Please introduce a fair flat % service fee
The tiered service fee model is fundamentally broken for sellers.
It makes it impossible to accurately price work and leaves no alternative other than to overcharge to ensure that you make enough to cover you minimum hourly rate or fixed price fee.
For example, an hourlie priced £1000 incurs fees of £105 - leaving a profit of £895 commission. If two hourlies were sold in one month then the fees are £165.
It may sound good to make an extra £45 because the fees are reduced, but in reality it just means that I have had to overcharge the first client of each month in order to guarantee i make the minimum rate I require.
Also the model of basing the initial 15% fee on a monthly basis encourages sellers to either chase or delay payments - which directly affects the profit received.
For example, two jobs for £1000 each that complete at the end of the month - are expecting to be paid in the same calendar and will generate a service fee of £165 - but for some reason one of them is delayed and enters the following month. Suddenly service fee for the same work becomes £210 - this doesn't seem fair. How can a seller budget or plan their forecast when commission income is so volatile.
Just my tuppence.
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Official comment
Hi Jamie,
Many thanks for your suggestion. I will pass it on to our product team. Please let me know if I can help you with anything else.Comment actions
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