Upwork Client Fee Calculator
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How Much does Upwork Charge to a Client?
As of 2024, Upwork charges clients a 5% Client Marketplace Fee on all payments made to freelancers for various types of contracts, including fixed-price and hourly jobs, Project Catalog projects, bonuses, and “Bring Your Own” contracts.
Additionally, there is a one-time contract initiation fee of up to $9.95 USD for each new Marketplace and Project Catalog contract. This fee is charged when the first payment to a freelancer is made.
Notably, there is a discounted Client Marketplace fee of 3% for eligible clients in the U.S. who pay with a checking account.
For example, a $100.00 USD payment would incur an additional $3.00 USD fee under this discounted rate.
For freelancers, Upwork’s fee structure has been simplified to a flat rate of 10% on all new contracts, effective from May 3rd, 2023.
This fee applies to both individual freelancers and agencies working with non-enterprise clients.
However, there are some exceptions to this rule, such as for legacy contracts, freelancers part of the Upwork Payroll service, and those working on Any Hire or Direct Contracts.
How Upwork works for Clients
Using Upwork as a client involves a series of steps to effectively find and hire freelance talent for your projects.
Here’s a brief overview of how it works:
- Setting Up Your Client Profile: First, you need to create a client profile on Upwork. This includes adding your payment method and crafting a detailed job post that outlines the scope, requirements, and expectations of your project.
- Posting a Job: When posting a job, you’ll select the required skills, set the experience level you’re looking for in a freelancer, and decide whether the job should be public or invite-only. You will also specify the budget, which can be a fixed price or an hourly rate.
- Reviewing Proposals: After posting the job, you’ll receive proposals from freelancers. Upwork may recommend some freelancers as the “best match” based on your job requirements. You should review these proposals, looking at the freelancers’ skills, experience, and previous work.
- Interviewing and Selecting Freelancers: You can communicate with candidates through Upwork’s messaging system, conduct interviews, and finally select the most suitable freelancer for your project.
- Managing the Project: Once you’ve hired a freelancer, you can manage the project through Upwork’s platform. This includes setting milestones, tracking progress, and communicating with the freelancer.
- Payment and Feedback: After the work is completed to your satisfaction, you release the payment through Upwork. It’s also important to leave feedback for the freelancer, as this helps them build their reputation on the platform.
- Ongoing Relationships: Building strong relationships with freelancers can be beneficial for future projects. Upwork makes it easy to rehire freelancers you’ve successfully worked with before.
- Navigating Challenges: If disputes arise, Upwork offers a resolution process to assist both parties. It’s important to maintain clear communication and manage expectations throughout the project to minimize potential issues.
This process aims to streamline the hiring and management of freelance talent, making it easier for clients to find the right professionals for their projects. For more detailed guidance, Upwork offers a learning path and resources for clients to get the most out of the platform.
