Announcing new, simpler fees on Upwork

[StanG]

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.

[yousaf-1]

Hi to all of my fellow freelancers.

I see Upwork updated fee structure and now those freelancers who were able to earn $10k+ from a client after lots of efforts and dedication are ranked same as those who are fresh on this platform. This really seems like a discouraging thing.

Out of $10k, $955 were paid to Upwork and freelance takes 9,045. I think Upwork already had massive share from this earnings.

Please share your thoughts on this. I am not saying that's newbies should pay 20% but my concern is why 10% for those who were paying 5%.

If this goes I think we have to change strategy to get short term clients and work like fiver or other Small level platforms. May be it's time to migrate to any other bigger platform. As it's not just about fee, it's about the work strategy, fro long term clients to short term.

Announcing new, simpler fees on Upwork

[mdbutnayem]

Really bad for those who work with long-term clients

[nhansen]

It may not be economically sustainable for Upwork, but it's not ecoomically sustainable for us either. After the 2 year period, we are free to go our way and seek something that is sustainable for us. **Edited for Community Guidelines**

[williamtcooper]

Nicole,

There are 4,000,000 active freelancers on Upwork that would love the opportunity to bid on those larger projects, do so at reduced rates, and gladly pay the 10% fee.

[kbadeau]

They don't have to leave Upwork, just like I don't have to leave Upwork, but we will take our existing contract off the platform because we have a good working relationship and when I tell them I can either raise my rate by 5% but not actually keep any of that money for myself, or not raise my rate and go off platform, they'll choose Door #2.

[williamtcooper]

Kelly,

Some clients will go off site and others will not due to legal, financial, HR and other business reasons.

It's too easy using various sales techniques to get many of those clients to come back to Upwork except without the original freelancer.

[nhansen]

Because he won't work with them anymore otherwise...

[byteshertz]

Its called loyalty. Google it.

[williamtcooper]

Matt,

Where will you go? The clients aren't likely to leave just because your fees increased.

[dusan_gajic]

But clients will follow, and as we drop off the platform their fees are also removed.

[williamtcooper]

Dusan,

I don't speak for Upwork.

I agree that some of the clients will drop off the platform. However, there are business techniques to keep the majority of the large clients on site. In my opinion, if a freelancer has been doing a great job, it is very easy to let the clients know your prices have increased by 5%.

[deborahtayloe]

Please stop being condescending to your UW members. You expect to tell us that you are DOUBLING OUR FEES in a few months and jump for joy? **Edited for Community Guidelines**

[johnoe]

If your clients have spent over $10k with you then they likely trust you enough to move elsewhere, especially if it saves you both money.

This move does seem a bit ill thought-out.  It's basically penalising high-value clients and freelancers - and they're the ones who are proactive and skilled, and so are likely to actually do something about the change.

[williamtcooper]

Johno,

As a fellow freelancer, I just increase my prices because my clients love my work. Most clients will not take on the added business, HR, headcount, legal, financial, etc. risks of moving a freelancer. Agree some will.

[gduquesnay]

William,

Those risks are highest early in the contract and gradually decrease the longer a particular client-freelancer pair have worked together.  The value that upwork is bringing to the relationship decreses over time as trust increases.  The pricing 20% -> %10 -> 5% model seemd to reflect that.  Unless I've misunderstood something (e.g. I didn't really understand "

• Full-time opportunities help when you are ready for a different type of work engagement." and how it relates to this)

I don't think I'll be staying once this new pricing model goes into effect on my current contracts in 2024. 

[guneyozsan]

---

As a fellow freelancer, I just increase my prices because my clients love my work.

---

If they love "my" work, I would increase "my" prices, not "Upwork's" prices. For that Upwork needs to provide additional value for long-term high-paying contracts. Currently, it is an increase with no additional value, that is no "upskill" from Upwork in your terms. (Being said that, only for long-term work, I don't claim no-upskill on initial phase of a job).

[williamtcooper]

Johno,

In my financial opinion, a 5% fee was never going to be sustainable because it was too low. 

Upwork needed to normalize their fees to more easily manage the company.

I agree the $10,000 freelancers are typically, but not always the best.

[omar_vector]

Man, I'm paying +300$ + VAT every month with my current client, how on earth you consider this is LOW FEES?!!!!!!!!

Now this will be +600$ + VAT Monthly, its like I'm paying a salary to someone who just work for me! , and for those who doing more by working 80h/ week, they will pay upwork 1000$/month, what on earth is that?

We will leave and find our way, upwork lost to validate their move in honest way.

