Upwork is an online freelance marketplace where businesses and independent professionals can connect. For freelancers, it’s possible to create an account and get started bidding on Upwork jobs within just a few minutes of registration. For a client, it’s a great way to find freelancers to work on fixed-price projects and longer-term ones.
But creating and managing an online business and being your own boss isn’t always that easy, as you’ll encounter common Upwork scams along the way.
When I first became a freelancer as a digital nomad, one of my biggest challenges was figuring out how to find clients. Once I started being a freelance writer, I quickly got more money and clients.
That being said, it’s not always all roses, and you’ll have to know how to avoid an Upwork scam as soon as you see it. Let me go through everything you have to know in this ultimate guide.
An official report by Upwork itself claims that freelancers spend more than 1 billion hours per week freelancing. But is Upwork legit? Are freelancers getting scammed?
This guide will tell you about my experience from first-hand knowledge of Upwork. Is it worth it? Can you find freelancers and clients on Upwork, can you really make money out of it, and the scams.
How Does Upwork Work?
The Upwork marketplace is the best website to connect freelancers and clients and find easy projects to work on or long-term jobs.
If you’re a client looking for a freelancer, you simply need to create an account and open a job offer. After that, you can either browse the different profiles on the platform and invite them to apply or wait for a freelancer to send an application out.
Once you found the freelancer you want to work with, you’ll have to hire them and pay a deposit. Note that a 5% transaction fee is charged, on top of the contract amount. So if you were to open a $1000 contract, $50 will be added on top.
After the freelance work done and being happy with the delivery, just pay out the freelancer and you’re done.
START HERE: Find Freelancers on Upwork Today
As a freelancer, you can access the platform either with the Basic free plan or the Plus membership for USD 14.99/month. The Plus membership, oppositely to the Basic plan, provides you with extra benefits such as:
- 80 free Connects per month
- Customization of your profile URL
- Ability to keep earnings confidential
- Your freelancer profile is never set as hidden due to inactivity
- Extended reports and functionalities to analyze your income and more
If you’re a freelancer looking for clients online, then you’ll be able to apply to projects on the platform.
Once your account is accepted, you’ll have to create your profile and list all your skills, education, and experience.
Does Upwork Take A Commission?
The Upwork commission fee is a percentage of the total amount you’ve billed with clients. The first $500 in commissions are charged at 20%.
For lifetime billings between $500 and $10,000, there’s a 10% commission. Finally, once you reach $10,000 on any contract, Upwork will charge only 5% for everything onwards.
In plain words, the more money you make, the less commission you pay.
READ MORE: How To Use Upwork for freelancers
On the other hand, as a business owner or company representative, Upwork works differently. Upwork lets companies post projects and jobs in their industry for free. Freelancers then bid on your job posting based on their skills, rates, and experience.
If your company needs someone who has extensive experience in a specific field but cannot afford top-level talent just yet, Upwork might be the perfect place.
For Clients – How to Avoid Upwork Scams
As a client, there’s nothing worse than looking for a freelancer and getting scammed in one way or another. While the vast majority of freelancers are legit and only want to work properly, there are instances where it’s the total opposite.
I always use the platform to find freelancers on Upwork and, while I’m very pleased and never had any bad experiences, I encountered a few red flags that you should stay away from – let me tell you everything about them.
Beware of Fake Freelancer Profiles
Finding fake accounts on Upwork is not common, but it does happen from time to time. For instance, that profile might use a celebrity photo, or advertise skills they don’t have.
Back in 2015, a client reported a fake account and, since then, Upwork has made its system much more sophisticated. Sure, you may still receive the work done, but it’s nonetheless a pleasant situation to be in.
You May Receive Plagiarized Work
Plagiarism is a form of cheating that involves using someone else’s work without giving credit to the original author. This isn’t only related to freelance writing gigs but also to many other industries.
Suppose that you hire a content writer to get a blog post, but the content is just a copy/paste from another person. If you run a website, you have several plagiarism checkers available to check the uniqueness of a piece of content.
But, if you need a designer to create a logo, you may not find out after several weeks or even months. So I recommend always asking for some proof that the work is original, just to be on the safe side.
