The New UpWork Pricing Is Having Negative Effect On The Freelance Market
The raising of the UpWork fees up to 20% Freelancers and Employers all over the world are quickly diving in rage. Complaints about the new pricing of the freelance market giant UpWork are currently flooding the web. Many freelancers all over the world are shaken by the news UpWork will eat up their earnings. The most common question now is what will freelancers and employers do to keep the stability of the market.
One thing is certain – many will raise their own rates in order to keep their income. However is it the time to raise your rates now that UpWork has increased their fees? For those who wish to continue paying the insane fees of UpWork, this is the only possible way they could earn something. However, not every client will keep up with the increase of taxes and rates at the same time. After all, people hire freelancers for it is a low-cost solution.
The Excuse of UpWork is also not backed up with any evidence, only naked words. The management of the platform has not given its users anything to support their words, just a fact – We are raising our fees, deal with it.
With the new fee structure of UpWork, not only freelancers, but employers will have to pay insane percentages of their budget for simply using the services of a site, who as we all know has a lot of problems, crashes often and so on. UpWork claims it will be more effective for the expensive contracts and the continuity of the work connections, yet in most circles a project rarely goes beyond the $500, not to mention $10,000 .
Furthermore, employers will have to gift 2.75% to UpWork for every payment, and the freelancers will have to pay extra fees for transferring the earnings to their bank accounts. The more freelancers you have hired the more you pay in taxes. Usually, promotions work the other way around. What kind of a business owner would be happy about the increased taxes of UpWork? Now UpWork instead of encouraging employers to hire freelancers from their website, as they think they do, they actually repel them.
The only advantage now stays with those freelancers and employers who have worked together for a long time and trust their work relationship. The most common alternative is the usage of a time tracking software, so that freelancers can record their time and get paid on their own terms, instead of giving up about 25% of their earnings to UpWork.
Surely, with all these pricing changes, many employers will seize to use the services in the UpWork platform. The new “lower” commission for the usage of the website will repel other employers for using it and will cause the downfall of UpWork. As many freelancers will migrate to either other websites, or start using time and attendance tracking software to keep their working hours, and those who haven’t had the luck to find a job there just yet, will most likely give up their search.
Even at this moment a small search through the web will reveal the opinion of freelancers and employers about the UpWork fees’ increase coming in the beginning of June. The talents hunt on UpWork is about to change, and the entire freelance market will shift into other directions.