Understanding Upwork’s Fee Structure

Service Fees for Freelancers

Upwork charges a sliding fee based on the amount of work you’ve done with a specific client over your lifetime relationship with them including all contracts. This sliding-scale structure encourages freelancers to build lasting working relationships with clients.

Here’s how it’s designed:

• For the first $500 you bill a client, the service fee is 20%.
• For total billings with the same client that fall between $500.01 and $10,000, the service fee is 10%.
• Once your lifetime billings with a specific client top $10,000, then the service fee for that client goes down to 5%.

It’s important to understand that these levels are per client, not cumulative across all clients.

Transaction Fees

Upwork also pays transaction fees for each withdrawal. Freelancers can check the Fees and Schedule section on the Upwork’s site to get details about the fees associated with different withdrawal methods.

Managing Upwork Service Fees

Many successful freelancers include the Upwork Service Fee into their cost estimation while bidding for a project. This way, they ensure that they are covering the expenses while also making a reasonable profit. Good luck with your freelancing journey on Upwork!