Upwork Removes 20% Commission Fee on Freelancing Orders – Solidifies 10% for All Projects (2024)

Upwork Removes 20% Commission Fee on Freelancing Orders – Solidifies 10% for All Projects (1)

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Alexandra Fasulo

ECOPRENEUR | FREELANCING COACH | AUTHOR | Want to get started freelancing? Book my coaching services on here🧚♂️! CLICK BELOW for freelancing guides, downloads⬇️

Published Mar 22, 2023

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This week, freelancing platform Upwork announced they are doing away with their sliding fee structure of 20%, 10%, and 5% on orders throughout the marketplace. They are moving all freelancers to the 10% fee rate and will honor the 5% fee rate for $10,000 or more projects locked in before the rollout date of May 3, 2023.

Upwork also stated they are implementing a client contract initiation fee of up to $4.95 on Upwork’s Marketplace and Project Catalog. This new charge will go into effect on April 26, 2023.

Finally, a Win for the Freelancers?

The move from 20% to 10% is a big deal in the world of freelancing, as Upwork and Fiverr have clung to the (somewhat unfair) 20% fee since their inception. Although the increase from 5% to 10% across the board will impact freelancers with larger client budgets on the marketplace, overall, the 10% fee structure will surely pull some of Fiverr’s best talent over to Upwork in search of a place that allows them to keep more of their hard-earned money.

The move to launch the $4.95 charge on the side of the client is also monumental – perhaps a sign that the market is shifting towards equal fees for both parties entering the freelancing project. Since more corporations will hire freelancers than ever before this year due to the recession, clients with bigger budgets, workforces, and work-demands are pouring onto freelancing marketplaces.

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Upwork’s strategic move to show the freelancer that they care puts them in an entirely separate class from their biggest competitor.

Will this put pressure on Fiverr to do the same for its freelancers?

It certainly makes Upwork more desirable in my eyes – what about yours?

Getting started freelancing for the first time in 2023? I have cheat sheets.

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You may find Hourspent to be a better alternative. It is not a freelance marketplace, and there is no endless bid on jobs.It is a workplace where teams collaborate and access top freelance talent for hire on demand.Hourspent algorithm searches and recommends talents to teams for each of their projects. They can choose to add them to the team or discuss with them before theydecide who to add.Very few post their project to the Hourspent Marketplace.There is no service fee on earnings.A few free credits are taken as a fee and not from earnings. You get free credit either by referring others or by becoming a High-flier.I’m Blessing Ijoma, one of the co-founders of Hourspent.

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Nathan Aponte

Freelance Journalist and B2B Copywriter, storytelling to help you triple your sales with persuasive copy

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Alexandra, do you outsource your ghostwriting?

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Ma. Grace Marqueses

Virtual Assistant/Lead Generation/LinkedIn Management

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Hey Guys! If you’ve been hit by fee increases recently, you can move your clients to Work for Impact (it’s a freelance platform) for a month of no fees and a lifetime 5% fee on those contracts. ----- BTW you can get the month of no fees and 5% lifetime fee even if you haven’t been affected by fee increases. It’s literally for any contract you move to the platform. https://www.workforimpact.com/better-freelancer-fees

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Jessica Walrack

Freelance Finance Writer and Journalist 👩🏻💻🧲 | Business and Personal Finance Blogs | On-page SEO is my second language | U.S. News and World, Investopedia, & More | Founder of All Things Freelance Writing

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The 20% only applied to the first $500 while the 5% was for all projects beyond $10k. For anyone who uses the platform to get clients and keep them long-term, this will end up costing more. 😬

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