Upwork Guide 2024: Connects, Tiered Commission (5%-20%) & Success

Upwork Marketplace: A Complete Guide to Professional Freelancing and Success

If you aim to establish yourself as a professional in the freelancing world and work on large client projects with long-term commitments, Upwork is the right platform for you. It is one of the world's largest freelancing marketplaces.

What is Upwork and Why is it Different from Fiverr?

Upwork is a global platform connecting businesses (Buyers) and freelancers (Sellers) for various types of projects.

Key Differences Between Upwork and Fiverr:

• Type of Work: Upwork typically features larger, customized, and long-term projects. In contrast, Fiverr is known for small, fixed-price 'gigs'.
• Application Process: On Fiverr, a seller creates a 'gig' and waits for the buyer. On Upwork, the seller must use 'Connects' to apply for specific jobs.
• Commission Model: Upwork's commission depends on the total earnings with a specific buyer, following a tiered commission structure.

Upwork's Current Landscape and Structure

• Users: The platform currently has over 16 million active freelancers and nearly 18 million buyer accounts.
• Annual Transactions: Upwork processes over $3.7 billion in annual freelancer earnings.
• Job Value: Jobs here are typically higher-value, with both Hourly and Fixed-Price contracts being common.

How to Get Started on Upwork & Use Connects

1. Profile Optimization

• Ensure your profile acts as your best portfolio. Add work experience, skills, and a professional photo.
• Write a concise, powerful headline (Title) and a detailed overview.
• Increase your credibility by taking Upwork's Skill Tests.

2. Connects and Bidding

• You must use 'Connects' to apply for jobs on Upwork. Most jobs require 2 to 6 Connects.
• New freelancers receive some free Connects initially. Connects can also be purchased as needed.
• Review the job thoroughly and write a customized 'Cover Letter' (Proposal). Mention the buyer's name and requirements to show you've read the post carefully.

Upwork Commission and Withdrawal System

Upwork's commission structure decreases as the freelancer's earnings with a specific buyer increase. This encourages long-term relationships.

• Tiered Fee Structure:
  • Up to $500 earned with the client: 20%
  • Between $501 and $10,000 earned: 10%
  • Over $10,000 earned: 5%
  This structure incentivizes long-term work with the same buyer.
• Withdrawal Methods:
  • Direct to Local Bank (Acha Transfer): A popular option for withdrawals in countries like Bangladesh.
  • Payoneer: The widely used method in the freelancing world.
  • Wire Transfer: Can be used for withdrawing large amounts, but may incur higher fees.
• Payment Clearing: Upwork typically clears payments within 5 days (E-Check/ACH) or 2-4 days (Wire Transfer). The first payment may take slightly longer.

❓ Frequently Asked Questions (FAQ)

1. How long does it take for an Upwork profile to get approved?

Answer: Upwork manually reviews new freelancer profiles. If your skills are currently in high demand on the platform, approval will be fast. Otherwise, it may take a few days, or the profile might be rejected.

2. What are Connects and how much do they cost to buy?

Answer: Connects are Upwork's virtual tokens required to apply for jobs. Generally, 10 Connects cost around $1.5. New users are given free Connects every month.

3. What is the biggest advantage of Upwork?

Answer: The biggest advantage of Upwork is gaining access to large corporate clients internationally. Additionally, the protected payment system minimizes the risk of losing money.