Upwork Review 2024: Is It Legit? How To Make Money As A Buyer

How Upwork Works?

Upwork acts as a digital marketplace, connecting buyers - businesses or individuals - with freelancers equipped with a plethora of skills. Posting a job is as simple as describing the task, setting a budget, and clicking "post". Upwork's algorithm then suggests freelancers, but buyers can also seek out their perfect match.

When hiring, "connects" are key. Essentially tokens needed to apply for a job, they are crucial in ensuring freelancers' seriousness about a role. Some jobs are more coveted, hence higher in 'connects' cost, an intriguing balance between supply and demand, almost like trading cards in the digital gig economy.

Recognizing skill and dedication, Upwork has introduced "badges"- visual recognitions rewarding the top talent. This system creates a sense of community and competition, driving freelancers to offer their best.

When it comes to transactions, Upwork employs an "escrow" service. The buyer deposits the funds, and upon job completion, the freelancer receives payment, eliminating the risk for both parties. However, much like trying to cut an avocado, this seemingly simple process can be daunting for beginners.

Learn Which Services I outsource On Upwork

Is Upwork Legit?

A fair question, given the mushrooming of digital scams. But do not worry, Upwork has strict safety measures, almost like a digital bouncer, ensuring only genuine players get through.

Scams are usually easy to spot, often promising hefty pay for minimal effort - sounds like a late-night infomercial, doesn't it? But, with vigilance and common sense, they are easily avoided.

When in doubt, reach out to Upwork's customer service chat - a friendly and helpful resource in navigating the platform. Whether it's a dispute or a general inquiry, they are a click away, adding a sense of security to the platform.

I personally haven't encountered any Upwork scams, and to me, the platform seems to be safer than it's competitors.

How To Use Upwork

"Opportunities don't happen. You create them." Chris Grosser's words ring particularly true when navigating the freelance marketplace of Upwork. As the digital nomad lifestyle gains traction, knowing how to efficiently use platforms like Upwork can open doors to financial freedom.

How to Use Upwork as a Seller

Working as a freelancer on Upwork involves setting up a compelling profile, bidding on relevant projects, and delivering quality work on time. Specializing in a niche, such as SEO, Video Marketing, PR, or any digital presence, can give you a competitive edge.

I remember when I first set up my Upwork profile. I had a vague idea about SEO and digital marketing. Over the years, I honed my skills and now, my expertise in these areas is a major selling point for my freelance work.

If you've got a team of skilled professionals, setting up an agency on Upwork can significantly boost your earning potential. This allows you to take on bigger projects and diversify your service offerings.

Learn a complete system to make money using Upwork

Leveraging Upwork as a Buyer

On the flip side, as a buyer, Upwork can be a goldmine of talented freelancers who can help expand your business. From website development to content creation, the platform hosts professionals ready to take on your project.

As my own business expanded, I started hiring freelancers on Upwork. This not only freed up my time but also brought in fresh perspectives and skills that I didn't possess.

If you are a buyer, consider Upwork a treasure trove of talent. Choosing the best freelancer is crucial. As Ernest Hemingway said, "It's none of their business that you have to learn to write. Let them think you were born that way." So, you need to find the "born that way" freelancer.

Upwork houses a variety of freelancers, from writing and graphic design to app development and voice-overs. Each offers a unique flavor, transforming your project into a gourmet dish.

Building a Side Business Using Upwork

With the right approach, you can even use Upwork to build a side business that generates extra income. For instance, you could hire freelancers to run an e-commerce store, a blog, or manage social media accounts while you oversee operations.

The hiring process is straightforward. Post a job, evaluate proposals, conduct interviews, and finally, hire your freelancer. Remember, it's not a grocery store; pick quality over quantity.

Upwork Fees: How much does Upwork take?

As we all know, you've got to spend money to make money.  In the grand scheme of things, Upwork's fees are just part of doing business. They may seem like a hurdle at first, but with savvy management and strategic planning, they can become an avenue for sustained success in the freelance marketplace.

