The Hidden Costs of Hiring on Upwork: What Clients Really Pay
article about clients' fees you all asked me about!
Let's start with the funny calculation. Let's say the project is 100$
As a client, I will pay even before the start extra $21,94 (in my screen it was direct so 9,95 economy)
and 100$
====>
100$ comes to the freelancer and he pays 10%+vat=12$
And I am not talking about bank and withdrawal fees now.
So in the end client pays 121,94 and the freelancer receives 88$
Around 28% is taken.
![](https://www.levit.tips/content/images/2024/07/telegram-cloud-photo-size-2-5244951965694288731-y.jpg)
So what do clients pay?
Standard Job Post Fee
For a fee of up to $9.99 USD, clients can post a job and find a skilled professional to help. They are able to view proposals from interested freelancers and interview candidates before moving forward with a contract. Sometimes it is still free. You can have a look at the current situation here.
More invites
For $29.99 USD, clients can feature the job post to help reach more freelancers and agencies in less time and attract top talent. (invite 70 per day)
Contract initiation fee
Contract initiation fee from 4,95 to 14,95. Depends on the project size/level. 14,95 applies from June, 19th 2024
Marketplace fee
5% of all payments. That's always like that. Some time ago it was 3%.
VAT taxes
Yes, clients also pay that 20% tax for services as freelancers do. About freelancers you can read my article here.
You can check VAT for clients for each country here.
What kind of contracts they pay for?
- Traditional hourly and fixed-price contracts payments, including bonuses, BYO, expense payouts, and payroll on marketplace contracts.
- Project Catalog contracts
One more tricky and strange thing they may choose as an option is:
Business Plus Membership for clients
They pay a 10% Business Plus Fee on all payments that you make to freelancers for fixed-price and hourly projects, Project Catalog projects, and bonuses. Depending on how you use Upwork, you may be subject to additional fees, including Featured Job Post Fee, Conversion Fee
Here’s what they won’t pay: No subscription fees, No annual commitment, No Contract Initiation Fees. Oh wow, such a blessing for 10%😄
Hope, you see now, that clients are also not so much happy with Upwork's new policies.
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If you are not lazy, please just like this YouTube video with my podcast:) https://www.youtube.com/watch?v=9_lXbtdd4SA&t=524sYouTube
Hugs,
Tamara