Upwork is the largest freelance marketplace in the world. Over 18 million registered freelancers. More than 5 million registered clients. Over $3 billion in freelance work posted annually. Those numbers make it sound like the obvious choice for anyone looking to start freelancing.
But numbers do not tell the whole story.
Upwork is also a platform where beginners burn through their free Connects without landing a single client. Where a 10% fee on every dollar earned adds up fast. Where proposals go unread, competition undercuts your pricing, and the algorithm can feel rigged against new freelancers.
Some people build six-figure freelance careers on Upwork. Others spend months applying and earn nothing. The difference is not talent — it is strategy.
This review covers exactly how Upwork works, what you can expect to earn, the real costs involved, and whether it makes sense for your situation.
First — This Is Important…
Hey, my name is Mark.
Upwork can be a path to real freelance income, but it is competitive, fee-heavy, and built on someone else’s platform. You are renting access to clients — not building an asset you own.
The model I use generates $500–$1,200/month per digital asset that I own and control. No platform fees, no proposal costs, no competing with thousands of other freelancers for every project.
Go here to see the exact system I use to do this
How Upwork Works
Unlike Fiverr where freelancers create pre-packaged gigs and wait for buyers, Upwork operates on a proposal-based model. Clients post job listings. Freelancers browse those listings, submit proposals, and compete for the work.
Each proposal costs Connects — Upwork’s internal currency. New freelancers receive a limited number of free Connects, then must purchase more. Most proposals cost 2 to 6 Connects ($0.30 per Connect), meaning each application costs $0.60 to $1.80. If you send 50 proposals per month, that is $30 to $90 in application fees alone — before earning anything.
When a client selects you, the project is managed through Upwork’s platform. Hourly contracts use Upwork’s time-tracking software that records your screen periodically. Fixed-price projects use an escrow system where the client funds milestones before work begins.
Upwork Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Service fee | 10% of earnings | Flat rate on all contracts |
| Connects | $0.30 each (2–6 per proposal) | Required to apply for jobs |
| Payment processing | Varies by method | $0.99 (ACH), $2 (PayPal), $5 (wire) |
| Freelancer Plus subscription | $14.99/month (optional) | Provides 80 Connects + profile insights |
The 10% fee is lower than Fiverr’s 20%, but the Connect costs add up — especially for new freelancers who may submit 30 to 50 proposals before landing their first client. At $1.80 per proposal, that is $54 to $90 spent just to get started.
One important note: Upwork recently changed its fee structure. It was previously tiered (20% on first $500, 10% on $500–$10K, 5% on $10K+). The current flat 10% is simpler but eliminated the discount that long-term client relationships used to provide.
What You Can Realistically Earn
Earnings on Upwork depend on your skills, niche, experience level, and how effectively you position yourself.
| Experience Level | Typical Hourly Rate | Monthly Potential (20 hrs/week) |
|---|---|---|
| Beginner (new profile) | $10–$25/hr | $800–$2,000 |
| Intermediate (50+ hours) | $25–$60/hr | $2,000–$4,800 |
| Expert (500+ hours, Top Rated) | $60–$150+/hr | $4,800–$12,000+ |
| Specialized (niche skills) | $100–$250+/hr | $8,000–$20,000+ |
The early stage is brutal. Without a track record, you are competing against thousands of freelancers — many from regions with much lower costs of living who can afford to bid $5 to $10/hour. Your first few projects will likely be underpriced just to build reviews and your Job Success Score.
Once you accumulate 500+ hours of work and achieve Top Rated status, the dynamic shifts. Clients seek you out, long-term contracts become common, and your earning power increases dramatically.
Pros of Using Upwork
Access to serious clients. Unlike platforms dominated by one-off gigs, Upwork attracts businesses looking for ongoing freelance relationships. Long-term contracts of $5,000 to $50,000+ are common for skilled freelancers.
Higher earning ceiling. Hourly billing with time tracking means your income scales with effort. Unlike fixed-price platforms, you can earn consistently by working more hours for established clients.
Payment protection. The escrow system for fixed-price work and the hourly payment guarantee (when using the time tracker) provide strong protection against non-payment — a genuine concern in direct freelancing.
Professional client base. Upwork’s client pool includes startups, agencies, and enterprise companies. The quality of available projects tends to be higher than what you find on budget-focused platforms.
Talent Scout program. Top freelancers can access enterprise-level clients through Upwork’s Talent Scout feature, which matches elite freelancers with high-paying, long-term opportunities.
Cons of Using Upwork
Connects cost money with no guarantee. Spending $1 to $2 per proposal with a 5 to 10% response rate means you may spend $50+ before landing your first client. For beginners, this feels like paying for the privilege of being ignored.
Intense competition. With 18 million registered freelancers, popular categories are saturated. Writing, basic graphic design, and data entry have the most competition and lowest rates. Specialization is essential for standing out.
Algorithm and Job Success Score pressure. Your Job Success Score (JSS) affects visibility. A few bad reviews or cancelled contracts can tank your score — and your ability to win new work — for months.
No vetting of freelancers. Upwork does not review portfolios or test skills before allowing someone to join. This creates a wide quality range that can frustrate clients and make the platform feel less professional.
Time tracker feels invasive. The hourly work tracker takes periodic screenshots of your screen. While this protects both parties, many freelancers find it intrusive and prefer fixed-price contracts as a result.
When Upwork Makes Sense
You have specialized skills. Developers, designers, marketers, and consultants with niche expertise command premium rates and face less competition. If you can offer something specific that few others can, Upwork is a viable path to consistent income.
