What do you think about 20% service fee?

[Ramazan S]

Hello everyone.

What do you think about 20% service fee?

I hardly make some money on Upwork and I feel like service fee takes most of my effort away.

Shouldn't that fee be less?

[Jennifer M]

I hate everything that takes me sweeet sweeeeet $$$ but the sweeet sweeeet rewards are why I do it.

[Tonya P]

Yes, you should immediately find a platform that offers the same level of lead generation and services but charges less. Or, handle those tasks on your own to save the 20% fee.

Paying a referral fee, commission or services fees is a part of doing business. Your own rates should reflect this and other costs. Choose a rate that allows you to feel well-compensated after expenses or take steps to reduce your expenses. 

[Scott P]

Or, handle those tasks on your own to save the 20% fee.

How would he handle those taks on his own, when he is paying to use their platform, to get clients?

[Christine A]

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Scott P wrote:

Or, handle those tasks on your own to save the 20% fee.

How would he handle those taks on his own, when he is paying to use their platform, to get clients?

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That was her whole point.

[Tiffany S]

I think it's a great compromise. Obviously, Upwork couldn't continue to lose money on all those tiny jobs, but it would have been bad for a lot of clients and freelancers to disallow them, so Upwork introduced a fee that allowed it to continue to service low-dollar jobs without bleeding money.

I think Upwork provides great value for the money--the time it saves me each month more than makes up for the fees. Upwork makes it easy to connect with clients with zero marketing dollars and a tiny fraction of the time investment required to seek out and cultivate new sources of business outside the platform.

I also think that "most," by definition, means more than half...so a 20% fee by definition is not taking most of your effort (or even close to it).

[Petra R]

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@Ramazan S wrote:

What do you think about 20% service fee?

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 I don't think about it at all. It's built into my rates and it is only on the first $ 500 with any client, so it soon drops to 10% anyway

[Hieu T]

And it will be 5% if I earn $1000+ with any clients, is that correct?

[John K]

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@Hieu T wrote:

And it will be 5% if I earn $1000+ with any clients, is that correct?

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 No, if it will be 5% if you earn $10000+ with one client, for that client only.

Back to the original question, I think the 20% fee is too high, but UW couldn't care less how many freelancers think it's too high.

[Preston H]

You're not alone if you think that the 20% fee is high...

But as others in this thread have pointed out...

You are NOT REQUIRED to pay the 20% fee.

And you are not required to use Upwork.

It's totally your choice.

If you are to able earn $10 per month on Platform X, which only charges you a 10% fee...

But you are able to earn $500 per month on Upwork, which charges you a 20% fee...

which platform will you use?