This article explains the updates and key features of Direct Contracts on Upwork, which allow freelancers to work with clients who do not have an Upwork account while paying a reduced freelancer service fee. Freelancers can create and send contract proposals to these clients via email, and clients must create an Upwork account to accept the proposal. Direct Contracts offer benefits like contract management and dispute assistance. Freelancers must initiate new contracts through the Direct Contracts page to continue receiving the discounted service fee, and both hourly and fixed-price contracts are available under this option. - AI helped create this summary
Direct Contracts let you invite clients who don't have an Upwork account to work with you on Upwork. You'll pay lower freelancer service fees on contracts with those clients, while getting the benefits simple contract management and dispute assistance should a problem arise.
How Direct Contracts work
With Direct Contracts, you can create and send fixed price or hourly contract proposals to your clients who aren't on Upwork yet. You'll send the invitation by email to your client.
If your client wants to accept your invitation, they'll need to create an Upwork account and accept your proposal. (If you try to invite a client who has already signed up for Upwork, you'll get an error message that the email is already associated with Upwork and you won't be able to send the invitation).
You can see your pending contracts on the Direct Contracts page. Once a client accepts a contract, you'll see it in Your active contracts.
After your client signs up for Upwork and accepts your proposed contract, it will work just like other Marketplace contracts, except you'll pay a reduced freelancer service fee. Also, if the contract closes, you'll need to initiate future contracts with that client through the Direct Contracts page to continue to receive the discount.
- You pay a 5% freelancer service fee on the earnings you make on Direct Contracts. The fee is 5% of the total value of the contract. For example, if your earnings are $100 USD you'll be charged a fee of $5 USD. Note: If you’re an active Freelancer Plus member, you won't pay any freelancer service fees on Direct Contracts.
- Your client will pay the Client Marketplace Fee and a Contract Initiation Fee
Please note that all transactions are in USD.
Frequently Asked Questions
Freelancers are charged a 5% freelancer service fee for contracts initiated through the Direct Contracts page. Note: If you’re an active Freelancer Plus member, you won't pay any freelancer service fees on Direct Contracts.
After your client accepts your invitation, you'll need to initiate future contracts with them through the Direct Contracts page to receive the discounted freelancer fees.
A Direct Contracts contract will have the same impact on your metrics as other contracts. You and your client can leave each other feedback, which can impact your JSS score and Rising Talent or Top Rated status, and the number of contracts and dollar earnings will be counted in your totals.
Yes! You can have both hourly and fixed-price contracts with the Direct Contracts option.
Go to Find work > Direct Contracts and choose Create a contract to get started.
Go to Your active contracts to find the contract. From the contract workroom, select the (...) and you'll see an option to End contract.
Payment occurs the same way that it does for Marketplace contracts. Hourly contracts will be billed weekly based on time you log with the Time Tracker or add manually, and you'll submit work for payment for fixed-price contracts.
If your client cancels a fixed-price contract with you, any money deposited will be returned to them. If you need to dispute that return, learn how to file a dispute on a fixed-price contract here.
If your client cancels an hourly contract, you will be paid for all billed hours, unless the client files a dispute of your hours within their allowable time frame. Learn how to respond to a client's hourly dispute here.
Yes, you and your client can share feedback on Direct Contracts.
Existing contracts on Upwork cannot be changed to a Direct Contracts contract.
Yes, you'll log time for Direct Contracts in the Time Tracker, just like for other contracts.