Cost of Hiring a Freelancer Away from Upwork

Introduction

While this is a common question among those new to Upwork, it’s important to first clarify Upwork discourages freelancers and clients from conducting business outside of its platform. The platform’s policies are established to ensure a safe, fair, and trustworthy work environment. Violating these policies can lead to consequences.

Why You Shouldn’t Circumvent the Platform

Upwork provides a secure framework for both freelancers and clients, including secure payment avenues, order tracking, conflict resolution support, and privacy protection. Moreover, there’s a trust and credibility associated with Upwork freelancers due to the vetting process the platform employs.

So, circumventing this system could potentially expose you to scams, untrustworthy freelancers/clients, and legal issues. Penalties from Upwork can range from temporary to permanent account suspension.

Upwork’s Fee Structure

Upwork applies a sliding fee structure based on the total amount you’ve paid to each freelancer. Here’s how it breaks down:

• 20% for the first $500 billed with the freelancer
• 10% for lifetime billings with the freelancer between $500.01 and $10,000
• 5% for lifetime billings with the freelancer that exceed $10,000

This fee is paid by freelancers and includes the cost of using the platform and its associated services.

Note: Prices may often seem higher on Upwork compared to direct hire as freelancers typically factor the Upwork fee into their rates. Therefore, it may appear that hiring outside Upwork is less expensive, but certainly not risk-free.

Taking the Relationship Off Upwork

To take a relationship off of the platform, you’ll need to pay the Opt-Out Fee to Upwork. This allows you to work directly with a freelancer and not pay additional project fees to Upwork. The opt-out fee is steep; it’s the higher of $3,500 or 25% of the estimated annual earnings for long-term relationships.

Always be sure to thoroughly understand Upwork’s rules and guidelines to ensure a favourable outcome for both you and your freelancer.