🐈
» Forums » Support » Re: Announcing new, simpler fees on Upwork
Page options
StanG
Community Manager
Community Manager

Announcing new, simpler fees on Upwork

Today we introduced two key pricing changes: on May 3, 2023, we are retiring our sliding scale fee structure and introducing a 10% service fee for all freelancers, and on April 26, 2023, we are implementing a one-time contract initiation fee for clients of up to $4.95 per contract. Click here for the full announcement.

 

Please share your questions and feedback in the thread below.

2,021 REPLIES 2,021

Tami,

 

As a freelancer, you are NOT a client of Upwork, but instead a freelancer.

 

As a freelancer, this ISN'T a job, but instead freelancing.

 

Let your clients know that your rates have gone up. As a freelancer, you have full control to increase or decrease your rates at anytime. If your clients believe the rate increase was earned, most will be more than happy to continue working with you.

 

General comment for the community not directed to Tami: Maybe a negotiation Event would help many of the freelancers? From the community comments, many of the freelancers think that they can't increase their rates when in reality if they have been doing a great job rates can be increased.

Even if we get a raise from the client, Upwork will stlil take 10% of that.

 

The fact is we entered into long term relationships with our clients on the premise that we would pay 5% after $10k. Raising that to 10% is a paycut and if we ask our clients for a raise based on that rather than merit and productivity, that's unfair to the clients. 

A pay raise on $500 per contract? No one in their right mind would willing accept that trade! You can keep an extra $50 from the first $500, but it is going to cost you twice as much when you hit $10K? No, thank you. That math simply does not work and does not have the well-being of the freelancer in mind. 

Dannelly,

 

I have earned $900,000 on Upwork during the past five years with 350 jobs and this is a pay raise of about $3,000 on an annual basis. By far, the majority of freelancers will make more profits.

 

Let your clients know that your rates for your services have increased. It is very easy to increase rates if your clients are happy and you have been upskilling along the way. I have gone up 4 x from $50 to $200 since starting. You owe it to yourself.

Oh, come on, Billy. According to your UpWork profile from last 100 completed jobs you had on UpWork only 1 hit 10K exactly. Never above. 
AND from the same 100 completed jobs you have 80% below 500. Of course you are happy with this change. You newer were in a high league and teaching top freelancers how happy we should be with this decision?

What a hypocrisy 🙂

I bet it is. However, while it's good that the change represents a pay raise for many, why should long-term contributors be penalized? 

Bernard,

 

In my opinion, Upwork is normalizing their fees to 10% so it's easier to manage the company and the process. I highly doubt they want to penalize anybody. Whether for good or bad for specific freelancers it was a change that needed to be made for many business reasons.

It's 2023. Managing a 3-tiered system can be automated and is no more difficult than 10% across the board to manage. They aren't using an abacus to calculate things.

It's a payraise for 1 mil people who deliver bad work and give the platform a bad reputation. Anyone considered that? Most of my clients told me that they refuse to work with low fee people **edited for Community Guidelines** because they do not deliver and usually it's super bad quality - so they prefer to pay more and get the job done properly. 

On the other hand, it's a big increase of tax BECAUSE IT IS PERCENTAGE to the freelancers who deliver high quality, long term services. 

Let me put it like this: 
2 years, 40h / week with $40/h means in a contract a total of $83.200

-> with the current fees is $78.465 

-> with the 10% flat fee is $75.880 
That's a big difference, especially for someone providing good, loyal, high quality service and keeping clients happy and give your platform a good reputation. 

I don't know what you base that statement on, this is a pay raise for those doing short term contracts, not for those doing long term contracts.

Sure you can increase your rates, we all do when we feel its appropriate, but this is an enforced rate increase.  If I increase my rates it is meant to be to my benefit, not to the platform (they already get a percentage of it).

Today UpWork already earns 5% on my long term contracts from me, 5% from the client, 3.5% exchange rate fees or a total of 13.5% on my contracts, contracts that I and many others turned from short term into long term contracts over time. Now they want that to be 18.5%, that is the reality for long term contracts; how is that a pay raise?

