Oct 15, 2019 11:09:04 AM by Nancy B
I have a client that I do work for that I believe may end up asking me to help them find candidates for work that is related to the work I am doing (no overlap, different skillset, so this is not a subcontract situation). These candidates may be on upwork or may be outside of Upwork. In these scenarios I would think of this as offering recruiting services and that being the case would want to charge a similar model, where they would pay 20% of the first year's salary (or 20% of the candidate's fees once they are placed) and assuming that the person works out. I don't want to violate the terms of service so I definitely won't be going outside of upwork but can this arrangment be possible inside of Upwork? This assumes I would have my own contract that spells out the terms of the arrangement (which Upwork allows you to do your own contract..as long as what is in that contract does not violate the terms of service). I am not really open to doing a fixed price as that limits the income potential of arrangement and the projects I work on are not well suited for fixed priced, so I guess I would probably pass if that was the only option. Any thoughts?
Solved! Go to Solution.
Oct 16, 2019 12:23:51 PM by Petra R
What is the problem? Go for a fixed rate contract with one milestone of 20% of the salary.
Oct 15, 2019 11:23:32 AM by Preston H
Be sure to read this so that you can get set up properly with delegated hiring authority for your client:
Oct 15, 2019 11:50:11 AM by Mark F
Nancy B wrote:I have a client that I do work for that I believe may end up asking me to help them find candidates for work that is related to the work I am doing (no overlap, different skillset, so this is not a subcontract situation). These candidates may be on upwork or may be outside of Upwork. In these scenarios I would think of this as offering recruiting services and that being the case would want to charge a similar model, where they would pay 20% of the first year's salary (or 20% of the candidate's fees once they are placed) and assuming that the person works out. I don't want to violate the terms of service so I definitely won't be going outside of upwork but can this arrangment be possible inside of Upwork? This assumes I would have my own contract that spells out the terms of the arrangement (which Upwork allows you to do your own contract..as long as what is in that contract does not violate the terms of service). I am not really open to doing a fixed price as that limits the income potential of arrangement and the projects I work on are not well suited for fixed priced, so I guess I would probably pass if that was the only option. Any thoughts?
If I am following you you want to find someone to do some skill, the client would be charged $X, you would take 20% of X, and the freelancer at the bottom would get paid 80% of X which we will call Y. Is that correct?
I think Agency is the only way you could make this work. You start an agency, find people you want to invite and explain to them the situation and have them join your agency. Your client hires the freelancer through the agency at $X you pay the freelancer at Y (80% of X) or whatever you want really. The freelancer would know what your overages are.
The only thing that is in there is Upwork takes their 20/10/5% as well so you might want to do it at 25%, you eat it mostly (only earning 5%) for the first $500, after that you get 15%, then at $10k you get 20%.
Oct 16, 2019 10:09:48 AM by Nancy B
Mark- thank you for your quick response. What you are describing is actually a subcontract situation. In my scenario, I would be placing a person for a client and I would get 20% of the their first year's salary with not impact to their compensation, just a few my client would incur, and only if they work out. This is a standard recruiter model. I can see how this would be a complicated arrangement for Upwork to be a part of due to the conditional nature of the agreement and also the fact this is salary based compensation and the model in upwork is freelancer. I guess I could do what you suggested, it is just a not recruiting, it is subcontracting. I wish there was a way to do this outside of upwork since there is no way to do it inside of upwork but that is not possible, as I am only 1 year into the 2 year obligation that would allow me to seek work with this client outside of Upwork. I do see recruiting jobs on Upwork but they appear to be paying people only for the time to find the person or a fixed price to find a candidate, versus a percentage of that placed person's compensation. It's a much less lucrative model than typical recruiting model. Oh well. At least I know what is possible and not, thanks so much.
Oct 16, 2019 11:46:42 AM by Mark F
Nancy B wrote:Mark- thank you for your quick response. What you are describing is actually a subcontract situation. In my scenario, I would be placing a person for a client and I would get 20% of the their first year's salary with not impact to their compensation, just a few my client would incur, and only if they work out. This is a standard recruiter model. I can see how this would be a complicated arrangement for Upwork to be a part of due to the conditional nature of the agreement and also the fact this is salary based compensation and the model in upwork is freelancer. I guess I could do what you suggested, it is just a not recruiting, it is subcontracting. I wish there was a way to do this outside of upwork since there is no way to do it inside of upwork but that is not possible, as I am only 1 year into the 2 year obligation that would allow me to seek work with this client outside of Upwork. I do see recruiting jobs on Upwork but they appear to be paying people only for the time to find the person or a fixed price to find a candidate, versus a percentage of that placed person's compensation. It's a much less lucrative model than typical recruiting model. Oh well. At least I know what is possible and not, thanks so much.
You can opt out: https://support.upwork.com/hc/en-us/articles/211068168-Upwork-Opt-Out-Fee
7.2 under...
https://www.upwork.com/legal#noncircumvention
Oct 16, 2019 12:23:51 PM by Petra R
What is the problem? Go for a fixed rate contract with one milestone of 20% of the salary.
Oct 16, 2019 12:48:40 PM by Nancy B
Thank you, I like this approach! Would the resource have to be an upwork resource or not necessarily?
Oct 16, 2019 08:05:30 PM by Petra R
Nancy B wrote:Thank you, I like this approach! Would the resource have to be an upwork resource or not necessarily?
Nope, only you and the client.
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