@Ela K wrote:
I wonder what the average contract value (per client) is on Upwork. It must be way below $500 - otherwise this doesn't make any sense from their perspective.
Setu? I think one of your nice graphs is in order.
That would be great Ela. There are 205,000 active freelancers in the last 2 months. It is possible to get that information from viewing profiles, however it would be a mammoth task to get anything near a representative sample to make some inference. Data could be gathered from 200 random profiles from each job category (12 x 200 = 2400), which would be 1.17% of the population, and an acceptable sample estimate.
It would require an army to gather that data in a reasonable time-frame. So sorry to disappoint. Or you could ask management to let me have the data .
Farmers exist everywhere not just Elance. You will often see writing websites offering all the usual services, and the people who own them farm the work out to freelancers working on sites such as these.
Thank you for the discussion and sharing your opinion about the numbers you saw in the survey. Upwork regularly surveys our customers to better understand your needs and activity on the platform. The responses are being collected purely for informational purposes. If there are any changes in this sphere, we will definitely inform the Community.
It might have been nice if they had been more open about this and what their intentions are/were. Instead they've upset the entire freelance community and I'm not sure I trust that it's "just a survey." So many things are hidden from us and it's a poor way to treat freelancers.
Does Upwork just want to get rid of the small jobs on the site?
First the connects made people hesitant to apply for small jobs because they didn't feel it was worth it and they wanted to save the connects for a more valuable job. And now, people with small jobs will have a higher fee attached which will further decrease the number of freelancers willing to apply for those jobs.
If you want to get rid of the small jobs, then just increase the minimum amount that can be paid.
I am very disheartened by this prospect. 99% of my jobs are one offs. I don't work in a field that requires an eventual 10k to be paid by a single client. Most of my jobs pay 100 bucks or less. I suspect the same is true of more freelancers than not. As was mentioned by another poster, the fact that a potential client can't even find me, regardless of the fact that I am "top rated" and have a 5 star average, and that I can't rely on getting notifications or messages, already makes it harder for me to maintain a pipeline of jobs. Taking away almost double of what I used to pay in fees, combined with the atmosphere of paranoia that has been allowed to foster with account suspensions and financial activities being limited for so many people, I am finding it harder to justify seeking work on here. Even if I did have a client paying me a large enough sum over time for me to meet the amount needed to only have to pay the 10% or even 7.5%, I would be terrified to have that much sitting in my Upwork account for fear that it would be held up or worse. I honestly don't see how this would benefit anyone other than Upwork and a small proportion of freelancers. Even raising my rates to compensate doesn't help me get jobs, as a client's budget is what it is. They'll just find a freelancer that is willing to work for what they will pay.
I received this survey a few hours back. The only way it can benefit anyone is if the client has money from the start and is willing to go LONG. This will eat up clients and freelancers who depend on the short-term approach to work, totally discouraging short-term work and spending while forcing long-term relationships (I find the term too intimate)
Increased fees means I have to increase my rates. Increased rates may mean I have less chances of landing a job.
Also, the amount of clients who are willing to go beyond the $500-$10,000 range is quite rare specially in the Writing category.
You're lucky if you get a long-term client but what if you don't even get past the $500 cap? You'll be charged more than you used to.
This won't be beneficial to the freelancer or their clients. They'll see a sudden demand for raised rates and they'll be veering away from a website that almost doubles the fees. Not to mention how new and some veteran clients (those who haven't went beyond 500 yet) will not like this decision.
How would you attract more clients and freelancers this way?
I'm trying to look at it from UpWork's POV and they might as well be purging small and mid-range clients from joining the website, leaving UpWork almost exclusive to those which have pretty decent capital.
And I believe most clients, specially the new ones, aim to actually make money without spending so much at first. The risk-reward ratio isn't pleasing.
Future start-ups depend on freelancing websites such as UpWork. How can they start if they don't even have proper funding to begin with? This would discourage students and people who earn minimum to try and make something out of their lives besides the job they have.
What if they implement it?
I'll Increase rates and wish my clients don't leave me or at least agree with the raise.
Seriously, if they implement this, they will be purging their customers and workers alike.