You want long-term client relationships. Upwork excels at connecting freelancers with clients who need ongoing work. Once you establish a relationship, many clients prefer to continue working with a known freelancer rather than sourcing someone new.
You are building a freelance career. The platform’s review system, Job Success Score, and Top Rated designations create a portable reputation that helps you win increasingly valuable projects over time.
When Upwork Does Not Make Sense
You need income immediately. The ramp-up period on Upwork — building a profile, spending Connects, landing first reviews — can take weeks or months. If you need money now, side hustles that pay faster are a better choice.
Your skills are undifferentiated. General writing, basic data entry, and simple graphic design are commoditized categories where you will compete primarily on price against freelancers charging $5 to $10/hour. Without specialization, Upwork becomes a race to the bottom.
You want to build an asset. Everything you build on Upwork — your reviews, your Job Success Score, your client relationships — belongs to Upwork. If the platform changes its policies, raises fees, or shuts down, your professional reputation goes with it. Unlike building your own business or blog, Upwork does not create transferable equity.
Tips for Success on Upwork
Write custom proposals for every job. Generic proposals get ignored. Reference the client’s specific project, demonstrate you understand their needs, and explain exactly how you will solve their problem. This alone puts you ahead of 80% of applicants.
Start with a niche. Pick one specific service and become known for it. “Shopify store setup for food and beverage brands” wins more jobs than “I can do web design, development, and marketing.”
Price strategically. Start slightly below market rate to build reviews, then increase rates by 10 to 20% after every 5 to 10 successful projects. Your reviews justify higher prices, and clients who value quality will pay them.
Build long-term relationships. Your most profitable work on Upwork will come from repeat clients. Deliver exceptional work, communicate proactively, and make yourself indispensable. One $3,000/month retainer client is worth more than fifty one-off gigs.
Track your numbers. Know your proposal-to-interview rate, interview-to-hire rate, and average project value. Treat your Upwork business like a sales funnel and optimize each stage.
The Specialization Advantage on Upwork
The single most important success factor on Upwork is specialization. General freelancers struggle. Specialists thrive. Here is why:
When a client posts a job for “Shopify migration specialist with experience in food and beverage ecommerce,” they are not looking at the 500 general web developers who applied. They are looking for the 5 to 10 freelancers whose profiles specifically mention Shopify migration and food industry experience.
Specialization reduces your competition by 90% or more. It justifies premium pricing because clients pay more for specific expertise. And it generates repeat business because specialized knowledge becomes increasingly valuable as the client relationship deepens.
The highest-earning Upwork freelancers are not the most talented generalists — they are the most focused specialists. A freelancer who exclusively helps SaaS companies with email marketing earns more than a freelancer who offers “marketing services.” The same applies to every category on the platform.
Understanding the Connects System
Connects are Upwork’s application currency and one of the platform’s most misunderstood features. Here is how to use them efficiently:
New freelancers receive a limited number of free Connects (usually 10 to 40 depending on your profile). After that, you purchase them at $0.30 each. Most job applications require 2 to 6 Connects, with higher-budget jobs requiring more.
Spending Connects wisely:
Do not spray-and-pray. Applying to every job wastes Connects and time. Instead, target jobs where your skills are a direct match, the client has a verified payment method and a history of hiring, the budget aligns with your rates, and the job description is detailed (indicating a serious client). Track your Connect-to-interview ratio. If you are spending 50 Connects to get one interview, your proposals need improvement. A healthy ratio is 8 to 15 Connects per interview.
Connect refunds: Upwork refunds Connects when a job is removed, the listing expires without hiring, or you withdraw a proposal before the client views it. Understanding these refund conditions helps manage your budget.
Frequently Asked Questions
How much can you make on Upwork?
Earnings range from near-zero for beginners to $100,000+ annually for established specialists. Average hourly rates range from $15 to $25 for general skills and $60 to $150+ for specialized expertise. Most successful freelancers earn $2,000 to $8,000/month after building a track record.
How long does it take to get your first client on Upwork?
Typically 2 to 6 weeks for freelancers who submit 3 to 5 targeted proposals daily. Some get hired within days; others take months. Your profile quality, proposal customization, and pricing strategy significantly impact this timeline.
Is Upwork’s 10% fee worth it?
Compared to the cost of acquiring clients independently (marketing, sales time, networking), many freelancers consider the 10% fee reasonable — especially given the payment protection and built-in client discovery. However, as your business grows, transitioning some clients off-platform eliminates the fee on established relationships.
Can you do Upwork alongside a full-time job?
Yes. Many successful Upwork freelancers start while employed full-time, using evenings and weekends to build their reputation. Upwork’s flexibility lets you take on projects that fit your schedule. For more ideas on earning alongside employment, see how to make extra money.
The Bottom Line
Upwork is a legitimate platform that can support a real freelance career — but it requires patience, strategy, and willingness to invest time and money before seeing returns. The freelancers who thrive treat it as a business, specialize aggressively, and transition from one-off projects to long-term client relationships.
For freelancers who prefer to build passive income that does not require trading hours for dollars, Upwork is not the model. But for those with in-demand skills who enjoy client work, it provides a structured marketplace with strong payment protection and access to global opportunities.
For income that does not depend on proposals, platform fees, or client approvals, here’s how I build simple websites that generate $500–$1,200/month each in recurring revenue. For the full model, see local lead generation.
If you do use Upwork, play the long game. Your first project will not pay well. Your second will be better. By the time you have 20+ five-star reviews and a Top Rated badge, you will have access to opportunities that make the early investment worthwhile.
Mark is the founder of MarksInsights and has spent 15+ years testing online business programs and tools. He focuses on honest, experience-based reviews that help people avoid scams and find real, sustainable ways to make money online.