PPH raises service fees to 20% starting on May 1st

PPH new service fee

PPH new service fee

PeoplePerHour is not the first freelance platform to raise it’s service fees. In May 2016 Upwork (Formerly oDesk) announced a new sliding service fee. According to which freelancers charged 20% of their earnings unless they make 500$+ in all contracts of the same client. Thus Upwork freelancers who work with different clients paid 20% service fees. Now PPH announced a PPH new service fee “scheme. According to it if you earn less than  £500 | €600 | $650 in any month, your fee will be 20%. (For Sellers registered after March 21, 2017). PPH justified the new service fee scheme saying “Established and loyal members, worry not! …… we will continue honouring this for our regular and loyal Sellers”. but by the end of the announcement they said “Bear in mind that if you do miss the monthly goal, you will automatically fall into the newly designed Service Fee scheme. Therefore we advise you to remember to invoice Buyers regularly!”. A saying that made PPH sellers ask “What kind of  honoring? punishing us for missing the monthly Goal?”. It must be a silly joke or an April lie as silly as Upwork joke saying “Ubama joined Upwork”. It was actually almost the same poor, and insane justification as Upwork’s when they announced their new service fee sliding. Upwork justification was “To this point, Upwork has subsidized the costs of processing payments on the platform. With this change, clients making payments on Upwork will be paying a portion of this cost.” . That means Upwork is still subsidizing a portion of the costs of processing payments!!.

PPH sellers opinions:

PPH new service fee met with angry sellers who didn’t like the new service fee scheme. We quote bellow some PPH freelancer’s opinions about it.   mzalewski: “Not sure I’m happy about this. It’s obvious you’re trying to convert existing users over to the newer rates” Paul: “How many people are you prepared to lose to other platforms due to this change? For those of us who are VAT registered like myself, for example, if we were forced onto that structure because of a “dry month”, we get £300 out of the first £500. I would be far happier to pay a monthly subscription as with other platforms than this.” Eno Eteng: “I would have been happier if something was given to Sellers such as extra connects. Why would I have to get stuck with my 15 connects and still have to pay 20% of work done with such a measly amount of Connects? At least on Upwork, I get to bid for 30 jobs with free connects. Here, we pay for everything: profile features, extra connects, etc!” Adam: “20% ?? For what? Pure and simple it’s a cash grab.”  

Our review

When Upwork started its new  sliding service fee too many freelancers left the platform. They started working on other platforms such as Fiverr. But the amount of freelancers left upwork didn’t have a big effect because Upwork had already a huge number of freelancers since the join of Odesk and Elance. On the other hand PPH with only 1.5M registered users it would be worse losing a portion of talented sellers.