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What do you think about 20% service fee?

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Ramazan S Member Since: Sep 30, 2017
1 of 60

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?

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Jennifer M Member Since: May 17, 2015
2 of 60

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

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Tonya P Member Since: Nov 26, 2015
3 of 60

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. 

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Scott P Member Since: Apr 24, 2020
4 of 60

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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Christine A Member Since: May 4, 2016
5 of 60

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?


That was her whole point.

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Tiffany S Member Since: Jan 15, 2016
6 of 60

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).

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Petra R Member Since: Aug 3, 2011
7 of 60

@Ramazan S wrote:

 

What do you think about 20% service fee?



 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

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Hieu T Member Since: Aug 11, 2017
8 of 60

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

Hieu T

Vietnamese translator
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John K Member Since: Feb 17, 2015
9 of 60

@Hieu T wrote:

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


 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.

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Preston H Member Since: Nov 24, 2014
10 of 60

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?

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