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Freelancers Losing Money- Change System

Community Guru
Suzanne N Member Since: Aug 15, 2012
11 of 20

It has never been "used to be" Freelancers have always paid the 10%. The below is from archived terms of service for oDesk.

 

 Last Update: October 25, 2013, effective October 25, 2013

 

2.1 oDesk Fees.

 

oDesk charges Freelancers a fee for the services of connecting them with the Clients that hire them and collecting payment for work. Typically, this fee is equal to 10% of Client's payments, plus a fee for disbursements. If Freelancer elects disbursement through a third party, the third party may assess additional fees. If Freelancer elects disbursement in foreign currency, oDesk adds a conversion fee of 1.5% to the spot rate quoted by its foreign exchange vendor.

 

http://www.sec.gov/Archives/edgar/data/1589149/000072174814000599/msrt042114s1ex10_6.htm

Community Guru
Jean S Member Since: Oct 22, 2007
12 of 20

It used to be that the freelancer would put in their price and then it would add the 10% to the client.

Community Guru
Suzanne N Member Since: Aug 15, 2012
13 of 20

The calculation was only there so you could figure out how much you were paid before they took their 10%. The client has always paid the full amount billed to them and we were paid what was owed to us minus oDesk's 10%. 

 

I know a lot of folks are having a hard time wrapping their heads around it but the only thing the calculator did was tell you how much you would earn after fees.

Community Guru
Ronald T Member Since: Sep 14, 2009
14 of 20

Sorry Suzanne, but I disagree. Older (around 2009) oDesk documentation clearly stated that the client paid the 10% fee. Later documentation (which, is still lacking in clarity) indicates that now the freelancer pays the 10% fee.

 

Jean, granted, the current interface (calculator) that is used to enter bid prices has changed and has caused some confusion. Actually, the interface had been changed at least once before. It's alot simlper to think in terms of gross vs. net earnings when bidding.

Community Guru
Ramon B Member Since: Jan 11, 2015
15 of 20

If they started asking for money to post jobs, it would get rid of the 75%+ scams and low-paid rubbish that appear in the feed.

Community Guru
Jean S Member Since: Oct 22, 2007
16 of 20

Sorry Ramon but we're talking about how fees are calculated. 

 

We're not talking about charging clients to post a job.

Community Guru
Ramon B Member Since: Jan 11, 2015
17 of 20

Oh well, carry on then

Community Guru
Ronald T Member Since: Sep 14, 2009
18 of 20

Ramon, although I believe it would discourage some good clients from participating on oDesk if they had to "pay-to-post" (even as an option, especially if freelancers could filter for paying clients only); I also believe that a client "pay-to-post" feature would resolve a lot of negative issues on this platform.

 

ADDED (after R before J): Oops, this is off-topic. Most of the threads here do not adhere ot any quidelines for "off-topic" posts

Community Leader
Bob H Member Since: Feb 18, 2009
19 of 20

I'm fine with the new cost system.  oDesk is gonna do what they're going to do.  We best all just suck it up.  Adapt and overcome.  Do or die.  If you don't like it, leave.

 

Oh, wait, did I just type all the reasons connects were OK?  I can't remember. 

 

Not so fun being on the other side, huh?

 

bh

Community Guru
Ronald T Member Since: Sep 14, 2009
20 of 20

Hi Bob! Good to see you again!

 

"If you don't like, leave"? Nah, hang around because on this platform change is inevitable. I'm still hoping things will normalize, and good clients and good freelancers from all industries and types of work can function in harmony -- as the word "community" might suggest.

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