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:
- 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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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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