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.

[datan-jannet]

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.

[the-finance-guy]

All my contracts are $10K+

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

And the world keeps turning

Job done

[sofiaabrantes]

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

[d9fc6d8d]

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.

[8555264a]

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.

[williamtcooper]

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.

[6bfcdaf8]

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.

[imfromio]

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?

[board-karen]

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.  

[nhansen]

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

[phynds]

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

[lazyacine]

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.

[spod777ru]

**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**

[phynds]

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

[perry_rob]

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. 

[carpenter-erica]

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. 

[durrenb]

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. 

[dragomaria]

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$?

[chrisangelisip]

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

[vreljanski]

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.

[byteshertz]

Agreed. Upwork strike from Jan 1st 2024.

[fsafner]

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

[2985b04f]

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

[fawad666]

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

[deninichi]

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.

[4b4dabcf]

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

[sofiaabrantes]

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. 

[phynds]

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!

[dmikolajczak]

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.

[youssef_houjeiri]

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

[sofiaabrantes]

Exactly this. I hope they enjoy their 2023 revenue, because I have a feeling 2024 is about to sink them down very low. Us "longtermers" are quite literally carrying this company with the thousands we bring in in fees, not the small players "benefitting" from this. If it were truly about them, they'd have just reduced their rate from 20% to 10%.

[4b4dabcf]

Hmmm... kinda takes away the incentive to work long term with clients. It also makes you reconsider sticking with Upwork long term. The 5% goal gave you a light at the end of the tunnel to work towards. Now we don't get rewarded for bringing in the big bucks for Upwork when working on long term/high paying projects? All so that new freelances who don't generate consistent income for Upwork or those who do this as a side gig whenever they feel like it can catch a break? Not sure I understand the benefit for Upwork using this business model. I certainly don't see the upside for serious, full time freelancers.

[farrlawrence]

Exactly!  Last year, I was thrilled (and amazed) I finally had 10k project and earned Top Rated Plus. Now, Upwork is essentially saying, "Not a big deal anymore, and you are about to make less money from your client - too bad."  My clients pay me what they want to pay me. They are not going, out of the goodness of their hearts pay me the now 5% difference in wages. I think most Top Rated Plus folks who have long-term clients are about to exit and take their clients with them. I've had two clients leave the platform in the past. Then later hire people directly to do what I was doing for them. And now Upwork is pretty much daring most successful freelancers to do the same. 

[dijiwolf]

The benefit for Upwork is that they will end up making a lot more money in the short term. The problem is that they didn't think about the black swans that will be coming next year when freelancers and clients jump ship without the need of the "middle man" taking 5 more percent of the freelancer's earnings.

I'm sure the clients would have no issue giving the 5% that Upwork charges them to their freelancer, while the freelancer also gets to keep ALL their money. After two years you have the potential of keeping all your money PLUS the 5% that Upwork charges clients if they are willing to give it to you.

Upwork: "The economy is crud right now, how can we milk more money out of our users?"

[williamtcooper]

Courtney,

What are your options and why will your clients comply? What's the benefit to the client to change anything?

[yofazza]

I knew they were wrong (or BS-ing)  when they said they wanted to focus on "long term", "permanent", etc.

They are not "agency". They're "broker", "middle-man", they don't provide values on long term relations.

Focusing on short terms and milking the unlimited supplies of freelancers are the correct move. 😂 👍

https://community.upwork.com/t5/Freelancers/Upwork-for-Full-Time-Employment/m-p/1252044/highlight/tr...

[7056ef21]

That's what they told me when I got my Expert-vetted badge. That they want to stop being seen as short small jobs provider and concentrate on big enterprise clients and long term jobs. Well, I'll go back to agents, who would find me new contracts free of charge (charging only the client). 
Upwork can stay with short term contracts. 

[researchediting]

[Elena V] wrote:

That's what they told me when I got my Expert-vetted badge. That they want to stop being seen as short small jobs provider and concentrate on big enterprise clients and long term jobs....
Upwork can stay with short term contracts. 

---

To Upwork, Enterprise contracts and long-term jobs apparently mean the same thing. They have deincentivized long-term relationships in the open marketplace, where they would seem now to have abandoned longevity—and arguably satisfaction and quality—as metrics, in favor of volume, market share, and churn.

[ericaandrews]

After weighing the implications of Upwork trying to FORCE me to raise my rates to accmodate this new PHANTOM 'fee', and after being THREATENED by a an Upwork Moderator sending a message at 2:30 in the morning last night because she didnt LIKE what I said, I have taken the following ACTIONS;

1. My "Top Rated Plus" profile is now set to NOT AVAILABLE, for anybody, for the next couple of years, so nobody can invite or hire me under this new fee SCAM.  I am OFF the market for any new Upwork contracts

2. My Consultations have been TURNED off, indefinitely, so nobody can hire me under this new fee SCAM. .  I am OFF the market for any new Upwork contracts

3. I have set my profile to INVISIBLE so that I cannot be found in search or 'publicly' and used as BAIT to get new clients in. .  I am OFF the market for any new Upwork contracts

4. I will honor my existing Upwork contract, until my client decides to CLOSE it - which I believe he will, after hearing about this latest MONEY GRAB, but until them, I am not accepting any new Upwork contracts because I cannot justify the additional RATE or COST besides "Welll, Upwork is demanding more money". 

I'm not charging my clients unfair rates just because YOUR company is in dire straights.  It aint right, and I will not do it.  I have already driven my "U-Haul" to OTHER platforms and avenues, so have fun with this...whatever this is.  Several of my clients were "cash cows" and have left BARN to avoid these obsurd fees.  I am right behind them....

And, yes, UW can 'threaten' to kick me off the board etc all day, but the fact is, you AIN'T the only game in TOWN. I already have a list of 150-175 competitors and have begun MIGRATING to them.  Platforms either with NO fees or more reasonable fees for my clients and me, and ALL Of whom vet and have actual STANDARDS for freelancers and clients joining the platform.    You can go from 5% to 10%, but you can ALSO go from 5% to ZERO %.  You don't believe me?  Well, let me show you.  

 Yes, you can 'delete' and "censor" messages on this forum, but you can't CENSOR the ENTIRE  Internet.  Silencing disagreement and dissent is an AUTOCRATIC personality feature, and it's not a GOOD one.  If what is being said HERE offends you, go look at some of the OTHER forums OUTSIDE of UW - some that start with R, D, and Y (oh, no full names due to 'censorship''), where people can REALLY speak their mind about this, and you'll see that you are getting the ..."nice"...version here.  Silencing voices does not ELIMINATE the cause of the problem - just like snatching a noisy smoke detector out of your ceiling does NOT stop your HOUSE from burning down.  It just burns down...quieter, but burns down, just the same.   You guys are threatening poeple via 'private messages', deleting  posts, and censoring people, and that STILL does not fix the underlying PROBLEM that is causing freelancers and clients to LEAVE in bulk. Threatening people and 'removing' and 'editing' posts is not going to make your next EARNINGS call go any better.  Stop attacking the SYMPTOMS of the dissastisfaction and address the SOURCE and your business might "heal" at some point You guys insist on shooting the 'messenger' and failing to listen to the MESSAGE

[moonraker]

Well at least Upwork has made it quite clear where us mid-higher earners stand. Thanks for the clarification, it'll come in handy when I have decisions to make.