Changes to Client Pricing Structure: Questions & Feedback

[#1]

Over the next several months, we will be changing our pricing structure for clients. Our goal is to simplify pricing by removing subscription tiers (with the exception of our Enterprise offerings) and moving towards an easy-to-understand fixed percentage model. 

Check out the announcement and let us know your thoughts about these updates in the comments below.

[#2]

This is minor, but I'm curious. From this wording on the help page, it appears that the TR+ batch will now be visible to all clients, not just the ones on paid plans. Is that correct?

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• Access to premium talent, including Rising Talent, Top Rated, and Top Rated Plus.

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[#3]

Hi Wes,

That is correct, the Top Rated Plus badge will be visible to all clients.

[#4]

Personally, I'm disappointed to see this change. I wish Upwork would focus more efforts on making a stronger platform that attracts more freelancers and clients vs increasing platforms fees for clients or freelancers.

😞

Collectively Upwork is taking 25% of the first $500 earned on a project now between most freelancers and client fees. This is getting a bit too aggressive in my opinion.

Thanks!

[#5]

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Robert O wrote:

Collectively Upwork is taking 25% of the first $500 earned on a project now between most freelancers and client fees. This is getting a bit too aggressive in my opinion.

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The client fee does not come out of the earnings, it's on top of it.

[#6]

Whether on top, inside, or under it, it's all one and the same.

**Edited for Community Guidelines**

Read what you may, but the assertion there's now a 25% entropy for the first $500 spent on a freelancer, is correct.

[#7]

You are correct. It's 25% of the total amount between what they extract fromt the freelancer's fees and what they take from the client.

[#8]

[#9]

It's pretty funky that we now have to punch through two screens to find out if there's been any updated commentary on new features of interest. It's as if Upwork is actively discouraging conversation.

[#10]

It's interesting that this thread was frozen for a while but magically "re-appeared" after the news about raising pricing had 2 - 3 days to get digested.

As a client - I'm very disappointed with this. I do not require any of the "features" offered at all. I was happy with 3% pricing and now it's 5% - all dressed up with nonsense marketing-talk that offers no benefits to me as a client.

Freelancers are going to suffer in a major way as clients (like me) begin the process of abandoning this aggressive, insanely expensive mess called Upwork. 

[#11]

Bang on, Amit; thank you for saying it how it is.

I hope more clients come on here to vent their outrage at the fee hike and issue similar valid threats to ditch the platform.

Who knows, if enough clients make their voices heard, together you could help yank Upwork off this path to self-destruction.

[#12]

Hello Mike,

This is good to know.

I would also recommend to give option to freelancer in case if they want to conver the project from hourly to fixed engagement and vice versa. I have seen that many customers are interested in fixed price instead of horuly engagement after the first round of discussion with freelancers and freelancers have no option but to revised the offer.

This option will really make the engagement smoother from both side.

Regards,

Vishal

[#13]

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Vishal G wrote:

I would also recommend to give option to freelancer in case if they want to conver the project from hourly to fixed engagement and vice versa.

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No need, that is already easily done on the client-side before hiring.

[#14]

It's not really appropriate for a freelancer to change the nature of a contract from hourly to fixed price or vice versa because they "want" to (do). Although subject to negotiation or consultation, that is entirely the client's prerogative.

[#15]

Hello, 

Yesterday as I tried to access UpWork I was received with a banner forcing me to agree to an increase in client fees to 5% (it's 3% now). This was camouflaged under the new "no subscription fees", which for those newer to the platform was the way things used to work, before UpWork started charging for things like basic reports.

Currently I am unable to access my account unless I agree to a 66% hike on the fees.

Not only I am beyond disgusted with UpWork's approach, but I'm seeking legal advice.

Has this happened to you? Did they warn you? I only received a message about they plan to remove monthly fees for "Plus" subscriptions. 

If you have been hurt with this, let me know.

[#16]

re: "Not only I am beyond disgusted with UpWork's approach, but I'm seeking legal advice"

LOL

[#17]

You may be right on the legal part, but I still can take my business elsewhere. 

