Understanding Upwork Fees for Freelancers

Basics of Upwork Freelancer Fees

Upwork applies a sliding fee structure for its freelancers. Here’s how it works:

• For the first $500 you bill your client across all contracts, you incur a 20% fee.
• For total billings with the same client that exceed $500 and are less than $10,000, you will be charged a 10% fee.
• For lifetime billings with the same client that are $10,000 or more, a 5% fee is applied.

A More In-Depth Look at the Fee Structure

This fee structure is designed to reward long-term relationships. Here’s a deeper breakdown of the fees:

• The 20% fee: This is the standard fee that is charged initially. You will be charged this fee until the total billings with your client exceed $500.
• The 10% fee: Once you’ve earned more than $500 with a client, the fee decreases. This smaller fee applies until your total billings with the client reach $10,000.
• The 5% fee: If you’re lucky enough to establish loyalty with a client (or multiple clients) and exceed billings of $10,000, then your fee automatically reduces to just 5%.

Remember, these fees are not necessarily permanent. If your total billings with a client reach a new threshold, the lower fee will automatically apply to all future works.

Conclusion

While the fees can seem steep, especially at first, it’s worth remembering that Upwork provides a platform for you to connect with clients you might not have access to otherwise. Over time the fees decrease, and the more you earn with a client, the less you pay in fees.