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Sairabanu's avatar
Sairabanu A Community Member

Expense payment by client

If I have to subscribe xxx minute subscription on my number inorder to do customer calling service for my client, how will I get that subscription fee. Client is willing to pay, but how he will pay to me? Will upwork cut from that money? If yes, how much?
Thanks and regards
3 REPLIES 3
Preston's avatar
Preston H Community Member

re: "If I have to subscribe xxx minute subscription on my number inorder to do customer calling service for my client, how will I get that subscription fee. Client is willing to pay, but how he will pay to me?"

 

Clients may pay you for expenses.

But there is ONLY ONE WAY for clients to pay you: Through Upwork. Clients are not allowed to send you money through any other means.


The cilent may use the client-side "Reimburse Expense" tool. OR the client may send you a Bonus payment. Or the client may pay you MORE money as part of a fixed-price or hourly contract. IT DOESN'T MATTER which method the client uses, as long as they client pays THROUGH UPWORK.

 

re: "Will upwork cut from that money? If yes, how much?"

 

No matter whch Upwork method the client uses to pay you, Upwork takes the same cut: The same percentage fee that it takes from your regular earnings. So if you have earned less than $500 with this client, Upwork takes 20%.

 

So if the client reimburses you $100, Upwork will keep $20, and you will receive $80.

 

==========

Freelancer: That doesn't seem fair. This is to reimburse for expenses.

 

Me: It doesn't matter if it is "fair" or not. This is how it works.

 

Freelancer: Why does Upwork do that?

 

Me: Because there are certain naughty freelancers who would try to scam the system by arranging with their client for all of their work to be an expense reimbursement. The freelancer would do the work on the project for $5.00, and then have an "expense" line item for $1000. That way, Upwork would collect 20% off of five dollars, and collect no fees off of $1000.

 

Freelancer: I wouldn't do that.

 

Me: I know. But certain naughty freelancers WOULD do that. So Upwork has the same fee across the board.

 

Freelancer: But this is an expense. Is there any way to avoid paying fees on expenses?

 

Me: Yes. There are two ways. First of all, you can simply charge enough money in your rates to cover your expenses. For example, I offer free premium web hosting to clients. On dedicated servers. This is a substantial expense. But the fees I charge when I work for clients are high enough to cover my expenses. ALTERNATIVELY, you can have the CLIENT PAY THE EXPENSE DIRECTLY. You need to subscribe to a certain service that provides minutes for phone calls. That service does not care if you pay for the service, or if the client pays for the service. You can have the client pay directly. Another example is when a web designer wants to purchase a certain stock photo to use on a client's website. This isn't really the designer's website, so why should the designer even be involved in licensing the photo? The designer sent the link to the client, and the client DIRECTLY paid for the photo and then sent the photo and license file to the designer.

Goran's avatar
Goran V Retired Team Member

Hi Sairabanu,

 

One of our team members will reach out to you via ticket as soon as possible and will assist you further with your contract and your payments. Thank you.

~ Goran
Upwork
Sairabanu's avatar
Sairabanu A Community Member

Thank you.