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StanG
Community Manager
Community Manager

Announcing new, simpler fees on Upwork

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.

2,013 REPLIES 2,013

Yup: This is not about 'creating opportunity'. This is about LINING their POCKETS. Period.   Charging HIGHER fees to freelancers with long-term contracts doesn't 'create more opportunities' for anybody.  It just means now that freelancers either get LESS take-home money, or have to CHARGE their clients more to fill in the 'gap'.

33bbb834
Community Member

Very disappointing, Upwork already applied old terms of 20% fees to old contracts so terms can't be changed midway, at least for existing contracts, these new terms basically pushing freelancers to take clients off the platform, while Upwork thinks it's a good idea to increase their revenue, by betraying loyal freelancers it will backfire.

yup

Even though i'm new here..and i did not found any job yet..it makes me delete my account reading your info.They all think about themselves.

markwaterous
Community Member

Hey Upwork,

 

We are very excited to announce our newly simplified flat fee structure of 10% for freelancers. This streamlined, industry-low rate structure is designed to drive more demand for your services by dramatically lowering the fee on all new relationships.

 

Can you not insult our intelligence by claiming this is "for us" and not a direct result of your 2022 earnings call? This is not designed to drive more demand for our services. This is designed to put money in your pocket. Which is fine, do what you gotta do, but don't pretend you're doing it to help us, it's disengenuous at best. 

 

๐Ÿ‘

Driving more demand for freelancer services puts more money in their pocket.

It is my recollection that most jobs on Upwork are less than $500 (I believe someone had done some kind of analysis). So I guess it would benefit those who work on those projects.

 

"... our newly simplified flat fee structure of 10% for freelancers."

It's also not new. It is a reversion to the original flat 10% from years ago that was newly complicated with the current-soon-to-be-deprecated graduated scale.

For ongoing projects that are already down to 5% fee, this actually means 5% increase (starting 2024). In my case, %5 increase in fees is too large for me to continue with my ongoing project. It is unfortunate.

Same as me. A 5% fee increase is definitely going to affect me a lot. I guess I'd be moving to the traditional non-remote work pattern from next year. For me, this is the nail in the coffin. 

This is sad news. They could have retained the 5% fee permanently for freelancers with ongoing projects. ๐Ÿ˜ž

I am a freelancer specializing on short contracts below $500 and this is the BEST change on Upwork in years for me. I remember being very upset when 20% rule was introduced. Over the years I did not receive about 15K in revenue because of that rule. Thank you Upwork for finally reverting it!

s_shapovalenko
Community Member

Upwork wants to become a platform for probationary periods. ๐Ÿ™‚

ijessop
Community Member

Does anyone else think this may be a breach of contract for those of us who worked through the tiers to get to the 5%. Do we have grounds for a class action suit against Upwork?

25005175
Community Member

No. The ToS that you agreed to can be changed by Upwork at any time, including fees.

adriantoma
Community Member

I'm here from 2009 and after the implementation of the bidding war which affected me a lot I thought I'll not be surprised by anything else...well, I was wrong. Maybe is time to pack and leave

8555264a
Community Member

I have been setting aside methodically a percentage of my earnings in Upwork over the years and buying Upwork stocks: so big was my faith in the company! 

I am seeing way too many signs that the company is disfunctional (community mangement included) and now I have the impression that this is a sinking ship (it looks a lot like the former Freelancer loser platform). First order of things: sell those stocks.

4a17c75f
Community Member

With the new flat 10% fee structure, what will happen to people who've brought up their fees to 10% according to, "Here's how it works: $0-$500 in earnings from a client: 20% service fee applied to earnings. $500.01-$10,000 in earnings from a client: 10% service fee. $10,000.01 or more in earnings from a client: 5% service fee."

 

Will our 10% client automatically be reduced to 5%? How is this supposed to work.

