I have a great relationship with a freelancer that I was pay $8 per hour on Elance. I referred him to a friend about 2 months ago via upwork. It quoted $9 per hour. OK, I get that increase.
Now I look the guy up here and it states $12 per hour. Is that what they are hoping for? I guess I can spend more time on this site to figure it out but that kind of negates the time I save by hiring a freelancer.
You paid someone peanuts, he moved to someone who paid him more than peanuts. So it seems that what you're asking is, "What's the use of Upwork if it's not to get cheap labour?" It's a free market, for better or worse. You'll always get someone else for your price; but if you can't get the quality you want for your price, then there's only one thing to do...
Hi, Garry. There are many possible reasons why the Freelancer increased his rates. One is, maybe he just started low because he was still new. Or, maybe he realized that his lower rate wasn't worth it, so he increased it. Another might be, his freelancing took a dip, so he settled for a lower rate temporarily to bring business back up, then returned to his regular rate.
There are many reasons, really, and most of them sound.
Maybe the increase in freelancer rates is because of the increase in the cost of doing business on upwork to freelancers. The fee is 10% instead of 8.75%, freelancers are now being asked to wait for their money, every job costs 2 connects to bid on, etc.
Now I look the guy up here and it states $12 per hour. Is that what they are hoping for?
If by "they" you mean the freelancer, then yes, i think every freelancer hopes to make a fair wage.
There is nothing wrong with paying $8.00/hr. There is nothing wrong with paying less than that.
But not everyone is available at that rate, including contractors who previously worked at that rate.
Some contractors will raise their rates as demand for their service increases. I know that is what I have done.
But I never raise my rate for a given client. So if you hired me at my posted hourly rate ($86/hr.), I will guarantee you that I won't raise my rate for you, even if I raise my rate for others.
As someone else already mentioned, UW takes 10% as fee instead of 8.75% on Elance.
And there are additional costs: not only the freelancers here have to wait longer for their money to be available - with hourly fees that can ad up to 10 days - but for the withdrawel UW charges for ex. 1$ for Paypal, and $30 for a wire transfer - which was free on Elance once per month. So I would have to increase my rates accordingly in order to cover these costs.
I explained this to my clients on Elance when they wanted to work on UW with me.