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]

Not a good strategy for those freelancer who earned hard to make the 5%. 

[#3]

This is a shameful explanation! Careful,,, changes like this that take money out of the pockets of your succesful providers might see them exiting the platform. We don't need this kind of help when calculating fees, revenue. expenses and how much we will earn on each contract at the end of the week! 

[#4]

Exactly!

[#5]

---

Valeria K wrote:

The new fee structure will also simplify freelancer processes:

• Freelancers won’t have to track tiers on contracts to determine how much they will earn each week. 
• Freelancers won’t have to calculate fees for multiple tiers when determining pricing for a contract.
• Calculating year-end revenue and expenses may be easier to do once all contracts have the same freelancer service fee percentage

---

If the government of your country decided that, regardless your job, you will always earn a flat salary of $800 per month because "this will simplify the workers taxes structure", allegating the same reasons you listed in your message, what would you think?

Don't you feel like you are insulting our intelligence by stating that Upwork is stealing our money "for our good"? Don't you feel like it's humiliating taking away someone's money in order to "simplify his calculations"?

[#6]

You do realize that you are penalizing the best freelancers, right? I'll make a prediction, every freelancer who is currently at a 5% fee will be gone before the end of the year... taking all of their clients with them. Whoever came up with this concept should be prepared for a mass exodus of the most seasoned VA's on here.  Our clients have stayed with us for years because they trust and appreciate us; they have zero commitment to Upwork. I would suggest that you consider abandoning this "new, simpler fee" business plan for the 5% people; I can guarantee that all of us are already making plans to leave, and your 5% fee will be reduced to 0%. 

[#7]

We would rather have the extra $1000s than be saved a little math at year's end.

[#8]

I think this sucks, I am a top rated plus freelancer and have a long term relationship with a very nice client from USA, I will simply move out from Upwork after the 5% is gone and will find a way to continue with the client on another payment option, simple as that you just kill the effort of ppl like me in this platform, I know most of the freelancers with nice long term relationships will simply just leave you. I will not lose 5% more in fees.

[#9]

Valerie - those with a long-standing contract at a set rate CANNOT adjust their rates.

This is very disconcerting and NOT FAIR to those of us who have stood by our clients for multiple years.

I am disgusted.

[#10]

Valerie...You are insulting our intelligence. Don't you think we already know how to calculate our rates and earnings? Give me a break Upwork!

[#11]

Valeria,

What you are replying is not what we are complaining about. You cant raise me a service 100% without any justifications. It is simply not possible. We were partners, now you want to be what?  To own me?  My skills work and talents?

People... come to your senses.

[#12]

I have been working with 5 % fee since 2019. Definitely,
I will leave the Upwork platform at the end of 2023 if you raise the fee to 10%.
Perhaps I will leave sooner because I don't like how the platform treats those who are loyal to it.
Emanuel 

[#13]

Ratiod

[#14]

Hi,

If we have a client with a 5% rate already, but we haven't got to the  2 years of working together. Can we move them out of Upwork without a penalty? Upwork is changing the pricing rules, so we should be free to opt out without penalties. Right?

[#15]

I'll find a way to move my clients away from your platform. We worked so hard to be able to reach that 5% and for some shady reason this is how you treat long term and loyal freelancers to your platform. 

Upwork has very low conversion rate anyway so I guess there is no reason to stick around.

[#16]

I don't see how raising these fees saves anyone money now or at the end of 2023; not sure how you figure "in many cases freelancers on Upwork will see simplified and reduced fees as a result of this change." That seems like a ridiculous statement to me. 

[#17]

Valerie, what are the options to take a contract off Upwork now that the terms on the fees are changing from when I inititally took on some of my contracts? 

[#18]

Moving clients off the platform hasn't changed: https://support.upwork.com/hc/en-us/articles/360043210654-Convert-your-contract-to-move-outside-of-U...

[#19]

I have been with upwork for 2 years, I have worked hard to build up good relationships with my clients so I could get repeat business and get my fees down to 5%. I'm part time, and I don't earn a lot so every dollar counts. Now you have doubled the fees on my jobs - because apparently I dont make enough to keep my hard earned 5% until the end of the year - it's making a big dent in my income. Suffice to say I am going to look for work outside of upwork in the future. 

[#20]

You should continue to honor the 5% for long term contracts indefinitely, otherwise you will earn 0% on those contracts that are moved off the platform. 

[#21]

Not helpful!  I have already migrated my big contract off this platform and will move my others by the end of the year also.  Who else is joining? 

[#22]

So you just wants us to jump from one client to another. Well, sounds exciting and quite an adventure for young people but people with family that are relying on them this will create a big impact on our budget. You shouldn't have included freelancers with long time client on this. This is just not fair no matter how you tried to justify it. It's simoly GREED.

[#23]

All my contracts are $10K+

...all $10K+ freelancers: "My prices just went up slightly"

And the world keeps turning

Job done

[#24]

Some of us took literal years (5+) to even reach this 5% rate. 

[#25]

This is the most surface-level comment yet. Any freelancer worth their salt with enough experience and time on Upwork has already optimized their rates and has realized that going above it will cause friction with their current clients.

[#26]

I was already absorving the cost of inflation without passing it on to the clients. Now I am afraid that my options are getting slimmer.