From May 2019, freelancing project platform giant Upwork would charge $0.15 per “Connect”. That means, at least $9 a month if you still stick to your old habits of 60 Connects. We discussed it in our last blog here.
Here’s the mighty twist. You might soon be forced to use up more than 2 Connects to place bids on a project. So, you end up exhausting your Connects faster. In all likelihood, you would convince yourself to buy more and more Connects, in the hope of winning a high-budget project. On the contrary, sincere freelancers will submit fewer proposals making it easier for clients to identify the right talents. In this process:
Legitimate and Sincere Freelancers End up Spending More
So legitimate and sincere freelancers would need to spend more to buy Connects. This is in addition to a steep 20% service fees deducted from your earnings. Don’t forget the payment withdrawal processing fees too. The service fees have witnessed a consistent rise over the years. 5.75% on Elance and 10% flat on oDesk. Honestly, the sliding fees structure that was first introduced on Upwork, doesn’t really help a new or mediocre freelancer. We would talk about the sliding fee structure in another of our blog.
Upwork Cleanses Itself of Spammers: For Free
With the freebies gone, non-serious freelancers will probably be less active. Honestly, that’s what the freelancing community is hoping for. Upwork automatically cleanses itself of spammers without investing a penny into the corrective processes.
The Cash Registers Are Set on Fire
The cash registers at Upwork are literally set on fire, with a million active users buying Connects. While Upwork has witnessed mammoth growth in diversified client-base, the competition has only grown fierce. Clients demanding lower pay rates and freelancers desperate to get hired. The truth is, you can never afford to send out fewer proposals. So in a practical scenario, you need to continue buying more Connects.
New Workers with Weak Profiles Will Suffocate
Relatively new workers with weak profiles get penalized, having to invest $20-$40 per month with a fairly low chance of winning the project. Alternatively, if they offer to work at compromised rates, that further reduces their margins of effective earning. After the mandatory 20% income deductions at source (Upwork service fees). Every other freelancing platform imposes a similar 20% service charge on your project incomes.
End of the Freebie Era
With Upwork implementing this change, it wouldn’t be surprising if the #2 and #3 freelancing portals such as PeoplePerHour and Guru soon follow the foot-steps. So that officially sets an end to the freebie era. No more free proposal credits and Connects.
Nevertheless, Upwork still manages to top the charts when it comes to payment guarantee, customer interaction features, and job diversities. With a great feedback system including client profiles, ratings, job success scores, etc Upwork undoubtedly stands out as the most dependable platform so far.
Categories: Freelancing Randoms