If you want to join the gig economy and make money online, you might be wondering: what is Upwork?
Upwork is a freelancing site – a place where freelancers can post their skills and find work. It’s one of the main ways freelancers find clients and, most importantly, get paid. Upwork is one of the largest sites of its kind, making it the obvious starting point for many professionals. However, just because Upwork is the biggest doesn’t necessarily mean it’s the best. It is also not very welcoming to newcomers.
Knowledge is therefore your ally. Here, we’ll take an in-depth look at Upwork: what it’s for, what it’s not, who should use it, and how to get started.
What is Upwork? The Basics Explained
Upwork (formerly Elance-oDesk) is the largest and perhaps best-known freelancing site today, with over four million businesses on the platform. Its size is one of the main draws that keeps people coming back.
Upwork also boasts a very comprehensive list of features. This can be a good thing or a bad thing, depending on your perspective and personal preference.
How to get started with Upwork
So how do you work with Upwork? The best way to find out is to jump in and try it out! To get started, you need to create an account and detail your skills, background, qualifications, languages, and portfolio. The latter may contain images of the work you have carried out. You will also need to verify your identity.
Like LinkedIn, Upwork allows you to add a wide range of skills to your profile. You can also take online tests to verify these abilities. For example, if you are a programmer who claims to know Java, you can take a basic Java test as “proof”. You can also choose an hourly rate, although this is negotiable.
Find and perform work
Once everything is up and running, you can either wait for clients to take the bait (the “build it and they will come” approach) or seek available work. Use the “submit a proposal” option to put yourself forward.
A proposal will cost you a certain number of “connections” (from one to six). You have a limited number per month, but they are refunded if the project is cancelled. You also don’t lose any connectors if the customer contacts you.
“The Work Log tool counts keystrokes and takes screenshots as you work.
This process is facilitated by powerful filtering tools that display local jobs, recommended jobs and “best matches”. You can also browse by category, or add your own advanced filters.
Find and perform work
Once everything is up and running, you can either wait for clients to take the bait (the “build it and they will come” approach) or seek available work. Use the “submit a proposal” option to put yourself forward.
A proposal will cost you a certain number of “connections” (from one to six). You have a limited number per month, but they are refunded if the project is cancelled. You also don’t lose any connectors if the customer contacts you.
“The Work Log tool counts keystrokes and takes screenshots as you work.
This process is facilitated by powerful filtering tools that display local jobs, recommended jobs and “best matches”. You can also browse by category, or add your own advanced filters.
What is Upwork’s Work Log?
If a client agrees to work with you, you will need to discuss your rate and schedule. If you decide to opt for an hourly rate, you may be asked to use the “work log”. This tool counts keystrokes and takes screenshots (six times per hour) as you work. The goal is to provide evidence of the time you spent on the project. You can also agree to a fixed price contract, in which case your work will be based on ‘milestones’.
Other features include built-in collaboration tools, messaging, meeting scheduling, file transfer, mobile app, and more.
Getting paid
Now for the big question: how are Upwork’s prices?
Measures are taken to prevent the sending of e-mails outside the platform (which could be used to circumvent the charges). The built-in payment processing is convenient for many freelancers and also means you’re not charged PayPal fees (although PayPal is supported as an option). Membership as a business also allows you to benefit from consolidated billing.
Upwork Fees
Finding the fee structure for freelancers is like looking for a needle in a haystack. Freelancers should expect to be charged 20% for the first $500 earned from each client, 10% for the next $9,500, and 5% for anything above that amount.
As Upwork says
“If you accept a price of $1,000 for work with a new client, you will be charged 20% on the first $500 and 10% on the remaining $500.
In other words: you will be charged $150 for a $1,000 job. It is not negligible ! If you sign an hourly contract valued at $50 an hour, and work for 400 hours, you will earn $20,000 minus $1,550.
Freelancers can also choose to upgrade to the Plus subscription at $14.99/month. This plan allows you to get more monthly connections (80 instead of 10) and guarantees that your profile will never be hidden due to its activity. You also get more comprehensive reports and features, as well as a custom URL and the ability to view your competitors’ offers. Serious freelancers should consider this option to ensure they are as competitive as possible.