And it is their choice to do so, and I don't mind them implementing it on new contracts, that's their perogative, but leave existing contracts alone or lose them. 

All of my clients have asked to move of the platform at some point, I said no because it was convenient. Now I will move into direct relationships with each of them once the 2 years are up, they pay monthly, I don't pay 13.5% fees for no reason and UpWork loses 18.5% income on these contracts ... how is this a smart business decision?

I'm right there with you. Upwork doesn't seem to understand that after this much time we have a relationship with clients and they love us. They will follow us wherever we go so it will only hurt Upwork.

 

Upwork needs to realize this far out in a contract, they cease to be a relationship builder, and become just a tool, a tool that can easily be replaced for far cheaper.

Amen to that, Amanda! I've been on Upwork since 2011, have made over $100,000 with them, so at least $10,000 in fees for them, and this is the thanks. No thanks! 

 

No changes that Upwork has made in fees over the past years have truly been about supporting its freelancers. This is an obvious move to make more money off of their long-term and loyal freelancers.


I predict that Upwork will see quite a bit of attrition from their long-term freelancers. 

Completely agree with this.  Are they trying to discourage longer term contracts and higher quality freelancers?  Us with longer term contracts are going to leave the platform now.  Exactly what benefit is there to us.  I've never had to track or calculate fees before so not buying the simplification sales talk.

The majority of these comments, particularly at the top are from freelancers who are at that 5% margin. I think it's really important to remember that, yes, that is happening on the top end; their frustration is absolutely valid with Upwork as a corporation taking back an incentive that was meant to inspire longevity (a clearly full-time corporate biased measure for success esp. in reference to freelancers, but we'll get to that) and then taking it back, making money off of people who have worked hard to reach that probably free-er feeling incentive.

 

What's happening on the low end though doesn't seem to have be addressed by those with contracts at 5%. For those who consistently only work with 20% contracts, (only rarely passing to 10%: 5%? forget it) it's been frustratingly difficult to be able to make any kind of meaningful money. In the creative and assisting sector particularly, jobs that are consistently already undervalued by the clients who need that help, are often one-off jobs or limited positions, where projects might never possibly reach lowering to a 10% rate, let alone 5%. THOSE POSITIONS ARE VALID POSITIONS despite Upwork's active incentivising away from these, and many freelancers make their money exclusively from these kinds of clients & contracts, not clients that last years and years and make over a certain threshold for the job total. The entry level 20% fee has been really debilitating in being able to actually make money working with clients who have these smaller kinds of projects. If the freelancer's price is high enough to actually compensate for Upwork's take in their own finances as well as asking for just a fair actual base working price to begin with, the clients are fewer who can and are willing to actually pay those rates (emblematic of multiple other issues that should be addressed but aren't for this feed), biasing freelancers away from the clients they might want to actually work with and could use their help the most. It's personally enraging every single time I get a check from Upwork and see just how much they took out (while additionally having to calculate how much will need to go to freelance/self-employed taxes, exorbitent rent, utilities, and literally just staying alive in our economic climate) as a creative freelancer that Upwork has claimed that they value, while the company continues to, in practice, undervalue and handicap freelancers who prefer to work with the small-scale clients Upwork loves to advertise as promoting.

While 10% is indeed still too much of a take, I'm concerned that the voices behind the 5% are dominating the conversation in a way that might allow Upwork to continue to ignore a large group of freelancers that work exclusively 20% contracts (the types of projects Upwork often advertises/features) and desperately need MORE change and regulation. The harmful prevelance of massively undervalued posted contracts and the obscenely established minimum pay of only $3.00 an hour (that's without calculating the 20% Upwork Fee taken out after), or the fact that the threshold jumps from $500 to $10,000 to change percentages makes it frankly amazing to me how many comments here are even able to represent the 5% contracts; I honestly always thought that was laughably unreachable with probably corporate/tech-sector exceptions, I can't be the only one, right? While Upwork is spending hard-earned freelancer's money on meaningless email campaigns being sent to literally already working graphic designers with the most generic, formulaic, google-able resume-boosting tips *with the clear goal of pushing short-term freelancers to more long-contract, or now even full-time workers and incentivising them to do this*, they are actively standing on the hands of freelancers who want to work freelance (the original point of Upwork?) not exclusive or inclusive of long term contracts and simply be able to earn a living for themselves.

