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10% off of my freelance work upsets me AND my client!

lorikirstein
Active Member
Lori K Member Since: Sep 16, 2015
1 of 26

I found out belatedly that 10% comes out of my hourly fee for Upwork.

 

This makes absolutely no sense to me for a number of reasons. Also, I am incredibly displeased with how this information is "hidden". And thirdly, my main client through Upwork is as upset as I am because he knows the value of my work!!!

 

First of all, this is double-dipping! Upwork adds 10% to the top of what we are "getting" (but not really) and the client is charged for that 110% amount.

 

Second of all, they turn around and clip US 10% for the work we're doing, when we already have to put aside 18% for taxes! So, basically, we're not making anywhere near what it looks like we're making.

 

Third, in the well-known screen where you have two empty boxes, one of which is what you will "earn" and the other which is how much the client will make, there is no third screen which shows what you are really going to earn after the 10% gouging!

 

We make Upwork a ton of money! Why do we need to pay them part of what we are earning, working as hard as we do, and having to pay our own taxes and health insurance, etc., out of what we are earning.

 

This is ridiculous, and I would like to know who else has said anything to them, and if there is any outrage out there beside my own? This needs to change!

 

Thanks!

 

Lori

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
2 of 26

What are you talking about?

 

The 10% is all Upwork is getting. Did you expect the site to be free?

 

There is no "double dipping"  Nothing is "hidden"

 

I think you're not understanding the way it works.

 

On your $ 25.00 an hour contract, for example, the client is charged $ 25.00 - of which you get $ 22.50 and Upwork gets $ 2.50

 

It's not like you get % 22.50 and the client is charged $ 27.50 ....

 

boshoffirene
Community Guru
Irene B Member Since: Feb 17, 2015
3 of 26

I think you are under a serious misconception.

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
4 of 26

I think she thinks the client pays 10% on top and she pays and ADDITIONAL 10%

 

earnings.png

It's hardly hidden, is it?

lorikirstein
Active Member
Lori K Member Since: Sep 16, 2015
5 of 26

I ask for $25.00, and Upwork tells me I get $25.00 and the client pays $27.50. This is not true. The client pays $27.50, (a 10% fee) plus I get charged 10% for doing good work ($23.50).

 

That is double dipping. And it is not clear, when bidding, that this is what is happening. The two boxes shown are "what the freelancer gets" (not true - we get what is shown there, MINUS 10%), and "what the client pays".

 

We do not get what is shown in that box. That's untrue and "hidden". It needs to be far more obvious.

babzward
Community Guru
Barbara W Member Since: Sep 10, 2015
6 of 26

@Lori K wrote:

I ask for $25.00, and Upwork tells me I get $25.00 and the client pays $27.50. This is not true. The client pays $27.50, (a 10% fee) plus I get charged 10% for doing good work ($23.50).

 

That is double dipping. And it is not clear, when bidding, that this is what is happening. The two boxes shown are "what the freelancer gets" (not true - we get what is shown there, MINUS 10%), and "what the client pays".

 

We do not get what is shown in that box. That's untrue and "hidden". It needs to be far more obvious.


This is not true - I believe you are misinformed.

 

If you put what you hope to earn in your total bid box, for example $25 for total price, then yes, you will get $23.50.

If you put what you hope to earn in the box that's clearly labeled for what you'll earn, the client will be charged $27.50.

 

It's not both. It's one or the other. 

- Barbara Herrera -
colettelewis
Community Guru
Nichola L Member Since: Mar 13, 2015
7 of 26

Lori, my math is abysmal, but I still don't understand where you are getting these figures from. I have just completed a job. My bid was 'net freelancer', which was accepted. The amount I wanted was $70 and the amount that went into the client box was $77,78.  The client has paid this amount to me and Uwork has taken  $7.78 as their fee.

 

I have a further $1.00 withdrawal costs to pay.

lorikirstein
Active Member
Lori K Member Since: Sep 16, 2015
8 of 26

I didn't think this was right either, so I got onto a Chat with them last night, and it IS the way they're doing it.

 

I noticed that my bank account was showing less than what Upwork was showing on its site as what I was due. Yep. 10% less is what I receive. And you too! Here's what they told me.

 

(1) The article that shows this information is here (this won't let me post the link but it's called "Upwork Service Fee". You can look it up:

 

For Freelancers

The Upwork Service Fee is 10% of the total amount charged to the client. The fee is paid automatically each time your client is charged on a contract.

As a freelancer, you pay the Upwork Service Fee and it is never shown to your clients. Always talk to your clients about total charges, inclusive of fees, because they will only see the total billing rate or bid on your job applications, contracts, and profile.

Most of your reports show only total charges, inclusive of fees—same  as the client would see. Fees are broken out in your Transactions and Earnings Reports. The total billed is your legal income and the fees paid may be deductible business expenses.

For new Upwork contracts with clients you have previously worked with on Elance, the service fee will be 8.75% or whatever rate you previously paid on Elance. All client-freelancer working relationships that began on Elance but have now transitioned to Upwork are eligible for this fee.

 

(2) The supervisor I asked to talk to kindly wrote me this:

 

My name is Lanie and I am a Supervisor in Upwork. Renel forwarded your issue about the discrepancy of the funds. Let me shed some light on the issue as I know this is very much important to you. The 10% difference you may notice shown on your Transaction History page is the Upwork Service Fee. The Upwork Service Fee is 10% of the total amount charged to the client. The fee is paid automatically each time your client is charged on a contract. This is the 10% service fee that Upwork earns and Freelancer agrees to pay Upwork for creating, hosting, maintaining, and providing the Site and Site Services (the “Service Fee”). When you apply to an hourly job, we show freelancers the "rate calculator", this will show you how much the client will be billed and how much you earn. Here's a sample screen shot for that:http://prntscr.com/8vcllq. This means that every payments freelancers will receive are subjected with Upwork service fees of 10%. We previously do not show this on freelancers Transaction History Page but since we want transparency to all our freelancers, we credit the whole amount that the client pays then deduct the Upwork service fee. So, say for example, the earnings you had from your client Law Partner Publishing last October 21, we billed the client the total amount which is $720.00 less the Upwork Service Fee ($72.00), amount available on your account became $648.00.

 

 

lorikirstein
Active Member
Lori K Member Since: Sep 16, 2015
9 of 26

Turns out that someone nice at Upwork took the time to talk to me about this situation, and the $40/hour that my client agreed to pay me got snafu'd when he rewrote the contract amount. He didn't get the $44.44 in there, so I was taking the 10% hit.

 

Don't be so impatient, y'all. It's a question of needing help to understand.

lysis10
Community Guru
Jennifer M Member Since: May 17, 2015
10 of 26

lol can't tell if serious.....

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