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Re: Is Upwork fees 20% TOO high?

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Active Member
Ploychat T Member Since: Jul 25, 2015
1 of 31

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. 

 

 

 

Community Guru
Elba A Member Since: Feb 28, 2017
2 of 31

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.

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Active Member
Tanvir Ahmad A Member Since: Aug 7, 2018
3 of 31

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.

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Moderator
Avery O Moderator Member Since: Nov 23, 2015
4 of 31

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
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Community Guru
Charles K Member Since: Mar 6, 2017
5 of 31

This isn't going to change. Your best way to deal with it is to become a good freelancer and get steady, long-term clients. Once you pass $500 in earnings with a client, it drops to an entirely reasonable 10%.

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Community Guru
Irene B Member Since: Feb 17, 2015
6 of 31

I really don't see it as such a huge issue. Take into consideration the time and hassle I would have spent billing a client, following up for payment, etc. etc. etc. and that percentage charged starts looking good. Besides, longer projects are my bread and butter. Small projects that I take on from time to time provide the jam.

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Community Leader
Rohan S Member Since: Mar 23, 2017
7 of 31

Should I have to exceed $500 in one contract or just with that client in total since beginning ? Thanks

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Community Guru
Petra R Member Since: Aug 3, 2011
8 of 31

Rohan S wrote:

Should I have to exceed $500 in one contract or just with that client in total since beginning ? Thanks


Just with that client, Rohan.

It does not matter whether it's on one contract or 10 (or whatever.)

 

I started shooting for longer term client relationships years ago (before the 20% even came in) and think of the original 20% as a $ 50 "finders fee" which is pretty irrelevant when it comes to client relationships worth many thousands, and it's oh-so-sweet when it drops to 5%!

 

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Active Member
Kate M Member Since: Jun 24, 2018
9 of 31

It is wayyy too high. With the fees this high, it is hard to say if I would stay or go when another freelancer site inevitably arrives and shows potential. It is terribly high. An agent only takes 10%. 

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Community Guru
Jonathan H Member Since: Jun 19, 2019
10 of 31

Kate M wrote:

It is wayyy too high. With the fees this high, it is hard to say if I would stay or go when another freelancer site inevitably arrives and shows potential. It is terribly high. An agent only takes 10%. 


There are already a number of other options for sourcing work, clearly none of them 'show potential' as you are still here. This suggests to me, that in order for a site to provide the kind of services that 'show potential'  and compete with Upwork, they would likely need to charge a higher rate than the others (20%).

 

The majority of my work has been in the 'under $500' fold, but i am working to try and build a base of clients that are in the >$500 / 10% range. Its better for upwork and its better for me. WIN WIN!

 

 

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