How Does Upwork Get Paid?

Upwork, like many other freelance platforms, earns its revenue by charging fees on the payment transactions that occur between freelancers and their clients through the platform. There are primarily two types of fees that Upwork collects. Here’s a detailed explanation:

1. Service Fees from Freelancers

For every job a freelancer successfully secures and executes through Upwork, the platform deducts a percentage as service fees. The fee structure is as follows:

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

2. Payment Processing and Administration Fees

In addition to the service fees from freelancers, Upwork also charges a 2.75% payment processing and administration fee to clients. This fee is added to the payment the client makes to the freelancer.

However, Upwork offers an alternative to the 2.75% fee through a $25 monthly payment for unlimited payments.

Additional Fees

There could be additional fees for freelancers and clients for services such as currency conversion, wire transfer, and more.In conclusion, while the platform offers a massive opportunity for freelancers to find work, it’s advisable to calculate these costs into your rates while bidding for projects.