I want to highlight to Upwork, that while the 5%-10% contract folks are being rightfully angry and loud about it, that for every comment that is posted about their 5% loss, there are countless un-written complaints from freelancers who need even more change and who hate how grateful they are for the decrease from 20% to 10% because it is so obviously at the loss of other freelancers, and thereby my freelance business too. It's just another of the many flags that Upwork is waving about how superficially great they are for freelancers, while not actually making meaningful, actionable change for the better conditions of the freelancer; honestly disappointing given what the platform and freelancing industry as a whole could be.

Hi Jessica,

 One does not contradict the other. I'm also for the idea of removing the 20% entry fee all together, and start with 10%. But why not create an incentive for large contracts and reduce it down to 5%? The majority of the comments here do not raise the issue, because no one would complain about bringing the threshold down from 20 to 10- that's an awesome move!!! We're all for it. But why bring it up back from 5 to 10? what's the login in that? 

Hi Jessica. I agree with you and Eli. I'm actually happy that the 20% fees are being removed. It's the rest that enrages me.

 

We've all seen how UW kept adding hidden extra costs for us over the years. Now they say that they still managed to lose money and do this. It honestly feels as if they're mocking us. 

 

Like you suggested, if they need more money, they could raise the minimum accepted pay. I've seen things here that would be illegal in my country. But that would be doing something actually useful against digital exploitation and it probably wouldn't benefit the company. 😡

I agree, im a 5%er that does not agree with this in full but i think they just need to rework or UPWORK it a little. Do this change but any current contracts at 5% shoulf not change the end of 2023. Leave them alone until the contract ends and once they stat a new contract they are moved to the 10% that is the only way this wil work fairly and you wont lose all your loyal longterm clients and freelancers! My client will find a different way to pay meand say screw this and i trust tgem enough after 3 years to pay me we really just dont need upwork any more but for some dumb reason we stay. We dont even use your tracker never have. Think about it. Its the only way to be fair both ways. 

Exactly! That's the only thing that we want, leave the current contracts that are already at 5% alone. 

Jessica,

 

The freelancer fees will be 10% across the board shortly. I guess that addresses your concern?

Let me just say this, I am one who has always sought out long term contracts, simply because it is easier to manage my life and cashflow. That said, I have been happy to take on shorter term jobs in between and I wasn't happy either when they introduced the 20% thing simply because it meant I mostly wasn't willing to consider those smaller projects because it wasn't worth my time applying for a job when it doesn't bring much money in return. Which led me just to search harder for longer term positions.

 

Both sides have an equally valid argument, but the bottom line is that it is a lot easier for us 5% people to take our clients off Upwork and continue doing exactly what we have been doing off of Upwork, whereas for those 20% people, there's less choice in that regard.

jmanozo
Community Member

Agreed. This gives us no choice but to move our clients off platform before the 5% to 10% fees takes effect. Upwork didn't realize that this desicion will cause them big loss than gain in the long run.  

 

d238263c
Community Member

Totally agree. I think their portion of income is already  from mostly high-talented freelancers. So, someone thought that , "people already accept even %20 , and why not bring  all to %10 ? ". This sounds mathematically correct as it will look fair from UpWork's perspective , however , they need to hire someone to analyze things better. lol . 

Yeah, I'm not losing 5%, on my biggest contract. nope. Bad decision, Upwork.

**edited for Community Guidelines** This is going to cost my long-term freelancers thousands $

 

I totally agree with you! It is a total kick in the teeth, why should we start paying 10% on long standing accounts. If we are already paying 5%, it should stay that way! New contracts can be at the new rate. 

This should be grand-fathered, if you are already at 5%, you stay there, all new ones start and stays at 10%

 

😡yeah. You are not rewarding loyalty. It is the worst decision you could take.

