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Even after 500$, service fees still 20%

mthornton-cpc
Community Guru
Melissa T Member Since: Dec 5, 2014
21 of 25

David, you may already know this, but the $500 threshold is lifetime billings per client. While an individual job may not be more than $500 it's possible to do multiple jobs for the same client and get up over that level of billings. Long term client relationships are generally more fruitful for the freelancer and Upwork. Obviously, not every client needs continued work, so it doesn't cover every scenario, but the $500 isn't prohibitively difficult in many cases. 

researchediting
Community Guru
Douglas Michael M Member Since: May 22, 2015
22 of 25

David,

 

North American clients, or other clients from rich countries, are often willing to pay their domestic market rates, or close to it, for professional services. As a US-based contractor, I probably have an advantage for many of these jobs. I have known successful freelancers from elsewhere who can command rich-country rates. You can look at your competitors' job histories and locations to get an idea of what you might realistically expect as a workable rate on Upwork for the services you offer.

 

Best,

Michael

nkalog
Ace Contributor
Nicholas K Member Since: May 11, 2016
23 of 25

I am not sure If I am writing in the proper thread but I do have the following question.

Let's assume that we have 10 milestones with a client and have already earned $500 for this same client.

Shall we need to end this contract and open a new one in order for the fee to go from 20% to 10% or the change will also apply on the next, 11th milestone?

Thanks in advance,
Nicholas

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
24 of 25

@Nicholas K wrote:


Let's assume that we have 10 milestones with a client and have already earned $500 for this same client.

Shall we need to end this contract and open a new one in order for the fee to go from 20% to 10% or the change will also apply on the next, 11th milestone?


 The change will also apply on the next, 11th milestone!

 

No need for a new contract. It will even apply to part of a milestone, if that milestone takes you across the line.

 

Say you have 3 milestones of  200

 

1st is 20%

2nd is 20%

The first $ 100 of the third are at 20%

The second $ 100 of the third milestone are at 10%

vladag
Community Manager
Vladimir G Community Manager Member Since: Oct 31, 2014
25 of 25

Hi Nicholas,

 

You don't need to end the contract as the new service fee will be applied automatically once you pass the $500 threshold. As Petra explained, a singe payment can have two fees applied on it if it straddles the $500 or the $10000 threshold.

 

Congrats on delivering great work and reaching this Milestone with your client!

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