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Service charge / commission must be reduced

mainurbd
Active Member
Mohammed Mainur R Member Since: Aug 2, 2016
1 of 16

I think UPWORK authority can think about reducing commission rate on earnings Smiley Happy

Thanks.
Mainur

tlsanders
Community Guru
Tiffany S Member Since: Jan 15, 2016
2 of 16

They thought about it a lot...before they raised the fees a year or so ago. 

 

There are literally thousands of posts on this topic, going back to before the new fee schedule took effect. Strangely enough, Upwork just isn't interested in going further into the red with every small job posted.

boshoffirene
Community Guru
Irene B Member Since: Feb 17, 2015
3 of 16

I think UPWORK authority can think about reducing commission rate on earnings Smiley Happy

Thanks.
Mainur

 

Why?

mainurbd
Active Member
Mohammed Mainur R Member Since: Aug 2, 2016
4 of 16

it should be less then 3% ...then  more freelancers will be benefited. Smiley Happy

tlsanders
Community Guru
Tiffany S Member Since: Jan 15, 2016
5 of 16

@Mohammed Mainur R wrote:

it should be less then 3% ...then  more freelancers will be benefited. Smiley Happy


 Then no freelancers would be benefitted, since Upwork would go out of business and the many freelancers making money here would have to search out new ways to connect with clients.

 

Look at it this way: If Upwork charged 3% on a $50 job, Upwork would take in $1.50 on that job. Prior to charging clients for payment processing, that would have represented a loss of about $1, but now that clients pay that fee, Upwork gets the $1.50...and has to use it to pay for servers and maintenance, marketing to draw in clients for you, staff, office space, phone service, Internet service (and on and on and on).

 

Even ignoring overhead completely, if one $10/hour employee spends 10 minutes assisting you or your client, Upwork is in the red on that job. In fact, Upwork was in the red on a lot of small jobs even at 10%. That's why the fee was increased.

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
6 of 16

@Mohammed Mainur R wrote:

it should be less then 3% ...then  more freelancers will be benefited. Smiley Happy


 How will freelancers benefit when Upwork goes out of business a few weeks later?

 

 

r2streu
Community Guru
Randall S Member Since: Mar 20, 2017
7 of 16

I'm curious as to how you calculated this "less than 3%" ... 

Because I'm reasonably sure Upwork's finance team has spent hours going over cost analyses, including potential costs per client and costs per freelancer, website upkeep and maintenance, customer support, etc., along with attempting to maintain a reasonable pricing structure that won't completely squeeze freelancers.

 

"Less than 3%," all things considered, seems like a rather arbitrary number, especially from somebody who is evidently demanding such a massive change. 

r2streu
Community Guru
Randall S Member Since: Mar 20, 2017
8 of 16

Also, while I can't speak for every experienced freelancer out there, I personally factor those Upwork fees into my bid. It's a legit cost of doing business, and a legitimate expense of doing the work for which you are contracted. So, like any expense, you factor it into your charges.

 

And I know, from reading others' experiences, that I'm FAR from the only one who does so. 

 

 

millermelanie
Community Guru
Melanie M Member Since: Jul 13, 2016
9 of 16

The fee I pay to UpWork from my earnings is my cost of doing business. Upwork provides a platform through which I meet potential clients, conduct business, and receive support. I have no advertising or other overhead costs. If I'm not earning, then I owe nothing, either. When I am successful and earn enough with a client, UpWork even reduces their take from my earnings, which is a nice reward/.incentive. I just figure in this cost when I make proposals and set my fees. I'm making money and keeping the company that makes that possible in business, too. No complaints from me!

msublette
Community Leader
Michelle S Member Since: Jun 23, 2017
10 of 16

I don't have any complaints either.  At first it did feel like 20% was a lot, but at this point most of my clients are longer term and I've earned enough with them that I'm only paying the 10% fee.  If I were to advertise my business and go door-to-door trying to get work, it would certainly cost me more and I'd have to spend time finding clients rather than doing the work and getting paid.  Right now my investment has been a host for my website, a domain and a few odds and ends I need to conduct my studies.  I have a local friend who scoffed at paying the fee.  He is still trying to find work locally and I am turning away work.  I should probably increase my fee.  Twenty percent is a small amount to pay to have clients coming to find you rather than you needing to find them.  I feel people who complain about this fee do not understand the work it takes to own your own business and be a freelancer.  As I've heard many a guru say here, if it's not working for you and you can find better pay locally or on another platform, maybe Upwork isn't for you.  For me, it is helping my business thrive and I'm finding I can pick and choose my projects knowing that if I have to or want to turn something down, something else will come along.

 

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