Where to Find the Lowest Freelancer Fees (and why they're worth it)
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Where to Find the Lowest Freelancer Fees (and why they're worth it)

When joining freelancing platforms like Pangea.app, Upwork, or Fiverr, one of the most common freelancer questions is “Why are the marketplace fees so high?”
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We all find it unsettling when our hard-earned pay is chipped away at for any reason, but when it comes to freelancing, it really is worth it (we know, we know…this is a blog on a freelancing platform’s website…bear with us a sec).

Freelance Work Entails More Than You Might Think

Freelancers are basically their own businesses. The buck starts and stops with them. On top of delivering stellar work in their areas of expertise, they’re also required to be an accountant, project manager, lead generator, salesperson, and self-disciplinarian all rolled into one. With the level of independence freelance brings, it also comes with a tremendous amount of responsibility. 

Freelancer fees are here to protect you in a variety of ways.

Freelancing platforms don’t take all these things out of the equation, but they make them exponentially easier to manage. Here are a few ways freelancing platforms help maximize freelancer earnings, even with the marketplace fees:

  1. Easily find the right opportunities: Freelancing platforms provide access to thousands of remote freelance opportunities across the globe. Clients can also seek freelancers out and inquire about their pricing and services.

  2. Manage engagements all in one place: When working with multiple clients, it can be tough to stay on top of things. Platforms like Pangea, Upwork, and Fiverr allow freelancers to keep track of everything all within their own unique dashboard.

  3. Freelancer contracts: Freelancers are independent contractors and should get everything in writing before working with a client. Freelancing platforms will generate simple contracts for each engagement.

  4. 1099 tax forms: As independent contractors, freelancers are required to file a 1099 for their yearly earnings. Freelancing platforms handle this for their freelancers by sending them one 1099 form for all work performed via their site the previous year.

  5. Extra protection: Just like any business, there is always a risk of clients not paying for the services they’ve commissioned. Freelancing platforms require clients to adhere to their terms of service as well, and will have their freelancer’s backs if anything shady goes down.

  6. Invoicing and payments: When working on a freelancing platform, all invoicing and payments are taken care of through a secure payment gateway. This way, freelancers don’t need to worry about dealing with Paypal, Venmo, or tracking clients down for their pay. 
It sounds counterintuitive, but freelancer fees actually help you earn more.

Comparing Upwork and Fiverr’s Fees for Freelancers

The going rate for freelance marketplace fees across the board is around 20%. In these cases freelancers will take home $80 of every $100 earned. Freelancers beware: this does not include the quarterly taxes you should be paying to ensure you do not owe anything come tax time. Let’s breakdown the differences between Upwork and Fiverr’s freelancer fee structures:

Upwork’s Freelancer Fees

Upwork’s freelancer fees, as mentioned above, start at 20%. However, there are a few scenarios in which freelancer pay is subject to lessened fees. Upwork’s fees are based on the following criteria: 

  • $0-$500 in earnings from a client: 20% service fee applied to earnings
  • $500.01-$10,000 in earnings from a client: 10% service fee
  • $10,000.01 or more in earnings from a client: 5% service fee

These discounted fees only go into effect on a per-client basis, and are not based on the freelancer’s earnings on the platform as a whole.

Pangea.app is the best place for reduced freelancer fees

Fiverr’s Freelancer Fees

Fiver’s freelancer fees are just a flat 20% in all cases. This platform is structured in such a way that clients seek out freelancers offering services as opposed to freelancers applying for gigs they’re interested in working on.

Fiverr freelancers are referred to as sellers, and have personal, on-platform web pages where they’re able to market themselves and their services. In exchange for this, sellers are charged the same flat-rate fee each time a client payment is processed.

Maximize Your Freelancer Pay with Pangea.app

Pangea.app provides freelancers with the most opportunities to reduce their fees. Starting at the traditional 20%, freelancers will save more and more as they continue to earn on the platform. Pangea’s fees are broken down as follows:

  • 20% Fee: Between $0-$1000 in lifetime earnings
  • 15% Fee: Between $1,000-$2,000 in lifetime earnings
  • 10% Fee: Between $2,000-$3,000 in lifetime earnings
  • 5% Fee: Beyond $4,000 in lifetime earnings

In other words, once a freelancer has earned $4,000 on Pangea, their marketplace fees are reduced to 5% per transaction for good. 

Skip the Line with Pangea Pro

Pangea Pro is a cohort of pre-vetted talent who immediately skip the line to that 5% fee. Pros are thoroughly reviewed by the Pangea team, who will be checking portfolios, work samples, experience level, and references to determine their area of expertise.

Once approved as a Pro, those fees will be lessened, their profile will be adorned with a Pro badge, and Pangea will even start hand-matching them with some of their top clients (many times before a job post even hits the feed). Pros make up the top 1% of talent on Pangea and are able to charge more for their services, and have a significantly higher chance of landing the projects they are interested in. If you’d like to become a Pro, be sure to apply today!

Don’t Sweat the Fees

Fees of any kind are no fun, but when it comes to using a freelancing platform they’re totally worth it. If you think about it, fees on platforms like Pangea actually save freelancers a ton of time, aggravation, and can ultimately earn freelancers more money than if they tried to go it alone. Whether you’re looking for additional work, a career change, or are looking to hire talent, try going the freelance route today!

Consider what you're getting in return on your freelancer fees.