A Basic Understanding of Upwork Fees

When using Upwork, a 5% Client Marketplace Fee applies to all payments made to freelancers. This fee applies whether the job is fixed-price or hourly, whether it's a Project Catalog project, bonus, or Bring-Your-Own (BYO) contract. This is Upwork's way of maintaining its platform - the digital marketplace that connects freelancers and clients from all around the world.

Additionally, there's a one-time contract initiation fee of up to $4.95 USD for each new Marketplace and Project Catalog contract. This fee is charged when you make the first payment to a freelancer.

Diving Deeper: The Contract Initiation Fee

I once had a client who asked me why he had to pay a contract initiation fee again for a new milestone on our existing contract. I chuckled and said, "No, my friend, the initiation fee is only for when we start a new contract. You're safe from that fee now. It's like when you're initiated into a secret society, they only make you do the embarrassing ritual once." So, basically, once you've paid the initiation fee for a contract, you won't have to pay it again if you're just adding milestones to the existing contract.

Upwork Fees For Sellers

The structure of Upwork's fees changes as the amount spent with a freelancer or agency increases. For transactions up to $10,000, the fee is 10%. This also applies to all transactions with Upwork Enterprise clients.

When the spend surpasses the $10,000.01 mark, the fee reduces to 5%. This tiered fee structure encourages long-term and high-value contracts, rewarding clients who spend more on the platform.

Learn My Exact Process Of How To Hire Freelancers On Upwork

Is Upwork Free?

It is free to join Upwork as a freelancer. You can complete your profile, search for work, and create your own projects at no cost. The real cost comes in when you start earning. Upwork imposes a 10% freelancer service fee on the money you earn from clients. Think of it as a small token for the opportunities and convenience that Upwork provides.

For those who wish to boost their freelancing journey, Upwork offers the Freelancer Plus package at $14.95 per month. This upgrade provides additional benefits to help get your business going. The Plus package can be a game-changer, especially for those looking to get their first reviews faster, more effectively market their services, and stand out from the crowd.

Investing in Freelancer Plus can be a game-changer. It gives you that extra edge to stand out among a sea of freelancers. The early days of freelancing are all about getting those first few positive reviews and establishing credibility. This little investment can help speed up that process.

The same principle applies to buyers. Upwork is free to use and download as an app. But when you're ready to purchase a service from a freelancer, Upwork will ask for billing details.

In the end, while Upwork is technically free to use for browsing and setting up, both freelancers and buyers will encounter fees once they begin transacting. This is a fair trade-off for the benefits and conveniences that Upwork provides, making it a practical choice for many in the dynamic world of freelancing.

Is Upwork Only Hourly?

The short answer is no. Upwork provides flexibility through two distinct contract types: hourly and fixed-price. Both have their own merits and can cater to different project requirements. 

Upwork Hourly 

This contract type allows you to pay freelancers for the time they spend working on your project, with a minimum hourly rate of $3.00 USD. This rate is negotiable during the interview process.

Under this scheme, freelancers log their time using the Upwork Desktop App. You, the client, can monitor progress through the freelancer's Work Diary. Should you find discrepancies, you have the option to dispute hours. Other features of this model include enabling manual time billing and setting a weekly limit on billable hours.

Upwork Fixed-Price 

This contract type provides an alternative approach, allowing you to pay a single fee for the entire project, with a minimum bid of $5.00 USD.

This model focuses more on project deliverables. You and the freelancer agree on certain project milestones. The project can have one milestone or multiple, depending on its complexity. For payment, you deposit milestone funds into Upwork's escrow. This way, you get a chance to review your freelancer’s work before any payment is released to them.

Upwork Payment Protection and Escrow

Upwork's Payment Protection adds a layer of security to both hourly and fixed-price projects, allowing clients and freelancers to collaborate with peace of mind. It's like having a trusted third-party referee in a football match, ensuring fair play.

Payment Protection for Clients

When working with freelancers on an hourly basis, you, as the client, can monitor your freelancer's Work Diary to see work-in-progress snapshots and confirm what work is being invoiced to you.

