**Project Shamrock (Pricing Refresh)

Articles in this section

De-escalation Attempt Pre-launch (macro: Freelancer Fee Change De-escalation Attempt Pre-launch)

Thank you for your feedback.

While we understand that it does impact you as one of our most dedicated freelancers, we hope the value this change brings to the Upwork marketplace opportunities overall is helpful.

The new fee structure will simplify some processes:

Easier contract pricing
Simplified fee calculations
Calculating year-end revenue and expenses may be easier to do once all your contracts have the same freelancer service fee percentage throughout the contract

The simpler freelancer service fee structure better supports a platform that provides you more opportunities to grow your business and work the way you want to work. Lower fees at the beginning of every contract will also reduce the cost of starting new relationships and may make it easier for you to take a chance on a new client.

Many freelancers will see a reduced fee burden with this change, especially those who have contracts that are smaller in size, such as logo designers for small businesses. For those who want longer-term relationships with clients, we continue to develop and improve ways for you and your clients to work together.

Your feedback is very important in our continued growth. If you’d like to share additional feedback or join the discussion in our Community, we’d love to hear from you here.

Thank you for reaching out to Upwork.

FL fee discount - post-launch (macro: Freelancer Fee Change - FL fee discount Post-Launch)

We appreciate your feedback.

Being a valued member of the Upwork community, we’re happy to provide you with a one-time courtesy, we have updated your contract rate to [ADD RATE] on the following contracts:

[CONTRACT NAMES]

We have extended the legacy fee through the end of 2023. Please note, this exception applies only to the above mentioned contracts. If new contracts are created, they will include the 10% rate.

We hope this helps to give you some extra time in adjusting to these new fee rates and to adjusting your own rates, work strategies, or contract selections as needed.

If there’s anything else we can help with, please let us know. Thank you again for reaching out to Upwork.

FL fee discount - post-launch - Community Recommendation (macro: Freelancer Fee Change Community Recommendation - FL fee discount Post-Launch)

Thank you for reaching out to the CS community. We appreciate your feedback.

Being a valued member of the Upwork community, we’re happy to provide you with a one-time courtesy, we have updated your contract rate to [ADD RATE] on the following contracts:

[CONTRACT NAMES]

We have extended the legacy fee through the end of 2023. Please note, this exception applies only to the above mentioned contracts. If new contracts are created, they will include the 10% rate.

We hope this helps to give you some extra time in adjusting to these new fee rates and to adjusting your own rates, work strategies, or contract selections as needed.

If there’s anything else we can help with, please let us know. Thank you again for reaching out to Upwork.

Client Escalation Path

For any client threatening to leave Upwork, please respond as per the appropriate macro but also flag ticket to Charlene.

These escalation paths are specific for clients based on frustrations outside of the scope of the FAQs.

We’re hoping that most of these instances will be handled by our chatbot as we’ve built a special flow to help de-escalate these situations automatically. In the event that the chatbot is unable to de-escalate, these are the cases that will come to CS for handling.

Process CS Handling:

Important Reminder -

Offering these discounts will no longer be available by June 26.

For clients that may have heard about differentiating contract initiation fee charges i.e. they are charged $4.95, but heard a friend is charged $2.95 -

For tickets, use this macro: Contract Initiation Fee - Cost Variations
For calls & chats, verbiage in the macro can be viewed below

I can definitely understand how frustrating this must be for you. Please allow me to provide you with additional details about this.

Contract initiation fees may vary, up to $4.95, as we collect data and feedback. Once complete, we will update Help and Community and directly notify all impacted customers in advance of any pricing updates.

In order to continue to provide a top-notch experience to customers like you, we need to make some changes to our pricing structure. We understand that changes to pricing can be difficult, but as a leader in the industry, we want to assure you that we are committed to providing the best possible value to our customers. We believe that these changes are necessary to ensure that we can continue to do so for years to come.

We have different types of contracts, services, and features that are designed to meet all of your needs. These include payment protection, dispute resolution, and access to a talent pool, among others. We highly recommend that you visit our Help Center for more details.

Overall, Upwork provides several benefits to help you achieve your business goals. By choosing the model that best suits your needs, you can improve your business's efficiency, security, and success.

If customer is still not satisfied, please follow CS Agent Handling below to determine if eligible for a courtesy credit.

