Massively Restructure Payments and Fees

As of today I will no longer be using PPH as a platform for getting work, as frankly I'm sick of hostile the process actually is to both buyers and sellers, specifically because of how fees are hidden from both.

When I set a price for a proposal, I have no idea what I'm really charging my buyer, because when they actually move to pay me they're suddenly charged an extra 10%, then MY earnings are savaged for an absurd 20%!

 

 

PPH has created a platform that is utterly hostile towards sellers who want to do lots of small jobs, or who work mostly with a handful of clients but sometimes want to work for others, as we're suddenly gouged for doing… exactly what the entire point of a platform like this is supposed to be.

I'm sick of being gouged to the point that the only people making money on this platform are PPH themselves, and I will not be returning until something drastically changes in PPH's utterly broken fees structure and if I charge a buyer an amount, that's what I expect them to have to pay because that is what my proposal is FOR.

 

I am very disappointed by this platform.

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6 comments
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Iain

Apologies for the non-constructive tone of my first post but I'm deeply frustrated at the fact that I have no real idea what I'm actually charging my clients, because I have discovered that they are being made to pay fees on top of what is taken from me.

I'd like to propose the following changes:

  1. Buyers fees should apply only to the payment of the deposit, as a service fee for escrow. No fees should apply for the remaining amount (as there is no justification for this). Regular buyers on the platform should be eligible for decreased escrow service charges in a similar manner to reduced fees for sellers.
  2. Seller fees should be once again based only on activity, not on loyalty of clients, as the new structure is utterly hostile towards sellers who deal with many new/short-term clients, especially when the Hourlies system specifically encourages this!
  3. Fee reductions should be based on a rolling average over several months, to prevent penalising someone who has a lull in activity, or takes some time off (e.g- due to sickness, or to go on holiday). For example, the rate should be based on average monthly earning for the past six months.
  4. Buyer escrow service charges should disappear with regular activity, as the entire point should be to have a contingency for uncertainty, which a loyal buyer should no longer represent. This way a seller should not need to feel guilty if a buyer is charged extra initially.
  5. All prices should include both buyer and seller fees for both parties so that there is 100% transparency on what each party is paying/being paid for a job. There should be no need for a back-and-forth on pricing, and sellers should know exactly what they are actually charging their buyers for a job so they can absorb initial buyers fees if they wish to.

The only difficult case is the 0% commission offer for PPH; I would suggest in this case buyer fee reductions should not apply on existing buyer/seller pairs, since this is the only income for PPH in those cases.

However in future the 0% commission should be an introductory only offer, eliminating the initial fees and allowing both buyer and seller to get some activity under their belts before fees start apply; under my proposals this should mean a buyer may never pay service charges while a seller will start on the lowest rate.

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David

What??? So in addition to taking a fifth of the freelancer fee for doing next to nothing) they are now also charging the buyer for the act of paying us?

What a rip off!

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Simon

They have been doing this for a while. I think, by some strange coincidence this started at around the time the amount of work dropped significantly

I had a buyer last December who was upset when the amount I charged was not what I quoted. Now when I deal with a new buyer who has not used the platform before I explain that PPH will put 10% on top of my quote. Sometimes that triggers the annoying red warning box for using a forbidden word.

What I am seeing increasingly is that the buyer and seller have a better working relationship and a higher level of trust than either have with PPH. I suspect this is leading to more work being taken off site, so PPH get their money from the first project and no more.

If they want to take 30% of the project cost, they need to be doing a lot to earn it. As it is it's an unregulated message board that can collect money.

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David

I always now copy the quote price into the proposal text AND explain that PPH take a 20% cut of the fee from me.

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Jan White

I think it would encourage trade between PPHers if fees from one freelancers buying work from another freelancers

paid less commission and it would be win win all round. 

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