Upwork changes the amount of commission
Hello. If you work with clients through Upwork (formerly the exchange was called oDesk), then you should definitely be aware of future changes in service commissions. Currently there is a fixed rate of 10%. However, from June 2016, it will start to vary from 5% to 20%. Those freelancers who are engaged in small and inexpensive projects, not working with the same client more than once, will now pay not 10% of their earnings, but 20%.
In short, the interest rate will be as follows: if prior to receiving money from a client, his past payments in your favor did not reach the threshold of $ 500, you will be withheld 20% of the money received. When the threshold of $ 500 is reached, the commission is reduced to 10%. And finally, if the payout threshold has reached $ 10,000, the commission is reduced to 5%.
')
Their decision to the creators of the service is explained by the fact that cheap contracts cost Upwork more expensive in terms of service. As they put it, the search for new customers who will offer you a small contract on the side of the service takes up some resources. On the other hand, repeat contracts with the same client no longer require Upwork to spend a lot of time looking for and providing you with new clients.
Upwork, according to the creators, now seeks to ensure that within the service there are more long-term contracts. The longer you work with a client, the more payments you get from him, the more you will eventually earn. You will observe such a picture, approximately, from June, if you submit an application to some hourly project:
Customers will now pay too
Not only freelancers will feel all the advantages of new changes. Simultaneously with the introduction of a floating commission, a fixed commission for customers appears. Now, any transfers within the service will be additionally
Freelancers reviews
Judging by the reviews of freelancers (see the link “Post on the forum community.upwork.com”), this innovation (like the majority of “innovations” Upwork, however) was perceived not very well. I will give a few examples:
Signe J: This is a change of punishes, like myself, who offer one-off services. I write resumes for clients. I’m writing another resume because they’re used successfully. For me job well done. I can’t stretch a resume job into a $ 500 or $ 10,000 + job. Not a single thing in the world.
This change will hurt freelancers like me who do one-time work for one client. I write a resume for people. If I do it well, clients no longer return to me for a new resume, because they successfully find a job using it, and they no longer need it. A new approach to charging commissions punishes me with a larger commission for doing my job well. I can not find any reason for which I could set the price for writing a resume of $ 500 or $ 10,000 to lower the commission. None.
I need to push it on. “Make your clients rehire”
Extreme changes helped me realize how much I want to take my job away from Upwork. “Get your customers to hire you again and again” is the same as “make them close the contact and write a [excellent] review.”
It was a huge effort for us all. Clients are below $ 500. It’s not a problem. We want you to use your workout. No, I am not agree at all.
I disagreed with such extreme changes as “connects”, VAT, and even 10% of the commission - it was a big burden on all of us. Customers do not want to pay a lot of money; A very large part of the work is paid below $ 500. Upwork may not be able to resist the temptation to raise commissions, but we - freelancers, hardworking workers - do not agree with this at all. We work a lot for Upwork, and they limit us to “connections”, make us pay VAT, and now they want to take 20% of our earnings? No, I do not agree.
It’s a bit more than a 20% charge. Here's how it works in reality:
PREVIOUS:
Freelancer gross earning $ 100
Service fee $ 10
VAT $ 2
Net = $ 88
NEW:
Freelancer gross earning $ 100
Service fee $ 20
VAT = $ 4
Net = $ 76
$ 12 reduction on $ 88 = 13.6% cut in earnings
Even those who work with the same client for a long time need to periodically look for new ones in order to replenish their customer base ... and for this they will now be punished with a 20% commission. See how it works in reality:
EARLIER:
I earned 100 dollars
Paid commission - 10 dollars
VAT paid - $ 2
I got $ 88 on my hands
NOW:
I earned 100 dollars
Paid commission - $ 20
VAT paid - $ 4
Received 76 dollars
It turns out a decrease in income of 13.6%.
Additional information about new commissions
Source: https://habr.com/ru/post/300570/
All Articles