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$600 + and 20% fee

edesignmk
Active Member
Goran A Member Since: May 4, 2020
1 of 13

Hi, I have over $600+ total earnings but the fee is still 20% when I submit a proposal. How long does it takes to get the 10% after I reach $500+ earnings?

prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
2 of 13

It doesn't take a "length of time." So there is no "how long."

 

The fee is 20% on the first $500 of earnings with a client.

 

Then, starting with $501, the fee drops to 10%.

 

These dollar amounts are earnings with an individual client, no matter how many different contracts you have with the same client.

edesignmk
Active Member
Goran A Member Since: May 4, 2020
3 of 13

Yes, that's correct. But my stats on my profile shows 600+ earnings but it still takes 20% fee. I am not sure why is that.

a_lipsey
Community Guru
Amanda L Member Since: Jan 23, 2018
BEST ANSWER
4 of 13

Goran A wrote:

Yes, that's correct. But my stats on my profile shows 600+ earnings but it still takes 20% fee. I am not sure why is that.


Hi Goran, the 20% fee applies individually to each client. So if you work with Client A and reach $500, then you bump down to 10% for ONLY Client A. When you get a contract with Client B, that contract will also start at 20% until you reach $500 earnings with Client B, and so on. 

View solution in original post

edesignmk
Active Member
Goran A Member Since: May 4, 2020
5 of 13

Thanks for this information. 

a_lipsey
Community Guru
Amanda L Member Since: Jan 23, 2018
6 of 13

You're very welcome. 

isabellecruv
Active Member
Isabelle C Member Since: Jul 24, 2021
7 of 13

I have $700+ of earnings and  I have only worked and I am only working with 1 client since I opened my account. Why is it still taking the 20% fee?

aocumen
Moderator
Avery O Moderator Member Since: Nov 23, 2015
8 of 13

Hi Isabelle, 


I merged your posts as it pertains to the same topic anyway. As a gentle reminder, in the Community, we ask members to refrain from posting the same post twice on different threads because it is considered spam. You may read more about the Upwork Community Guidelines here for your reference. 

As for your concern, I checked your account and can confirm that moving forward, your contract with this client will be charged a 10% freelancer service fee. I want to highlight the FAQ in this article - "What happens if I cross a fee threshold in a single payment?" It says that - 

"All contracts that cross a fee threshold will be charged at a blended rate. For example, if you begin an hourly or fixed-price contract with a new client for $600, you’ll be billed 20% on the first $500 and 10% on the remaining $100. The same is true of a $15,000 contract – you’ll be billed 20% on the first $500, 10% on the next $9,500, and 5% on the last $5,000.

We will automatically apply the lower service fee if our system detects that your total billings with a client have exceeded a fee threshold. You can verify this by checking the service fee invoice breakdown in your Transaction History."

 

You may check the article I linked above for more information about your concern. I hope this helps clarify it!

 


~ Avery
Upwork
641a7b62
Active Member
Marie Cris Jade Q Member Since: Sep 18, 2020
9 of 13

Hi Upwork,

 

I want to ask about the 20% Fee. When is the right time that I can get lesser fee of 10%? For fixed price and hourly rate?

 

Will I get 10% when I receive $500 and up? for fixed and hourly? or when I reached an earning of $500 for both?

 

Please help Smiley Happy

 

Thank you

martina_plaschka
Community Guru
Martina P Member Since: Jul 11, 2018
10 of 13

Marie Cris Jade Q wrote:

Hi Upwork,

 

I want to ask about the 20% Fee. When is the right time that I can get lesser fee of 10%? For fixed price and hourly rate?

 

Will I get 10% when I receive $500 and up? for fixed and hourly? or when I reached an earning of $500 for both?

 

Please help Smiley Happy

 

Thank you


It does not matter what kind of contract it is, or how many until you reach 500 per client to get the lower percentage. 

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