If you’re a freelancer, you know that finding work can be tough. That’s where freelance platforms come in. They connect freelancers with clients who need their services. But with so many platforms out there, how do you choose which one to use? One important factor to consider is fees. In this article, we’ll compare the fees charged by some of the top freelance platforms, so you can make an informed decision.
Freelance Platforms Fees from Sellers & Buyers
Before we get into the nitty-gritty, let’s take a high-level look at the fees charged by the platforms we’ll be discussing:
|Platform||Seller Fee||Buyer Fee|
|People Per Hour||20%||10%|
As you can see, there is quite a bit of variation between the fees charged by these platforms. Let’s dive deeper into each one.
Upwork is one of the biggest freelance platforms out there. They charge a sliding service fee based on how much you’ve billed with a particular client. Here’s how it works:
- 20% for the first $500 billed with a client
- 10% for lifetime billings with a client between $500.01 and $10,000
- 5% for lifetime billings with a client above $10,000
Updated: Now Changed to 10% flat fee for all.
In addition to the service fee, Upwork charges payment processing fees and withdrawal fees. The payment processing fee is 2.75% for direct deposit, 2.75% for PayPal, and 3% for Payoneer. The withdrawal fee is $0.99 for direct deposit, $1.00 for PayPal, and $2 for Payoneer.
Fiverr is another popular freelance platform. They charge a flat 20% fee on orders up to $500, and a 10% fee on orders above $500. In addition to the service fee, Fiverr charges payment processing fees and withdrawal fees. The payment processing fee is $1 for purchases up to $20, and 5% for purchases above $20. The withdrawal fee is $1 for purchases up to $20, $3 for purchases between $20.01 and $500, and 1% for purchases above $500.
Freelancer is a smaller platform, but still has a large user base. They charge a 10% service fee, or $5, whichever is greater, on all projects. In addition to the service fee, Freelancer charges payment processing fees and withdrawal fees. The payment processing fee is 3% for PayPal or Skrill, and 2.3% + $0.30 for credit card. The withdrawal fee is $0.99 for local bank transfer, and $5 for international bank transfer.
People Per Hour
People Per Hour is a UK-based freelance platform that focuses on web development, design, and writing services. They charge a service fee ranging from 20% to 5% on all projects, depending on the freelancer’s membership level.
The service fee is 20% for basic members, 15% for standard members, and 5% for premium members. In addition to the service fee, People Per Hour charges a payment processing fee of 3.5% + $0.30 for credit card or PayPal payments. There are no withdrawal fees for bank transfers or PayPal transfers, but wire transfers have a $25 fee.
Compared to other platforms, People Per Hour has a higher service fee for basic members, but a lower service fee for premium members. Their payment processing fees are also higher than some of the other platforms we’ve discussed, but they don’t charge withdrawal fees for bank transfers or PayPal transfers.
Guru is another platform that’s been around for a while. They charge a flat 8.95% service fee on all projects. In addition to the service fee, Guru charges payment processing fees and withdrawal fees. The payment processing fee is 2.5% + $0.30 for credit card, and $1 for e-check. The withdrawal fee is $1 for ACH transfer, and $9 for wire transfer.
Which platform has the lowest fees?
If you’re looking for the platform with the lowest fees, Freelancer is a good option. They charge a 10% service fee, which is lower than the other platforms we’ve discussed. However, Freelancer does charge higher payment processing and withdrawal fees compared to some of the other platforms.
If you’re looking for a platform with low payment processing and withdrawal fees, Upwork is a good choice. They charge a lower percentage for payment processing fees than Fiverr and Freelancer, and their withdrawal fees are also lower than Fiverr’s.
Which platform is best for me?
Ultimately, the best platform for you will depend on your specific needs and preferences. Some factors to consider when choosing a platform include the types of projects available, the quality of clients and freelancers, the level of fees charged, and the user interface and customer support.
It’s also worth noting that while fees are an important factor to consider, they shouldn’t be the only factor. Platforms with higher fees may offer better quality projects or clients, which could lead to higher earnings in the long run.
Choosing the right freelance platform can be difficult. Fees are just one factor to consider, but they can have a big impact on your earnings. Hopefully, this comparison of the fees charged by some of the top platforms has been helpful in making your decision.
Are there any other fees I should be aware of when using these platforms?
Yes, some platforms may charge additional fees for optional services such as featured listings or advertising.
Can I negotiate the fees with the platform?
No, the fees are set by the platform and cannot be negotiated.
Are the fees charged by these platforms the same worldwide?
No, fees may vary depending on your location.
Do these platforms offer any discounts or promotions for freelancers?
Yes, some platforms offer promotions for new users or on specific services. Check their websites for more information.
Can I avoid the fees by working with clients outside of the platform?
It is against the terms of service of most platforms to work with clients outside of the platform, and doing so may result in account suspension or termination.