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Upwork removing 5% commission bracket and moving everyone to 10% bracket

support.upwork.com

61–70 of 115 posts

Re: Upwork removing 5% commission bracket and moving everyone to 10% bracket

#61

Wow, I thought they would honor the 5% charge till the end of the contracts but it seems they will go to 10% by the end of the year. Since Upwork theoretically locks you in for 2 years with a client, I’m expecting there will be a small exodus of people with long-term projects . I’d much rather sort out invoicing myself and get paid through Stripe than lose out on extra 5%.

Maybe it’s just me, but applying that to existing contracts sounds like fraud, a classic bait and switch.

Re: Upwork removing 5% commission bracket and moving everyone to 10% bracket

#62
post #41

When I started out as a freelancer / independent contractor, I made the conscious decision to not use any of these platforms, out of fear for my client base or finances being tied up and taken away from me due to a simple ToS violation; the fees never sat with me either. Admittedly, it took so much longer to get a consistent base of clients (1-2 years), but it feels like a fresh of breath air over having to rely on a…

Don’t worry, on Upwork you can blatantly violate the TOS and even if the client complains the platform will not take away the payments. Or maybe they will, but they most definitely will not refund them to the client. Speaking from experience (as the client).

Re: Upwork removing 5% commission bracket and moving everyone to 10% bracket

#63
Upwork is the prototypical clown car that crashed into a gold-mine. (Or is it?)

Well it's definitely a clown car. The product experience is comically bad (like sad clown comedy). There is incredible friction in the hiring and interviewing processes. API access is disabled unless you have a through-the-nose enterprise account.

I would die for a freelancer hiring platform that I could interact with programatically, so I wouldn't have to use their shitty tools.

(Source: Hired through rentacoder, vworker, upwork, elance, etc.)

Re: Upwork removing 5% commission bracket and moving everyone to 10% bracket

#64
post #58

Earlier quoted context omitted.

Yeah, a lifetime 10% just for making the introduction is pure exploitation. On the buyer side we have been defrauded by Upwork providers and the company did absolutely nothing. Clear cut case of illegal activity and ToS violation, Upwork did nothing other than take our money. The FTC needs to beat this gang of criminals into the ground. They are a racket from top to bottom. Fraud shouldn't pay. Exploitation of worker…

Lifetime, in theory. In practice, you can move the relationship off Upwork after 2 years. See https://support.upwork.com/hc/en-us/articles/360043210654-Mo...

Has anyone paid this fee? I think when it gets to the point of dropping 12% of a freelancer's annual income to just talk outside of the platform it's simply not worth it.

Re: Upwork removing 5% commission bracket and moving everyone to 10% bracket

#65

Earlier quoted context omitted.

IMHO, most of the Upwork jobs are upwards of $1000 if it's a serious client. A large number of freelancers & agencies have built a stable clients on Upwork from years together. It will be a little revenue shock for them. Or eventually clients will pay more to cover the costs. Let's assume you are a freelancer with a client relationship of 40k * 20% fee for the first $500 earned from a client - $100 * 10% fee between…

Yeah, a lifetime 10% just for making the introduction is pure exploitation. On the buyer side we have been defrauded by Upwork providers and the company did absolutely nothing. Clear cut case of illegal activity and ToS violation, Upwork did nothing other than take our money. The FTC needs to beat this gang of criminals into the ground. They are a racket from top to bottom. Fraud shouldn't pay. Exploitation of worker…

Have you filed your concerns with the FTC? Have you contacted your congress person?

These seem like real concerns and failures of the market. I know Upwork has strong network effects, so this seems like a justified government intervention

Re: Upwork removing 5% commission bracket and moving everyone to 10% bracket

#66
Why are they still afloat? Last time I checked you couldn't find any work there:

- You could only find jobs if you were ready to underbid everyone else.

- The disproportion between the amount of work and job-seekers was abysmal.

- The platform did nothing to protect the workers from untruthful or exploitative clients (from anecdotal evidence).

- Upwork attracts clients who can't find contractors any other way, mostly because of unrealistic compensation expectation, unreasonable requirements, or poor reputation. This leads to the average job being an underwhelming experience (to put it in generous terms).

Moreover, being on Upwork is a sign of desperation. You fear the day any of your regular clients notices and asks why are you there or just starts to doubt you.

The proposition of the service is very attractive, but I'm not sure if it brings more value than harm in practice. It's very hard to find clients nowadays, but I'm still fighting the urge to restore my account there.

Re: Upwork removing 5% commission bracket and moving everyone to 10% bracket

#67

It is mind-boggling how this business with $600 million in annual revenues is still barely breaking even on a free cash flow basis.

Wow 600 million. I don’t understand where that money goes. Aren’t they just a website that connects clients with developers? Maybe they spend a lot on advertising or business development

Re: Upwork removing 5% commission bracket and moving everyone to 10% bracket

#68
post #41

When I started out as a freelancer / independent contractor, I made the conscious decision to not use any of these platforms, out of fear for my client base or finances being tied up and taken away from me due to a simple ToS violation; the fees never sat with me either. Admittedly, it took so much longer to get a consistent base of clients (1-2 years), but it feels like a fresh of breath air over having to rely on a…

> NET-14

Impressive!

Assuming that I’m correct and that that hyphen should be read as “minus”: How are you able to get your clients to pay in advance?

Assuming that I’m wrong, it’s still impressive.

Re: Upwork removing 5% commission bracket and moving everyone to 10% bracket

#69
post #33

Earlier quoted context omitted.

IMHO, most of the Upwork jobs are upwards of $1000 if it's a serious client. A large number of freelancers & agencies have built a stable clients on Upwork from years together. It will be a little revenue shock for them. Or eventually clients will pay more to cover the costs. Let's assume you are a freelancer with a client relationship of 40k * 20% fee for the first $500 earned from a client - $100 * 10% fee between…

True, your figures seem correct. I guess the problem is that I haven't had any luck finding any serious client, due to the competition and race-to-the-bottom. Some clients want quality, of course, but in this economy if it's a lottery to find a job in the real world, it's a lottery for those billing upwards of $100/h on Upwork. So what's left is small contracts where being a seasoned expert to deal with emergencies i…

In general, you're probably an at least somewhat known quantity for clients that aren't especially price-sensitive (so bill in the $100s/hr range) or you're a name in a hat along with a bunch of people who will just take anything they can get. The middle-ground seems like a difficult place to be.

Re: Upwork removing 5% commission bracket and moving everyone to 10% bracket

#70

Why are they still afloat? Last time I checked you couldn't find any work there: - You could only find jobs if you were ready to underbid everyone else. - The disproportion between the amount of work and job-seekers was abysmal. - The platform did nothing to protect the workers from untruthful or exploitative clients (from anecdotal evidence). - Upwork attracts clients who can't find contractors any other way, mostly…

The same reason Uber still has drivers. There are plenty of people in the market for gig work however low paying.
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