CS Agent Handling

Eligibility Criteria:

a. Timely request: Customers must request a credit within 14 days of the transaction

b. Good standing: The customer should be in good standing with the company, meaning they have not violated any terms of service or caused any issues in the past.

i. Account has no active suspensions

ii. Account has no past flags or suspensions for:

1. Circumvention

2. Collusion

c. Account has had payment activity within the past 12 months

Customer exemption treatment

1. Lower-value clients: [defined as CL with < $10,000 total spent (12 months)] For lower-value clients, we can offer a one-time credit of:

a. Credit the difference of $2 for each contract up to 2 contracts

b. Credit for 1 Featured Job Post ($29.99 value)

2. Higher-value clients: [defined as CL with > $10,000 total spent (12 months)] For higher-value clients, we can offer:

a. Credit the difference of $2 for each contract up to 5 contracts

b. Credit for up to 2 Featured Job Post ($29.99 per post)

Request for credit - If determined the CL is eligible, per “Eligibility Criteria” above + determined what type of credit needed, per “Customer exemption treatment” above, please follow the process outlined here: **Client Satisfaction Credits

For clients that change contract type (FL to hourly, or vice versa) and are charged CIF again -

For tickets, use this macro: Contract Initiation Fee - Contract Type Change
For calls & chats, verbiage in the macro can be viewed below

I can definitely understand how frustrating this must be for you. Please allow me to provide you with additional details about this.

The fee is per contract. If you start a new contract, you will pay the contract initiation fee even if you have worked with the freelancer before.

If customer is still not satisfied, please follow CS Agent Handling to determine if eligible for a courtesy credit.

CS Agent Handling

Eligibility Criteria:

Timely request: Customers must request a credit within 14 days of the transaction.
Good standing: The customer should be in good standing with the company, meaning they have not violated any terms of service or caused any issues in the past.
1. Account has no active suspensions
2. Account has no past flags or suspensions for:
  1. Circumvention
  2. Collusion
Account has had payment activity within the past 12 months

Customer exemption treatment

Lower-value clients: [defined as CL with < $10,000 total spent (12 months)] For lower-value clients, we can offer:
1. Credit for contract fee up to $4.95 for each contract up to 2 contracts
2. Credit for 1 Featured Job Post ($29.99 value)

Higher-value clients: [defined as CL with > $10,000 total spent (12 months)] For higher-value clients, we can offer:
1. Credit for contract fee up to $4.95 for each contract up to 5 contracts
2. Credit for up to 2 Featured Job Post ($29.99 per post)

Note: When making a decision on what type of exemption treatment to apply, it's also important to take into consideration factors such as whether the customer is a HiPo HV client, as well as the number of active contracts, and weekly spendings. Please always consult your TL for unique cases or situations.

For clients frustrated that they don’t receive a refund of CIF after receiving a full refund from their freelancer -

For tickets, use this macro: Contract Initiation Fee - Full FL Refund
For calls & chats, verbiage in the macro can be viewed below

While the once-per-contract initiation fee isn’t eligible for a refund after you have made a payment to a freelancer (even if the contract payment to the freelancer is refunded), we’re happy to provide you with a one-time courtesy and refund the fee for this contract.

Your feedback is very important in our continued growth, so we’ll be sending your comments to our team. If you have anything else we can assist you with, please let us know.

CS Agent Handling

Eligibility Criteria:

Timely Request: Customer must request a credit within 14 days of the transaction.
Good standing: The customer should be in good standing with the company, meaning they have not violated any terms of service or caused any issues in the past.

a. Account has no active suspensions

b. Account has no past flags or suspensions for:

i. Circumvention

ii. Collusion

c. Account has had payment activity within the past 12 months

d. Review contract to ensure a full refund occurred

Treatment to all eligible customers - One-time credit for contract fee up to $4.95

Request for credit - If determined the CL is eligible, per “Eligibility Criteria” above, please follow the process outlined here: **Client Satisfaction Credits

For clients that have “weekly billing” accidentally set up where CS guidance is to close out the contract and start a new one -

For tickets, use this macro: Contract Initiation Fee - Weekly Billing
For calls & chats, verbiage in the macro can be viewed below

To resolve the issue, it will be necessary for you to end the contract that was not set up correctly and rehire the freelancer without the weekly payment option.

The contract initiation fees are not refundable once payment has been made. However, we would like to extend a one-time courtesy to you and provide a refund for the fee in this particular situation.

Eligibility Criteria

Timely Request: Customer must request a credit within 14 days of the transaction.
Good standing: The customer should be in good standing with the company, meaning they have not violated any terms of service or caused any issues in the past.

a. Account has no active suspensions

b. Account has no past flags or suspensions for:

i. Circumvention

ii. Collusion

Treatment to all eligible customers - One-time credit for contract fee up to $4.95

Request for credit - If determined the CL is eligible, per “Eligibility Criteria” above, please follow the process outlined here: **Client Satisfaction Credits

For clients frustrated that they’ll be charged a contract initiation fee per contract vs. per freelancer -

For tickets, use this macro: Contract Initiation Fee - Per Contract vs. Per Freelancer
For calls & chats, verbiage in the macro can be viewed below

I can definitely understand how frustrating this must be for you. Please allow me to provide you with additional details about this.

