Don C wrote:
It goes beyond that...
I don't understand, it's the freelancers that make the money for Upwork, no freelancers means no clients, without us Upwork couldn't even exist!
It's true that Upwork needs a certain number of freelancers. Currently, it has at least 10x that number, and the vast majority have never made a single dime on the site.
But Upwork keeps tightening the noose on itself, making things harder and harder for the freelancers. I'm truly about ready to give up on Upwork!
I don't know anything about you and your business model, but in a general sense, a lot of us believe that's exactly what they want--for a very large number of freelancers who aren't the most profitable to self-select off the platform.
NOW.... I get a notice that you are now going to charge $0.15 per connect and up the number of connects it takes to bid on a job!
No mention anywhere of reducing the 20% they take off the top from what we earn from the clients.
It's like.... hmmm, we need more profit let's just rip-off our freelancers (and clients in the end)!
By "more profit," I assume you mean "make a profit for the first time in the history of the company"? As of the last published numbers, Upwork was losing millions of dollars each month.
The Upwork business model requires virtually no overhead, and needs very little capital compared to other types of businesses. It's obvious the company has no concept of controlling costs, no concept of efficiency, and it seems like no idea how to run a business!!
If you believe this is a low overhead business, you are either very inexperienced or suffering some sort of delusion. Upwork employs hundreds of people in various capacities--a great many of them spend a great deal of time handholding freelancers who are costing the platform money. I have no idea how much things like server space cost, but then there is also insurance, office space and all of the associated costs, all of the money Upwork gives away under its payment protection services, the $291 Upwork has to cough up every time a freelancer and client can't work things out and go to arbitration--and all of that pales in comparison with the millions of dollars Upwork spends each month drawing clients to the site.
You people (Upwork Leadership) wouldn't survive very long in the manufacturing arena for sure... take a guess on what happens when a manufacturer tries raising it's prices?
My suggestion: No matter how well you're doing... run your business every day like your loosing your customers, employees, and sales. That's how you stay in business and grow your business.
Control your costs first.
- Where is every dollar going
- Did it need to be spent?
- What is the return?
- Am I over staffed?
- Are my people's efforts being applied in the right directions?
- Is my bureaucracy wasting my people's time?
Upwork is trying to control costs. One good way--probably the single best way--to control costs is to cut loose the vast number of dead weight freelancers who pay Upwork $12/month in fees and cost the company several times that in resources.
The truth is that the return on freelancers who go on about the alleged 20% fee is very, very low...because profitable freelancers only pay the 20% on a tiny fraction of their earnings. Upwork's people's efforts are being applied in what is very likely the right direction for the company...clearing the decks of the people who are taking up time and space and never buy anything more than a 99 cent cup of coffee.
