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Changes to Connects

gilbert-phyllis
Community Guru
Phyllis G Member Since: Sep 8, 2016
31 of 821

Miriam H wrote:

Tiffany S wrote:

Miriam H wrote:


And for that 20% an agent actually did some work, right?  Helped you get auditions, negotiated on your behalf..etc..


Sort of the way Upwork spends millions of dollars each month drawing clients to the site for you to connect with, provides default contract terms and payment processing, offers payment protection if you use the site as intended..etc..?


Millions of dollars each month drawing clients? Interesting.

I believe I have stated in other threads that 20% seems very high to me for the level of support provided to the freelancer. I never said Upwork provides no value.   

 

I'm curious to know how much money Upwork makes on holding our money for the escrow period...

 

As for the payment protection, which fortunately I never had a need to use, from the threads I have read, it's not always straightforward for the freelancer. 


I'm pretty sure UW is not able to earn interest on escrowed funds. Meanwhile, the ad budget has to be pretty subtantial, given they had a billboard in Times Square a while back (and may still, for all I know). They rolled out a huge campaign last year.

 

The payment protections are limited and specific, but they can be valuable.

 

 

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
32 of 821

Phyllis G wrote:

Miriam H wrote:

I'm curious to know how much money Upwork makes on holding our money for the escrow period...

 

 


I'm pretty sure UW is not able to earn interest on escrowed funds.

 


They don't earn money on escrowed funds.

That old chestnut has been dragged out by a certain type of people in ever whining-feast for years.

 

Upwork keeps confirming that it's nonsense, but why let facts stand in the way of a nice little slur?

yurynmuz
Community Leader
Yury M Member Since: Jun 16, 2017
33 of 821

Miriam H wrote:


Millions of dollars each month drawing clients? Interesting.

keyword - freelancers - Google search index

 

It means, they spent big money for SEO before, but now Google works for them, they pay for adds as all another companies do - millions per month? Doubt, there is no need to do it at all (I mean SERP), they are already on tops etc.

The situation is really interesting: Small jobs under $30-50 (clients) will have to leave the platform. Who will apply for a small jobs spending every time from $0.15&$0.15+ on every proposal?

tlsanders
Community Guru
Tiffany S Member Since: Jan 15, 2016
34 of 821

Yury M wrote:

Miriam H wrote:


Millions of dollars each month drawing clients? Interesting.

keyword - freelancers - Google search index

 

It means, they spent big money for SEO before, but now Google works for them, they pay for adds as all another companies do - millions per month? Doubt, there is no need to do it, at all, they are already on tops etc.


You know that listing at the top of the page is a Pay-Per-Click ad, right? You have to scroll pretty far down to find the natural result--below freelancer.com and several other sites. 

And, of course, most clients won't be searching for such a broad term. Upwork is likely advertising on several thousand keyword phrases.

jmeyn
Community Guru
Joachim M Member Since: Mar 23, 2015
35 of 821

Miriam H wrote:

Tiffany S wrote:

Miriam H wrote:


And for that 20% an agent actually did some work, right?  Helped you get auditions, negotiated on your behalf..etc..


Sort of the way Upwork spends millions of dollars each month drawing clients to the site for you to connect with, provides default contract terms and payment processing, offers payment protection if you use the site as intended..etc..?


Millions of dollars each month drawing clients? Interesting.

I believe I have stated in other threads that 20% seems very high to me for the level of support provided to the freelancer. I never said Upwork provides no value.   

 

I'm curious to know how much money Upwork makes on holding our money for the escrow period...

 

As for the payment protection, which fortunately I never had a need to use, from the threads I have read, it's not always straightforward for the freelancer. 


Miriam,

 

Let me put it like this, the rate of 20% is competitive, other platforms are charging the same but with much less business available. Naturally you can go to the cheaper platforms, I offer my services on several, but Upwork is the most active. And once you've passed the threshold of $500 with a client it's only 10% on all future jobs with this client.

m_sharman
Community Guru
Miriam H Member Since: May 16, 2017
36 of 821

Joachim M wrote:


Miriam,

 

Let me put it like this, the rate of 20% is competitive, other platforms are charging the same but with much less business available. Naturally you can go to the cheaper platforms, I offer my services on several, but Upwork is the most active. And once you've passed the threshold of $500 with a client it's only 10% on all future jobs with this client.


Yes, I am well aware of the 500/10% threshold - it's only recently and with a more selective approach that I have been reaching that threshold with clients.

 

ilovevoiceover
Active Member
Lisa H Member Since: Dec 19, 2017
37 of 821

If you re-read my post, you'll see that I'm aligned with the 20% as that is an agency standard take. What I'm pointing to is the cost to audition... that's a new one!

tlsanders
Community Guru
Tiffany S Member Since: Jan 15, 2016
38 of 821

undefined:

If you re-read my post, you'll see that I'm aligned with the 20% as that is an agency standard take. What I'm pointing to is the cost to audition... that's a new one!

 

Right, I'm not sure where the confusion is. That's exactly what I was responding to.

Let's pretend for purposes of this discussion that Upwork actually charges 20%, just like the agent.

Now, the agent doesn't charge you a few pennies to go on an audition. BUT, the agent DOES engage in gatekeeping, and that's critical. If every single performer who was signed to that agency could show up at any audition, whether or not he or she had the basic qualifications, the whole system would have broken down. Agents avoid that by not sending 12-year-old girls in wheelchairs to casting calls for 60-year-old male runners. 

Upwork doesn't have the staff or expertise to employ that hands-on approach, so there's been very little gatekeeping. The result is that the system has largely broken down, much like casting would have if every time you showed up for an audition there were thousands of random people milling around.The charge for connects is a first step toward some minor gatekeeping.


ilovevoiceover
Active Member
Lisa H Member Since: Dec 19, 2017
39 of 821

Zactly! I have no qualm about paying the 20%. It's the charge to audition that has me scratching ye olde noggin.

tlsanders
Community Guru
Tiffany S Member Since: Jan 15, 2016
40 of 821

Lisa H wrote:

They are related in one way...

When I lived in Hollywood and had an agent, the agent took one-fifth or 20% of my pay. I was never charged to go on an audition.

 

That agent also functioned as a gatekeeper, and thank goodness. Imagine if the agent hadn't been sending you on auditions, but the simple act of signing up with the agent and not paying a dime gave you and every other would-be actor who filled out a profile on the agent's site carte blanche to show up at every audition, regardless of whether you were in any way qualified.Upwork isn't in the business of vetting freelancers and hand-matching the with opportunities, but some kind of gatekeeping measures are still very necessary.

 

Upwork is getting 20% of what I make (like the olden days) plus charging me to audition.

Over two thirds of the jobs I submit a proposal for are closed without anyone being hired.

If I pay the 15 cents to simply submit a proposal, and the company who posted then doesn't hire anyone, do I then get my 15 cents back?

No, not unless Upwork cancels the job for a TOS violation or the client closes the posting without hiring (versus abandoning it)

What alert will I receive or how will I know if the company who posted the job actually hires someone or not?

You can easily find this information in your proposal listing (as you obviously know, since you quoted stats on how many of the jobs you bid on result in a hire). But, it's not important, since the vast majority of no-hire jobs are abandoned, which does not result in a return of connects. 

So Upwork will pocket the 15 cents whether or not a freelancer is hired, or will Upwork deduct the cost of the audition from the 20% they make...

Yes, Upwork will "pocket" those pennies if no freelancer is hired, the client doesn't close the job, and Upwork doesn't close the job for TOS violations.


Have a fun and creative day!


 

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