Nope Abeer, the 10% service fee will remain 10%, and all the contracts with 20% service fee will come down to 10% and the service fee for all the new contracts will be 10%. Lastly for all the contracts that currently have a 5% service fee, the same service fee will be honored until the end of 2023. To learn more about the fee structure and the exceptions read this - https://support.upwork.com/hc/en-us/articles/211062538-Freelancer-Service-Fees

Abeer,

 

Beginning May 3, 2023, it's a 10% fee regardless of the amount billed to the client. No more incremental fees.

virke11
Community Member

I did some math and it turns out Upwork took a little bit over $4,500 from me throughout the years.
I could've saved around 3k for sure, but hell, I didn't mind.
Even though I only applied for one or two jobs over the last few years. Even though the payment protection didn't apply to my contracts (it was actually suggested once that I need to ask the client to update their credit card info). Even though my work history and JSS was already pretty good and I could've walked away with these clients a long time ago.
Who wouldn't do that now under these circumstances?
As I've said, looks like you haven't thought this through, Upwork.

meldantosino
Community Member

SpongeBon

Meldan,

 

Too funny - had to look that one up ๐Ÿ˜

charliechance
Community Member

I've been on Upwork for over 10 years and have a very stable client base with a half million in earnings on the platform. When the fees increases above 5% a rational business decision says that Upwork will no longer be a valuable service for my business. As a result my business will be moving to a defferent provider for the service. Thanks you Upwork for 10+ years of valuable service but hope you'll understand that doubling fees will necissate my ending the relationship with you. 

Charlie,

 

The other provider is 20% fees instead of 10%. Why would your client(s) leave Upwork since their 5% fee isn't changing?

I don't understand your point, William. If the only way we can retain our income is by increasing our rates, surely the client WILL end up paying more?

madgulkar
Community Member

It was pleasant surprise by upwork by reducing tiered fee structure to flat fee structure of 10% for freelancers from 3rd May 2023 ,This is what we expecting from upwork to support freelancers,thanks for the same.

A serious thank you to the UpWork team and higher-ups from me, too! For the longest time I've hoped for changes actually beneficial for freelancers (instead of fancy new buttons and functions), and it's almost hard to believe a company of this size in 2023 would make such a good decision! This should definitely decrease the rates of people falling for the off-platform scams and the influx of spam as well, as a 10% fee is very reasonable.

You should thank them on this thread and bring some color to the discussion ๐Ÿ˜…

Sumitra,

 

Yes some freelancers like the flat 10% fee and other freelancers are not so happy. Hopefully it all balances out.

For the ones who like doing short new projects constantly it is fine
For the one who prioritise long term relationships this is a cold shower. going from 5% to 10%!, I feel robbed.  I may leave the plateform with my old client.

bseegert
Community Member

Worked hard for years to grow a side gig that I loved into something I can depend on financially (paying Upwork thousands along the way, as the platform has become a significant part of my business). That is the freelancer "success story" Upwork has always preached. Was happy when I got the bump to 5% with my most consistent client just last month. It felt earned. It felt good.

 

This feels bad.

joannarojas
Community Member

This is making me very sad. Please don't do this to your loyal users, we don't deserve this.

Joanna,

 

What would happen if your client(s) paid you more?

I could increase my rates by 5% AND take the clients off platform, since I'm past the required time, and get paid 10% more, instead of paying upwork 5% more. Why in the world would I stay on Upwork with long-term clients?

a-sy
Community Member

This is exactly how NOT to reward your most loyal users, Upwork. Why not just keep the 5% permanently for those of us who've been here the longest? Unbelievable. 

merirooot
Community Member

This is disappointing for a freelancer who only has one long term client in the platform. 10% is a big chunk off of our total earnings. With this 10% flat fee for all contracts, I don't think freelancers will be eager to get a long-term client because there isn't actually a benefit of it, compared to a tiered fee,  when you get the chance to have a long-term client, having only 5% fee is like a reward. I just hoped that you let the 5% fee for long-term contracts as is, and have the other contracts be at 10%. You'll definitefly lose the majority of the long-term contracts next year. Good luck!

agree 100%

mortaz
Community Member

Federal Trade Commission (FTC) does not look favorably at anti-competitive practices of a company that hinders or interferes with the ability of other companies to make money!   We have reported one of Google's practices to FTC where Google was not allowing us to add a PHONE number to the Description of the Offers our clients were making to consumers!  The investigation has now been referred to Justice Department.  

 

https://www.ftc.gov/enforcement/anticompetitive-practices

 

Good luck.

 

25005175
Community Member

Your point?

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