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Service Fee after Switch to Agency

Active Member
Matthew S Member Since: Jan 1, 2019
1 of 6

I'm looking to switch over from a freelancer account to an agency account.  I have many open/ongoing contracts with my freelancer account.  I can end those contracts and have my clients start a new contract under my agency.  However, I want to make absolutely sure that I am NOT going to have to start over with paying the 20% service fee since many of these are now down to 5% and 10%. 

 

Does Upwork  keep charging the lower rate on these existing clients for the work that I personally do?

 

If I have another member of the team start working with client, through the agency, but who has never worked with the client in the past, will the service fee rate be the lower rates or will the work done by the team member be the 20%?

Community Guru
Petra R Member Since: Aug 3, 2011
BEST ANSWER
2 of 6

Matthew S wrote:

I'm looking to switch over from a freelancer account to an agency account.  I have many open/ongoing contracts with my freelancer account.  I can end those contracts and have my clients start a new contract under my agency. 


Why would you want to do that?

 


Matthew S wrote:

However, I want to make absolutely sure that I am NOT going to have to start over with paying the 20% service fee since many of these are now down to 5% and 10%. 


 

You will. It would be a different client relationship and start at 20 % again

 


Matthew S wrote:

 

Does Upwork  keep charging the lower rate on these existing clients for the work that I personally do?


No.

 


Matthew S wrote:

 

If I have another member of the team start working with client, through the agency, but who has never worked with the client in the past, will the service fee rate be the lower rates or will the work done by the team member be the 20%?


It will start at 20%.

 

 

View solution in original post

Active Member
Matthew S Member Since: Jan 1, 2019
3 of 6

Petra - Thanks for the quick reply.  It's not what I was hoping for but at least I understand it now.  

 

Matthew S wrote:

I'm looking to switch over from a freelancer account to an agency account.  I have many open/ongoing contracts with my freelancer account.  I can end those contracts and have my clients start a new contract under my agency. 

Why would you want to do that?

 

>> Two reasons.  First, I would do that so that I can start building up the job success score of the agency.  Second, I would like to have other team members work with my exisitng clients.  

Community Guru
Virginia F Member Since: Feb 15, 2016
4 of 6

Petra R wrote:

Matthew S wrote:

I'm looking to switch over from a freelancer account to an agency account.  I have many open/ongoing contracts with my freelancer account.  I can end those contracts and have my clients start a new contract under my agency. 


Why would you want to do that?

Doesn't it seem like 2019 is the "Year of the Ageny"? I don't get it.

Active Member
Matthew S Member Since: Jan 1, 2019
5 of 6

Virginia - I have to admit that after having gone through the agency setup and particularly now knowing about billing and what Petra shared I'm not sure that an Agency is going to be a good thing.  I will test it out and see.  I was pretty excited about it after going through the Webinar but the devil is always in the details.  Now that I've gotten into the details the term "agency" does not seem appropriate.  The term "group" would seem much more appropriate.  The implication with the term agency is that it's a business but on Upwork it really is just a collective/group.  This becomes completely clear once you are setting up rates for each person and realizing the associated limitations, specifically that each person has member of the group has their own rate.  That in itself isn't so bad but it definitely is when a client can see a much lower rate for a group member and then click on a link to go to that freelancer and hire them directly.  Upworks response to this is that they can be made "exclusive" which is true but many freelancers will not want to do that, nor should they.  If it were truly an agency there would be "1" rate published for the agency or a set of rates for the agency but not tied to individuals.  Second, a potential client would be able to see bios of team members but not be able to click through and then go hire them directly. Third, the fact that you have to start over with paying 20% for an existing relationship is a major limitiation.  None of the above is shared in the getting started with an agency which I think should be changed so that there is true transparency.

Community Guru
Virginia F Member Since: Feb 15, 2016
6 of 6

Matthew S wrote:

Virginia - I have to admit that after having gone through the agency setup and particularly now knowing about billing and what Petra shared I'm not sure that an Agency is going to be a good thing.  I will test it out and see.  I was pretty excited about it after going through the Webinar but the devil is always in the details.  Now that I've gotten into the details the term "agency" does not seem appropriate.  The term "group" would seem much more appropriate.  The implication with the term agency is that it's a business but on Upwork it really is just a collective/group.  This becomes completely clear once you are setting up rates for each person and realizing the associated limitations, specifically that each person has member of the group has their own rate.  That in itself isn't so bad but it definitely is when a client can see a much lower rate for a group member and then click on a link to go to that freelancer and hire them directly.  Upworks response to this is that they can be made "exclusive" which is true but many freelancers will not want to do that, nor should they.  If it were truly an agency there would be "1" rate published for the agency or a set of rates for the agency but not tied to individuals.  Second, a potential client would be able to see bios of team members but not be able to click through and then go hire them directly. Third, the fact that you have to start over with paying 20% for an existing relationship is a major limitiation.  None of the above is shared in the getting started with an agency which I think should be changed so that there is true transparency.


I don't pretend to know much about how agencies work on UW, I only know that it seems lately a lot of new freelancers (with absolutely no experience as a freelancer, let alone running an agency) are forming agencies ... only to find out later that it's not such a good idea after all.

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