Understanding Upwork Fees

Freelancing with Upwork entails certain service fees that you should account for when setting your rates. In essence, the Upwork fee structure is designed to encourage ongoing relationships between freelancers and their clients.

Service Fee Structure

Upwork’s fee is based on your lifetime billings with each client (this includes both hourly and fixed-price contracts):

• 20% for the first $500 you bill your client across all contracts.
• 10% for total billings with your client between $500.01 and $10,000.
• 5% for total billings with your client that exceed $10,000.

These rates are important to consider when you establish your freelance rates and bid on projects.

Additional Fees

Besides the service fee, you may also encounter some additional fees, such as:

• Payment Withdrawal Fees: These depend on the payment method you opt for when withdrawing earnings from your Upwork account.
• Connects: These are virtual tokens you use to submit proposals for jobs. As of 2019, Connects are no longer free and are priced at $0.15 each.

I hope this helps in understanding Upwork’s fee structure. Feel free to reach out if you need any further clarification.