I am sharing most of an article I just published on one of my blogs. I am taking out the parts that suggest anyone leave UpWork because that is apparently against TOS. Of course, they will likely still remove this at best, ban me at worst. They must silence dissenters! Enjoy!
After 5 years as a Top-Rated freelancer, it is time for me to say goodbye to UpWork. In this article, I will tell you why. I know it is a bit different than our typical post, but I know that a lot of our clients are freelancers....So in this article I am going to highlight the predatory practices that have led me to this difficult decision.
The only somewhat good change they have made recently is the new fee structure. Where they once charged 20% for the first $500 a client spent with you, and 10% after that, they will be introducing a flat 10% fee in May 2023:
"Beginning May 3, 2023, we are moving all freelancers to a 10% fee rate and retiring our sliding scale fee structure. For those currently working on projects at the 5% level of our existing tier structure, we are pleased to honor those rates through the end of 2023."
The problem is that they minimized the positive impact of that new rate by creating a new contract initiaition fee on every contract:
"Beginning April 26, 2023, we're implementing a client contract initiation fee of up to $4.95 on Upwork's Marketplace and Project Catalog. This is a once-per-contract fee, assessed when clients make their first payment to a freelancer."
Sure this will still save freelancers money on larger contracts, but it is just one of many examples of UpWorks' "nickel and dime" mentality.
In the spirit of full transparency, you can read all about these changes here:
https://community.upwork.com/t5/Product-Release-Notes/Announcing-new-simpler-fees-on-Upwork/ba-p/127...
Double Fee Structure:
On top of the project fees above, UpWork also charges you to withdraw your earnings. This fee is based on what withdrawal method you choose, but averages around 3%. This amounts to a double fee. Like double taxation, this is just wrong. In fairness, this is not a new fee. Withdrawal fees have been a part of doing business on UpWork at least since I joined.
Auction Style Bidding:
In the past, submitting a proposal cost freelancers a set number of connects, based upon specific criteria. At its base, this is still true. However, in late 2022, UpWork introduced a new "Auction style" bidding feature. While you are not required to bid and can submit proposals at the minimum connect rate, this puts you at a huge disadvantage to freelancers that are willing to purchase exorbitant amounts of connects to bid high amounts on projects. I have seen bids as high as 200 connects on some projects. This practice eats into a freelancer's revenue and essentially amounts to a "pay-to-play" mentality. It is unfair to all freelancers, especially those top-rated freelancers who like myself have conducted tens of thousands of dollars in business on UpWork. The only way for me to be on top of the list is now to pay more for that priveldge. Wait, I thought the Top-Rated badge was supposed tp eb the incentive for that? You know, you do better work, you get in front of the better clients. Silly me thinking it was actually performance based ranking!
Availability Badge Charge:
One of the most recent new fees that UpWork has introduced is for the Availability Badge. This is a feature that has existed for a long time and it simply shows clients that you are available for immediate work. Up until a few weeks ago, this was free. Now UpWork is charging freelancers a varying number of connects to have this "badge". The amount of connects this badge costs varies from week to week based on some unpublished criteria. So essentially, whatever UpWork decides to charge in any given week.
Lack Of Communication Regarding Changes:
As if all these new fees and changes is not bad enough, UpWork has further shown their lack or respect and appreciation for hard-working freelancer by introducing these things in silence, at least mostly. The new fees are being added to their support articles. But freelancers nor clients are notified of the changes. We do not get any kind of email, there is no real public announcement. They just implement the fee and quietly update their relevant KB articles. If they had any respect for freelancers, they would at the very least notify us via a mass email. They send me at least 4-5 emails a week, so why is it so hard to send one regarding new fees?
JSS Issues
UpWork freelancers are rated based on their Job Success Score (JSS). This is a score that is built based on how well a freelancer performs on the platform. It is in theory a direct result of client feedback after a project ends. In theory, this is a great thing. In practice it has some flaws that UpWork has refused to even acknowledge let alone consider fixing.
One of the flaws is that if as a freelancer you go a long period of time without completing projects, your JSS score falls. For example, my JSS hovered consistently between 95-100% for a very long time. Then in November 2022, due to some personal life issues and business growth outside of UpWork, I started working less on UpWork. From November 2022 through March 2023, I worked on just 2 projects. My JSS which was 100% on November 1, has since dropped to 90%. This is despite that all of my recent projects where feedback was given were rated 5 stars. Essentially, you are punished for not doing enough work through UpWork.
Another flaw of the JSS algorithm is private feedback. About 2 years ago I had a sudden and unexpected JSS drop from 97% to 83%. This happened literally overnight. After speaking to UpWork support, I discovered that a client who had given me glowing PUBLIC feedback and rated me 5 stars had actually given me 1 star in private feedback and made a false claim that I ghosted him. Fortunately, I was able to prove that the project was in fact completed on time and on spec and this negative private feedback was removed. It was simply a client trying to get out of paying for the work I did.
Finally, one more flaw is that in addition to being penalized for inactivity, you get penalized when clients do not leave feedback at all. Look, I do manage to get most of my clients to leave feedback. But there are a few that don't. We all have those clients you just cannot convince to leave feedback. I usally do not work with thos ekinds of clients again, but in many cases, the damage has already been done.
Race To The Bottom:
Let's be honest, UpWork has always been somewhat of a "race to the bottom" platform. By this I mean it has always been one of those freelance platforms where clients go for the lowest rates. However, this was something that a good freelancer could overcome relatively easily by building a strong reputation and strong relationships with clients. However, the race has become much more intense. The number of low-paying jobs has increased significantly over the years, which makes it difficult for me to earn what I am worth. Rates that clients are happy to pay on other platforms are now too high for most clients on UpWork.
I used to get more contracts on UpWork than I could handle, frequently having to turn potential clients away because I had too much work. A great problem to have indeed! But now I get clients almost daily that want me to lower my rate by as much as 50%. More importantly, I get passed over by more and more clients because there are a hundred others that will do it for less.
I have more than 20 years of experience in my field. I am worth every penny of my rate. I am far from the most expensive, but far from the cheapest. You get what you pay for, and fortunately, most clients outside of UpWork know this. I am also a firm believer in the idea of charging what you are worth. Experience, great customer service, and quality work is what matters most to the best clients.
Saying goodbye is hard to do!
Over the years, Upwork has been a popular job platform for freelancers to find work and earn money. I spent more than 5 years building a very strong reputation and have gained a ton of really great clients from UpWork, so leaving has not been an easy decision to make, but after experiencing their recent changes and policies, it's clear that they are no longer prioritizing the needs of their freelancers. They have fallen prey to corporate greed and no longer value freelancers that helped them make UpWork such a great place for freelancers to work!
There was a time when I recommend UpWork to any freelancer that asked for suggestions on where to find work. Today, sadly, that is no longer true.
I sincerely hope that UpWork will one day realize the mistakes they are making and will once again begin to care about their freelancers as well as their cleints. If they do, I may consider returning to the platform. but for now, this is goodbye!
