How exactly upwork make money?

MafiaBlack · May 30, 2020

I'm thinking to create similar business like upwork in my country and target local people, i see on upwork there's couple of monthly payment subscription, maybe that's how upwork made money?

What do you guys think of this? This is can be long term business? I would like to make it as simple as possible, there's freelance and there's buyer but how do i make money from this if i run free website?

What a startup cost if i hire person to website for me?

Anyone involved in this industry?

Leader777 · May 30, 2020

Deposit fees if i'm not wrong

Sweely · May 30, 2020

If I'm not mistaken they literally charge their freelancers 25% for the first $500 they make on the platform.

And, of course, fees from clients as well.

I love hiring on Upwork, but I hate being a freelancer on there.

lordtiesto · May 31, 2020

Upwork works in the following way:
- There's a paid subcription for bidders (freelancers) or you can be a free member
- All freelancers (premium and free members too) have to apply using connects .The amount of connects you have to use varies in each job. It can be from 1 up to 6 (depending the budget of the project, the higher is the budget, the higher is the amount of connects you need to apply).
Each connects costs around $ 0.15, so if you apply to a job that requires 6 connects it would cost you almost $ 1

When you are hired , the customer deposits the agreed budget in escrow (like a "safe place" where the money is kept by Upwork until the job is done)
Once the project is completed, buyer releases the milestone (and the funds in escrow), freelancer receives the money - 20% that Upwork takes as a fee. If the same buyer hires you again and again, then you pay 20% for the first $ 500 and after that, they take 10%

There might be some costs involved on the buyer side but I don't know

greydingo · May 31, 2020

Their biggest money maker is the fees they take from what the freelancer gets paid.

It's broken into tiers PER client

- 20% for the first $500 made
- 10% from $500 - $10,000
- 5% after $10,000

llarasati · May 31, 2020

From fee, subscriptions also connect that It's not free anymore.

Wendy logan · May 31, 2020

lordtiesto said:
Upwork works in the following way:
- There's a paid subcription for bidders (freelancers) or you can be a free member
- All freelancers (premium and free members too) have to apply using connects .The amount of connects you have to use varies in each job. It can be from 1 up to 6 (depending the budget of the project, the higher is the budget, the higher is the amount of connects you need to apply).
Each connects costs around $ 0.15, so if you apply to a job that requires 6 connects it would cost you almost $ 1

When you are hired , the customer deposits the agreed budget in escrow (like a "safe place" where the money is kept by Upwork until the job is done)
Once the project is completed, buyer releases the milestone (and the funds in escrow), freelancer receives the money - 20% that Upwork takes as a fee. If the same buyer hires you again and again, then you pay 20% for the first $ 500 and after that, they take 10%

There might be some costs involved on the buyer side but I don't know

I work on upwork and this is a detailed reply of how it works. If you want to create a site like upwork you would have to target lots of local freelancers and bring in a large amount of people looking for services. This is no small task

Roger Marquez · May 31, 2020

lordtiesto said:
Upwork works in the following way:
- There's a paid subcription for bidders (freelancers) or you can be a free member
- All freelancers (premium and free members too) have to apply using connects .The amount of connects you have to use varies in each job. It can be from 1 up to 6 (depending the budget of the project, the higher is the budget, the higher is the amount of connects you need to apply).
Each connects costs around $ 0.15, so if you apply to a job that requires 6 connects it would cost you almost $ 1

When you are hired , the customer deposits the agreed budget in escrow (like a "safe place" where the money is kept by Upwork until the job is done)
Once the project is completed, buyer releases the milestone (and the funds in escrow), freelancer receives the money - 20% that Upwork takes as a fee. If the same buyer hires you again and again, then you pay 20% for the first $ 500 and after that, they take 10%

There might be some costs involved on the buyer side but I don't know

greydingo said:
Their biggest money maker is the fees they take from what the freelancer gets paid.

It's broken into tiers PER client

- 20% for the first $500 made
- 10% from $500 - $10,000
- 5% after $10,000

Besides all that, Upwork also takes $2 per cashout request. I live in Venezuela and mostly use Payoneer for this so I don´t know if this fee is a geo thing or is world wide applied. And, once you cashout, they give you 2 options. An "immediate Load" that will cost you an additional $2.50 but you will have your funds in a couple of hours (But the truth is, it´s just a few minutes) and, an "Standard Load" that takes 48 hours to process.

rksama · May 31, 2020

Fee, Fee and more fee from both parties while acting as a mediator.

How exactly upwork make money?

MafiaBlack

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