 

My thoughts exactly. I've been leaving feedback for UW for years suggesting they should lower their rates for new contracts (mostly for freelancers who tend to work on a one-off basis; my own clients tend to be longer term), and it looks like they finally listened! Except they seem to have missed the point entirely. Punishing higher-earning, longer-term contract holders will only drive those individuals off the platform and ensure that UW is nothing but a glorified temp agency for short-term work.

I've been a consistent user of UW for getting new clients for a long time, but I have to agree with some of the posters here that in the last year or so I've seen new invitations and proposals really dry up. I'm not sure what the trends are exactly, but it seems like they are away from UW. Maybe away from freelancing platforms in general. I for one will be retreating back to my own website and finally doing what I've been meaning to for a long time: optimizing THAT as a source for new business instead of relying on platforms like UW.

 

Too bad. I enjoyed my time here, and despite some of the issues with the platform, I felt like UW was providing a good service for freelancers like me. Sadly, it appears those days, like all good things, must come to an end.

Miles,

 

I had to change my Upwork Profile, Cover Letter, and strategies late last year to keep up with the modifications in Upwork's algorthim because of the inconsistent lead flow.

 

During the first quarter of 2023, I have received 300+ Invites and completed 40+ Consultations / Projects.

 

Every freelancer needs to update their Profile, Cover Letter, and Strategies to take advantage of the site changes because it works.

Exactly,  what does she mean "in many cases freelancers on Upwork will see simplified and reduced fees as a result of this change." That is such a ridiculous statement. I don't see how anyone is going to see reduced fees. Personally, I am not willing to pay this very greedy increase that Upwork is now charging. I hope many clients and freelancers move on to less expensive competitors. 

I'm very upset about this as well, I have 4 year long contracts which I've worked hard to maintain and now I'm losing an extra 5%. They should just make the changes on the new contracts and leave the existing contracts the way they were. 


Valeria K wrote:

The new fee structure will also simplify some freelancer processes:
  • You won’t have to track tiers on contracts to determine how much you’ll earn each week
  • You won’t have to calculate fees for multiple tiers when determining pricing for a contract
  • Calculating year-end revenue and expenses may be easier to do once all your contracts have the same freelancer service fee percentage throughout the contract

You think that's worth losing 5% over? Because I certainly don't and I think many others will agree with me.

Agreed! It's outrageous.

That is corporate speak for "we're taking money from you, giving back a few crumbs, and telling you how much you're gonna like it."

It's pretty clear there is just no good way to spin this huge loss of income to the top freelancers.

 

I'm really shocked and appauled by this corporate greed. I imagine someone needs a new yacht.

 

This spin is even more insulting than the massive loss of income.

I have never done any of the following things and I have no reason to spend time doing these things.

The new fee structure will also simplify some freelancer processes:
  • You won’t have to track tiers on contracts to determine how much you’ll earn each week
  • You won’t have to calculate fees for multiple tiers when determining pricing for a contract
  • Calculating year-end revenue and expenses may be easier to do once all your contracts have the same freelancer service fee percentage throughout the contract

There are simple reports that we already have access to for year-end numbers. Calculating weekly percentages and tiers is also very easy, but who wastes time on that. 

There's nothing to "adjust to". I approve the lowering of the service fee for newbies but the removal of the 5% tier is just stupid.

The sad things Is that they for sure saw the majority are long terms project are on the 5% and think that taking out the first tier of 15% on One shot project give us enough smoke on eyes to don't see that want to steal Money from the big cake of long term project. We are freelancer not idiots. Every Month they also take Money for "connection" that basically i never use because people who want to work with me they contact me directly. Find a job replying to a job post have a 2% of chance to be choosen. I'm on upwork when It was called odesk. Don't make me leave the platform for a "smart idea" of a new manager he think he Is the smarter guy on the room.

The $5 per-contract fee means this change won't even benefit newbies and pieceworkers very much, since clients will inevitably pass that cost along via lower pay rates.

Latest Articles
Featured Topics
Learning Paths