses.

 

For example:

A graphic designer needs to purchase the license for a photo to use on the client's website. The freelance designer COULD pay for that photo directly, but it actually makes a lot more sense for the designer to send the link to the client and have the client pay for it. After all, this is going to be used for the client's site.

Thank you for your contributions on this thread Preston (and by the way I've been one of your biggest silent fans for years,  in awe of your omnipresence).

 

I've also had the occasional need for freelancers to buy things (e.g. buy equipment/supplies from Amazon).

 

One temptation is to buy a "Virtual Prepaid Credit Card" online, and give it to them. But that would almost certainly violate the cardholder agreement so I strongly advise against it.

 

Another possible solution (which I have not tried) is to buy Amazon gift card online, and give the freelancer the redemption code so they can purchase supplies on their own Amazon account. This is clearly not a "payment" to the freelancer, and avoids them having to give potentially sensitive information like their home address for receiving shippments.

I'm not recommending the above method but proposing it for discussion with respect to the UpWork User Agreement.

 

 

maximcradle
Community Member

I am a client, when I went to do an expense reimbursement nowhere did it say that UpWork will charge a fee. This is very slimy.

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