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mtngigi
Member

New Fee Structure and Bonuses

Dear, dear Upwork - are you planning on applying the 20% fee to bonuses we receive? I really hope not.  I'm resigned to 20% as the cost of doing business, but that you take a percentage of bonuses is another story.

 

10%, okay, but in my opinion, taking 20% from bonuses would be a bit much. A bit greedy, a bit unfair and it kinda makes it hard to call it a "bonus".

 

If you're planning on it, I'd like to hear the justification for doing so. I know my math isn't right, but in the end, it's hard not to think of it as a 40% cut .... and I don't need to see a math equasion so many of you like to do. As I said, it's a perception.

12 REPLIES 12
katrinabeaver
Member


@Virginia F wrote:

Dear, dear Upwork - are you planning on applying the 20% fee to bonuses we receive? I really hope not.  I'm resigned to 20% as the cost of doing business, but that you take a percentage of bonuses is another story.

 

10%, okay, but in my opinion, taking 20% from bonuses would be a bit much. A bit greedy, a bit unfair and it kinda makes it hard to call it a "bonus".

 

If you're planning on it, I'd like to hear the justification for doing so. I know my math isn't right, but in the end, it's hard not to think of it as a 40% cut .... and I don't need to see a math equasion so many of you like to do. As I said, it's a perception.


I would have to say yes they will because the fee applies now and always has.  Otherwise it would leave it wide open for people just to pay in bonuses to avoid the fee.  

"Fairness is giving all people the treatment they earn and deserve. It doesn't mean treating everyone alike-Coach John Wooden"

Well, no. There's a fee now, and no one has been avoiding anything.

 

I don't think clients are even aware that we have a fee on bonuses. I'm hoping an UW mod will chime in on this.

Hi Virginia,

 

Similar to the way it works now, the same fee will apply to all the payments made through Upwork for each relationship. If the lifetime billings for a freelancer-client relationship are below $500, 20% will be applied on all payments made by that client to that freelancer. Once, it goes over $501, 10% fee will be applied to all the payments and so on.

~ Valeria
Upwork

Not the answer I was hoping for. Doesn't Upwork delineate the bonuses from the jobs?

Bonus is a type of payment that can be made on a contract. They are part of a contract just like all other payments -  fixed-price, hourly, expences, etc.

~ Valeria
Upwork

Yes .... but bonuses are not really part of a contract, are they? At what point do they become part of a contract?

 

Is there something in writing about this? I've searched and can't find anything. If you can't point me to something that clarifies this, that would be helpful.

 

Thank you.

“Freelancer Fees” means: (a) for an Hourly Contract, an amount equal to the number of hours recorded by Freelancer in the Time Logs, multiplied by the hourly rate set by the Freelancer; (b) for a Fixed-Price Contract, the fixed fee agreed between a Client and a Freelancer; and (c) any bonuses or other payments made by a Client.


@Virginia F wrote:

Well, no. There's a fee now, and no one has been avoiding anything.

 

I don't think clients are even aware that we have a fee on bonuses. I'm hoping an UW mod will chime in on this.


Right. No one is avoiding anything because the fee for bonuses is the same as the fee for regular payments. as it will continue to be. 

tlsanders
Member

They'd be crazy not to. Otherwise, every small job would be a $10 fee and a $200 bonus.

tlsanders
Member


@Virginia F wrote:

 

If you're planning on it, I'd like to hear the justification for doing so. I know my math isn't right, but in the end, it's hard not to think of it as a 40% cut .... and I don't need to see a math equasion so many of you like to do. As I said, it's a perception.


 Okay, this is hard to address without using math, but can you explain how you think 20% = 40%? If you're not big on math, you could just sort of look at the numbers and see how they don't match.

Virginia - whatever the math,  bonuses have to be charged at the same rate, because the bonus system could be abused.

 

What is wrong about it is the word 'bonus'. It is misleading and once again, Upwork should address the problem of word misuse ('masterful', 'guru',  and so forth).

Even expense reimbursements are charge the same fee.

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