The fee is per contract. If you start a new contract, you will pay the contract initiation fee even if you have worked with the freelancer before.

With that being said, your feedback is very important in our continued growth, so we’ll be sending your comments to our team. If you have anything else we can assist you with, please let us know.

If customer is still not satisfied, please follow CS Agent Handling to determine if eligible for a courtesy credit.

CS Agent Handling

Eligibility Criteria:

a. Timely request: Customers must request a credit within 14 days of the transaction.

b. Good standing: The customer should be in good standing with the company, meaning they have not violated any terms of service or caused any issues in the past.

i. Account has no active suspensions

ii. Account has no past flags or suspensions for:

1. Circumvention

2. Collusion

c. Account has had payment activity within the past 12 months

Customer exemption treatment

1. Lower-value clients: [defined as CL with < $10,000 total spent (12 months)] For lower-value clients, we can offer:

a. Credit for contract fee up to $4.95 for each contract up to 2 contracts

b. Credit for 1 Featured Job Post ($29.99 value)

2. Higher-value clients: [defined as CL with > $10,000 total spent (12 months)] For higher-value clients, we can offer:

a. Credit for contract fee up to $4.95 for each contract up to 5 contracts

b. Credit for up to 2 Featured Job Post ($29.99 per post)

Apply Freelancer Discount [SA / Lead only / Enterprise]

Note - the updated service fee will not reflect in OBO on the Assignments page. As long as the change takes place in UBO, that means it did work.

Freelancer Service Fee Contract-level Override -

1. Ensure this contract is eligible for discount by confirming:

a. De-escalation was attempted (unless this is a Community request)

b. Contract is active

c. Either Shamrock discount CSS note is in account and/or contract is an EDC contract

d. Request received before July 3, 2023

2. If eligible per step 1, go to Contractor tab in OBO and click the UBO assignment number

3. A new UBO tab will open > find the Pricing and fees tab > click ‘Change Fee’

4. Select ‘HV/Sales Managed Discount Approved’ from Approval type

5. Select the right percentage from Change contract fee; 5% for those with the Shamrock Discount Rate Eligible CSS note and 8.75% for those with an EDC contract

6. Add the following CSS note, add in the ZD ticket URL, and click “Save”:

[ACTION] Applied [insert %] discount

[DEPARTMENT] CS

[CAUSE] Escalated due to FL service fee changes; eligible for discount through 2023

7. Once processed, the page will update as shown below; communicate with CS agent that this is all set.

Relationship Overrides -

Important - this should be used sparingly; typically only in a BYO situation

1. Go to Contractor tab in OBO and click the UBO assignment number

2. Click “View relationship” on the top-right > a new tab with an OBO page will open

3. Scroll to the bottom of the page and be mindful of the following error message. If you see this, follow the immediate bullets within this step. If you don’t see this, go straight to step 4.

a. This error message means this is the “sub-level org” aka a Team within the main client account. The override must be done on the “top-level org” aka the main client account.

b. Scroll up to the Company section > click the Team ID link

c. A new OBO tab will open doing a search for the client account > find the bold client account name that resides above the Team ID that was just clicked in the previous step > copy the 2nd number showcased (in the circle in the screenshot)

d. Go back to the Relationships tab and replace the “Client side” number with the new number copied > click “Search” > this is now the “top-level org” relationship, continue to step 4

4. Click “Override Service Fee” on the bottom left > choose the proper service fee for all contracts (current and future contracts) should have in this client & freelancer relationship + detailed CSS notes > click “Override Service Fee”

Important -

The relationship override will be showcased in UBO under the Talent Fees section, like here.
If any individual contracts were overridden, this relationship override will not impact those specific contracts and a separate contract-level override may be needed for those.

Email Forward Auto-responders / “I didn’t receive an email” mentions

This drop-down is to help bring awareness to what happens if a customer forwards their Shamrock emails to us. The verbiage will also be helpful in the specific situations where a customer references they haven’t received an email and are looking for more info on these changes.

How the auto-responder works - If a customer forwards Upwork Support their email rather than visiting Community or our chatbot, we’ll automatically email them one of the following responders (depending on if they forwarded the FL vs. CL email to us).

How to handle mentions of not receiving an email and looking for more info on the changes -

1. Choose the appropriate auto-responder below

2. Adjust the top paragraph to address the “no email” mention [if before March 23] e.g.

We're sorry to hear you're just learning about the pricing changes. To communicate that the price structure changes were coming, in March we sent email notifications, posted banners about the change on the Upwork platform, and announced it in the Upwork Community. We appreciate you letting us know so we can forward on your feedback.

