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Is Upwork fees 20% TOO high?

harman90
Active Member
Dr. Harman S Member Since: Jan 20, 2012
61 of 81

Yes It's TOO high! 
Here people are asking to move to other platform if you find the fee to be high...! 
Well give me a competitive platform with equivalent opportunities like Odesk and Elance few years back... I would happily shift. 
so you understand the reason for the merge and then raising the fee. Kill the competition and create the monopoly

Secondly, the services which they are proving for 20%, elance gave out those opportunities @8%.
PLUS it charges more for getting connects these days. 

Over and above, clients are also paying processing fee of 3%. 


Thirdly, Small jobs may cost more for new freelancers. Freelancers who have been working here for last 10-15 years, they already know how to deal with it.
_____________________

So I think upwork should come out with some plan considering the people from asia who work at much lower rates and the probability of going above 500 per client is very less. 

 

clarimoraes
Active Member
Clarissa M Member Since: Jun 25, 2021
62 of 81

I find it EXTREMELY high and unfair. We're not gonna earn up to 500$ in every job we get, so it's not as simple as "it's only for the first 500 dollars".

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
63 of 81

Clarissa M wrote:

I find it EXTREMELY high and unfair. We're not gonna earn up to 500$ in every job we get, so it's not as simple as "it's only for the first 500 dollars".


Unfair to whom? Unfair how? It's the same for everyone.

Upwork has to stay in business for us to be able to benefit from it, and without making any money it won't last,  To this day, it has never made a profit.

 

The fee is a business expense you need to build into your rates and prices, When you accept work at a rate that simply won't make you any money and is barely over a quarter of your (already more than reasonable) profile rate, the fee matters.


If you were to set your rate at a more realistic level and didn't accept jobs at a fraction of your profile rate, the fee would be no problem for you.

 

If you accept bottom-of-barrell rates you don't only end up not earning enough, you also end up with the worst clients and you also harm your fellow freelancers. Professional translators don't usually work for $5 an hour.

kinector
Community Guru
Mikko R Member Since: Dec 26, 2015
64 of 81

Clarissa M wrote:

I find it EXTREMELY high and unfair. We're not gonna earn up to 500$ in every job we get, so it's not as simple as "it's only for the first 500 dollars".


Clarissa, I suspect there is something fundamentally wrong with your business plan. Why would you say you couldn't earn more than $500 per project?

 

PS. It is $500 per client regardless of the number of projects for that client.

juanvillegas
Active Member
Juan V Member Since: Mar 18, 2015
65 of 81

Either way, the point everyone is missing is that the sliding scale stops at 5%. Forever. Why doesn't it become zero or 1% at some point?

So even if you keep a customer for a long time doing a significant number of hours per month, you are always leaving 5% (in the best case) to Upwork, indefinitely.

That's in my opinion where the real issue is: they take a significant cut of your money. 5% of a full month means that a whole day is worked for Upwork only, FOREVER.

prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
66 of 81

re: "Either way, the point everyone is missing is that the sliding scale stops at 5%. Forever. Why doesn't it become zero or 1% at some point? So even if you keep a customer for a long time doing a significant number of hours per month, you are always leaving 5% (in the best case) to Upwork, indefinitely. That's in my opinion where the real issue is: they take a significant cut of your money. 5% of a full month means that a whole day is worked for Upwork only, FOREVER."

 

Juan:
The important point is that all of this is VOLUNTARY.

 

It is TRUE that Upwork's fees don't go down to 1% or zero. They go down to 5% and stay at 5%.

 

But it is YOUR CHOICE whether to use Upwork to find clients or not.
You can make the choice to use other platforms to find jobs.

You are allowed to stop using Upwork and instead use freelance work platforms which never charge 20% or which quickly go down to 1% or zero percent fees.

wescowley
Community Guru
Wes C Member Since: May 3, 2019
67 of 81

Juan V wrote:

Either way, the point everyone is missing is that the sliding scale stops at 5%. Forever. Why doesn't it become zero or 1% at some point?

So even if you keep a customer for a long time doing a significant number of hours per month, you are always leaving 5% (in the best case) to Upwork, indefinitely.

That's in my opinion where the real issue is: they take a significant cut of your money. 5% of a full month means that a whole day is worked for Upwork only, FOREVER.


That 5% is paying Upwork for their services: payment protection, escrow handling, hour tracking, getting you paid on time, etc. And no, you're not forced to pay that forever. After two years from when you connected with the client on here, you can start billing them directly if you choose.

prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
68 of 81

Wes makes an excellent point.

 

Think about this:

As Wes points out, any freelancer can stop using Upwork with a client after two years.

But I don't.

And based on what I have read from other Forum regulars, I think most of us don't.

Most of us here voluntarily continue to work with clients ON UPWORK after two years, because the benefit of doing so is worth more than the relatively small fee.

90e4a451
Ace Contributor
Eni M Member Since: Dec 21, 2020
69 of 81
Getting payment in time? What? Are you seriously now for real? Payments are released after 3 days minimal and they go even 5 or 6 days. And then 2 more days to process to banks.
moonraker
Community Guru
Jamie F Member Since: Mar 7, 2010
70 of 81

Eni M wrote:
Getting payment in time? What? Are you seriously now for real? Payments are released after 3 days minimal and they go even 5 or 6 days. And then 2 more days to process to banks.

Yes. Getting paid on time. That is, the timeframe that is agreed to when you enter into a contract with a client. And, yes, you do agree to such a timeframe by entering into such a contract in the first place.

And a week or so is nothing. It's not uncommon for clients off-Upwork to want a month. Maybe more. And you're still left having to chase them up. 

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