Today while submitting a proposal for a long project I entered my billing price of $540.
Magically, Upwork Math Gods added up the 10% fee and the resulting price for the client was set as $600.
Now, let me use my elementary math knowledge:
600 - 540 = $60 fee
10% (real fee) of 540 = $54
540 + 54 = $594
I decided to contact Upwork through chat and exposed my calculus. The response I got was simply this:
"That is the way the 10% fee works and we can't change the 10% fee"
See how 10% fee was mentioned, while Upwork added 11.11% to my proposal rate.
Even though the price difference is low, I calculate my rates accurately and indicate to my clients how I do them. If the math does not add up, they will know. And we, the freelancers, will be the ones suffering from lack of credibility.
As expected, I had to lower the final client rice for the right amount, and what is funny is that I was still skimmed with a 11.11% fee deducted from that price.
I hope this is not a scheme to gradually increase the fees. 10% is a very round number, very high for a rate, and not that hard to calculate. Any thoughts on this?
Solved! Go to Solution.
Yes Jennifer, I know that. But I didn't set the client price first, I set mine. And even when I did the contrary, the deduction or adding was always of 11.11% while the fee is supposed to be "only" 10%...
The 111.10 is if you want to make $100 on a project. Take 10% of the total project cost, so deduct 10% from 111.11..
10% of 111 is different than 10% of 100.
I see it now, Jennifer. However I felt it would be much more fair if the 10% were added from the freelancer's bill and not deducted from the total price (since the total price is the freelancer's rate plus the fee, so the fee should be calculated from the freelancer's price)
I think it shows the plus sign next to the commission, which makes it confusing. I came from Elance, so it's intuitive, but I could see why the plus sign after the rate is confusing.
The widget we put theprices in is structured in a stupidly confusing way.
Most people "know" what it means and yes, people can (if they so desire) read a help article but why oh why isn't it simply structured in such a way that it makes it clear, at first glance, what is what.
I switched it round in photoshop (not very elegantly) and something like this would make a lot more sense:
Jessica V, you are right on your math but Upwork is not keen on seeing things your way. The dust on a similar thread hasn't settled as yet. And before that there was another one.
The best thing to do is to factor in what you know to be right when doing your pricing - simply add 11.11% to what you'd like to see in your bank account. I imagine the client knows that 10% of what he/she is paying is not going to you but to Upwork.