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Survey (18%fee/Help us make Upwork Better)

Active Member
Brett B Member Since: May 25, 2015
11 of 174

I took the same survey, and was surprised there was no request for feedback on the Job Success score fiasco. I just don't understand it. Everything is going smoothly - clients leave me 5 star feedback, and ongoing clients tell me everything is fine - but my number keeps going down?  How am I supposed to address this if clients dsay they are happy and are leaving me 5 star feedback?

 

 

Community Guru
John K Member Since: Feb 17, 2015
12 of 174

@John T wrote:

Aside from questions about the fee itself, I can't work out what this is for. What would it achieve?


Someone at Upwork must think this makes Upwork "better". I don't see how it makes it better for freelancers, but maybe someone at Upwork will comment here and edify us. 

 

[EDIT:] On second thought, it does make things better for freelancers with numerous longterm clients who have paid in the neighborhood of $10k to the freelancer

__________________________________________________
"No good deed goes unpunished." -- Clare Boothe Luce
Ace Contributor
Faheem K Member Since: Feb 18, 2015
13 of 174

Hi 

Aside from the fee structure itself . I did like being asked about it and NOTIFIED , which was previously did not happen when ODesk was changed to UPWork. I did mention them to Stay at 10% for 500$ projects and then go down to 8% for 1000$ and 7.5 for higher than 1000$. This will definitely hit those having short term clients.  It may be the revenue issue (sticking to our pockets.) First they try to put Paid connects which definitely didn't prove to be useful. During that time some people did ask them to raise the Fee rather than paid connects . 

This type of things will eventually ask freelancer to move away from UPwork.

 

Community Guru
John K Member Since: Feb 17, 2015
14 of 174

On third thought, I'm not sure this is much of a benefit even with clients in the $10k earnings category, because by that time chances are the freelancer has worked for the client longer than 2 years and can thus work outside Upwork and not pay any fee without violating Upwork TOS. (If I'm mistaken about the 2 years restriction, feel free to correct me. I don't have all the regulations memorized)

__________________________________________________
"No good deed goes unpunished." -- Clare Boothe Luce
Ace Contributor
Faheem K Member Since: Feb 18, 2015
15 of 174

Any idea where we could look for this 2 year restriction

Community Guru
Suzanne N Member Since: Aug 15, 2012
16 of 174

@Faheem K wrote:

Any idea where we could look for this 2 year restriction


 

7. Non-Circumvention

You acknowledge and agree that a substantial portion of the compensation Upwork receives for making the Site available to you is collected as a deduction of the Service Fee described in Section 6.1 (Service Fee.) Upwork only deducts this Service Fee when a Client and a Freelancer pay and receive payment through the Site. Therefore, for 24 months from the time you identify or are identified by any party through the Site (the "Non-Circumvention Period"), you must use the Site as your exclusive method to request, make, and receive all payments for work directly or indirectly with that party or arising out of your relationship with that party (the "Upwork Relationship"). You may opt-out of this obligation only if Client or prospective Client or Freelancer pays Upwork an "Opt-Out Fee" computed to be the greater of the following amounts:

  1. $2,500; or
  2. 15% of the cost to the Client of the services to be performed in the Upwork Relationship during the Non-Circumvention Period, as estimated in good faith by the prospective Client; or
  3. all Service Fees that would be earned by Upwork from the Upwork Relationship during the Non-Circumvention Period, computed based on the annualized amount earned by Freelancer from Client during the most recent normalized 8-week period, or during such shorter period as data is available to Upwork;

and, in any case, plus interest at the rate of 18% per annum or the maximum rate permitted by applicable law, whichever is less, calculated from the date Client first makes payment to the subject Freelancer until the date the Opt-Out Fee is paid.

 

https://www.upwork.com/info/terms/

Community Guru
Preston H Member Since: Nov 24, 2014
17 of 174

I took the survey.

 

When I took it, the survey suggested a new pricing structure wherein Upwork's fee would be 18% for projects under $100 (not five hundred) with one client.

 

Once you get to $100 with a client, the fee would be 10%.

 

I think a lot of people might feel differently about a change like this if the threshold for going to 10% fees was $100 instead of $500.

 

After $10,000, the fee would be 7.5%.

 

This would definitely be a move toward rewarding contractors who work with long term clients, in that they would take home more of the money clients pay after they pass $10,000.

 

And this new pricing structure seems to definitely be geared to recouping money spent on the newbie/low-rate contractors who probably take up so much resources to manage.

 

18% is a lot more than 10%.

 

But I can definitely imagine Upwork might make just such a move in order to move toward having those who generate less revenue pay more of their "fair share" of the cost of running Upwork and providing customer service and funds security.

Community Guru
Jennifer M Member Since: May 17, 2015
18 of 174

Thanks Preston for the clarification. Under $100 seems a lot more reasonable. It might even kill off some farmers and people bidding $20 just to ask the customer for more money later.

 

hmm not bad. 

Community Guru
Douglas Michael M Member Since: May 22, 2015
19 of 174

@Preston H wrote:

I took the survey.

 

When I took it, the survey suggested a new pricing structure wherein Upwork's fee would be 18% for projects under $100 (not five hundred) with one client.

 

Once you get to $100 with a client, the fee would be 10%.

 

I think a lot of people might feel differently about a change like this if the threshold for going to 10% fees was $100 instead of $500....


Preston and John K,

 

Reports from Elance, where the survey was launched simultaneously, suggest that different percentages and threshholds are being presented to different providers. That is a probably more accurate (assuming proper randomization/segmentation), possibly more efficient way to gauge a range of reactions to a range of options, compared to asking individual respondents to compare the options.

 

Preston, your assessment of Upwork's motives and expected return for implementing these options seem likely, and consistent with other Upwork pronouncements and moves.

 

Best,

Michael

 

p.s. At least one version of the Elance survey asks about a "small dollar" relationship cut of 22%.

Community Guru
Aleksandra K Member Since: Mar 31, 2015
20 of 174

If charging 18% would mean that the client would add the 8% on top of their planned budget then I really don’t care how much the fee will increase. However, if the client expects this fee to be paid by the freelancer, then good luck with that!

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