How to Freelance on Upwork and Make Money

January 10, 2024

It’s no secret that freelancing is becoming more popular year after year. And the data confirms it: according to Demandsage, out of a global workforce of 3.38 billion, a significant 1.57 billion are self-employed. That’s an important number of people choosing to work independently instead of following the traditional 9-to-5 office routine.

And in the world of freelancing, Upwork is becoming one of the go-to platforms to make money online. Upwork is a dynamic portal where 18 million freelancers meet 5 million clients from around the world. If you’re interested in freelancing, maybe Upwork is the place to be.

In this post, we’re going to tell you everything you need to know about how to make money on Upwork, including what it is, how it really works, its pros and cons, and how you can start making money. If you’re considering Upwork as your freelancing job platform, this article is for you!

Get our Free E-book on How to Leave your 9-5 Job and Start Making Money Online!

Table of Contents

What is Upwork?

Upwork, as we know it today, is the result of a fusion between two pioneering companies: Elance Inc. and oDesk Corp. By 2015, Upwork had become a leading platform in the remote work marketplace, connecting potential clients with professionals offering a wide range of services.

These services range from web, mobile, and software development to content writing and editing, administrative support, sales and marketing, as well as web and graphic design, supporting a wide range of sectors.

Before diving into how you can start earning money on Upwork, it’s important to understand some of its key features and functionalities:

Profile Approval: Upwork requires new freelancers to have their profile approved. This process makes sure that the services offered are in demand, particularly for fixed-price projects.
Free Connects for New Freelancers: Upon joining, new freelancers are provided with 60 connects; these connects are essential for applying to job proposals from clients worldwide.
Diverse Specialties: Upwork stands out because it accepts freelancers with a wide range of skills and offers both full-time and part-time jobs.
Fee Structure: The platform uses a fee system where a percentage of the freelancer’s earnings is taken as a service fee. This fee varies depending on the freelancer’s total earnings.
Profile Options: Freelancers have the flexibility to create a general profile that showcases all their services or specialized profiles that detail their experience with specific services.
Prestigious Client list: Upwork serves 30% of Fortune 100 companies, according to Demandsage. That’s an indication of its significant role in the global freelance market.

If you’re wondering how to make money on Upwork, understanding these features is the first step. This platform not only connects you to a world of opportunities but also offers a secure way to grow your freelance career, whether you’re looking to take on small projects or long-term contracts with big companies.

Get our Free E-book on How to Leave your 9-5 Job and Start Making Money Online!

How Does Upwork Work?

Understanding how Upwork works can give you a big advantage as a new freelancer navigating this platform for the first time. Here is how it works:

On Upwork, clients—from smaller enterprises to big companies—post detailed job listings. They detail everything from the job’s scope, desired skills, payment terms (fixed or hourly), to the project’s length. This clarity is helpful for freelancers to understand exactly what they’re considering before they commit.

If you’re freelancing, you need to find jobs that match your skills and then send in your proposal. Your proposal should effectively showcase your relevant experience and skills, and adding examples of past work can really strengthen your first connection.

How To Make Money on Upwork

Making money on Upwork starts with understanding how the platform works and keeping a few key strategies in mind. Let’s break it down:

1-Create Your Upwork Profile

Start by setting up an account and crafting a profile that highlights your experience and skills. Include your past work experiences, any certifications that set you apart, and, if you’re creative, a portfolio showcasing your best work. A good profile photo and an engaging bio about yourself are also essential.

This way, when potential clients check out your profile after you’ve applied for a job, they get a detailed view of what you offer.

2-Set Your Prices

Decide whether you want to charge for your services per project (fixed price) or by the hour. If you’re new to this, you might start with lower rates and gradually increase them as you gain more experience and credibility.

3-Use Your Connects Wisely

As a new freelancer on Upwork, you’ll get 60 Connects to start; Connects are like the currency that lets you apply for jobs. Once you use them up, you have to buy more or wait for free monthly connects from Upwork.

Use Connects smartly

Pay attention to details like:

The client has verified payment: This confirmation helps assure you that the client does not have payment issues.
The number of proposals the client received: Receiving 5–15 proposals typically indicates healthy interest.
The client’s hiring history: Between 1–9 hires and over 10 hires can reflect positively on the client’s history.
Experience level required: Select jobs that align with your level of experience

4-Choose the Ideal Client

While applying for jobs, also ensure that the client is right for you. Check their reviews and ratings left by other freelancers. Low ratings can be a point to consider.