3. Be sure to address their specific questions, as well, if the below messaging doesn’t already address their concerns

Email Forward FL-facing autoresponder -

Hi {{ticket.requester.first_name}},

Thanks so much for contacting Upwork regarding our upcoming pricing changes. This simplified flat fee structure of 10% has gone into effect starting on May 3, 2023, and is designed to drive more demand for your services by dramatically lowering the fee on all new relationships.

We are excited for this change and are committed to finding ways to help maximize your earning potential! We’re sure you have questions, so check out the most common FAQ’s below:

Will my current contracts have a change in freelancer service fees when the freelancer service fees change to 10%, or will they continue at their current rate?

If your current contract has a 5% freelancer service fee, you will continue to have that rate through the end of 2023. If your contract has a 20% freelancer service fee, you will switch to the 10% fee on your next invoice.

Will the new freelancer services fee rate be retroactive to the beginning of current contracts? Will freelancers who paid 20% on the first $500 get a refund?

No, the new rate will be effective on future earnings for all current and future contracts. Freelancers who paid 20% freelancer service fees at the beginning of an existing contract will not get a refund.

What if I create a new contract with a client I currently have a 5% rate with?

If you start a new contract, your freelancer service fee will be 10%. The 10% fee applies to all new contracts, even if you have a past or existing contract with the client.

Will agencies be impacted by these changes?

Yes, the 10% freelancer service fee will be for all future earnings on contracts, including agency contracts. For agency contracts that are already paying a 5% freelancer service fee, the 5% rate will continue through the end of 2023.

Will these changes impact my contracts with Enterprise clients, or my Upwork Payroll, Any Hire contracts, or Talent Scout contracts?

Upwork Payroll, Any Hire, and Talent Scout contracts will not be impacted by these fee changes.

If you have an Enterprise contract that has a 5% freelancer service fee, your fee will move to 10% at the end of 2023. If you have a 5% Marketplace contract that switches to a new Enterprise contract during 2023, we will honor the 5% freelancer service fee for the new Enterprise contract through the end of 2023.

As a valued member of our community, we want to hear from you! So we encourage you to visit our community to learn more about these changes and to share your feedback with our team, and fellow community members!

Should you need support for your account, don’t hesitate to reply to this message and we’ll be happy to help. Thanks again for reaching out, and for choosing Upwork!

Best,

The Upwork Team

Email Forward CL-facing autoresponder -

Hi {{ticket.requester.first_name}},

Thanks so much for contacting Upwork regarding our upcoming pricing changes. This new contract initiation fee has gone into effect starting on April 26, 2023, and will apply to contracts created through Upwork’s Marketplace and Project Catalog. This once-per-contract fee will enable us to continue evolving our platform with products and partnerships that support your business within the new world of work.

With this upcoming change, we’re sure you have many questions. So below, we’ve listed answers to some of our frequently asked questions:

Will you charge the contract initiation fee when the freelancer accepts the contract?

No, we realize that not all contracts have work started on them, or funds paid out. We will charge this fee when you make the first payment to a freelancer on the contract, including releasing milestones, making hourly payments, bonuses or any other payments to freelancers.

Do you charge the contract initiation fee again if I add new milestones to an existing contract?

No, if you are continuing to work on an existing contract and just adding milestones, you will not have to pay the contract initiation fee again.

If a freelancer refunds my contract payment, will you also refund my contract initiation fee?

No, the once-per-contract initiation fee will not be refunded after you have made a payment to a freelancer, even if the freelancer issues you a refund.

Will I pay the contract initiation fee if I hire an agency?

Yes, you will pay the contract initiation fee for the start of a new contract with an agency.

If I hire multiple freelancers for one job through an agency or through a team proposal, will I have to pay the one-time contract initiation fee on each freelancer’s contract?

Yes, each new contract with a different freelancer will have a once-per-contract initiation fee, even if all the freelancers work for the same agency. If you hire 3 freelancers to work on a job, you’ll pay the fee 3 times.

If I rehire a freelancer I’ve worked with before, will you charge the contract initiation fee?

Yes, the fee is per contract. If you start a new contract, you will pay the contract initiation fee even if you have worked with the freelancer before.

As a valued member of our community, we are committed to your success and want to hear from you! So we encourage you to visit our community to learn more about these changes and to share your feedback with our team, and fellow community members!

Should you need support for your account, don’t hesitate to reply to this message and we’ll be happy to help. Thanks again for reaching out, and for choosing Upwork!

Best,

The Upwork Team

FAQs

External FAQs (also found in Help Articles)

Client-facing FAQs

What is the contract initiation fee?

The contract initiation fee is a charge of up to $4.95 for clients on new contracts on Upwork’s Marketplace and Project Catalog. We will charge this fee once per contract, when you make the first payment to a freelancer.

When does the contract initiation fee go into effect?