Payment Upwork Scams
The Upwork platform is pretty safe as a whole, but finding payment scams is not impossible, and the good news is that they’re very easy to spot.
First of all, if the freelancer asks you to pay out of the platform, it isn’t professional and you never know what you’re getting into. You may pay them in advance and never get the job delivered, for instance. Sure, they may avoid Upwork’s hefty fees, but it wouldn’t be entirely safe for you unless you know and trust the freelancer.
Secondly, you may find a freelancer asking you to be paid before accepting the contract, hence offering another payment method. Naturally, some freelancers are in urgent need and they may be genuine, but if they aren’t, you could lose your money.
As a reminder, when you pay a freelancer on Upwork, they will have to wait 5 days before withdrawing the money which is inconvenient for them.
Rented and Sold Accounts
This is an increasing issue with Upwork, especially given that freelancers in some countries aren’t allowed to join the platform, such as Chinese or Russians.
This is when users with good reputations sell or rent their accounts to other freelancers for a commission. For example, you may be messaging “John Smith” based in New York City, but the actual person could actually be someone on the other side of the world.
In total honesty, this wouldn’t hurt your business – however, if you ask them to sign an NDA or send confidential information, then this isn’t ideal for your business.
For Freelancers – How to Avoid Upwork Scams
Like any other freelancing platform, you’ll find Upwork scams, but many of them can be prevented. You see, as a freelancer, just using common sense when talking to clients will go a long way in spotting red flags.
You may see that fantastic job posting and send proposals trying to be the best among other freelancers, but you need to be careful when talking to the client and eventually avoid Upwork scams.
Analyze the Client’s Profile
For instance, if a client asks for a free trial and has 10 openings but only one review, then it most likely isn’t right for you. Pay attention to the number of open jobs, proposals, interviews they’re having, and if the number of each is high, it’s probably a scam.
Once you talk to the client on messages, figure out the reason why he wants to hire freelancers – does he want to grow his business, design a logo, or even need a freelance writer for his blog?
Clients Who Work Outside of Upwork
Another common scam on Upwork is finding clients who want to take the communication outside the platform. As a freelancer, especially as a Virtual Assistant, it’s inevitable that you will come across clients who insist on chatting via Skype one day or another.
This is not always the ideal situation because, often, when they never want to use Upwork for payments, your suspicions should be raised as well.
Make sure to push them back towards using Upwork messenger to stay safe. If they refuse – find other work opportunities rather than risking your Upwork account.
Sure, while I find it tempting to skip Upwork’s commission and deal with the client directly, it can harm the hard work I’ve put into my profile and reputation. Eventually, you’ll also be risking everything for a scam (yes, communication outside the platform goes against Upwork’s Terms Of Service).
Clients Who Ask for Free Work
While Upwork is one of the best freelancing platforms, one side that isn’t continuously monitored is clients asking freelancers to work for free.
This is especially common for new freelancers as they’re willing to go the extra mile to make a client happy and get a good review. But I recommend acting like an experienced freelancer and don’t work for free.
Don’t get me wrong, you have the Upwork payment protection and hourly payment protection available, but that will never protect you from a client asking you for free work.
That being said, freelance writers can expect clients to ask for a short, unpaid test article for free and that is common – I wouldn’t consider it a scam. After all, they need to know what they’re paying for, and I’m pretty you won’t spend hours writing 200-300 words.
This doesn’t only apply to freelance writing gigs, but also to others like graphic design.
Payment Exchange Upwork Scams
Let’s be honest, you’ll find excellent Upwork job postings around, and that’s why the platform is so popular. But another Upwork scam is the payment exchange one.
To give you a real-life example, back in 2020, NBC News reported that some freelancers were victims of Upwork scams and lost thousands of dollars. Among them is Chris O’Reilly – he was sent a $3,000 check to send to other parties and supposedly buy medical equipment. After the check was cleared and the money sent, he found out the check was forged.
That is to say, while most clients on Upwork are legit, there’s a small percentage of scam artists you have to be careful to, especially when it comes to using your own money.
