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News About Upwork

Community Guru
Will L Member Since: Jul 9, 2015
1 of 16

Changes in Upwork's targeted client base will continue:

 

https://www.fool.com/investing/2019/10/01/upwork-is-starting-to-think-bigger-about-its-growt.aspx?Ci...

 

This will likely be good news for better qualified, higher-priced freelancers, but what will happen to low end clients and freelancers? 

 

Has the new connects policy, which drastically reduced some freelancers income from working on Upwork, drive low-priced freelancers away from Upwork and take low-priced project clients with them? If so, that might be a good thing for Upwork's profitability.

 

The upcoming quarterly report or the related public conference call with management might give some information in this regard, since the September quarter will be the first quarter that the new connects pricing policy was in place for the entire quarter.

 

And telling shareholders more about the mix of users, average project pricing and target clients should be good for Upwork's share price, as long as the news is good.

Community Guru
Petra R Member Since: Aug 3, 2011
2 of 16

That makes interesting reading, Will.

Thanks for sharing!

Community Guru
Noureldin Y Member Since: Sep 7, 2019
3 of 16

Say what

 

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Marvelous.
Community Guru
Tiffany S Member Since: Jan 15, 2016
4 of 16

Will L wrote:

Changes in Upwork's targeted client base will continue:

 

https://www.fool.com/investing/2019/10/01/upwork-is-starting-to-think-bigger-about-its-growt.aspx?Ci...

 

This will likely be good news for better qualified, higher-priced freelancers, but what will happen to low end clients and freelancers? 

 

 

This higher-priced/low-end thing seems overly simplistic. While I'm sure there is a whole branch of high-priced, high-end freelancers who regularly work with larger companies, many of us (including several who post here frequently) work almost exclusively with small businesses and professionals. I am the only freelancer a lot of my clients work with, and though most of them fall into that $5,000+ lifetime spend, they've spent all of that money with me. They are not they type of repetitive users Upwork is prioritizing and seeking to draw in.

 

I think that makes a lot of sense for Upwork, but I think many successful freelancers who work with smaller businesses and clients who don't hire a lot of freelancers are underestimating the impact this will ultimately have on their ability to connect with a steady stream of new clients through Upwork.

Community Guru
Christine A Member Since: May 4, 2016
5 of 16

Tiffany S wrote:

I think that makes a lot of sense for Upwork, but I think many successful freelancers who work with smaller businesses and clients who don't hire a lot of freelancers are underestimating the impact this will ultimately have on their ability to connect with a steady stream of new clients through Upwork.


But then there's this:

 

"It added two lower-tier freelance work management platforms that target small to mid-size companies, which creates a clear separation from its high-end product, Upwork Enterprise."

 

Community Guru
Tiffany S Member Since: Jan 15, 2016
6 of 16

Christine A wrote:

Tiffany S wrote:

I think that makes a lot of sense for Upwork, but I think many successful freelancers who work with smaller businesses and clients who don't hire a lot of freelancers are underestimating the impact this will ultimately have on their ability to connect with a steady stream of new clients through Upwork.


But then there's this:

 

"It added two lower-tier freelance work management platforms that target small to mid-size companies, which creates a clear separation from its high-end product, Upwork Enterprise."

 


Based on the client membership tiers, it appears that Upwork considers SMBs to be those using enough freelance help to pay a $50/month fee.

 

Perhaps my situation is unique, but about half of my Upwork clients never hire anyone else through the platform, or may have a couple of other hires across their entire history here. And, I think their businesses are much smaller than the ones Upwork will be targeting even at the lower tiers--I can't recall the last time I had a client with 10 employees. Most are attorneys in firms with 1-3 lawyers and a paralegal or secretary (or perhaps both) or legal tech startups where staffing is so lean that I'm hired directly by the founder or CEO.

Community Guru
Mark F Member Since: Jul 10, 2018
7 of 16

Tiffany S wrote:

Will L wrote:

Changes in Upwork's targeted client base will continue:

 

https://www.fool.com/investing/2019/10/01/upwork-is-starting-to-think-bigger-about-its-growt.aspx?Ci...

 

This will likely be good news for better qualified, higher-priced freelancers, but what will happen to low end clients and freelancers? 

 

 

This higher-priced/low-end thing seems overly simplistic. While I'm sure there is a whole branch of high-priced, high-end freelancers who regularly work with larger companies, many of us (including several who post here frequently) work almost exclusively with small businesses and professionals. I am the only freelancer a lot of my clients work with, and though most of them fall into that $5,000+ lifetime spend, they've spent all of that money with me. They are not they type of repetitive users Upwork is prioritizing and seeking to draw in.

 

I think that makes a lot of sense for Upwork, but I think many successful freelancers who work with smaller businesses and clients who don't hire a lot of freelancers are underestimating the impact this will ultimately have on their ability to connect with a steady stream of new clients through Upwork.


I am in the same boat all of my clients have been either individuals or small to medium sized businesses (even off Upwork).  My belief, bias really, is that I would not work well with larger companies and corporations because they will want to turn me into a cog.  So if that is what Upwork becomes it will have to do so without me.

 

I admit I did not read the article thoroughly but although they are focussed and their strategy seems to be headed into that direction I am not sure that means they are abandoning smaller clients.  They have added policies that make it more difficult for them but I am not sure those aren't aimed at absurdly small clients.  But even if they ONLY want clients that spend more that $5k and have multiple jobs always running that does not mean they will ever say that or that it will ever happen.

 

Regardless what Upwork wants to do and manages to do is way beyond my control.  I think everyone should consider the possibility that someday Upwork will not be viable for them and keep all their options open.

Community Guru
Pat M Member Since: Jun 18, 2016
8 of 16

As with investment portfolios, diversification in income streams is also key.

Community Guru
Maria T Member Since: Nov 12, 2015
9 of 16

I ask to you, Mark, because you are the featured contributor Smiley Wink, but any of you can help me.
I have read the article (badly translated) and I can't understand anything Smiley Frustrated
Can someone explain to me what this is all about in words for someone who doesn't understand anything about economics and little English?

What is Upwork supposed is thinking to do?
I would appreciate it very much.

Community Guru
Mark F Member Since: Jul 10, 2018
10 of 16

Maria T wrote:

I ask to you, Mark, because you are the featured contributor Smiley Wink, but any of you can help me.
I have read the article (badly translated) and I can't understand anything Smiley Frustrated
Can someone explain to me what this is all about in words for someone who doesn't understand anything about economics and little English?

What is Upwork supposed is thinking to do?
I would appreciate it very much.


I only speak English and I am not sure I understand it that well.  

 

So, first off the Motley Fool, in case you didn't know it, is a company that provides financial advice (https://en.wikipedia.org/wiki/The_Motley_Fool).  I think it is important to understand that the information this article is targeted to investors both by TMF and by the Upwork people commenting in it.  The reason I think that is important is that it paints the picture in a certain way.

 

Mostly I think what the article is saying is that Upwork is primarily focussed on a strategy of engaging with larger customers for the future.  It is a strategy that might have great appeal to Wall Street because they know what big companies are and that they have tremendous money.

 

I think overall a lot of people have extrapollated that Upwork is shifting away from smaller companies and thus smaller projects.   I do not believe Upwork has or will ever say that even if they do it.

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