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Samantha's avatar
Samantha K Community Member

The Service Fee is Way Too Much

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.

33 REPLIES 33
Eric's avatar
Eric B Community Member

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.

 

Goran's avatar
Goran V Retired Team Member

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.

 

~ Goran
Upwork
Anirudh's avatar
Anirudh K Community Member

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.

Mishel's avatar
Mishel M Community Member


@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.

White's avatar
White S Community Member

totally agree with you...

Maria's avatar
Maria T Community Member


White S wrote:

totally agree with you...


Just so you know. Your profile photo should be a photo of you, not a drawing.

Diana's avatar
Diana Z Community Member

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. 

Jason's avatar
Jason G Community Member

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

Avery's avatar
Avery O Community Manager

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
Karthikeyan's avatar
Karthikeyan R Community Member

Hi, 

How much tax we have to pay in India for the money we get from upwork . ? Can you please let me know. 

For eg - if we get 10k in INR then I think 20% is upwork fees, which is 8k and then how much for tax ? 

Yuxiang's avatar
Yuxiang L Community Member

No, every time we have a new client we need to repay 20%

You set a trap at the begining as "frist 500$" but not for all the money that you earn. is the single client you need to earn more than 500$ but it's not normal case

Jessica's avatar
Jessica L Community Member

Hi, Goran.

That first $500 is for total earnings or no?

Maria's avatar
Maria T Community Member


Jessica L wrote:

Hi, Goran.

That first $500 is for total earnings or no?


It is per customer.

Elise's avatar
Elise P Community Member

im annoyed, i just paid $970 for a job for my webpage and upwork took $700 of it. my job on my webpage can't be completed now

Luiggi's avatar
Luiggi R Retiring Moderator

Hi Elise,

 

I do not see any ongoing contracts on your Upwork account. Are you referring to an account different from the one you're posting with? If so, it would be helpful if you could share more information about your case so we can assist you further with this. 

~ Luiggi
Sumon's avatar
Sumon S Community Member

Hello Sir, Please check here Contract ID: 37612001. For $35 the fees cut $8.49.

Petra's avatar
Petra R Community Member


@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.

 

Prashant's avatar
Prashant P Community Member

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.

Petra's avatar
Petra R Community Member


@Prashant P wrote:

Upwork gives you 50 connects for free.  I guess that is about 25 free bids. 


 60 / 30 or 70 / 35 with the Plus Plan 😉

Ugur's avatar
Ugur U Community Member

Your comment/suggestion is not realistic. The fee is too high and now we have to pay also for bids. I believe paying for bids is something good since it will attract only relavant and serious bidders but this 20 percent is way too high. The rate should be 5% nothing more. That is why high quality freelancers are staying away from Upwork and this will increase. 

Mishel's avatar
Mishel M Community Member

this is duplicate i wanted to renew my replay so i duplicated it please remove this.

Mishel's avatar
Mishel M Community Member


@petra_rwrote:

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)


Hello, Dear Petra R

Yes so all the money comes from client lets imagine the fees were 80% instead of 20% does that mean the poor client had to pay 80%?

Client pays for his job done and the freelancer pays 20% of earned money for the service client is using as well. so we dont wanna fool ourself its a fact, client is king. Or no the freelancer sites are kings. anyway

 

Not only freelancer pays for the 20% but also freelancer cant easily ask for extra money to fill the 20%

So I have a suggestion. As you say the client pays for the 20% so change it so it be.

Like change whole process to show it that way.

 

Like when I place 8$ per hour rate client would see 8$ per hour + the fee he should pay cause he uses your site's service. 8$*20% = 1.6$ so if client should pay 20% he should pay 1.6$ for getting job from freelancer worth 8$ per hour. However you take 2$ for each 8$ instead of 1.6$ and you take it from freelancer. so its not 20% its more!! Yes hear me out.

 

2/8 *100 = 25% yes based on what you say you take 25% .Why? let me explain.

