colettelewis
Member

Upwork fee again

I thought that all payments by returning clients before the new Upwork fee was established, were honored at the original 10%?

 

A client for whom I did a small job (at 10%), which was closed and for which I received feedback, has come back to me after some months with another assignment. The milestone was funded but at 20% is this correct?

 

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@Nichola L wrote:

I thought that all payments by returning clients before the new Upwork fee was established, were honored at the original 10%?

 

A client for whom I did a small job (at 10%), which was closed and for which I received feedback, has come back to me after some months with another assignment. The milestone was funded but at 20% is this correct?

 


I am not sure about this. One of my repeating clients who is still below 500 USD turned from 10 to 20 %.

Ah - thanks!  I'll know better next time (if there is a next time) - and bid accordingly!

 

(However, I do not see this written anywhere in the small print . . .)

 

"Will my active contracts be subject to these fees?

When the new pricing takes effect in June, we'll honor the previous Upwork 10% service fee or grandfathered Elance fee (for Elance clients that you begin working with on Upwork) for all active contracts."

 

Taken from here: https://community.upwork.com/t5/Announcements/How-new-pricing-works-for-freelancers-frequently-asked...

 

 

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@Ela K wrote:

"Will my active contracts be subject to these fees?

When the new pricing takes effect in June, we'll honor the previous Upwork 10% service fee or grandfathered Elance fee (for Elance clients that you begin working with on Upwork) for all active contracts."

 

Taken from here: https://community.upwork.com/t5/Announcements/How-new-pricing-works-for-freelancers-frequently-asked...

 

 


So, if I worked for a client before and completed several milestones on projects that have been closed (relevant in this case) it has not been regarded as an active client freelancer relationsship. If I would have done the same work using an open hourly contract it would have been regarded as an active contract. 


@Margarete M wrote:

 


So, if I worked for a client before and completed several milestones on projects that have been closed (relevant in this case) it has not been regarded as an active client freelancer relationsship. If I would have done the same work using an open hourly contract it would have been regarded as an active contract. 


 Or, if you had done the same work as a new milestone on an existing contract rather than having closed that contract when the previous milestone was completed.

So  what I should have done was to encourage my client  not  to close and not to leave feedback.

 

We really are caught in this net aren't we? Not good to keep not terribly active contracts open, but not good either (from a financial POV), to close them.

 

 

To be fair, this specific issue only pertains to contracts open/active when the new fee structure was introduced. The only one I had open then was already over the $500 threshold.

 

ETA: they did actually say that the 10% fee would only be honoured for then active contracts.


@Nichola L wrote:

So  what I should have done was to encourage my client  not  to close and not to leave feedback.

 

We really are caught in this net aren't we? Not good to keep not terribly active contracts open, but not good either (from a financial POV), to close them.

 

 


This is such a short-term issue, though. I've just been opting to eat the extra 10% on these small, recurring jobs, since it's going to top out at an extra $50 anyway and then drop back to 10%. 


@Tiffany S wrote:

@Nichola L wrote:

So  what I should have done was to encourage my client  not  to close and not to leave feedback.

 

We really are caught in this net aren't we? Not good to keep not terribly active contracts open, but not good either (from a financial POV), to close them.

 

 


This is such a short-term issue, though. I've just been opting to eat the extra 10% on these small, recurring jobs, since it's going to top out at an extra $50 anyway and then drop back to 10%. 


 You are right - except I didn't realize this when quoting - my bad - I should have checked!


@Nichola L wrote:

So  what I should have done was to encourage my client  not  to close and not to leave feedback.

 

We really are caught in this net aren't we? Not good to keep not terribly active contracts open, but not good either (from a financial POV), to close them.

 

 


Yep. I had the same situation a few weeks ago. I joined just before the change in fees. I asked my first clients to close the contracts and leave feedback including one I worked with weekly since the contract opened. The weekly client opened a new contract within a couple days so I worked with her every week since June. But now the fee is 20% when it was 10%. As a newbie, I probably needed the feedback more than the extra 10% as it did increase my JSS. But if I had a strongly established JSS it would not have been worthwhile.  

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@Tiffany S wrote:

@Margarete M wrote:

 


So, if I worked for a client before and completed several milestones on projects that have been closed (relevant in this case) it has not been regarded as an active client freelancer relationsship. If I would have done the same work using an open hourly contract it would have been regarded as an active contract. 


 Or, if you had done the same work as a new milestone on an existing contract rather than having closed that contract when the previous milestone was completed.


I worked for this client in June and received my fee on 18th June. Then the client closed the contract and left a review that she will come back with new work. She came back in August and the fee changed to 20%.

 

I became aware too late that I had made a "mistake". As I "good" freelancer on Upwork I have learned that a contract should be closed after the job has been completed. Was there a warning from Upwork that we should not close the contract to keep the 10% before we did it? No. 

vladag
Community Manager
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Hi Nichola,

 

I see you received correct guidance from other users regarding the way new fee structure is applied to new contracts. If the returning client is not one of the clients you worked with on Elance, 20% service fee will be applied if you billed less than $500 with this client across all contracts you've had.

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Actually Vlad, this has nothing whatsoever to do with Elance (I did not migrate my account and Elance is dead, remember?). This was to do with an Upwork client - a small project - who came back to me after the Upwork hike in rates.

Hi Nichola,

 

I understand that and read your questions correctly, but was simply noting one of the exceptions to the new pricing structure, since other users might pop in and see your question and my response. I'm glad to hear your client rehired you after returning to Upwork, good luck on your contract.

Untitled

Thanks Vlad - 20% on $35 . . .

 

Never mind - lesson learned - and the job was not onerous.