Should I assume you are not impacted by this, or you don't care?**Edited for Community Guidelines**

[#18]

I have hired over 150 freelancers on Upwork.

I find it a tremendously useful tool.

Do I care about the change from 3% to 5%?

I haven't really thought much about it one way or another.

In no way am I making light of your concerns or thoughts about this.

I was only laughing at your comment about "seeking legal advice."

I assume you meant that as a joke. But a joke with real intent behind it. The point of your comment, as I understand it, was not that you are literally going to hire an attorney to ask about whether Upwork can change its fee from 3% to 5%. Rather, you were saying that in order to emphasize your dismay about what Upwork is doing and how it is doing it.

[#19]

Hi Preston, I believe you misunderstood Pablo.

Pablo is complaining about a dark pattern that I have also noticed - the holding hostage of clients to accepting the agreement in order to use the UI. Here's the summary:

1. Upwork gets the client's foot in the door with commitment to projects

2. Client depends on Upwork's UI to maintain projects, with the expectation and reliance upon accessing information and communicating through it

3. Upwork withdraws access to the UI completely until new terms are accepted.

Feels a bit sleezy, Upwork! 

As an alternative, Upwork could have forced its new price hike:

1. with clearer terms, rather than intentional obfuscation

2. conditional on starting a new contract, not on access the UI and jobs in progress!

[#20]

Hi Brian,

I've read your post after adding mine to Preston's. That's exactly the issue.

Both freelancers and clients put a lot of revenue up to UpWork whims, and these tactics smell bad. 

A granfathering of existing projects, plus a longer time to enforce the changes would have been the decent thing to do.

[#21]

Like you, I've been in UpWork since before UpWork, and hurt a lot when they swallowed up Elance. Yes, I find it useful, but some tactics like this I find outrageous and I keep me from seeing them as a solid partner. 

The fact that they hijack your account until you agree to a 66% increase is horrible. We are at ~$15-20K month in freelancers, so it's not a huge amount, but it's how it's presented:

1) Wrapped in that "no more fees" BS
2) Forced
3) With no warning or recourse

So, this makes me wonder, if they pull this, what else will they do? 

I think the practice sucks (and this is part of their culture); if any other provider would do that I'll start looking for alternatives.

[#22]

Hi Pablo,

I'm sorry to hear you were caught off guard by the changes. We notified clients via email around March 28 (it happened over the course of a few days) with the details of the change, including the 5% Marketplace Fee. We also posted an update in the Community (for which this is the associated discussion thread) and on our social media accounts. 

We do offer a discounted rate of 3% for eligible clients in the U.S. who pay with a checking account. Check to see if you’re eligible here.

[#23]

What was the charge for clients paying with ACH before? 

I'm taking my mature contracts out of UpWork, and cancelling new ones. You are trying to fleece your clients, and by your answer I see UpWork could not care less.

[#24]

I'm sure this fee decision looked great on paper and will enhance next quarterly earnings, but doesn't seem like they thought through the entire rollout strategy.  Sadly, we only became aware of the change yesterday when it forced acceptance to login.

We've have a substancial run-rate on Upwork and are contemplating our decision as well as awaiting the platform to be setup for ACH for the reduced fee.  As such, we have not yet accepted the new terms and as a result cannot pass login.  Nevertheless Upwork started charging the 5% fee despite our non-acceptance!

[#25]

I'm guessing they charged a 5% regardless of acceptance because they have set it up in such a sleazy way that "who could say no?". They basically forced people to agree to it in order to continue working (they pull the same type of stuff on freelancers from time to time).

Do you want to work with a company that changes things on a dime, is truly obscure at communicating changes, and then blocks your access to work and income? It's hard to find an example of a more disloyal organization.

As to your comment on the quarterly earnings, we still have to see if this works in lifting their horrible performance during the last few months...

[#26]

**Edited for Community Guidelines**

I also believe that charging a massive percentage "per transaction" is an interesting legal angle that consumer payment authorities, including credit card companies - are not going to like or support. There's also no support for legacy pricing on contracts already running right now, another possible legal angle. 

Totally stupid move by Upwork that adds zero value to anyone but themselves.