Upwork Service Fee - Justifiable?
CA Dhaval Paun
On a Mission to Empower Young Finance Professionals (Accounting and Tax) to look beyond Traditional Practice and Jobs
Hello My Freelance Colleagues,
Most of my "Outsourcing Practice Secrets" course prospect ask me whether Upwork Charges any fee on their earnings?! And How Much?
They get surprised to know that Upwork charges
20% on first $500 from a client,
10% on $500.01 to $10000 and
5% on $10000+
And they argue that its not worth paying so much on one's earnings.
First thing first, due to Upwork ONLY you get chance to connect with a overseas client. Also one may not be aware about how costly it is to get paid from an overseas client.
I will give you one such example when I got paid through Paypal on 10th July 2020. I invoiced client $2000 and on that date the USD/INR rate was 1$= INR 75.195. So I would have got INR 1,50,390.
However, you can see how much I ended up getting only INR 1,36,972.91 (i.e. 8.92% less) due to Paypal Fee (4.4% +$ 0.3 Fixed Fee + GST) and lower Exchange rate offered by Paypal.
Also for someone having dilemma that being a Practicing Chartered Accountant, one cannot share a % based Fee to anybody, not only Upwork but even online payment processor like PAYPAL DO CHARGE % BASED FEE. In this scenario, no Practicing Chartered Accountant would be able to indulge in export of CA services if % based fee is a hurdle.
Hope above explanation will justify not only Upwork Fee but the % based Fee system and that being a no hurdle for Chartered Accountant in their Professional Ethics Compliance.
Thanks and Regards,
CA Dhaval Paun
Founder of Karma CPA Services | Outsourced Accounting & Tax Prep Services for CPA Firms and Business Owners.
4yWhat about transferwise? Have you tried that