Top freelance marketplace upwork ( formerly odesk and elance) is now going to  increase their project fee by 100%.. They are increase their project fee to 20 percent from 10 percent . I found many questions on quora regarding this issue. Freelancers are worried about their payments. As theya re already paying 10 percent fee , $1.99 per transaction charges on withdraw.

The reason behind these hoax is misunderstanding. We are misunderstanding the facts and reason behind such hefty increase in project fee , also we are ignoring the benefits of this decision. Here first  i am sharing how much it would impact your earnings.

What upwork says

One size fits all pricing is not ideal. Today you pay a flat fee on all projects, no matter how large or small. However, smaller contracts cost us more to serve than larger projects. The costs of acquiring clients, helping you connect with the right opportunities, and providing services like payment protection outweigh the fees currently charged for small projects. At the same time, larger, repeat projects incur fewer of these costs.

To support our customers better, we’re increasing our fee on smaller projects and decreasing it when your relationships cross important thresholds. This provides our customers an incentive to continue building long and substantial relationships on Upwork. ( Source :upwork)


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Suppose Client X gives you job for $100 , you will earn $90 from current rate $10 is project fee charged by upwork . From June you will get only $80 . $20 will be project fee charged by upwork for their  services.

If you have done over $10000 you already paid $ $1000 fee means only 10 percentage which you are paying right now. For payments after $10000 with same client , upwork will charge only 5 percent.

Consider if you are making $30000 from work from 2 clients . paying $7000 and $ 23000 respectively  via different projects assume  18 projects, Total project fee paid would be $700 for first client and $ 1500 for second client . Means overall you paid $ 2200 for making $30000. Right now in same scenario you have to pay $3000 as project fee.

So you saved $800 from new project fee. ( effective from June 2016)

So i totally agree with new pricing , You can start working. But remember there is too much demand of cheap and small works on upwork. Also many third party outsourced jobs which only pays  1/5th part of actual project fee.

Beware of such projects. Some other websites to follow

  1. Toptal : It requires to pass 5  stage screening process . It is hard to get in toptal , But toptal pays you huge high rate. Toptal has clients from airbnb like Multinational companies. Fluent english speaking is basic requirement apart form expertise.
  2.  Peopleperhour : Peopleperhour is a good website , But it offers only 15 bids per month for free membership . Free membership is a trail period of three months , In three months you have to complete atleast two projects with all positive rating , or your account would be limited.
  3. Fiverr : Fiverr still remains a good choice for all kinda freelancing jobs. It offers limited money but with regular clients you can make a good money per day .

I created a video in Hindi about  upwork new pricing .