We will begin charging the fee for all new contracts created on or after April 26, 2023, Pacific Time. This is a one-per-contract fee that we will charge with each new contract. It will not be retroactive for existing contracts.

Once the contract initiation fee goes into effect, you will see it as a separate line item during checkout when you make an offer or purchase a project.

Will the contract initiation fee be charged on active contracts created before April 26, 2023?

No, the contract initiation fee will only apply to contracts created on or after April 26, 2023, Pacific Time.

Why are you charging me a contract initiation fee - what is this fee on my transaction history?

In April 2023, we began charging a once-per-contract initiation fee for the start of each new contract as part of a change in our overall fee structure.

Will you charge the contract initiation fee when the freelancer accepts the contract?

No, we realize that not all contracts have work started on them, or funds paid out. For hourly contracts, we charge the fee when you make the first payment to a freelancer, including hourly payments, bonuses, or any other payments to your freelancer. For fixed-price contracts, you will pay this fee when you fund the contract or first milestone.

On a fixed-price contract, do I have to pay the contract initiation fee when I fund the contract or first milestone?

Yes, you will pay the once-per-contract initiation fee at the same time that you fund the first escrow deposit for fixed-price contracts. However, if the contract is canceled and no payment is released to the freelancer, we will return the contract initiation fee.

Do I have to pay the contract initiation fee when I purchase a project or schedule a consultation? What happens if the project or consultation is canceled?

Yes, you will pay the fee when you purchase a project or consultation.. However, if the project or consultation is canceled with no payment released to the freelancer, we will return the contract initiation fee to you as well as your escrow deposit.

Do you charge the contract initiation fee again if I add new milestones to an existing contract?

No, if you are continuing to work on an existing contract and just adding milestones, you will not have to pay the contract initiation fee again.

Does the fee amount vary by contract value, and how will I know how much my fee will be?

No, the contract initiation fee is a flat fee of up to $4.95. You’ll be able to see the exact amount for your contract when you check out. The contract initiation fee will show as a separate line item.

If a freelancer refunds my contract payment, will you also refund my contract initiation fee?

No, the once-per-contract initiation fee will not be refunded after you have made a payment to a freelancer, even if the freelancer issues you a refund.

If I dispute a contract and win my dispute, will you refund my contract initiation fee?

No, the once-per-contract initiation fee isn’t eligible for a refund after you have made a payment to a freelancer, even if the contract payment to the freelancer is refunded due to a dispute.

Where will I see the contract initiation fee in my invoices and reports? Will it be included in the Weekly Billing Summary?

You will have a separate invoice for the contract initiation fee, which includes the fee and any applicable taxes on the fee. You’ll also see the fee and any applicable taxes as line items on your Transaction History Report. It will not display on your Weekly Billing Summary, which reflects payments to freelancers.

Will I pay the contract initiation fee if I hire an agency?

Yes, you will pay the contract initiation fee for the start of a new contract with an agency.

If I hire multiple freelancers for one job through an agency or through a team proposal, will I have to pay the one-time contract initiation fee on each freelancer’s contract?

If I rehire a freelancer I’ve worked with before, will you charge the contract initiation fee?

Yes, the fee is per contract. If you start a new contract, you will pay the contract initiation fee even if you have worked with the freelancer before.

If I close a contract and create a new one to switch from fixed-rate to hourly, or vice-versa, with the same freelancer, will I pay another contract initiation fee?

That depends on whether you have already activated the contract with a payment to the freelancer. Here’s how it works for hourly and fixed-price contracts:

For contracts that started as hourly:
- If the freelancer hasn’t logged any hours yet, you can cancel without a contract initiation fee on the initial contract, since we don’t charge the fee until you make your first hourly payment.
- If the freelancer has already logged hours, you will pay the contract initiation fee on both contracts. You will need to pay the freelancer for the hours they already logged, and we will charge this fee. Then you will pay another contract initiation fee when you fund the first milestone of the fixed-price contract.
For contracts that started as fixed-price:
- If you have already funded a milestone or purchased a project but have not yet released a payment to the freelancer, you can get a full refund from escrow as long as your freelancer agrees.
- If you’ve already released at least one payment to the freelancer, you will have to pay a contract initiation fee on both contracts.

Are you charging the contract initiation fee on Enterprise, Upwork Payroll, BYO, Any Hire, Direct Contracts, or Talent Scout contracts?

No, those services have their own fee structures designed specifically for the features they offer. We are only charging this contract initiation fee on Upwork Marketplace and Project Catalog contracts.

Will the client marketplace fee apply to the contract initiation fee?

No, we will not apply an additional marketplace fee to the contract initiation fee. The client marketplace fee only applies to the contract value for the amount you pay the freelancer.

Freelancer-facing FAQs

What are the 2023 pricing changes?