[nhansen]

That's precisely it. They trust us, they want to keep us working for them, so if we say, hey I would prefer we take this relationship off Upwork and it is past the 2 year mark, they will have no problem with it. Especially those of us who have bank accounts in the same country as the clients, there's really no reason they can't just do a direct deposit.

[cook2003]

And what about existing, long-term contracts? We can't just increase our fees. 

[williamtcooper]

Estefania,

Precisely because you are a long-term freelancer that has been giving excellent service to your clients you can let your clients know that your fees have increased by 5%. As freelancers, we can change our billable rate at anytime.

[gduquesnay]

"we can change our billable rate at anytime"  Upwork certainly seems to think so and based on the discussion here are likely to loose a lot of their "clients" over this arbitrary change.  I'd rather not lose any of mine by emulating this cavalier "rate increase" whenever I feel like attitude.

[williamtcooper]

Gordon,

I have increased my rates from $50 to $200 per hour during the past five years and my clients are more than happy to pay these increasing rates because I am a top Marketing and Sales Expert.

Freelancers that have been Upskilling and offer an incredible client experience don't have an issue with increasing their billable rate.

[glen-s]

Yes Matt, where could you possibly go as William says? Upwork is the only platform around - there certainly aren't any better platforms around that offer better quality clients or better pay (ahem). It's Upwork or bust for every freelancer out there. As Will says, when they say jump, you ask...?

[8555264a]

Exactly!

[adil-khawaja]

Hello

[jawad_kahlon]

Yeah I'm not paying extra $10K per year as fees. I'm taking my clients elsewhere.

[andystates]

Yes! Preach!

[melissagray77]

Agree 100%. This means thousands of lost dollars for me as well since many of my clients are long-term at 5%. Expert-vetted, Top Rated+, $100,000+ in income including Enterprise accounts, and UpWork has lost me with this one. Greed at its finest. 

[feaaaef1]

Upwork also lost me as a client. Yesterday, when we, the clients, were notified, we immediately looked for alternatives, and have already uploaded our first USD 400 job on a competitive platform. I expressed my dissatisfaction with paying USD 4,99 per contract to Upwork, but they only shrugged their shoulders. My main freelancer will move to the other platform as well. Good luck to you all.

[daniellehs]

What a disgrace!

It is unfair for those who do short term contracts or projects, and for every single one 20% fee, but for those who has long term contracts 10% FOREVER is even more unfair! Why not longer 5%? Usually you need to build a 1+ year with a client before your earnings reach the 10K and now you're telling me that I'll always be with a 10% fee.

"The purpose of our new pricing is to bring you more job opportunities", that's INSANE!

[williamtcooper]

Amanda,

For a 1,000,000 freelancers it's a pay raise.

[thivo1990]

Pay raise in short period and pay lost in long term is that what you mean ?

Does that mean UpWork will become a platform for short term projects, fresh/new clients only ?

I have at least 2 clients with 5% right now which I can drag them out of UpWork easily because I have worked with them so long that they trusted me without the tracking tool (beside that they don't see anything that UpWork can provide them).

And at least 10 clients with 10% which I'm sure 7 of them will get off the platform and pay me directly thru PayPal if needed.

[williamtcooper]

Thi,

According to Upwork's annual stockholder meeting, 40,000 clients signed up this year for longer term projects. So it would appear the clients are going no where as a whole. Will some clients leave the site - absolutely - the majority is dubious.

[deborahtayloe]

They should have done a better job building long-term relationships. 

[antoniormrzz]

Dear William, if the only concern is the pay raise for 1 million freelancers, why not remove the 20% tire and keep the 5%? Your point sounds like making the long-term freelancers pay a tax that is spent on short-term freelancers. Just because this benefits you directly, doesn't mean it benefits everyone. How many people will lose money because of this?

[williamtcooper]

Sepehr,

I don't speak for Upwork, however my best guess is maybe 10,000 freelancers.

It's millions of freelancers benefiting versus maybe 10,000 not.

Of course there are business techniques to keep the majority of the larger clients on the site, and yes some will leave.

[tamijo]

For not speaking for Upwork you sure sre speaking for upwork quite a bit! Why isnt upwork speaking for upwork??

[williamtcooper]

Tami,

I don't know - this is a rough place 😁

Some didn't learn the rule of kindergarten about playing nice in the sandbox. 😁

[tamijo]

And for how many loyal clients that have been with upwork for 13 years like me is it a cut in pay when we earned thst payraise. They get our payraise for being newbs and we get the shaft! Thanks for rewarding us. Why not just leave anyone on 5% for their current  contract at 5% until that contract ends then they have to switch. Your penalizing us for having kept our jobs! Its not right!! With inflation killing us already now you want to take more money from our pockets? Not cool! Ill go elsewhere! So much for loyalty!