Is Upwork Worth it for Freelancers? Pros and Cons
If you’re a freelancer, marketplaces like Upwork, Freelancer, and Fiverr might be all too common to you.
Upwork had a golden star reputation in the past, known for providing freelancers with steady, high-paying, and quality gigs.
However, after its acquisition and rebrand in 2015, many freelancers have wondered if the platform still has any potential or if it’s just another mill for low-quality, highly competitive work.
On that note, let’s dive in and:
- Understand some of the pros and cons of Upwork in 2024.
- Find insights from actual freelancers who have operated from the platform.
- Learn some practical tips and tricks to succeed on Upwork.
How Upworks Works
Upwork operates as a marketplace where social media freelancers, agencies, consultants, etc., can provide services to global clients from the comfort of their homes.
The platform stays viable by charging freelancers and clients a service fee to operate on it (the fee is much larger for the freelancers than the clients). In return, the platform handles all the finances, invoices, verification, and job satisfaction.
If you need to apply for any jobs as a freelancer, you need to pay for “Connects” to send your proposals. If your job proposal is accepted, the client must invest initially (which Upwork protects until the job is completed).
Pros of Upwork
A majority of freelancers who we spoke to said the biggest pro of Upwork is that it’s easy to get started on the platform. You don’t need to pay any registration fees—all you need to do is fill in your profile details and get verified.
Says Raquel Gonzalez, a freelance SEO consultant and translator, “Upwork is great if you are starting as a freelancer and find it challenging to reach potential clients. You can apply to many job opportunities, and your payment is protected through them.”
Aside from this, some of the other pros of the platform are:
- You can pick and choose projects to your convenience, cadence, and liking; there are no specific limits to anything.
- You’re also not restricted to any particular area. Upwork allows remote freelancers to connect with clients and work on projects from around the globe.
- It supports plenty of services, so regardless of whether you specialize in writing, SEO consultancy, designing, marketing, web development, etc., there are plenty of readily available gigs for everyone.
- It’s extremely easy to navigate and added features like work tracking tools, talent badges, customer ratings, job search filters, etc., can improve your efficiency and portfolio.
- They’ve also got a thriving community wherein you can get help from Upwork professionals and other freelancers and agencies operating on Upwork.
Cons of Upwork
Unfortunately, these days, the cons of Upwork far precede the pros.
Amongst the list of cons, one of the major complaints most freelancers have is that the platform now has way too many low-paying gigs, which is creating a race-to-the-bottom situation for many.
In addition, they charge a hefty service fee (5-20% of the project value).
Peace Akinwale, a freelance writer who used to operate from Upwork, says, “Before I deleted my account in 2022, I noticed that most of the jobs on my Upwork feeds are always low-paying jobs (with jobs paying as less as $15 for 1500 words for technical writing).
They also charge a flat 10% service fee on all new contracts regardless of my lifetime billing with a client. If my client ends a copywriting contract and opens a B2B case study writing contract with me, I’ll still be billed 10% of my income.
I rejoined Upwork recently and found that the service fee for hourly projects and fixed-price projects is now 20% of total earnings.
Aside from the service fee, withdrawal to payment platforms like PayPal/Payoneer attracts significant charges, with Payoneer incurring extra bills from my local bank, too.”
Raquel also agrees with Peace’s opinion by saying, “It’s hard to find a decent-paying job on Upwork (at least at the beginning when you don’t have much portfolio to show your experience), and sometimes the job can be scammy.”
She adds to this point by stating, “The other con is that as a Spanish citizen, we must include essential information on each invoice according to our client’s country, like the Business Registration Number or the TAX percentage. But Upwork automatically creates an invoice in your name and doesn’t add those things, resulting in burdensome bureaucracy.”
These are not the only cons of Upwork, however. Here are a few more cons of the platform according to seasoned users:
- Upwork is extremely competitive and doesn’t have enough great gigs to fulfill the requirements of all freelancers on the platform. Due to the increased competition, it’s also more difficult to get noticed.
- You need to purchase “Connects” to connect with a potential lead. These Connects are paid and cost 15 cents to purchase every Connect. The kicker is that the number of Connects you need to use varies depending on the gig you’re applying to, and you may very well end up using 8-10 Connects per job.
- Upwork is more favorable to clients than users and always considers their side of the story before providing a solution.
Tips for Succeeding on Upwork
Use these four simple tips to get the most out of Upwork.
1. Be crystal clear in your offer
The best way to stand out on Upwork is to be as specific as possible about your offer and what makes you qualified enough to be trusted with the job.
For example, the top freelancers increase trust in their profile by using professional images, highlighting reviews and testimonials, offering a sustainable rate that works for them, using a strategic offer that hits on customer pain points, etc.
As a reference, an ideal freelancer profile (a boosted profile) on the platform looks like this:
2. Keep track of all your expenses
Another tip would be to create separate accounts as a freelancer to segregate all your business and personal expenses.
For example, you could consider opening a business account and using your business credit card for all your freelance-related expenses to earn extra rewards, cashback, and other perks that would otherwise not be possible.
3. Manage your freelance finances
Adding to our previous point, it’s important to keep track of all the finances associated with Upwork and not just money going out of your business (aka expenses).
As your freelance career grows on Upwork, you might consider opening a joint checking account with a partner or spouse. This can help you manage your increasing income more effectively.
You can use it to set aside money for taxes, track business expenses, and give your loved one visibility into your freelance success. It’s a great way to organize your finances as you build your business on the platform.
4. Enhance your service offering
A freelancer’s rule for providing exceptional client service is to always go above and beyond when it comes to the simplest of assignments.
On a platform like Upwork, where you can access a worldwide network of peers, leads, and clients, you need to set yourself apart by using tools to improve your service offering.
For example, you can use project management tools to keep track of deadlines, AI translators to converse with leads who use a different language, time-tracking tools to increase productivity, etc.
Next Steps
In this guide, we discussed some of Upwork’s pros and cons and a few tips for making a maximum impact as a freelancer, boosting your hourly rate, and landing prospective clients.
If you wish to gain more such insights, especially as a designer or developer, the Noupe blog has tons of them and expert-led articles for you. Head to the Noupe blog to get access to this information! It’s time to stand out from the millions of freelancers out there.