You will pay a fixed rate of 10% for freelancer service fees on future contract earnings per contract and will no longer have to pay 20% on new contracts as of May 3. Freelancers who are currently paying a 5% freelancer service fee on a contract will continue to pay 5% on that contract through the end of 2023
Clients will pay a one-time contract initiation fee of up to $4.95 at the start of each new contract beginning April 26, 2023

When do the 2023 pricing changes go into effect?

We plan to start making the changes effective on May 3, 2023, Pacific Time for contracts that invoice on or after that date. However, if you’re currently paying a 5% freelancer service fee on a specific contract, the 5% rate will continue through the end of 2023.

Once the fee changes go into effect, you’ll see the 10% freelancer service fee when you create a proposal. You’ll also see it when you enter your hourly rate for the first time or edit your rate on your profile.

Will my current contracts have a change in freelancer service fees when the freelancer service fees change to 10%, or will they continue at their current rate?

Will the new freelancer services fee rate be retroactive to the beginning of current contracts? Will freelancers who paid 20% on the first $500 get a refund?

No, the new rate will be effective on future earnings for all current and future contracts starting May 3. Freelancers who paid 20% freelancer service fees at the beginning of an existing contract will not get a refund.

What if I create a new contract with a client I currently have a 5% rate with?

If you start a new contract on or after May 3, your freelancer service fee will be 10%. The 10% fee applies to all new contracts, even if you have a past or existing contract with the client.

Will agencies be impacted by these changes?

Yes, the 10% freelancer service fee will be for all future earnings on contracts, including agency contracts, starting May 3. For agency contracts that are already paying a 5% freelancer service fee, the 5% rate will continue through the end of 2023.

Will featured jobs get a discounted rate?

No, the rate for featured jobs will be a 10% freelancer service fee.

Will these changes impact my contracts with Enterprise clients, or my Upwork Payroll, Any Hire contracts, or Talent Scout contracts?

Upwork Payroll, Any Hire, and Talent Scout contracts will not be impacted by these fee changes.

Will my Bring Your Own (BYO) contracts be impacted by the freelancer service fee price changes?

If your BYO contract does not currently require any freelancer service fees, you will not see a change. We are not adding freelancer service fees to contracts that do not currently include them.

If you are paying a freelancer service fee on your BYO contract, the new 10% freelancer service fee will apply to your contract starting May 3. If your contract is already at a 5% freelancer service fee rate, you will continue at the 5% rate through the end of 2023.

Will this pricing change impact my freelancer service fees for Direct Contracts?

No, freelancers who work on Direct Contracts fees will continue to pay a processing fee of 3.4% and no additional freelancer service fees. Your clients will continue to pay their usual processing fee, and we are not charging them a contract initiation fee.

Is the price of Connects changing?
No, the price of Connects is not changing at this time.

You may have noticed we recently adjusted the number of Connects needed per job to better match the demand for jobs in the Marketplace. We've also made several changes this year to give you more control over how you spend Connects, including removing limits on purchasing and rolling over Connects, removing the requirement to use your free Connects before paid ones, and providing proactive opt-in email notifications when your Connects are expiring.

Why is Upwork changing its prices for freelancers?

The value of providing you a thriving platform where you can earn income and grow your business — a place where you can choose how and with whom you want to work, build your reputation, and drive leads — is better reflected and supported by a simpler fixed percentage fee than by the current sliding-scale tiered fee of 20/10/5%.

While we believe this change to a simpler fee structure will benefit most freelancers over the long term, we understand that this change has an immediate impact on freelancers working in higher-value relationships, which is why we are honoring the existing 5% rates through the end of 2023.

Reactive FAQs

Reactive FAQs for answering customers’ questions - Reactive FAQs are not published/not public-facing, only used if agents get these specific questions and need answers:

Reactive - Freelancers:

For my hourly contract, will I be charged 20% for hours that I work on May 1 and 2, 2023?

If your current rate is 20%, work that is invoiced after May 3, 2023 will be at the 10% rate. This would include regular payment on hours you log on May 1 or 2, but any bonuses or other payments you receive prior to May 3 will still be at your old rate.

Why should I stay on Upwork as a freelancer?

We’re continuously investing in new ways for you to access more opportunities, earn more income, build your business, engage with higher-quality clients, and maintain autonomy and control over your career. We continue to see client growth and freelancer wage growth on the platform.

Note to CS: Add this for freelancers who have 5% contracts:

To make this transition as beneficial and as minimally disruptive as possible for you, we’re reducing the 20% freelancer service fee to 10% immediately on May 3, but honoring the 5% rate through the end of 2023 for those who have already qualified.

How will this change benefit me as a freelancer?

Lower fees at the beginning of a contract reduce the cost of starting new relationships and may make it easier for you to take a chance on new clients.

