Upwork New Fees Policy + 5 Alternatives

Upwork has announced they will raise fees that freelancers pay to find work on their website. Up to now, freelancers paid a flat 10% fee on all jobs worked. Meaning if a freelancer charged a $100 for a job they would keep $90 and Upwork would get $10. But now Upwork will charge freelancers based on a sliding scale.  Here’s how it works:

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  • For the first $500 a freelancer bills a client across all contracts, the fee will rise to 20%.
  • For jobs worth between $500.01 and $10,000, a 10% fee will apply.
  • For projects that total $10,000 or more, the fee will be 5%.
  • In addition, Upwork will pass along a 2.75% payment processing cost to the freelancers’ customers, reflecting what many credit card processors charge.

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Value of Contract Freelancer Payout Before Freelancer Payout NOW
$100 $90 $77.90
$1,000 $900 $826.63
$10,000 $9,000 $8,921.12

New pricing model hurts freelancers and employers.

While some freelancers (those who bill clients for $10,000) will benefit from the new pricing model, the overwhelming majority of Upworkers stand to lose a significant portion of their income which will undoubtedly result in rate hikes for employers.

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Alternatives to upwork

  1. twago.com
  2. studio.envato.com
  3. guru.com
  4. Freelancer.com
  5. toptal.com



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