On the client side
For businesses, Upwork membership is completely free, but a 3% processing fee is added to transactions.
Customers can choose between Basic Membership, Plus Membership and Enterprise Membership. Basic membership is free. Plus membership costs $49.99/month. Corporate memberships are reviewed on a case-by-case basis and companies are encouraged to get in touch to find out more. These fees are in addition to the 3% processing fee.
Is Upwork worth it for freelancers?
Given these high fees, is Upwork worth it for freelancers? This is a personal question that every freelancer must answer for themselves. For me personally, the answer is no.
The pricing structure clearly favors long-term contracts. If you work on small projects for multiple clients, you may have to pay a 20% commission on each job. This is on top of the optional Plus Membership and 3% processing fee your customers will pay (which is not insignificant, as competition not on Upwork will therefore cost the customer less).
This situation is restrictive for anyone who chooses to enter the gig economy in order to gain more freedom and flexibility in how they work and for whom they work. Even if you’re happy to work on long-term contracts, the best-case scenario is for you to donate 5-10% of your annual salary. Think about what else you could do with that money!
Pros and cons
The biggest advantage of Upwork is, of course, the wide range of customers. It is such a widely used platform that you will find a wide range of businesses and jobs.
That said, Upwork is also a rather crowded marketplace. It can be difficult to stand out, especially in the early stages. I have known friends who have spent months on the platform without landing a single contract.
What is more worrying is the degree of control a freelancer has to give up when using Upwork. The work diary is a perfect example. This means that you are effectively “monitored” while you work.
This is not a problem for everyone. Still, as someone who likes to work sporadically throughout the day and likes to feel free to check Facebook once in a while, I find the work diary to be unpleasantly restrictive. It also removes any incentive to work faster. In short: if you have to stay tied to your desk, you might as well look for a traditional job! That’s my two cents (two cents minus a 20% commission).
What is more worrying is the degree of control a freelancer has to give up when using Upwork.
Of course, there is no obligation to use the work log. However, since it exists and your competitors will use it, it will be much harder to oppose.
Why I don’t use Upwork
Similarly, freelancers may feel pressured to pass many tests to demonstrate their expertise on their profile. This process can take a long time. So you can expect to spend a lot of hours just managing Upwork before you necessarily see any returns.
If we add to this rather high fees and a limited “login” system, it seems obvious that Upwork is a tool that benefits the client more than the freelancer. Unfortunately, its sheer size makes many freelancers feel they have no choice but to go this route.
Upwork versus the competition
So what is Upwork best for?
Compared to other freelancing platforms, it is common to find jobs and long-term contracts there. Upwork has been described as recruitment management software, after all. If that’s what you’re looking for, Upwork is a great place to start. Conversely, if you are interested in more creative types of work, you may do better. Fiverr is a great option for creatives.
Ask yourself if restrictions and fees are things you feel comfortable with. If not, another freelancing site might be more to your liking. We have a comparison of the 9 best freelance sites to find paid work online that you should check out.
For example, PeoplePerHour is a lesser-known competitor to Upwork, whose fees are greatly reduced. Toptal, on the other hand, is a site that aims to recruit only the most talented and decorated professionals – which allows you to charge a lot more if you are accepted.
PeoplePerHour is a lesser-known competitor to Upwork, whose rates are significantly lower.
Finally, there are sites like Rent a Coder for specific types of professionals (programmers in this case).
Final thoughts
Remember: there is nothing wrong with being listed on several different freelancing sites. You can keep a profile on Upwork, while looking elsewhere.
Also consider that there are many other ways for freelancers to find clients. I highly recommend creating your own website (and doing some SEO), having a social media presence, and reaching out directly to the brands you’d like to work with. This way you keep control of your own business. This is ultimately one of the main reasons to become a freelancer in the first place!
What does Upwork represent for you? Do you rely on Upwork to find contracts, or do you maintain an Upwork profile just in case? Tell us in the comments below!