Many freelancers will see reduced costs with this change, especially those who have contracts that are smaller in size, such as logo designers for small businesses, for example. For those who want longer-term relationships with clients, we continue to develop and improve ways for you and your clients to work together.

The simpler freelancer service fee structure better supports a platform that provides you more opportunities to grow your business and work the way you want to work.

The new fee structure will also simplify some freelancer processes:

You won’t have to track tiers on contracts to determine how much you’ll earn each week
You won’t have to calculate fees for multiple tiers when determining pricing for a contract
Calculating year-end revenue and expenses may be easier to do once all your contracts have the same freelancer service fee percentage throughout the contract

We realize that some freelancers may see increased costs. That’s why we are continuing the 5% service fee through the end of 2023 on contracts that are already eligible, to give freelancers time to adjust to these new fee rates and to adjust their own rates, work strategies, or contract selections as needed.

For contracts that are currently at 5%, why aren’t you extending that rate for the duration of the contract?

Bringing all contracts to a fixed percentage freelancer service fee is critical to evaluating the success of simplifying and streamlining fee processes. We understand that it does impact some of our most dedicated freelancers though, and that is why we extended the 5% fee through the end of 2023 on contracts that are already eligible.

Upwork used to have this fixed service fee model prior to a sliding-scale service fee model, isn't this just a rollback?

When we launched sliding-scale freelancer service fees, we did not offer as many ways to work together as we do now. We didn’t offer Project Catalog, consultations, or Any Hire, for example.

As ways to work continue to evolve, we have to look at what needs to be streamlined and simplified. Sometimes you have to get back to basics to keep moving forward.

You just raised Connects needed for proposals and now you are changing freelancer service fees? Why are you making all these changes?

We believe simplifying and lowering service fees for the first $500 on each contract, along with services that help people work together for the longer term, will help support a variety of work and make it easier for you to use the services we offer.

Part of our ongoing effort to support your success on Upwork includes evolving our pricing model from time to time. We know you work incredibly hard for everything you earn, which is why we are committed to creating the right tools and pricing structure to maximize your earnings potential.

These changes reflect our commitment to bring you more job opportunities that translate into work you love with clients you value.

We are here to support your success as we shape the future of work together.

What if I don’t agree to pay the new fee(s) when I see the pop-up with new Terms of Service?

In order to continue to use Upwork, you must agree to our Terms of Service. We require this because we want you to be fully informed about the terms, costs, and protections that are part of using Upwork.

Reactive - Both clients and freelancers:

If most freelancers are saving money with this new fee structure, does that mean that most contracts are less than $500? Is Upwork just for small, one-time jobs now?

We continue to encourage and support longer-term relationships, and we also offer several ways for clients and freelancers to work together on Upwork. Some longer-term relationships begin on Marketplace and move into other ways to work on Upwork — and the lower freelancer service fee on the first $500 of a contract may help more freelancers get started.

Reactive answer to “This is unfair/Upwork has become greedy - charging Connects, Badges, boosting proposals, etc.”

These changes reflect our commitment to bring you more job opportunities that translate into work you love with clients you value.

We are here to support your success as we shape the future of work together.

What’s in it for Upwork? Why are you really making this change?

We’re always looking for ways to improve, to give you the best freelancing and work marketplace, and to push the limits of what’s possible for people who want to work together. This new fee structure better reflects the value of what we offer and helps support our ability to deliver it.

We believe simplifying fees and lowering freelancer service fees for the first $500 on each contract will help support your ongoing success on Upwork in all the ways you want to work.

Simplifying freelancer service fees also helps streamline our processes and focus our efforts on providing a better experience for you. The contract initiation fee for clients ties our revenue to our services and expenses in a simpler, more direct way, since we do take on more cost and risk from starting new contracts than from maintaining existing ones.

Reactive - Clients:

Who is impacted by the 2023 price changes?

Both freelancers and clients will see a change.

Freelancers will pay a 10% freelancer service fee on contract earnings, regardless of the amount earned on each contract, starting May 3. Freelancers who are already paying a 5% freelancer service fee on a contract will continue to pay 5% on that contract through the end of 2023
Clients will pay a contract initiation fee of up to $4.95 at the start of each new contract

Why should I stay on Upwork as a client?

In the past year we’ve continued to develop new ways for you to work with freelancers, increased the volume and skill diversity of the freelancers on our platform, and provided more solutions to help you access the talent you need to grow your business.

We will continue to scale our platform to improve your ability to find the best talent for your job and to work together in the ways that work best for you.

How will the 2023 price changes benefit me as a client?

We expect that the new simplified, freelancer service fees will bring you more competitive proposals and access to even more highly-skilled talent. For example, some freelancers may be more willing to work with a new client, do smaller jobs, or offer a consultation to help you determine if they are a good match if they pay a lower fee on what they earn.

