Upwork's Percentage Fee

sharonmre · ‎03-22-2021

So I have been on Upwork for a looooong time and only recently I am starting to see changes that benefit the freelancer. Such as winning connects when you respond to an interview and being able to easily work outside Upwork using the Hourly Direct Contracts. I really appreciate the effort Upwork is making but there is stil the issue of the percentage that Upwork is taking from Freelancers. Upwork takes a higher fee than a real estate broker. I was offered a job for $900 and received $760. The fee Upwork takes is just too much. Why can't Upwork charge clients half of that percentage so that it takes less from the freelancer because as freelancers, we are paying to get work. But the client simply pays for the work and not for Upwork's services. It is affecting how we bid for projects. Please can Upwork revise this.

bilsim · ‎03-22-2021

I totally hear you and agree with you.

However, have you ever tried to find clients on your own, without Upwork, just through advertising and digital marketing? Are you aware how much money you would need to spend on those? It would cost you much more than the cut the Upwork takes. If you don't believe me, just try it out.

Secondly, I am not sure nothing at all is taken from clients. There's probably at least credit card processing fee when they are paying freelancers for work on Upwork. Or other kind of processing fee.

kinector · ‎03-22-2021

Sharon, you could try to shout into the wind and expect more impact.

You just embed all your fees into your rates and that's it.

Want 900 bucks? Charge more than a thousand to your client. Not 900.

But basically, if you cannot lift your rate more than 10% without losing to your competitors, you're probably not freelancing right.

Think it this way and focus on leveling up your service, so you never need to worry about the fees.

I wouldn't mind higher fees. It would keep the hobbyists out and reduce the spam clients suffer from.

feed_my_eyes · ‎03-22-2021

Sharon M wrote:
Why can't Upwork charge clients half of that percentage so that it takes less from the freelancer because as freelancers, we are paying to get work.

I agree with Mikko; if you think that your clients would be willing to pay higher fees in order to work with you, then why not just charge them more money yourself? Also, don't think of it as "paying to get work" - all businesses have expenses, and these are your marketing costs.

kinector · ‎03-22-2021

What Christine is saying is good to take into account. Seriously, try to calculate it. 👍

Try to quantify your expenses, those being your upfront cash and your time, for finding fantastic world-class clients using any other means that you have.

Then, if you managed to include every single actual expense, Upwork starts to look like one of the cheapest options there is!

That is, of course, only if you nail your dream clients on a constant basis. In other cases, I understand if the fees look a bit high. Getting only those nasty low-end clients and still having to pay high fees sucks, of course.

petra_r · ‎03-22-2021

Sharon M wrote:
Why can't Upwork charge clients half of that percentage so that it takes less from the freelancer because as freelancers, we are paying to get work. .

This way of thinking is completely flawed. Clients always pay the fee. They pay all of it, every single Cent, because they pay the money the fee comes out of.

Think about it logically. Clients have a budget or a price they can pay and it makes no difference how that price is constructed.

Say the client is happy to pay $100, that would be $ 100 no matter who paid the fee and the freelancer would get $80 regardless of which way around it is calculated.

Or were you somehow under the illusion that clients would suddenly want to pay more than $100? Why would they? And if they wanted to pay more, why didn't you charge more in the first place?

Sharon M wrote:
It is affecting how we bid for projects. Please can Upwork revise this.

That's the idea, isn't it? You need to calculate your costs into the price you charge. Upwork fees are simply business costs.

kinector · ‎03-23-2021

Petra R wrote:
Sharon M wrote:
It is affecting how we bid for projects. Please can Upwork revise this.
That's the idea, isn't it? You need to calculate your costs into the price you charge. Upwork fees are simply business costs.

That is the idea exactly.

Incredibly high value for something that is just 20% max.

Now, who's in for making the fees a tad higher?

moonraker · ‎03-23-2021

Sharon M wrote:
Why can't Upwork charge clients half of that percentage so that it takes less from the freelancer

Absolutely no way should this happen.

As a freelancer myself, I want clients to be encouraged to post more jobs - not discouraged.

sarahsaunders24 · ‎07-23-2021

The client pays a fee on top of the actual fees paid to you. Plus the more you work or earn with a client the percentage that upwork pays goes down. I have a client now that Upwork only takes 5%.

The way I think of it is they are the broker. So I don't have to go hunting clients down for my income that I have earned. Plus because they pay on a steady weekly cycle you are guaranteed to get something if you've done the work (considering hourly jobs which is usually all I go for).

If you had a handful of clients that you had to work for, then bill out, there is a good chance you are not going to get paid for a couple weeks at least. Once you get into the groove of Upworks schedule its great.

Oh and not to mention the 1 1099 that you would receive at the end of the year from any and all clients worked for through this platform. You are not going to have numerous 1099s to deal with.

There really are a lot of benefits to paying their fees. I think its a mindset thing. They literally helped me go from nothing to being fully self-employed.

sarahsaunders24 · ‎07-23-2021

I meant to say the more you work or earn with a client the percentage that upwork *takes goes down.