Talking with a friend about the Upwork business. As a marketplace, it's fragile. Many people find a trustworthy vendor, then go outside Upwork to pay them directly rather than pay the 30%+ commission. You own Upwork. How do you address that problem?
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So that begs the question: If you can't solve it, how do you minimize it to maximize margins?
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A rare wrong comment from Moses! While he’s right that that podcast is really really good, you absolutely can fix this problem. The problem is that upwork has too high of a take so people take the payments off upwork. All upwork needs to do is lower it or switch the biz model.
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Replying to @Molson_Hart @mgirdley and
Their take is high because they offer insurance in case of bad work on new hires which happens often. Upwork also charges for an ad to make your ad more prominent. They could simply do more of that now that they’ve aggregated demand and supply. They could charge sellers for
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Replying to @Molson_Hart @mgirdley and
verification. I’m drawing a blank here but if I’m upwork I’m cutting the take and increasing the non-take business models. LinkedIn would be a good marketplace to copy.
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Replying to @Molson_Hart @mgirdley and
Last thing I would say. Upwork take doesn’t stay at 30%. It goes down the more you pay them.
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Oh it does? I didn't know that.
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Yup
8:22 AM - 27 May 2020
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