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coykrunch
Community Member

freelancer to freelancer + agency service fee?

I've an ongoing contract (2 years) with a client who needs to hire additional people. I created an agency and proposed that we hire thru my agency since I will be supervising/managing anyway. Assuming that my client agreed, does my agency have to start at the 20% service fee even if it's the same client & contract? My freelancer service fee is now only 5%.

And I assume that I can continue my current contract as a freelancer with same fees and have an agency that will work for the same client?

1 REPLY 1
petra_r
Community Member


Enrico N wrote:

I've an ongoing contract (2 years) with a client who needs to hire additional people. I created an agency and proposed that we hire thru my agency since I will be supervising/managing anyway. Assuming that my client agreed, does my agency have to start at the 20% service fee even if it's the same client & contract?


Yes. It starts at 20%. It is not the same contract.


Also, do you actually have people who will work through your agency?

Why does this model make any sense to you?

 


Enrico N wrote:


And I assume that I can continue my current contract as a freelancer with same fees and have an agency that will work for the same client?


You can, the people you add to the agency start at 20% fee. The client pays those people (which you do have??) through you agency and you pay them outside of Upwork altogether. You are absolutely responsible and liable for the work those people do.

 

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