medbee
Member

Why upwork takes 20% ?

Hi there,

 

Why upwork takes 20% if they can not guarantee a good support and easy to reach ?
What do you think about this ?
Do you find a live chat here ? or any easy proccess to contact them ?
I will record a video on youtube.

Even, my client need to verify his payment method.
And, he can not contact them easily.

Thanks

ACCEPTED SOLUTION
kochubei_valeria
Community Manager
Community Manager

Mohammed,

 

Unfortunately, due to the volume of users not all support options are available to all users. All clients have access to all support options here and I see that you were able to submit a ticket request successfully.

~ Valeria
Upwork

View solution in original post

10 REPLIES 10
kochubei_valeria
Community Manager
Community Manager

Mohammed,

 

Unfortunately, due to the volume of users not all support options are available to all users. All clients have access to all support options here and I see that you were able to submit a ticket request successfully.

~ Valeria
Upwork

Mohammed: please explain the economics behind how you would provide live chat and phone support to all users of a website where most users pay no money whatsoever?

 

Who is going to pay for all the workers necessary to provide such support? I'm very sorry, but the numbers just don't work out. Maybe if you have an idea for how it could work, you could share your idea here.

It's not about not charging any money whatsoever but clearly 20% is crazy PayPal offers the same service and doesn't charge that much and I can get a hold of PayPal customer care man 20% is just way too steep

re: "PayPal offers the same service and doesn't charge that much and I can get a hold of PayPal customer care man 20%"

 

PayPal does not offer the same service.


If PayPal offered the same service then you and most everyone else would be using PayPal instead of using Upwork and paying 20% fees.

tlsanders
Member

Upwork doesn't take 20%. Upwork takes 20% of very small projects or the very small front end of large ones.

 

That said, if Upwork tried to provide live support to the millions of freelancers on this site, many of whom through their own reporting submit a dozen or more tickets on the same issue and expect all problems to be solved within minutes, your fees would be more like 87%.

davidd1008
Member

Is the 20% a pain sometimes? Yeah, it is. But I'd also invite you to check out other similar platforms that take a larger percentage. 

 

It's also tiered. So after you earn $500 with one client, that % is cut in half to 10%. Which is significantly lower obviously. For some, getting to that $500 is pretty easy, others not so much.

 

I freelance outide of Upwork as well (NOT with Upwork clients) and it can be hell trying to track them down and get paid sometimes. Upwork's % is worth its weight in the security of your payments as far as I'm concerned. I've never had a problem getting paid that wasn't easily resolved.

davidd1008
Member

I should also note to the OP, that the 20% to 10% drop is really a reward for good work and keeping a client long-term, which is typically beneficial for everyone involved. 

 

As a writer, I do a fair amount of one-off jobs, but I always try to focus on obtaining and nurturing clients for long-term work when I can. The 20% to 10% goal is a motivator for that. Even on a big writing job, I'm rarely getting anywhere near $500 for one project, so it takes time for me to get there. That's why looking for long-term clients is key, and it works out well for everyone. 

 

The client gets to work with one person that they can nurture and train. I get consistent work. Niehter of us have to break in a new client/freelancer. The work gets easier as time goes on as we start to understand each other and what we're going for. And before long, Upwork's % drops down to 10% but they get the benefit of a client/freelancer in a long-term arrangement and they're consistently getting paid.

 

It's really a win-win-win for everyone involved. 

Muhammad,

 

Upwork provides you leads to sort through for free. It provides you a web presence for free. It provides you with a billing service for free. For a solo consultant that usually takes 39% of her/his time. Upwork is a bargain at 20% and downward.

 

The only online freelancer brokering board ever to offer personalized service was **edited for Community Guidelines**, which charged $1,500/year for membership and still took ten percent. It was bought out by a staffing company that knew it was wasting money with human intervention and substituted algorithms for people. It was re-named e-works markets and when its new owners went bankrupt it went out of business.

 

It would require about $65M to build a **edited for Community Guidelines**-like successful brokering board. Freelancers from lesser-developed countries would be priced out of joining. There is a fundamentally different paradigm needed for that approach, Fifteen years ago **edited for Community Guidelines** lowest tier of projects was $5K and below. No $3/hour guugul reashertchur will ever be hired. The clients were mostly companies with $100M+ in annual revenue, up to $5B. There were no talent specialists, no forum moderators; there were project managers who handled ten to fiften projects each at a time. They understood freelancing, they grew to understand the disciplines involved and were accessible. They were paid a lot more than minimum wage.

0d5c5f5e
Member

Hey Mohammed. I am sure there are many people on here and the site admin/others work hard to get back to inquiries as quickly as possible.

Taking a step back and reflecting on what this site is...it is an incredibly well-designed platform. The user experience is really good. There are a lot of protections built in. I think when you consider all of this, and the ease of which Upwork brings people together, it is entirely fair to have a 20% service fee.

 

I hope that helps to put things in perspective! I hope you are still enjoying this tool. 

cyber_sec007
Member

Hi,

 

Yes, the first 20% is pain, especially if you do one-off gigs, or a low rate hourly, however, I'm considering this as the "entry fee" that opens a whole wild world of opportunities. I would have not imagined 5 years ago (I was a senior professional in the UK doing contracts via agencies) that I can work with clients from NZ, US and Canada, without going into the office, dealing with agency timesheet submission deadlines, with 30-45 days payout cycles. 

 

Thanks to Upwork, I can work at a higher rate and for more clients.

I don't

  • maintain a personal website to sell my services,
  • market myself,
  • run AD campaigns 
  • I don't publish marketing materials on social media

So I don't pay or spend time for any of these as I have Upwork. 

Recently I have checked out other freelancing platforms (in a move trying to avoid locking to only Upwork), and there was non of the quality jobs/client presented that I can find on Upwork. Of course, I'm a senior professional with a specialized profile and industry.