9d6dfbcc
Member

can employer be asked to pay commission?

Hi, I am new here and a coder has asked me to increase my budget to compensate him for the Upwork commission he must pay if I award job to him, which he said will be 20% so I am curious if that's allolwed or is it agaimt the terms of service agreenment, which I do not want to violate?

11 REPLIES 11
mtngigi
Member

David,

 

It's not against any TOS; that said, it's a very unprofessional thing to do. I would never point that out to a client, nor mention that a part of my bid might include the fees I pay. Those kinds of issues are not the concern of our clients, nor should they be.

 

I would think twice about working with this person - others will chime in with different viewpoints, but that's mine.

kat303
Member


@David G wrote:

Hi, I am new here and a coder has asked me to increase my budget to compensate him for the Upwork commission he must pay if I award job to him, which he said will be 20% so I am curious if that's allolwed or is it agaimt the terms of service agreenment, which I do not want to violate?


 

As said, that is unprofessional. If a freelancer wanted to increase his payment because of the fees that are deducted then they should figure those fees into their proposal and not tell or ask you about it.

Unprofessional: YES to me, but may be to others.

 

But many freelancers have to bid very low to even get invited for an interview.  No matter what the buyer says they are looking for the lowest price.  And from freeelancer's point of view it does not hurt to ask.

 

I met a buyer recently.  He had posted the job for FL's in US only.  I believe he talked to three.  I personally spent about an hour talking and discussing various options.

 

In the end he gives the job to a FL from India at 1/3 of my bid.  Apparently, the posting said US only but he was talking  and sending invites to people from non US countries as well.


@Prashant P wrote:

 

But many freelancers have to bid very low to even get invited for an interview.  No matter what the buyer says they are looking for the lowest price.  And from freeelancer's point of view it does not hurt to ask.

 


Don't bid on those jobs. I'm so tired of this argument, that if a freelancer's rate is too high they "won't get any interviews." The rate isn't the problem: the client is! Don't work for cheap clients!

 

This chart is accurate for most situations (artist unknown):good-fast-or-cheap.jpg

 

 

 


@Prashant P wrote:

 

  No matter what the buyer says they are looking for the lowest price. 

 

Can you explain, then, why so many clients tell me that my bid was the highest they received and then hire me? I know several other freelancers here have reported the same.

Unprofessional and unnecessary. Sounds like this freelancer is inexperienced at independent contracting (which does not mean he or she is not good at performing the actual work).

 

The UW interface is very clear when a freelancer is setting their fee for a project (whether hourly or fixed-price), indicating the amount charged to the client and the amount the freelancer will net after UW deducts its fee. So the FL should set their fee at a level that results in the net compensation they need/want.

 

FYI, UW charges 20% of fees for the first $500 a FL earns with a client; 10% of fees from $501-10,000; and 5% of fees over $10,000. 

jcullinan
Member


@David G wrote:

Hi, I am new here and a coder has asked me to increase my budget to compensate him for the Upwork commission he must pay if I award job to him, which he said will be 20% so I am curious if that's allolwed or is it agaimt the terms of service agreenment, which I do not want to violate?


The answer is yes, a freelancer is allowed to ask you to increase your budget, but they should have set their rate high enough to pay their expenses to begin with, so it's not a good sign for their level of professionalism.

 

For you as a client, be advised that you'll generally get what you pay for - if you want your project done cheap, expect that corners will be cut. Do some research on what is usually charged for the kind of work you're looking for, so you won't be surprised if bids come in higher than you expected, and you won't be tempted to take the cheapest option just because it's cheap. If you have to hire someone else to clean up cheap work, are you really saving anything?

Jess:  You should have inserted the chart on this post. 


@Prashant P wrote:

Jess:  You should have inserted the chart on this post. 


It applies in almost every situation. 🙂

gerrys
Member

You go to the store; you see something you like; you ask the price.

 

If you like the price, you buy it; negotiate; or move on.

 

You / me don't care that the price is based on "whatever" (overhead; margin, "baby needs new shoes").

 

Tell whomever to stick to the "business".

 

Everyone has a hard-luck story; and doesn't need someone else's.

 

No "violation of TOS" here; just whining (justified or not).

For the freelancer, the Upwork commission is just a cost of doing business. The best freelancers price their work at what they believe it is worth to the client, if the net from that price meets their own needs.

 

Some freelancers simply divide wThat they want to get by 80%, and post that as the price. That is how they compute a price of $56.25. It appears to be precisely calculated; it's actually $45 divided by 80%.

 

My prices are all over the board. If a prospective client appears to be setting her/himself up to be cheated, I drop my price. If a client is expecting an expert in my field, and offering entry-level pay, I just don't respond. If a client requests an expert, and has a history of low-paying jobs, I might respond in order to tell him what an expert really costs, and why. I am never awarded those jobs, of course. I have far more connects than I could ever  use.

 

For hourly work, there is a minimum I must receive for the job to be worth my time. If it's interesting work with a chance to learn something, I apply with a rate that nets me at least that minimum. If it's not interesting, I don't respond. As a client on this and another board, I routinely reject applicants based on price; it's too low. If the freelancer doesn't believe she's worth very much, who am I to argue?