But what happens if you see hours logged that are not related to your project? Well, you have the ability to file a dispute for the previous week's hours and will be refunded for any hours that don't qualify for Hourly Payment Protection. Just remember that this protection doesn't extend to bonuses or fixed-price projects.

I once faced a situation where a freelancer logged hours for work unrelated to my project. I successfully disputed those hours, thanks to Upwork's Hourly Payment Protection. It was a lifesaver!

If you opt for fixed-price contracts, the protection shifts gears. In this scenario, you and the freelancer agree on deliverables in the form of milestones, and you deposit funds (a minimum of $5 per milestone) into escrow. The freelancer submits work for your approval before any funds are released from escrow.

If the work submitted is not up to your satisfaction, you have the power to ask for changes or even request an escrow refund if necessary.

In fixed-price contracts, freelancers start working after the client deposits funds into escrow. Work is submitted for client approval. If the client doesn't approve the work or request changes within 14 days from submission, the funds are automatically released to the freelancer.

Payment Protection for Sellers

Even in the case where the client refuses to release the payment for a completed milestone, freelancers can file a dispute.

Upwork Support, Community, and Live Chat

There's no perfect marketplace, and like any other, Upwork is subject to occasional hiccups. Whether you're a seasoned freelancer or a client, you might need help at some point. 

Community Support: The Power of Shared Knowledge

A smart man learns from his mistakes, a wise man learns from others' mistakes. That's the philosophy Upwork's community support embodies. The community page, which is not connected to your profile, is an ever-expanding repository of shared experiences and solutions.

There's a high chance that the issue you're facing has already been experienced and solved by someone else. You can easily find the necessary information or ask a question in this community.

I recall a time when I was facing a payment issue with a client. In my desperation, I turned to the community page and found a thread discussing the same problem. The solutions provided there helped me navigate the issue successfully.

Live Chat Support: An A.I. Lifeline

If you think that live chat support implies a real person responding in real-time, you're in for a surprise. Upwork's "live chat" support is actually an AI bot. It may sound impersonal, but it's efficient and, surprisingly, quite helpful.

This bot serves as the first line of defense, answering basic queries and helping solve common problems. If it's unable to assist you, it will escalate the issue by sending a support ticket on your behalf.

Once your issue has been escalated, you can expect a reply from Upwork's support within 12 hours. While it may seem like a long time in an age of instant gratification, it's a small price to pay for a comprehensive resolution.

Upwork Scams

Trusting strangers online can be as dicey as trying to find a legitimate moon rock on eBay. Upwork is no exception. Even though the platform is amazing, it also has its share of pitfalls.

Learn More about Upwork Scams And How To Avoid It 

The FBI has reported an increase in scam activity across online job boards and freelance platforms. 

1. Phishing Scams

In the sea of digital correspondence, always look out for the '@upwork.com' or '@cloud.upwork.com' suffix in emails that claim to be from Upwork.

2. Shipping Scams

Shipping scams are another type of phishing that exploit your anticipation for package delivery. A bogus text or alert about a package could lead you down a rabbit hole of deceit.

3. Paid/Leased Account Fraud

If someone offers to pay you for your Upwork profile, remember what your mom said about strangers offering candy - it's a no-no! Besides being against Upwork’s Terms of Service, it's also potentially illegal.

4. Check-Cashing Fraud

Check-cashing fraud, also a form of money laundering, is another classic scam that's as old as the hills. The scammer overpays you with a check and asks for the difference back. Don't fall for it!

5. Gift Card Fraud

In this scam, the con artist asks you to purchase gift cards or share an existing gift card's number - pocketing the balance. Remember, no legit client should ask for gift cards as payment.

6. Digital Currency Fraud

Virtual currencies can be a murky world, and some scammers exploit this to dupe unsuspecting freelancers. A real job shouldn't require you to buy tokens or any digital currency.

Avoid Scams On Upwork

1. Keep Transactions Within Upwork

Never pay or get paid outside of Upwork. This protects you from scams and ensures you're covered by Upwork Payment Protection.

2. Guard Your Upwork Account

Your account is your digital identity. Protect it like your wallet or purse. Don't allow anyone else to use it.