 

when client pays he should pay extra 20% for service fee. (i know you would say its not 20% it can be 10% or 5% as well but we would talk about them later, cause what im saying now is not related about the fee its about the way you calculate it). So client pays 120% instead of 100% cause he is using your service and its completly fair. Even if it was like 150% would still be fait cause its like client is free to choose to use your service or another service or what ever. So I was saying the client pays 120$ instead of 100$ job and its fair ok?

 

Now this is what happens instead of you taking 20$ and freelancer taking 100$, you take 20% out of the 120$ which is 0.2 * 120 = 24$ and freelancer gets 96$

 

So either you take the money from freelancers not clients or you take 25% instead of 20%

 


@petra_rwrote:

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%


Countless? come on we only have ~7,616,021,138 people currently live on the earth and as a programmer I know its not the hardest thing to run a query to see how many freelancers are using 10% and 5%

and you say most of their income and 10% what does that mean? I mean as a programmer and a a reasonable person, sorry but that does not make much sense.

 

So you have lots of FAQ and Q&A in your site which is good and usefull why you dont do these simple or medium queries to see how many freelancers reach to 10% and 5% and how much of their income come from the 10% and 5% ones.

 

And so so far you can do give us a number like: "did you know as an average freelancers pay xx% fee for getting jobs from clients to us?" and fill xx% which the value which i personally think it would be something between 15%-20% which is more close to 20% ( cause as Anirudh K said: 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.)

 

And let me clearify this im not saying upwork or other similar sites are bad. Just saying we need to be aware what we are using. Also the ability to choose so we choose best over good or at least choose bad over worst.

 

Please let me know how much I am wrong. Is amount of me being wrong countless?

 

 "Find food, Build shelter, Save the world" Ryze

Rene's avatar
Rene K Community Member


Mishel M wrote: 

Like when I place 8$ per hour rate client would see 8$ per hour + the fee he should pay cause he uses your site's service. 8$*20% = 1.6$ so if client should pay 20% he should pay 1.6$ for getting job from freelancer worth 8$ per hour. However you take 2$

The client sees a price that is comprised of your rate ($8) and Upwork's fees ($2). In this case they pay $10.

$8 + 20% = $10. The fee is $2, not $1.6.

 

 

Now this is what happens instead of you taking 20$ and freelancer taking 100$, you take 20% out of the 120$ which is 0.2 * 120 = 24$ and freelancer gets 96$

$120 - 20% = $96. Considering the maximum fee: 20%.

 

Freelancers include their business expenses into their rates. Their business expenses include, but are not limited to, their structure costs, their taxes, the Upwork fees and so forth.

 

I wish Upwork fees and my taxes would be less, but they are not.

-----------
"Where darkness shines like dazzling light"   —William Ashbless
Mishel's avatar
Mishel M Community Member

thanks for confirming me.

so that is what I was saying client pays for the rates.


@Rene K wrote:

Mishel M wrote: 

Like when I place 8$ per hour rate client would see 8$ per hour + the fee he should pay cause he uses your site's service. 8$*20% = 1.6$ so if client should pay 20% he should pay 1.6$ for getting job from freelancer worth 8$ per hour. However you take 2$

The client sees a price that is comprised of your rate ($8) and Upwork's fees ($2). In this case they pay $10.

$8 + 20% = $10. The fee is $2, not $1.6.


but about this you may use calculator to verify me:

8$ + 20% =/= 10$ (considering 20% x= x * 20 / 100 ) so 8$ + 20% =/= 9.6$ 

 

but this is correct:


@Rene K wrote:

Now this is what happens instead of you taking 20$ and freelancer taking 100$, you take 20% out of the 120$ which is 0.2 * 120 = 24$ and freelancer gets 96$

$120 - 20% = $96. Considering the maximum fee: 20%.

 

Freelancers include their business expenses into their rates. Their business expenses include, but are not limited to, their structure costs, their taxes, the Upwork fees and so forth.

 

I wish Upwork fees and my taxes would be less, but they are not.

 yes I agree so I was replying to a message from another guru member which was saying client is paying for all the costs