Announcing new, simpler fees on Upwork

[#1]

Today we introduced two key pricing changes: on May 3, 2023, we are retiring our sliding scale fee structure and introducing a 10% service fee for all freelancers, and on April 26, 2023, we are implementing a one-time contract initiation fee for clients of up to $4.95 per contract. Click here for the full announcement.

Please share your questions and feedback in the thread below.

[#2]

Sophie,

Please explain how increasing freelancer fees causes clients to change their relationship with Upwork since their fees stay at 5%? I really want to know.

[#3]

Simple, freelancers will have to say "look i have to increase my rates because upwork decided to charge me more, either we leave the platform and start a direct relationship or you'll have to pay me 5% more". It is usually the clients that are looking to move off platform, not the freelancers. Many freelancers transforming from employment to freelancing tend to think upwork is their new employer, protecting them and providing them. Until they understand thats not true and its a marketplace not more not less.

[#4]

Agreed. This is outrageous. I have been a member since 2016 and have many long term $10,000+ contracts. This change will result in me getting a 5% pay decrease while Upwork enjoys a 5% pay increase. The existing fee structure encourages long term contracts, which is beneficial to both parties. This change only benefits Upwork and hurts loyal, long term freelancers. How did they think this was a good idea?

[#5]

Agreed. It's punishing long-term, high-earning freelancers with Upwork (I've been here for 9 years). It's a breach of contract with existing freelancers by doubling our fees with clients with whom we've negotiated long-term, lucrative contracts, which is the only work I do now. I haven't taken a new client in a long time. Upwork is getting more from OUR work while we get less. This is breach of contract and thus, we can legally take out clients elsewhere. Upwork needs to at least honor existing contracts for as long as they keep going, not double my fees in 9 months.  

[#6]

I'm just waiting for someone to file a class action suit about this.

[#7]

I was just thinking the same about a class action suit.

[#8]

I totally agree with Sophie. What a way to reward the top earners in the platform. I won't be adjusting. I will be moving away.

[#9]

**Edited for Community Guidelines** Commission 10% from the freelancer plus 5% from the client. 15% for processing funds, and even with a bunch of bugs, crooked invoices, inaccessible support service. The author of this idea absolutely wants the bankruptcy of the company. The problem is that clients who have been working with a freelancer for several years are unlikely to want to part with him and switch to any other platforms. And this is Upwork's main source of income. **Edited for Community Guidelines**

[#10]

Exactly! All of my clients are at 5%. Guess it's time to make other arrangements! 

[#11]

How 'bout it? I've been defending Upwork for years to freelancers that bash it online and I've encouraged new freelancers to use it. My reasoning? Build long-term relationships and large contracts. Once you get to 5%, it's not that big of a deal. Sure, you pay a bit along the way, but that's the tradeoff.

Now they've eliminated any incentive to stay on the platform long term; I can no longer defend it. For those of us who have honored the TOS and kept our clients on the platform for years, it's a slap in the face. 

[#12]

Exactly. It makes no sense that our fees would increase on accounts that have been going for years and have already made Upwork a ton in fees. I have stayed on Upwork because it is easy but definitely not worth giving up 5% *more* of my income. 

[#13]

Long story short, we who have had a long-term history with a client who are at the 5% rate are going to get hosed at the end of 2023. No two ways about it. 

[#14]

Upwork just raised taxes for long term freelancers! Why not adding the possibility to get a 5% refund if the year income is less than 10,000$?

[#15]

This should be grand-fathered, if you are already at 5%, you stay there, all new ones start and says at 10%

[#16]

That would be me also. I honnored all for 3 years now. Not sailed outside. And they increase 100% sinmple billing service.

No way I will stay under this conditions with my full charges to a client.

[#17]

Agreed. Upwork strike from Jan 1st 2024.

[#18]

Hi.

Please specify something, it's pretty confusing: 

" on April 26, 2023, we are implementing a one-time contract initiation fee for clients of up to $4.95 per contract"

We are freelancers, the people who is hireing us are clients. 

Who will pay this new charge, freelancer or client?

Thank you

[#19]

Just wanted to direct to "However, there is an exception. Through the end of 2023, if you switch a marketplace contract that is at 5% to an Enterprise contract, you can continue with the 5% freelancer service fee rate through the end of 2023." from official documentation Freelancer Service Fees – Upwork Customer Service & Support | Upwork Help

[#20]

It should be applicable only to new short-term contracts. I know you are honoring the existing contract having a 5% fee till the current year's end but again it should be applicable only for short term(less than $10,000) contracts

[#21]

I'm here since 2015, 8 years Upwork is my full-time job. My "long-term contracts" metric is 92%, which means that almost every client works with me for years and of course, I have a 5% fee with all common contracts.

What does that change mean for me? I like Upwork, it's convenient because I don't need to care about invoices, payments, contracts, and other papers. I just do my job and do it very well. I think that 5% was fine to delegate all that paper problem. For now, of course, it's too much and any of my clients will be immediately moved outside of Upwork after we achieve 2 years of our relationship. 

Probably Upwork wants to help new freelancers to reduce fees from 20% to 10% on the first $500. And I believe Upwrok understands that most part of Top Rated guys who generate real money will not agree with that and just move their 2 years+ contracts outside. 

Thanks Upwork.

[#22]

Yep! At least we have the rest of the year to make the move.

[#23]

Right here with you, joined in 2016 and I'm on the same boat. Agree 100% that it was worth the 5%, I just saw it as administration and bookkeeping fees. But this? It feels like a stab in the back. 

[#24]

Totally agree. I know I will be moving if they don't revise ths very bad idea. I have been with my clients for 5+ years so I'm sure my clients won't mind paying me directly with no fees. Ok. change it for new Freelancers, but keep the top freelancers at the 5% they are making! Really bad idea Upwork!

[#25]

Agreed as soon as the year ends if not sooner I am out of here been here since 2011 they should never touch our pay. I am like founding member before it even was upwork. Its redicoulos and will not age well.

[#26]

Good time to leave UpWork with all my long term clients. Now I found motivation to do it.