3. Trust Your Instincts

A real client will never ask you for money, personal information, or work for free. Report anything suspicious.

The key to digital safety is vigilance. It’s always crucial to protect your information, computer, and access. Trust your instincts, and keep all communications on the Upwork platform. For more tips, check out Upwork's general electronic security guidelines.

The Upwork Experience: A Closer Look At Services

In Upwork's talent market, the most requested jobs change as swiftly as fashion trends. As of now, logo design, website design, and virtual assistant services are in vogue. These services, though varied, are united by the shared goal of leveraging the power of the internet to grow your business.

Payment on Upwork isn't limited to an hourly basis. You can opt for a fixed-price contract - a blessing for tasks with a clear deliverable. As for PayPal, it isn't a necessity. Upwork accepts various payment methods, catering to an international audience.

Benefits of Using Upwork

Freelancers on Upwork offer an affordable way to grow your business without the commitment of hiring an in-house team. Think of it as the benefits of a large corporation without the overhead costs.

The Upwork community and app add value to the experience. The community - a hub of knowledge-sharing and support - and the app - an efficient way to manage jobs on the go - are features making life easier for busy buyers.

Upwork Alternatives: Upwork vs. Fiverr, Freelancers, and Toptal

Each platform - be it Upwork, Fiverr, Freelancer, or Toptal - has its strengths. For instance, Fiverr excels in creative gigs, while Toptal is renowned for top-tier tech freelancers. Still, Upwork provides a comprehensive service, cementing its place as a one-stop shop for outsourcing needs.

Upwork vs. Fiverr vs. Toptal 

Fiverr is a bustling marketplace that democratizes services, ensuring anyone can offer anything (legal, of course) starting at $5. Here, you can find a voiceover artist willing to mimic a pirate for your birthday video or a talented graphic designer to perfect your brand logo. It's like a buzzing bazaar, reminiscent of the Mercado de San Miguel in Madrid - diverse, vibrant, and bursting with possibilities.

Read Upwork vs. Fiverr, and which did I choose? 

Fiverr's secret sauce is its "gig" method. Freelancers, or "sellers", create "gigs", which are service offerings starting at $5, and then offer them to "buyers".

But remember, while this marketplace is democratic, it isn't a free-for-all. Fiverr charges a 20% commission from sellers, and buyers need to cough up service fees of 5.5% of the purchase amount, plus an additional $2.50 for purchases under $75.

Stepping into Upwork feels like walking into a corporate building - everything is streamlined, professional, and organized. You're not selling gigs here; you're offering specialized services, highlighting your skills and experience. It's akin to LinkedIn but with financial transactions.

Upwork values specificity; you can't be a Jack of all trades here. When signing up, you define your brand based on what you do. It's like putting on a suit and tie and defining your niche.

The commission structure is interesting. A 5% client marketplace fee applies to all payments made to freelancers, plus a one-time contract initiation fee of up to $4.95 USD for each new contract. The fee reduces to 5% once the transaction value crosses the $10,000.01 mark.

Speaking from experience, Upwork's fee structure encourages long-term contracts and rewards those who stick around.

Next, we move to Toptal, where, according to the company, the world's top 3% of freelance talent reside. The name "Toptal" itself is a portmanteau of "top" and "talent". So, if you're looking for world-class freelancers and don't mind paying a premium, Toptal is your go-to platform. Here, the rates are higher, but as you know, high quality is not cheap.

Read Toptal Review and Learn If It Is Worth Hiring From A Freelancing on this Platform 

The commission structure at Toptal is straightforward - a 20% fee for sellers, and no fee for buyers. But remember, this is the Ivy League; the entry fee is high, but so are the rewards.

So, which platform should you choose? As always, it depends on your needs. Fiverr is your perfect companion for one-time, small projects - a virtual swap meet where you can get your hands on a variety of services at affordable rates. Upwork is the boardroom where professionals gather for long-term projects and contracts. And Toptal is the sanctum for high-value, top-tier projects, where quality reigns supreme. But if you ask me, I prefer Upwork because it works best for my business.