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The Service Fee is Way Too Much

Active Member
Samantha K Member Since: Jan 4, 2017
1 of 25

While I still believe 20% is too much, I do understand a bit more why it is like that. You all made some excellent points, thank you.

Community Guru
Eric B Member Since: Feb 21, 2017
2 of 25

You're right, plus prices are very cheap. 

 

Yesterday for example, I saw a 300$ job for a webscraping job. It seemed to be a fair price, I mean the correct price for the job. guess what: the job had to be done on 6 sites.

 

Upwork is: cheap jobs for cheap people.

 

Plus: client first. the client is the king (he's always right) and the freelancer is ... I won't even say it.

 

That being said: take it or leave. it is what it is and you being right or not about what you're saying won't change a thing.

 

Advantage of upwork: you won't find worst so whatever you'll find outside upwork is like paradise.

 

Moderator
Goran V Moderator Member Since: Mar 24, 2017
3 of 25

Hi Samantha,

Thank you for your feedback, I will share this with our team.
Keep in mind that you will be charged with 20% fee only on your first $500, after this the fee will be reduced to 10%. If you earn with the same client over $10 000 the fee will be reduced on 5%.
Clients are paying 2.75% processing fee only, to learn more about this you can visit this Help Article.

 


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Active Member
Anirudh K Member Since: Nov 24, 2017
4 of 25

Hi Goran V. You said that the fee gets reduced to 10% after earning $500. But that $500 is with a single client. And that happens rarely. You can make a model on lifetime basis and put that if you have earned a total of $5000 or so in your lifetime billing on Upwork, then your fee gets reduced to 10%. Do not do it client basis. Do it on lifetime basis on Upwork. Then set any limit you want. Atleast we will have a target to look at. In current scenario, it is like i will have to pay Upwork 20% for eternity. In starting, i thought that it is lifetime billing for all clients combined and i was working hard to get to that target of $500 first and then $10000 after that. But today my hopes got shattered after seeing what it really is. Giving 20% service fee to upwork, then 20% - 30% tax to government. I do not think we are allowed to live life happily.

Active Member
Mishel M Member Since: Apr 17, 2018
5 of 25

@Anirudh K wrote:

Hi Goran V. You said that the fee gets reduced to 10% after earning $500. But that $500 is with a single client. And that happens rarely. You can make a model on lifetime basis and put that if you have earned a total of $5000 or so in your lifetime billing on Upwork, then your fee gets reduced to 10%. Do not do it client basis. Do it on lifetime basis on Upwork. Then set any limit you want. Atleast we will have a target to look at. In current scenario, it is like i will have to pay Upwork 20% for eternity. In starting, i thought that it is lifetime billing for all clients combined and i was working hard to get to that target of $500 first and then $10000 after that. But today my hopes got shattered after seeing what it really is.


Yes that is what I would like to see as well so have a lifetime goal. But it seems like not reasonable cause a freelancer can keep doing cheep works which upwork team says its costy for them. and would eventually reach 10% or even 5% ( I dont know the whole process and the costs so i dont discuess further, just say the possibilities)

 

So another way is to add per project fees as well like come on upto 500$ job for 20%? so the 20% would be 100$ to do the costy services a 500$ client job and freelancer is gonna cost?

 

I am not a proffesional who have done deep researches about freelancer sites and the processes. But something like taking a a fix amount as minimum amount on small projects would do keep upwork from losing money right? like freelancer.com site which takes 5$ or 10% which ever is greater. I am not promoting them here. really they are also not caring about freelancers only care about clients. So I am not saying upwork should do the same as freelancer.com cause every site and company has its own strategies. And its we who should see too choose which of them for what kind of job we want.

Active Member
Diana Z Member Since: Nov 15, 2018
6 of 25

In reality your profit margins are just way higher than the actual people WORKING for these clients. Spin it how you want this site is modeled to take a huge cut. 

Active Member
Jason G Member Since: Apr 24, 2016
7 of 25

I earned more than $500 dollars now on my client but im still shouldering that 20% fee?

Moderator
Avery O Moderator Member Since: Nov 23, 2015
8 of 25

Hi Jason, 

It looks like a member of the Social Media Team also assisted you with your same question. Please share the Contract ID for the contract you are referring to so that we can check this for you. 


-Avery
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Community Guru
Petra R Member Since: Aug 3, 2011
9 of 25

@Samantha K wrote:

1) Upwork is a great site but 20% per everything?!!!!

 

2) I mean, if I did a 700 dollar contract. 159.25 and I would get only 560 dollars.


3) If anything, how is it fair to make the client pay 2.75% but the freelancer pay 20%?????? That is completely unfair. At the very least, go back to charging 10 percent and split it between the client and the freelancer evenly.


 1) No, only on the first $ 500 with any one client.

 

2) No, you would be charged 20% on the first $ 500 and 10 % on the rest.

 

3) ALL the money comes from the client. The client pays the 20% as well, as you will have built it into your rate. The 2.75 is passing on the cost of processing payments (which is charged by banks and payment processors)

 

If you buld the fee into your rate / bid / quote you are quids in after the first $ 500 with any client as the fee reduced to half (and again to 5% after $ 10.000)

 

Countless people have all or most of their income at 10% - and many at 5%

 

Fees are business expenses so the sensible thing to do is building them into your rates.

 

Community Guru
Prashant P Member Since: Sep 29, 2015
10 of 25

Well Samantha look at it this way.  Unlike some other sites (e.g. Thubtack) you have to pay first to 'bid', Upwork gives you 50 connects for free.  I guess that is about 25 free bids.  If you land a job Upwork takes their cut to be in business and pay their stakeholders (employees, investors.....).  If 20% Upwork fee + 20% taxes are not profitable for you then perhaps you should raise your rate or find other options that may pay more.

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