Plus, aligning the fees we charge with the costs we incur in a simpler, more direct way better supports offering you the best talent-sourcing platform possible, where you can find skilled talent and work together in the way that works best for you.

Can I just continue with a contract and avoid creating new ones so that I can avoid the contract initiation fee/I’ll just keep my contracts open instead of creating new ones to avoid this fee?

We encourage longer-term relationships and contracts between clients and freelancers. While you may have set a deadline for completed work on your original job posting, you and your freelancer may continue working together past that date as long as you both agree.

If you and your freelancer are happy with your current hourly or fixed-price contract, you wouldn’t need to create a new one for each task unless you needed to do so for your own records or billing.

You can continue approving hours for hourly jobs, and you can add new milestones for fixed-price contracts.

We’ll only close the contract if it is inactive for 90 days with funds in escrow, since we have to return those funds if they sit dormant for 90 days. If there are no funds in escrow or if activity and payments are ongoing, we’ll leave the contract open for you until you close it.

For projects on Project Catalog or consultations, you will need to purchase another project or start a new contract on Upwork Marketplace to continue working together.

Between the marketplace fee and the contract initiation fee, this makes it difficult for me to hire freelancers for smaller projects.

Yes, this contract initiation fee may have more of a proportional impact on smaller contracts. However, the reduced freelancer service fees on the first $500 of a new contract may also encourage more freelancers to apply to smaller projects, which could increase your choice of freelancers and make it easier to find someone who can work with your budget.

Why does the contract initiation fee vary?

Internal FAQs for agent use only - do not share publicly

Are there any cohorts of customers that are being held back on legacy plans as part of a pricing QT?

The contract initiation fee will be launched as part of a pricing QT with 2 test cells in addition to the $2.95 baseline price point; a higher price group ($4.95) and a hold out group (no contract initiation fee). We expect to default to the optimal price point for all new contracts at the conclusion of the test, which is expected to run for approximately 6 months.

What contracts are eligible for legacy rates post-Shamrock cut-over on 5/3/2023?

All Marketplace contracts will move to 10% freelancer service fees with the exception of those that exceed $10K in billings as of 5/3/2023, which will remain at 5% through the end of 2023, then will move to 10%.

How long do we honor legacy contracts?

We will honor legacy contracts that have 5% freelancer service fees as of May 3, 2023 through the end of 2023, then they will move to 10%.

What are we doing with EVT & PP1?

They will be migrated to the same 10% freelancer service fee structure.

Are there any measures in place to prevent circumvention? Since the initiation fee is refunded if the contract is canceled without payment, what's keeping customers from sharing contact info after the start of the contract and then taking the project off platform to avoid the new fees?

We discussed the potential to charge right away, partly to prevent circumvention, (Zach from product team actually really likes that idea) but landed on not wanting to create additional friction in the hiring process. At this time, we do not have plans to address circumvention specifically for this initiative but will consider this issue when monitoring the impact of the changes.

For the EDC contracts - CL / FL relationships that moved from Elance to Upwork that don’t currently have the TSFs, example contract here - when this change takes place in April, will these contracts stay as is, or will they move up to 10%?

The EDC contracts will begin having freelancer service fees and will have the 10% freelancer service fees. They will not be impacted by the client initiation fee since the contract already exists.

Could we have an option (like with Conversion fees) where the freelancer makes the contract initiation payment on behalf of the client?

We are not making that an option at this time.

Would / can there be a threshold of payments after which the contract initiation fee is no longer "valid" and we refund the CL? i.e. If the contract reaches $1,000 (as an example) we return the CIF?

These changes help meet several goals, including tying revenue to costs and reducing workloads and costs on the backend by keeping things simple. We do have more costs and risks for new contracts than for existing contracts, and charging or refunding any fees based on contract volume creates more cost and work on the backend.

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**Project Shamrock (Pricing Refresh)

De-escalation Attempt Pre-launch (macro: Freelancer Fee Change De-escalation Attempt Pre-launch)

FL fee discount - post-launch (macro: Freelancer Fee Change - FL fee discount Post-Launch)

FL fee discount - post-launch - Community Recommendation (macro: Freelancer Fee Change Community Recommendation - FL fee discount Post-Launch)

For clients that change contract type (FL to hourly, or vice versa) and are charged CIF again -

For clients frustrated that they don’t receive a refund of CIF after receiving a full refund from their freelancer -

For clients frustrated that they’ll be charged a contract initiation fee per contract vs. per freelancer -

Email Forward FL-facing autoresponder -

Email Forward CL-facing autoresponder -

Reactive FAQs for answering customers’ questions - Reactive FAQs are not published/not public-facing, only used if agents get these specific questions and need answers:

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