Warning: Found out Upwork takes 20% of first $500 with each client

I was browsing their fee page last night and realized they ding you for 20% on the first $500 from every new client. That cuts deep when you're just starting out... has anyone found a way around this or is it just the price of doing business there?

3 comments

3 Comments

milesbarnes16d ago

Man I used to think charging higher minimums would just scare clients off but this actually makes a lot of sense. Bundling work into bigger chunks is such a simple way to hit that 5% fee way faster without losing money to their cut. Gonna try this myself next time I start a new project.

corap6115d ago

Oh man I feel you on that whole thing about being scared to charge higher minimums. I was literally in the same boat for like a year, taking these tiny $30 jobs thinking at least I was getting something. But the moment I started setting my minimum at $200 everything shifted. The clients who actually stuck around were way more serious and they didn't bat an eye at bigger bundles. I had one client who used to hire me for $40 logo tweaks every other week and the fees were just eating me alive. Soon as I said hey let's do a full brand refresh for $400 upfront they were all in and I hit that 5% cap in one go. It's wild how much difference that one change makes.

caseywalker16d ago

Flip it around and think about who this actually helps. Small clients pay the most percentage, so you're basically being punished for taking smaller projects. But here's the trick nobody talks about: set your minimum project price at $200 or more from the start. That way you hit that $500 cap after just 2 or 3 jobs. Also, once you get past the $500 threshold with a client, the fee drops to 5% for everything after. So the real move is to bundle your work into bigger chunks. Don't take a $50 job here and a $50 job there. Make them pay you $250 for a bigger deliverable. You'll get past the 20% cut way faster and the client sees you as more serious.