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Re: Sliding Pricing Scale Unfair

firsteditor
Active Member
Sharyn E Member Since: Aug 18, 2015
1 of 4

I'm a resume writer. If I do my job well (which I do), I will work for a client once, likely for a fee under $500. Paying 20% and never dropping below that rate takes a huge bite out of my earnings. Am I missing something here?

Sharyn E
lysis10
Community Guru
Jennifer M Member Since: May 17, 2015
2 of 4

I've seen this complaint from resume writers. Best you can do is raise your rates so that you're making the same as you were before, so it really doesn't matter at the end of the day.

tlsanders
Community Guru
Tiffany S Member Since: Jan 15, 2016
3 of 4

@Sharyn E wrote:

I'm a resume writer. If I do my job well (which I do), I will work for a client once, likely for a fee under $500. Paying 20% and never dropping below that rate takes a huge bite out of my earnings. Am I missing something here?


Yes. You're missing the fact that Upwork's management isn't concerned with protecting your profit margin but its own. It doesn't want to make the investment in marketing and customer service and payment processing that a $100 job requires for a return of $10, just as any viable business would be reluctant to invest its resources in its least profitable products or services.

claudiacezy
Community Guru
Claudia Z Member Since: Jul 28, 2015
4 of 4

Tiffany S wrote

Yes. You're missing the fact that Upwork's management isn't concerned with protecting your profit margin but its own. It doesn't want to make the investment in marketing and customer service and payment processing that a $100 job requires for a return of $10, just as any viable business would be reluctant to invest its resources in its least profitable products or services.


A client who spent $100 for a resume writing might have spent 100K+ for other services. Don't minimize a client's total spendings on site to his spendings on a one off job which doesn't have a repeat character.


Maybe the client is new on the site, he just came for a resume  writing ... that $10 is meaningless you say? That's big, the user added and verified the payment method. It depends alot on the freelancer to get the client proceed for the first time.


For Upwork, it's not just that one off job but the endless possibilities it offers to get work done.


What did Upwork do? Start a marketing campaign to attract new clients and pass the burden on the freelancers. Bad investment or wrong timing?


You have a price increase, a JSS which counts long term relationships. You got a bunch of stressed freelancers going in the past 1+ years through lots of changes.


Really, the fee is still decent, for them the 20% commision fee probably still isn't enough to make a significant profit. But what did they achive ... a migration of freelancer to other platforms, losing on exclusivity which at a larger scale is priceless.

 

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