Nowadays, hiring remote workers is nothing out of the ordinary for businesses, big and small alike. Many thousands of companies around the world now employ exclusively remote teams and small companies are twice as likely to do it.
The main reason – a chance to significantly cut costs and improve productivity. But what troubles many would-be remote enterprises is the remote worker costs, and especially the hidden fees of the remote worker platforms.
The goal of such platforms is to connect you, as an employer, with the kind of employee you want, need or can afford. And it’s perfectly reasonable that they charge for the service they provide – as long as everything is transparent and you know what you’re paying for upfront.
Stick with us as we guide you through the pricing models of some of the big names on the market, as well as their fees, sometimes well-hidden in the fine print.
What is The True Cost of Using Upwork To Find Remote Workers
Upwork is a true heavyweight in the world of freelancer marketplaces, and signing up on it comes free of charge.
Then there are three options at your disposal – Basic, Plus, and Business. The basic package is mostly free, but you are limited to three invites to freelancers per job post. You also miss out on some of the platform’s advanced features such as talent sourcing assistance and featured jobs upgrade.
The Plus and Business plans grant you access to all of these services and include either 15 invites (Plus plan) or an unlimited number of invites per job post (Business plan). The former will cost you $49.99 per month, and the latter $849.
However, keep in mind that a 3% processing fee will apply to all payments to freelancers, regardless of the chosen subscription. For the Business plan users, there is a service fee of 10% on all payments (20% for the first $500 paid to any individual freelancer) that is taken from the total charge you pay before the freelancer can take what remains.
|Upwork Fees||What You Really Pay||What Your Employee Earns||Upwork’s Cut|
$1000 Job (First project with this freelancer)
What is the True Cost of using Fiverr to find Remote Workers – Pricing Model and Processing Fees
Fiverr, another big name in the industry is primarily conceived as a marketplace where workers, or sellers, sell their services, called gigs, to potential employers (buyers) worldwide. Signing up is free, but if you want to make a hire through this platform, expect a $2 fee for purchases of up to and including $40. A fixed percentage fee of 5% is applied to all orders above the $40 mark.
|Fiverr Fees||What You Really Pay||What Your Employee Earns||Fiverr’s Cut|
What Is the Cost of Hiring a Remote Team on JobRack
JobRack is a platform that connects entrepreneurs with high-quality Eastern European remote workers. Its main selling point, besides the proven benefits of hiring freelancers from Eastern Europe, is a straightforward and transparent pricing model. It comes with a one-off payment, no hidden fees and no ongoing subscription required.
Unlike Upwork, where you have to pay extra to contact additional jobseekers, on JobRack, you pay the same amount regardless of how many applications you receive or how many candidates you reach out to. Also unlike other platforms of its kind, JobRack encourages hiring committed full-time or part-time employees instead of one-task freelancers. What’s more, there is no intermediary between you and your future team members – it’s entirely up to you and them to decide on the method of payment.
If it’s a one-off project then Fiverr and Upwork can be great, but as soon as you do a second project or a third or a fourth….. then you’d be financially better off having hired through JobRack.
Aside from being financially better off, there’s a whole host of other reasons why you’d want to consider hiring from JobRack and Eastern Europe, no matter whether it’s for one project or for regular ongoing work on a part-time or full-time basis
For the price of just $199, you’re entitled to one job post that you can access anytime in the next 12 months. If you plan to grow a team, you’ll get three job posts for the price of $399. And for those entrepreneurs that would like to advance to the next level and scale up their operation, it takes $599 to post five job ads.
Add to this unlimited access to a pool of more than 6,000 extremely talented candidates, and you can understand why this platform guarantees that you’ll find “your dream employee in 30 days.” And if you think you need or want help to find your next hire there is a premium service called Done for You. It helps you find a perfect hire through an elaborate and time-tested recruitment process, as well as detailed research of your needs.
How Much Does a $1,000 Project Really Cost?
Bear in mind that freelancers on Upwork and Fiverr must price their work to earn the money they require.
So if they need to earn $1,000 for a project then they must price it to make sure that their eventual cut is $1,000
Quality freelancers set their rates according to their value and their own needs and they avoid getting caught up in the race to the bottom competing to set the lowest possible rate.
See the comparison below for what both one and multiple $1,000 projects paid to a freelancer really means to your costs.
Comparison of fees for Upwork, Fiverr and JobRack
|Fee Comparison per project||1 x $1,000 Project||Total for Three x $1,000 Projects||Total for Ten x $1,000 Projects|
|Fiverr $1,000 Project||
|Upwork $1,000 project||
JobRack $1,000 project
As you can see these fees add up to a $3,000 difference over the course of ten projects between Upwork, Fiverr and JobRack.
Want to get your projects and work done without paying these high fees to Upwork and Fiverr?
Want high quality, part-time, full-time or project-based team members at a great value?
Check out JobRack’s simple $199 job post service and get access to thousands of high-quality Eastern European remote workers now. Click here to learn more,