What Problems do Freelancers Face On Upwork?
First of all, being on Upwork is a costly endeavor. You have to pay if you run out of Connects – 10 Connects for $1.5 and 20 for $3 + tax. Also, their 20% commission is very high, especially when you start a new contract.
With some applications charging up to 6 Connect each, these will end quickly.
Secondly, Upwork is a difficult platform for new freelancers. Even after going through their strict application and verification processes and spending time perfecting your profile, there is no guarantee that you’ll find clients.
Of course, it can be well worth the hassle if you are able to succeed.
Last but not least, Upwork’s security period for payments to freelancers can be a hassle. It is a necessary process that gives Upwork time to reconcile all payments before freelancers can receive them.
The process takes up to 5 days and includes optional payments such as bonuses. For instance, if the client pays the freelancer on a Monday, the funds will be available on Saturday. If they pay on a Tuesday, they will be available on Sunday, and so on.
Common Complaints About Upwork
There are a few common complaints about Upwork that freelancers have regarding job postings and more. One is that it can be difficult to get work, especially if you’re new or just starting a freelancing career. Another is the hefty fees, especially when considering the Upwork platform’s commission takes on each job.
But let’s go deeper into the topic and see the other side of the business, the common complaints about the freelancing marketplace on Upwork.
Upwork Can Kick You Off Their Platform With No Warning
If you sign up for Upwork, it contractually binds your account to their Terms of Service. If they find that you violate any rule or regulation set, they have every right to suspend or close down your account without warning.
For example, if you buy an Upwork review from fake profiles, you’re in the wrong, and you’ll see your account suspended.
Or if you are caught offering a client to work outside of Upwork, you may get that client to pay you directly through another payment method, but you may also see your account terminated.
The Commission Is Too High
The fees on Upwork are among the worst, and there’s nothing you can do about it. If you make $500 with a client, Upwork will charge a 20% commission from that first income.
Of course, the fee is only 5% once you’ve made $10k or more in commissions with the same customer. However, you still need to reach that milestone, and it could take months, depending on your field.
Apart from that, a small withdrawal fee will be applied whenever you transfer your money to your PayPal account.
All in all, Upwork takes too much money no matter what stage your freelancing business is at.
Freelancers Can’t Find Clients On Upwork
Many freelancers complain that they’ve never been able to find a single client on Upwork. These same freelancers usually just give up, stating that the platform didn’t work out.
Of course, I understand where they’re coming from. But everything depends on the time and effort you put into your profile and job applications.
Upwork can definitely earn you a decent living if you complete your profile with the right keywords, if you gain enough positive reviews, and if you’re patient.
Companies’ Rates Can Be Ridiculously Low
I have been using Upwork for a few years to find freelance projects. Over the years, and with the number of freelancers joining, rates have become lower and lower, and it comes with no surprise that applicants complain.
For instance, as a content writer, it isn’t uncommon to be offered $10 for one 1000-word blog post. We can all agree that this is a meager amount, especially when living in a developed country.
Let’s be honest, if I were new on Upwork, I would still take that project to earn some reviews, but it’s simply not sustainable in the long run.
Is Upwork Worth It?
While Upwork may not be the best option for those who need a ton of work with little time to find it, plenty of benefits make this platform worth consideration.
Freelancers can get paid quickly and efficiently thanks to their intelligent billing system and benefit from payment protection.
Plus, they offer an excellent scope of jobs in virtually any industry you might want, from A to Z. You’ll never have trouble finding exciting projects here.
More Remote Work Guides
- Is Upwork Good For Beginners?
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- This is How to Use Upwork as a Freelancer
- 7 Easy Freelance Jobs for Beginners in 2022
- How To Become a Freelance Copywriter
- How to Find Clients Online – 7 Ways to Get Clients as a Freelancer
In Conclusion, Is Upwork Legit?
All things considered, yes, Upwork is a legitimate way to make money online. Despite the existing scams, complaints, and despite not being perfect, you can certainly make a living out of it as a freelancer.
I’ve earned over $10,000 using it as a side hustle and keep working with my clients daily, and I couldn’t recommend it enough.
