I have been working with an Enterprise client for several months and just hit $10K in earnings. I learned today that I will not be dropping to 5% commission to Upwork because they are Enterprise. The customer service person gave me nebulous benefits to me like I can apply for other jobs with them. I'm highly specialized in what I do and am the only one doing the job, for this company which is under 200 people. Also, its justified because I didn't pay 20% on the first $500 I earned, which I earned in the first week. Can anyone tell me why it's worth paying $1000s of more dollars a year to Upwork than I would pay on normal contracts?
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Lara M wrote:
Can anyone tell me why it's worth paying $1000s of more dollars a year to Upwork than I would pay on normal contracts?
If you don't think it's worth it, feel free to end the contract.
I am paying more to work with this client than I would normal clients and there are 0 benefits to me. Being snarky and telling me to end the contract doesn't address my question. What are the benefits to me to work with an Enterprise client outside of a normal client?
What are the benefits to me to work with an Enterprise client outside of a normal client?
Well, if there are no benefits to you, don't do it. It really is as simple as that.
For me, personally, the hundreds of thousands of $ I made working with various Enterprise clients were the benefit.
For you, it may be something else, or there may be no benefit, in which case you may want to decide not to do it. That is a decision you need to take based on your own business-model.
If you can get above $ 10k with so many non-Enterprise clients, go ahead and work with them instead.
Nothing to do with snarky, there is no other answer.
If you don't consider it worthwhile for your particular business model, don't do it. It really is as simple as that. The tiers are what they are. How you optimize them for your own business model is ultimately up to you.
To me (your mileage may vary) the benefits are:
Sure, it is sweet as hell when the percentage drops to 5% - but he vast majority of non-Enterprise contracts never get there in the first place.
I will not be applying to any other jobs there because there aren't any other jobs. So again, what benefits are there for me
In that case: The advantage is perfectly clear: It is earning money v. earning nothing at all if there are no other clients who would pay you for what you do.
It seems you answered your own question. It's earning 90% of the money billed versus earning none at all.
That's correct, on an Enterprise contract, the freelancer fee is a flat 10% for the duration of the contract. The freelancer fee does not start at 20% and does not drop to 5%.
Working with Enterprise clients gives freelancers access to more quality opportunities through the clients Talent Cloud network. Many freelancers who work with Enterprise clients end up spending less time searching and applying for jobs and more time working.
That doesn't really answer my question. I'm in a highly specialized position and there are no other positions like it at the company (only 200 people work for them as it is) I will not be applying to any other jobs there because there aren't any other jobs. So again, what benefits are there for me to pay more to work with an Enterprise client. I noticed that it does benefit the client because the 3% payment fee is waived. That fee seems to be passed on to the freelancers.
Petra's answer wasn't very nice, but Valeria's was. If you read about the cloud opportunity, it does state there what Valeria told you. In your specific case, it might not be worth it, if you are the only one who can do the job. But in that case, you can discuss with your client the chance to raise your salary stating the same reasons you are giving us here.
To answer your question, for other freelancers, working with other enterprises, the benefit might be that you can apply for better jobs and that you can have a better stream of jobs, which is what they state in this article.
No snide remark on my part, but at this point, if you still think you are losing money, maybe you should take petra's advice and quit the contract in case you can't reach a better agreement with the client. Whether we like it or not as freelancers, UW's information on these clouds is pretty clear.... maybe it is true that in some cases it's more worthy than others. But then, it's on you to decide whether you want to stay or not.
Good luck with your decision!
Thanks for your well thought out response, Laura. I already messaged the client and asked them to cancel their Enterprise contract. I am the only contractor that they have working from Upwork and I'm actually losing money by working on this contract as my non-Upwork clients (some a year-plus) obviously don't charge me anything and I could have other clients that are not on Upwork. I can swallow 5%, but 10% is just outrageous.
Lara, you raise a valid point. I have never worked for an enterprise company and probably never will. I tend to take on long-term contracts that reach the 5% rate and I love it. It's like getting a raise. To be honest, I prefer working with start-ups and smaller companies because there is more flexibility and they are more receptive to rate negotiation and suggestions. If you have a specialized field then definitely explore your options. Personally, enterprise clients don't fit my business model. I think some freelancers feel it gives them an advantage but I find my advantage is definitely with start-ups and smaller companies that value my skillset, appreciate my professional feedback, and will allow me to grow with them as they grow. I really appreciate those clients that others may shy away from.
Your questions are valid, but raising them at this point in time is not very professional. The commission structure was known to you from before starting the job.
Starting the contract meant you knew and agreed to all these terms, and that you correctly included all associated costs into your rate. You didn't protest against not paying 20% on the first $500, now you have to keep your part of the deal even if it's not pleasant.
You can ask to renegotiate the terms of the contract, but that's just between you and your client.