5-Send Proposals

With a solid profile in place, start sending out proposals. Write an attractive cover letter for each job you apply to, highlighting why you’re the best fit. Include applicable examples of your work that demonstrate your abilities and proficiency.

For those new to Upwork, bear in mind that responses to your proposals might not come instantly. The platform can be quite competitive, especially when you’re just starting out. The key is persistence—keep sending personalized proposals to various jobs.

Besides that, the importance of communication skills can’t be overestimated. According to Demandsage, around 73% of freelancers believe communication to be a critical skill. It’s not only about your technical abilities but also about how effectively you communicate and collaborate with others.

Get our Free E-book on How to Leave your 9-5 Job and Start Making Money Online!

Pros and Cons of Upwork

Upwork, like any remote work platform, comes with its own set of pros and cons. Understanding these can help make your experience better.

Pros of Upwork

Flexibility in Working Hours and Location: One of the biggest perks of Upwork is the flexibility it offers. As long as you have a Wi-Fi connection, you can work from anywhere, anytime; this flexibility allows you to work in a way that best suits your personal preferences and lifestyle.
Access to a Wide Variety of Job Opportunities: Upwork opens doors to a world of job opportunities. With clients from across the globe, you’re exposed to various projects offering competitive pay. This platform is especially beneficial for those looking to work remotely 100% of the time.
Opportunity to Gain Valuable Work Experience: For those looking to specialize in a particular niche or expand their creative portfolio, Upwork is an excellent place to start. It offers a diverse range of projects, allowing you to accumulate valuable experience in your chosen field.
Payment Security: Upwork provides a secure payment system. Clients pay upfront, and the money is held in escrow by Upwork. You can start working with the assurance that your payment is secure. Once you complete the work and it’s approved by the client, the payment is released to you.

Cons of Upwork

Fees Charged on Earnings: Upwork charges a percentage of your earnings as a service fee. This fee decreases as you build a longer-term relationship with a client, but it’s something to consider as it affects your net income.
Potential for Scams: Like any online platform, there’s a risk of encountering scams. However, Upwork has rules and systems in place to minimize this risk. Ensuring all communication and delivery happen within the platform and paying attention to a client’s reputation can help you avoid scams.
High Competition Among Freelancers: The platform’s popularity means there’s a high volume of freelancers, which can be challenging for newcomers. Standing out in a sea of experienced freelancers with impressive certifications requires a solid strategy and persistence.

Understanding these pros and cons is crucial if you’re looking to make the most of your Upwork experience. While the platform offers great opportunities, being aware of its limitations and learning how to cope with them can significantly impact your success as a freelancer.

Get our Free E-book on How to Leave your 9-5 Job and Start Making Money Online!

Conclusion

Remote work is revolutionizing the way we think about jobs and careers, changing global work dynamics. Upwork is at the forefront of this transformation, offering a platform that not only provides flexibility and a range of opportunities but also could be part of the route to pursuing your financial independence.

Whether you are looking to increase your income or start a full-time freelance career, the key to success often lies in staying informed and continuously learning about the best practices of job platforms, especially when your goal is to make money using them.

That’s when platforms like Upwork provide an opportunity to move away from the traditional 9-to-5 work structure, allowing you to identify the work approach that suits you best and earn the money your work is really worth.

Break Free from 9-to-5: Your Blueprint for Online Financial Success!

Are you ready to escape the 9-to-5 grind and discover the path to financial freedom? Jonathan Montoya, an ex-electrical engineer turned affiliate marketing master, shares his transformative journey in our exclusive eBook.

In “The Leave Your Soul-Sucking 9-5 Job Blueprint,“ Jonathan reveals how he went from a monotonous day job to a six-figure affiliate marketing success in just six months!

Inside, you’ll find invaluable insights, including:

The fundamentals of affiliate marketing – making money by promoting others’ products
Key strategies to start with minimal to zero investment
Real-world advice to avoid common pitfalls and accelerate your success

Jonathan’s methods aren’t about quick fixes; they’re about building lasting skills to grow a thriving online business.

In this eBook, you’ll learn: