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Why the substantial change in hourly rate from Elance to Upwork?

Active Member
Gary R Member Since: Oct 9, 2015
1 of 17

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.

Community Guru
Stephen B Member Since: Dec 4, 2012
2 of 17

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...

Ace Contributor
Cody L Member Since: Sep 30, 2015
3 of 17

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.

----------------------------------------D======
Come to the dork side... we have candies.
Community Guru
Cathleen C Member Since: Aug 17, 2015
4 of 17

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.

Community Guru
Preston H Member Since: Nov 24, 2014
5 of 17

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.

Community Leader
Susanne D Member Since: Mar 15, 2015
6 of 17

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.

Community Guru
Marcia M Member Since: Apr 3, 2013
7 of 17
It's normal for freelancers to raise their rates as they gain experience and to keep up with the cost of inflation.
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8 of 17
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Who is this Gary R. who looks like a car and whose public profile is blanc?

Community Guru
Stephen B Member Since: Dec 4, 2012
9 of 17

If someone doesn't have a picture avatar on the main site I think they're randomly assigned a picture on the forum site

Community Guru
Sandra T Member Since: Nov 26, 2014
10 of 17

And Upwork encourages freelancers to (regularly) increase their rates.

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