UPWORK FIXED PRICE
Upwork offers two payment structures: hourly and Upwork fixed price. These structures are useful; you can use them at different times to start with a small fixed-price project and then convert to a big hourly project. Both of these have their pros, and you have to choose what structure you will adopt for your project.
UPWORK FIXED PRICE VS HOURLY
Let’s have a look at what these structures are and what their benefits are.
HOURLY
Hourly payment is perfect for long-term projects in which you are not sure how much time this project consumed. In this kind of project, you are invoice for the time you worked on your project. It did Billing automatically once a week. You can review the freelancer’s desktop screenshots to verify the freelancer bill in the work diary. May cover with Upwork hourly protection.
If you log more time than the weekly limit on which you and your client agree, it shows your client in the work diary, but it cannot invoice. You can negotiate a bonus from the client if both of you agree.
BENEFITS OF HOURLY PAYMENT
Good Communication
In every project, communication matters; this project gives both clients and freelancers a chance to communicate daily to provide updates. Any hurdle about address occurs can also resolve through communication.
Flexibility
An hourly project is beneficial when you and your client have no idea how much time this project consumes. It is suitable for any project where flexibility is required. As many outside factors also affect the hours of the project. Therefore, it is good to choose hourly projects for long-term projects.
Long-Term Relationship
The hourly project creates communication between freelancers and clients regularly and builds a long-term relationship between them, which is good for the future.
FIXED PRICE
Fixed price project has a set price. Fixed price is suitable for single projects which have a narrow scope. In this, both the client and freelancer agree to a milestone. You can have a single milestone, or you can divide the project into different parts. Milestone is adding according to the requirement. Only one milestone can fund at a time.
In the Upwork escrow, payment is the deposit, and it can only give to the freelancer when the client is satisfied with his work, as you can review the work before pay. If the client requires any changes in the work after the submission, he has 14 days to ask for changes and approve the work.
Upwork fixed price pays partly through milestones. The client can freeze the payment if the work is not complete. He can freeze the money at any stage as the work proceeds after the client’s positive response.
MILESTONE
Fixed price project is divide into a milestone; the project must contain one milestone. The client decides the beginning, the deadline, budget, task description, which needs to compete for each stage. Upwork freezes the client’s bank account t make sure that the freelancer gets his amount after completing the work.
IN CASE OF DISPUTE
Upwork pays his role as a judge between the client and the freelancer in case of any dispute. They freeze the freelancer’s payment; he only gets the amount when it proves that he thoroughly and efficiently did his job. It is not easy to get your freeze payment because Upwork mostly gives a decision favoring the client.
Sometimes when there is no amount in the client’s bank, the account payment does not freeze. You need to check the milestone description; if it shows like $XXXX, then it means your payment freezes.
Therefore, to avoid any dispute, the client and freelancer should discuss any possible problems and deadlines before starting the project. They can also consult these before starting any new milestone. If any conflict arises, try to solve it softly and efficiently, as this dispute can also affect your profile because the client can also give negative feedback on your face.
MONEY PENDING
Freelancers cannot get their money instantly after the completion of the project. The freelancer can withdraw his payment after a week, like submitting work on 21 March, but you will get the amount on 28. This is for security purposes; these days, the client checks the outcome if he wants any changes. He can see his payment in the pending section of his account; after a week, he can withdraw money.
BENEFITS OF UPWORK FIXED PRICE
Some of the benefits of Upwork fixed price are:
Discover New Talent
Sometimes clients get new talents in fixed-price freelancers. It is beneficial when a client is working with a freelancer who is new to Upwork. This new freelancer may have skills and talent but not have a firm timeline as you are looking for on Upwork.
Better Short-Term Project
Fixed price is more comfortable for the short-term project. As the client and freelancer determine the beginning and the end in the start. You have a specified time to complete the project.
Fixed Expectations
Fixed price is right for single projects; it’s more comfortable and more convenient for both the client and the freelancer as they already decide which date the project will start; on which date it ends. Freelancer has fixed expectations of payment.
Fixed Budget
The benefit of a fixed price is you have fix budget; the client can easily manage his account. A client has to pay all the money at once or make a fund for one milestone. Till the completion and approval of the work, payment is preserving in the escrow.
UPWORK FIXED PRICE PROTECTION
Upwork fixed price protection is the program that provides security and protection to the payment of clients and freelancers in escrow. It ensures that the freelancer gets the amount after completing the work, and the client gets the job as he asks.
Qualify for Upwork Fixed Price Protection
- Any extra amount promised between a freelancer and client can’t be protected under the fixed price payment protection.
- Payment protection doesn’t cover milestones amount in excess in the escrow.
- Payment through any unverified method is also not protected under payment protection.
HOW DOES PAYMENT PROTECTION FOR UPWORK FIXED PRICE WORK?
The client deposits the fixed price for the milestone in the escrow before freelancers start working on it. Freelancers get the payment from escrow after the approval of the work he submits.
Tracking Fixed-Price Contract
Freelancers can track the Fixed price contract under the payment protection program through Upwork Desktop App. This does not qualify for hourly protection; it only allows for fixed-price protection.
- Open the Upwork Desktop App.
- Click on the Settings option from the menu.
- Select the advanced setting option.
- Turn the track time on the fixed price option ON.
HOW LONG DOES UPWORK TAKE TO PAY
You will not get your payment instantly; Upwork takes some time on a security basis to give you your price.
Hourly
These contracts support a weekly billing cycle; the billing process ends every Sunday. The freelancer can withdraw his money ten days after the funds are available; this means a freelancer gets his payment after the Billing completes on Sunday on the following Wednesday. This ten-day period is the security period.
Fixed Price
Fixed Price contracts support milestones. Once a client approves the milestone, which a freelancer submits. Freelancers can withdraw their money after five days security period.
Bonus Payment
When the client successfully submits the funds in escrow, a freelancer can withdraw his bonus after five days security period
If the client did not approve the submission, the freelancer would automatically get his payment after 14 days of the security period.
UPWORK BID PRICE
Whenever a client or freelancer has to submit a bid proposal, they need to submit that proposal. Upwork changes the connect providing system, now connects are not free anymore, Upwork charges prices for connects. From May and June, the user will have to pay $0.15 for each connection.
Frequently Asked Question
What Is Upwork payment protection?
Payment protection is the program through which both the client and freelancer payment is guard throughout the project. It ensures that the client will get the work he wants, and freelance gets the work he completed.
Why do I prefer a fixed price?
If you are a professional and skillful person, you will get more money in a short time through the fixed-price contract as you will get paid based on your work, not based on the hours you work. Maybe you can complete your work in two hours, which other freelancers complete in five to six hours, you can get money in two hours that what the others get in five hours.
Did my log-in for tracker count in work hours?
No, this log is only for tracking purposes. It will not count in your working hours login, which is display on your profile.
Can the client get his money back if he didn’t get his work?
If a freelancer does not perform his task, and the client did not get his work client can create a dispute, after which money is returned to the client by Upwork
