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Is Upwork fees 20% TOO high?

ploychat1
Active Member
Ploychat T Member Since: Jul 25, 2015
1 of 57

Anyone think that Upwork fees 20% TOO high?

 

I've just backed to find a job on Upwork and I'm shocked that Upwork fees have increased to 20%! I don't know why, but 2 years ago was just 8-10% (I'm not sure). I think 20% is too high and it is unfair for freelancers because you work same as usual but you need to pay for Upwork fees more than doubled. I think Upwork should remain that the income is from freelancers, they would find another website in one day if their deserved earnings are not worthy as they worked. 

 

 

 

emiguelina
Community Guru
Elba A Member Since: Feb 28, 2017
2 of 57

IMO, is not, and is just for the first $500.

  • 20% for the first $500 you bill a client across all contracts with them
  • 10% for total billings with a client between $500.01 and $10,000
  • 5% for total billings with a client that exceed $10,000

The more you bill a client the fee will decrease! But if you stay below, well it won't!

Another point you can increase your rate to adjust to the new fee.

tanvirarjel
Active Member
Tanvir Ahmad A Member Since: Aug 7, 2018
3 of 57

Well but those who works on small projects ( Under $500) its too much for them. So it should have been 10% for 1$-5000$ and 5 % for 5001$-Up..

 

Thank you.

aocumen
Moderator
Avery O Moderator Member Since: Nov 23, 2015
4 of 57

I'm sorry to learn you feel this way, Tanvir Ahmad. Smaller contracts cost us more to serve than larger projects. The costs of acquiring clients, helping you connect with the right opportunities, and providing services like payment protection outweigh the fees currently charged for small projects. At the same time, larger, repeat projects incur fewer of these costs. To support our customers better, we’re increasing our fee on smaller projects and decreasing it when your relationships cross important thresholds. This provides our customers an incentive to continue building long and substantial relationships on Upwork, which we think will help ensure Upwork stays a vibrant marketplace now and in the future.


-Avery
Untitled
patrylo-scott
Active Member
Scott P Member Since: Apr 24, 2020
5 of 57

"To support our customers better, we’re increasing our fee on smaller projects and decreasing it when your relationships cross important thresholds." How does this help anyone but the Upwork company themselves?

 

"Support our customers?" Do you mean, make more money for the Upwork company? It's not supporting anyone taking 20% fees. Take into account 20%+ taxes on that, that is a whopping 40%+.

 

I have had to move platforms because this fee is outrageously high. Also, chances of getting $500+ for a repeating client is VERY low, Upwork knows that or they wouldn't make such "sliding scales," so they can keep charging 20%.

wescowley
Community Guru
Wes C Member Since: May 3, 2019
6 of 57

Scott P wrote:

. Also, chances of getting $500+ for a repeating client is VERY low, Upwork knows that or they wouldn't make such "sliding scales," so they can keep charging 20%.


I've actually found it very easy to have the vast majority of my client relationships above that threshold, but it was something I had to actively focus on and manage.

 

Would it be nice it the first tier was lower? Sure. But I stopped wanting a pony a long time ago too.

44ce4101
Active Member
Luke J Member Since: Mar 14, 2021
7 of 57

That may be easy for a senior professional in the US/Europe charging $100+ per hour.

 

But move to Bangladesh, India, or the Philippines and charge a competitive $5-10/hr for data entry, graphic design or repetitive processes. Now you have to bill clients for 50 to 100 hours of work before you see a price break.

 

Disregard the $500 threshold. Would you be happy having UpWork take 20% of your earnings for the first 100 hours of your work with a client?   

 

If upwork wants to push small, high volume, one-off freelance jobs to Fiverr, this will policy helps do that.

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
8 of 57

Luke J wrote:

If upwork wants to push small, high volume, one-off freelance jobs to Fiverr, this will policy helps do that.


It's not the jobs that will go there, it's the freelancers. Which is not exactly an issue, considering that Upwork is literally drowning in that type of freelancer.

 

And you're right, Upwork is not fond of small contracts. They cost the most to administer.

feed_my_eyes
Community Guru
Christine A Member Since: May 4, 2016
9 of 57

Scott P wrote:

"To support our customers better, we’re increasing our fee on smaller projects and decreasing it when your relationships cross important thresholds." How does this help anyone but the Upwork company themselves?

 

"Support our customers?" Do you mean, make more money for the Upwork company? It's not supporting anyone taking 20% fees. Take into account 20%+ taxes on that, that is a whopping 40%+.

 

I have had to move platforms because this fee is outrageously high. Also, chances of getting $500+ for a repeating client is VERY low, Upwork knows that or they wouldn't make such "sliding scales," so they can keep charging 20%.


You left? Your profile says that you just completed a job two days ago. And if you've landed dozens of clients and made over 3K in just a few months, what makes you so sure that you won't get any repeat business? Or have you made enough connections that you can afford to leave the platform now, to avoid paying any more fees?

a_lipsey
Community Guru
Amanda L Member Since: Jan 23, 2018
10 of 57

I reach 10% with all my clients within a week. And I'm just grateful Upwork doesn't charge more. It's my understanding, anecdotally, that smaller contracts take more customer support to service, have more disputes, and, of course, they gross less money. So I find it very fair that they charge higher below $500 since the risk and cost to them is greater (from what I've seen, i don't know that the company has confirmed that).

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