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jorgensons
Community Guru

[deleted]

20 REPLIES 20
lysis10
Community Guru

I don't bid a whole lot but just won an enterprise Pro client (w00t stoked!) and got a response from the other open marketplace bid I put in a few days ago. Seems like she's going with me but communication is slow and that is worrying me. If she does, it'll be my first contract on my new rate that's gone through.

tlbp
Community Guru

I have lots of invitations but no hires. I had raised my rates considerably prior to the announcement, so I can't say the lack of a "yes" from the client is due to the announcement. My responses to invitations usually include a rate well above what is being offered because I am busy.

Should the new rate fees apply if you start a contract in June? Congrats by the way


@Nertila B wrote:

Should the new rate fees apply if you start a contract in June? Congrats by the way


For new contracts, they apply now. I'm not messing with a lower rate just to tell someone in June that they are going up. Just starting now and saving myself the hassle.

 

For existing customers, yes I will apply them in June.

 

Just told a customer from last year that the cost he sent me was on my old rate from last year. I raised it at the first of the year and then told him that it will go up again in June. That wasn't fun! But oh well had to be done.

 

I think I'm keeping my old rate for 2 customers that basically keep me fed and throw me tons of work. 1 is def over $10k and the other is almost there if not there already. Everybody else has to feel the pain along with me. 😄 

Schermata 2016-05-05 alle 19.26.21.png

 

According to the official email, active contracts (that means the one that you are currently working) will still be charged 10%. Let's say you start a new contract in the last week of May, it will still be charged 10%. 

 

P.S: i have still the same issue like you, I closed successfully the first phase of interview with an Upwork Enterprise, Hopefully, they will start the contract before June *crossing fingers* 


@Nertila B wrote:

 

 

According to the official email, active contracts (that means the one that you are currently working) will still be charged 10%. Let's say you start a new contract in the last week of May, it will still be charged 10%. 

 

P.S: i have still the same issue like you, I closed successfully the first phase of interview with an Upwork Enterprise, Hopefully, they will start the contract before June *crossing fingers* 


 Right. And then the contract closes and you then have to tell the client on the next contract that it's gone up by $10/hour. If I sell 10 new clients this month, I have to tell 10 people next month "oh, price hike." When you do that, you run the risk of losing people. So, if I sell them on my new rate now, I know they are OK with the new rate and don't have to deal with that nonsense.

 

Not worth the hassle when I can charge them my new rate now and just drop the bomb on current clients.

 

Also, I will increase revenue for myself this month and then next month hopefully have some people on the higher rate to cover possible losses on smaller contracts. My estimation is that I will lose on small contracts but win with larger contracts that generate over $500, so ultimately I will come out ahead and make more revenue. 

Exactly, it's the right move, increasing the rate now so you won't drop a bomb to your clients next month.  (that's what I did too) 


@Nertila B wrote:

Exactly, it's the right move, increasing the rate now so you won't drop a bomb to your clients next month.  (that's what I did too) 


Yep! Better to just get it out of the way now and make some extra money for the month.

 

Like Upwork, I think I actually take a hit on smaller contracts. I upped my one-off rate to $85/500ish words. This added $20 to my standard hourly rate, so around 1.25 hours total time for that 1 contract. However, the time it takes to sell the client, talk to them, deal with revisions, and then wait for money is a loss I believe from my end on top of the standard writing hour. And lots of people want you to read references and whatnot. This ultimately takes longer than 1.25 hours. And I get hit a lot with these clients 1 week after I've submitted, so I have to refresh my memory on the project when I revise. Communication usually isn't the best with these contracts because it's just a one-off and not a huge priority for them.

 

With larger clients where I charge them 3 hours for 1000-1500 words, I have a lot more play with time and the 3 hours represents half a day's billable hours for me. And then increase that for a 10 hour project and I have plenty of time and income to really focus on the project. 

However, you are slightly wrong. Upwork will charge 20% for any clients. 

Let's say you have 10 small contracts (closed) with the same client, and you earned less $500 overall. If you start a new contract with the same client, that becomes the 11th contract. here it's the trick. Upwork will still charge 10 %  and not 20%. 

Upwork will charge 20% for any NEW CLIENT, not new contract s 🙂


@Nertila B wrote:

However, you are slightly wrong. Upwork will charge 20% for any clients. 

Let's say you have 10 small contracts (closed) with the same client, and you earned less $500 overall. If you start a new contract with the same client, that becomes the 11th contract. here it's the trick. Upwork will still charge 10 %  and not 20%. 

Upwork will charge 20% for any NEW CLIENT, not new contract s 🙂


I did say I was gonna rock the change an make more money. 😉

 

I look at my revenue as a whole and not "oh this client has x amount with me so I will discount things just for him." I treat clients as income not friends.

 

Although, again I have 2 where I will charge my current rate because they are pretty awesome and I would kick myself if I lost them. 

and you are doing it right. 🙂 

I think if freelancers sat down and did some numbers, they could actually make more from this change and if you have a hard time with excuses, you have a great excuse - it's upwork's fault! 😄

 

 

 

Hopefully, the change will work out well for you.

 

My invitations and offers have been in free fall ever since moving from Elance, where I enjoyed reasonable success. In my primary area of Web research, clients seeking anything but the cheapest rates have all but disappeared, especially over the past two months or so.

 

Most of my jobs are <$500 with non-repeat clients, so I see nothing but lost income from the change. Given the difficulty in finding new jobs, raising my rates does not seem feasible. I'll just have to tighten my belt until I can build up more business outside the platform.


@Nertila B wrote:

However, you are slightly wrong. Upwork will charge 20% for any clients. 

Let's say you have 10 small contracts (closed) with the same client, and you earned less $500 overall. If you start a new contract with the same client, that becomes the 11th contract. here it's the trick. Upwork will still charge 10 %  and not 20%. 

Upwork will charge 20% for any NEW CLIENT, not new contract s 🙂


No, it has nothing to do with old or new clients either. It's about lifetime billings per client.

 

If you've made less than $500 from that one client and he hires you again on a new contract, as of June 1st you will pay 20% on everything you make until you hit $500, for every $ over that threshold you will pay 10%. 

 

Also, it will stay 10% for Enterprise clients after June 1st. Even if you have billed more than 10k. 

 

 

P.S. the current fee structure will only apply to ongoing (active) contracts.

Thank you. now i think i am a bit more enlightened, esp about the Enterprise client. It's a goal I have had since I got to be top rated (dont see it now, it dropped significantly after 5 idle contracts) 

jmeyn
Community Guru

Well Thursday was always the best day, I was awarded most jobs on Thursdays. Today hardly any RFPs were posted.

lysis10
Community Guru

@Joachim M wrote:

Well Thursday was always the best day, I was awarded most jobs on Thursdays. Today hardly any RFPs were posted.


It's Cinco de Mayo here so lots of parties and drinking. Slow day here in the states.

 

May and June has been traditionally slow for me though. 

tlsanders
Community Guru

I'm really not sure. There are flurries and slow periods and I haven't identified a pattern yet.

mfmaxwell
Community Leader

Not from my side, I'm hands full Cat Very Happy

I find I can control the twit invite rate by varying my billing rate... somewhat.

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