Hello, everybody, and welcome back to my channel Jennifer Marie vo where I teach you different ways
that you can make money online working from home. If you haven't already, make sure to subscribe to
my channel for more videos just like this one teaching you how to become a work-from-home
freelancer. So I have a whole bunch of different videos teaching you how to become a freelancer
using the up work platform. There are 1000s and 1000s of different jobs available every day on
Upwork jobs related to graphic design, video editing, programming skills, and anything else
you can imagine. But one of the biggest questions I get is what is the difference between a fixed
price versus an hourly contract. So in today's video, I'm going to talk to you about how you get
paid via up work and how you can set your rates and what the difference is between a fixed price
or an hourly contract and which one I recommend. So when you apply for a job on Upwork, you will
see many different jobs that are either hourly or fixed price projects. And what does this mean?
You can see here that this is a job example. And when you're browsing through the different jobs,
you can see that some of them have an hourly rate set, and others have a fixed price. So I'm going
to teach you the difference between these two job contract types. So with an hourly contract,
both the clients and the freelancers will set an hourly rate of how much they are willing to pay
per hour or expect to be paid per hour, you can negotiate this hourly rate with the client during
the interview process. So for example, let's say a freelancer will charge 30 US dollars an hour to
create a five minute promotional video. So if the freelancer takes five hours to create the video,
then he or she will earn 150 US dollars. Of course this is before Upwork takes their commission.
So some people prefer to work on an hourly rate because that way, if it takes them longer to do
a project, they are still getting paid for the hours that they put in our the contracts are very
typical for virtual assistant jobs or programming jobs. And some people prefer to be paid per hour
so that way they know exactly how much money they are making per day. If you are offered and
accepted job for an hourly rate contract, you will have to install the Upwork desktop app.
So when you do this, you will log your hours with this app. And they will be tracked in your
work diary. With the Upwork desktop app, it will automatically take screenshots every 10 minutes
or so. And that will help prove to your client that you're actually working when you say you
are working. So this here is the work diary. And as you log your hours, they will be logged here
automatically. There's also an opportunity to add manual time if your client allows that. And some
clients may set a weekly limit on billable hours. So let's say you're working on a video editing
project, they can set a limit of five hours per week. For example, with the hourly rate project
clients will be billed automatically on a weekly basis. I will be creating a tutorial very shortly
on how to navigate and install the Upwork desktop app. So stay tuned for that. So with a fixed price
contract, both clients and freelancers will set a fixed price for how much they expect to pay for an
entire project or expect to be paid to complete an entire project. So for example, a freelancer will
charge a fixed price of 200 US dollars to create a five minute promotional video, the freelancer will
receive 200 US dollars. Regardless, if it takes five hours to complete the video, or 10 hours,
the client may choose to set up milestones with fixed price contracts. So with the hourly rate,
one that we saw before, a freelancer would be getting paid for every hour that they're working
on the project. So if it takes them 10 hours, they'll get paid an hourly rate for each hour. But
with the fixed price contract, it doesn't matter how many hours it takes you to do a project,
you are getting paid a specific fixed price to complete that entire project that includes all
the revisions and everything. So some clients like to set up milestones. So for example,
a client might say, I will give you $100 for milestone one for the first draft of the video,
and then approve that and then they'll set up a second milestone for another $100 for the final
draft. So clients and freelancers may agree to set project milestones with deadlines for parts
of the work to be completed. So clients will deposit milestone funds into up work
escrow and will approve the release of funds to the freelancer once they are happy.
Unknown Speaker 5:00 With the work received, so once you select
submit work for payment right here, the client will have 14 days to accept it. And if they don't,
it will automatically be released to you. This is helpful because many times I have finished work
for clients, and they went on vacation or they forgot that they hadn't paid me. And after the 14
days, the money was automatically sent to me. And then later on, they apologized and said, You know,
they forgot to pay me. So, which is better? Should you choose hourly or fixed price contracts. Me
personally, I prefer fixed price contracts. When I do voiceovers or video editing for clients,
I like to give them a fixed price and tell them this includes one voiceover with two revisions
and I will do it for this price. The reason for that is that I do not like to have to use the
Upwork desktop app. And I like to be able to work whenever I want without having to log my hours.
Also, with the more practice you have doing the job, sometimes it takes you less time to do the
job. So for me, I feel like I make more money doing a fixed-price contract. So many times
I will see a job that has an hourly rate that I will submit a proposal for. And you can say to the
client, hi, I see that you have an hourly rate, I prefer to do this project on a fixed price,
I would be happy to do this project for you for X amount of money. And most of the time, my clients
will say no problem. Let me switch the contract and offer you a fixed-price contract. However,
if you are doing a job type like virtual assistant or social media management or working on someone's
website, it's often that you will have an hourly contract because it's more of an ongoing job.
And it makes more sense for them to hire you more on an ongoing basis with an hourly contract. And
how can you tell if a contract is hourly or fixed price. So we're over here on upwork.com.
And these are all these different jobs that have popped up. And when you're scrolling
through the jobs, you can see here, this one is an hourly rate. Here, this is fixed price.
This is hourly, this is fixed price. And when you click on a job and you're ready to apply for it,
when you click on submit a proposal, you will have the opportunity to select by milestone or
by project and then put whatever you bid for the project. So this would be $100 that you would bid.
Or you could even say by milestone that you would do part of the project for $50. And then add a
milestone for a second part as well. I have a full tutorial on how to submit a proposal that
I will link to in the description below. And you can see here's an example of an hourly contract.
When you select submit a proposal, you can go ahead here and put in the rate that you'd like
to bid for this job as you can put in how much you are, you know willing to do this job for per hour.
So if you do work on an hourly rate contract, you will have to install the desktop app.
And I will show you how to do that in a future tutorial, but I will link you to this
download page in the description below. So how can you become a work-from-home Freelancer on Upwork
I recommend you check out my Upwork for beginners tutorial and I will teach you how to set up and
create a great profile and get accepted. If you read the comment section on a lot of my
Upwork videos. There are many people who have said that they were denied several times their Upwork
application and then after watching my video, they were accepted once they made some changes to their
profile. I also have videos on how to apply to jobs and write winning proposals and many many
other videos on Upwork that you can access by clicking on the link in the description below.
So thank you guys for watching this video. And make sure to subscribe to my channel
Jennifer Marie vo for more different videos on how to become a freelancer and how to make
a living working from home. Thanks again for watching and I'll see you in my next tutorial.