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New Fee Scheme - FAQ

As you may already know, our Fee Scheme is changing as of 1st July 2018.

We believe this change will build a stronger community overall with freelancers being driven to build long-lasting relationships, and not seeking one-off transactions. Below you will find a go-to FAQ that will allow you to understand, and answer any questions you may have regarding this change.

If you need more guidance you can always contact us.

 

Q: When does the new service fee structure come into effect?

A: The new service fees structure will apply to all of our Sellers as of 1st July 2018.

 

Q: Where can I see my service fees structure?

A:  From 1st July 2018, all Sellers will be able to see their updated service fees structure on the Control Panel of their Payments section.

 

Q: What are lifetime billings?

A: Your lifetime billings are the total invoices paid between you and a Buyer including Seller service fees. Lifetime billings do not include any fees paid by Buyers to PPH.

 

Q: Will my active Jobs be subject to these fees?

A: The previous service fees structure will run until the end of June, so all invoices released on or after 1st July 2018 will follow the new service fee arrangement.

 

Q: I started working with some of my Buyers a long time ago. How am I affected?

A: All historic billing will be taken into account. Service fees are based on your lifetime billings with a single Buyer since you first started working with them.

 

Q: How do refunds affect my lifetime billings with one Buyer?

A: If you refund a Buyer, the refunded amount will be deducted from your lifetime billings with that Buyer.

 

Q: How will I know what service fee I'm going to be charged for a Job?

A: As you do today, when you are submitting proposals, you will see the service fee displayed that is applicable to the specific Buyer for whom you are creating a bid.

 

Q: How does this work for Jobs that span two or more thresholds? For example, I get hired for the first time by a Buyer for a £600 contract, will I be charged 7.5%?

A: All contracts that cross a service fee threshold are charged at a blended rate. For example, if you begin a contract with a new client for £600, you’ll be billed 20% on the first £500 and 7.5% on the remaining £100. The same would be true for a £6,000 contract – you’ll be billed 20% on the first £500, 7.5% on the next £4,500 and 3.5% on the last £1,000.

 

Q: When I reach a new threshold with my Buyer, how do I make sure I get the lower service fee?

A: We will automatically apply lower service fees when your lifetime billings with a Buyer have exceeded £500 or £5,000.

 

Q: I completed a project with a Buyer last year. They just contacted me again for a new project. Will I be charged 20%, 7.5% or 3.5%?

A: The new service fees structure depends on your lifetime billing with each Buyer across your entire history on PPH. Invoices paid between you and the same Buyer are summed up to calculate your service fee.

 

Q: Why has PeoplePerHour decided to make this change?

A: At PeoplePerHour, we are constantly monitoring the platform and looking for improvements that will benefit the community overall. Research among community members has shown that a fee structure that encourages the building of high value long-term relationships is something the majority of Sellers welcome and will reap clear financial benefits from.

 

Q: Did you preview this change with any of us? Many of us work on smaller Jobs and will be seeing higher fees as a result.

A: Yes, we conducted a ton of analysis to finalize the new fees and thresholds. Through community research, we’ve been able to model the potential impact and we’re confident the new fee structure will bring benefits to the community overall.

 

Q: Where can I share my feedback and suggestions about this new service fee structure?

A: We welcome your feedback and we’re here to listen if you have any concerns. Please do not hesitate to contact us.

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