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Previously a customer paid 10% fee, now a freelancer pays?

Ace Contributor
Alex M Member Since: Dec 16, 2014
1 of 12

Previously a customer paid 10% fee, now a freelancer pays? Or am I missing anything?

Community Guru
Lyam B Member Since: Nov 3, 2014
2 of 12

What ever you earn, 10% is deducted by oDesk.

 

That's why a lot of hourly rates are $3.33 ($3), $11.11 ($10), $16.67 ($15), etc...

 

When you apply for a job, there's two boxes:

  • Your Rate - if you put $22.22 in this box, you'll earn $20 an the client will pay $22.22
  • You'll Earn - if you put $22,22 in this box, you'll earn $22.22 and the client will be charged $24.69

Hope this helps Smiley Tongue

Ace Contributor
Alex M Member Since: Dec 16, 2014
3 of 12

Reread my question.

Community Guru
Lyam B Member Since: Nov 3, 2014
4 of 12

Alex, reread my answer.

 

"What ever you earn, 10% is deducted by oDesk."

 

In other words, 10% of YOUR earnings is deducted. 

 

That's why I mentioned the rates. That way, the client will pay the fee (because you accounted for it), however, the freelancer ultimately pays the fee. 

Active Member
Patricia Elena Nin E Member Since: Sep 3, 2014
5 of 12

Lyam gave you a really easy to understand example of how the system works.

If you had a more complex question then I would have understood your reply.

 

Your client is the one that provides the funds for both your payment and the 10% fee, that's why you have to include it into your initial bid.

 

The 10% fee is then taken from your earnings. So when your funds become available, the 10 % fee goes to oDesk automatically. The reports display just changed so you can have a better view of how the process works (granted I'm not a fan of the new display).

 

 

Community Leader
Sadan M Member Since: Sep 3, 2010
6 of 12

Alex you are right. Previously client were required to pay to the 10% fee. So when you used to bid lets say $10 as hourly rate clients used to get charged $11.11 but now you need to bid $11.11 if you want to take $10 per hour. I am on oDesk since 2009 and can confirm that this is the way it used to work previously. I also noticed this change recently.

Ace Contributor
Alex M Member Since: Dec 16, 2014
7 of 12

That's right. But not only that. Say you work 4 hours x $25. But the end of the week you earn $100 and - 10%   = $90 because that's what I see in the weekly reports. Previously there were no 10% fee substracted from me.

Ace Contributor
Alex M Member Since: Dec 16, 2014
8 of 12

That's right. But not only that. Say you work 4 hours x $25. But the end of the week you earn $100 and - 10%   = $90 because that's what I see in the weekly reports. Previously there were no 10% fee substracted from me.

Community Guru
Suzanne N Member Since: Aug 15, 2012
9 of 12

Previously YOU always paid the fee, the only difference now is you see it in your account, whereas oDesk previously only showed what you made after you paid the fee.

 

You charge rate A to the client and Rate B after the 10% is taken by oDesk is given to You.

 

But you paid oDesk before and you pay oDesk now a 10% fee for their services. The client just pays the higher rate which includes your fee.

 

 

Community Guru
Ronald T Member Since: Sep 14, 2009
10 of 12

Historically, clients paid the 10% fee, which was evident in oDesk documents on the core site. Now, freelancers pay the 10% fee as evident in oDesk documents on the core site. In either case, freelancers' net earnings are the same. For US IRS tax related issues, see other threads throughout the Community.

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