How much is the Project Fee, and when is it charged?

Elance charges a Project Fee (6.75% to 8.75%) based on either the invoiced/paid amounts or based on the awarded project value (if there were no invoices or payments within the specified time period.)  The Project Fee makes it possible for Elance to provide important services to the provider, as described below.

What does the Elance Project Fee cover?

• All Payment processing - When a buyer pays the provider via Elance, he/she can choose to pay via credit card, PayPal, ACH, wire or check.  There are usually fees associated with processing payments through these methods.  Credit Card and PayPal fees range up to 3.5% of the transaction.  Elance pays for these fees on the provider's behalf as part of the Elance Project Fee. 
• Withdrawal processing - Withdrawal options such as wire transfers and checks have a cost to process.  Instead of charging Providers separately per transaction, Elance covers some of these costs as part of the Elance Project Fee.  (Note: Only one wire transfer is covered free per month - due to very high cost to process wire transfers. PayPal withdrawal fees are covered by Elance only during our promotion period.)
• Escrow Services- Other competitor sites charge additional fee if buyers and providers are using Escrow for their projects.  Elance does not charge additional Escrow fees.  All Escrow services are included within the Elance Project Fee.
• Building your earnings history and reputation - Your earnings history and feedback are updated constantly when you use the Elance Payment and Billing system.  This allows you to build up your reputation on Elance and makes it easier to win future work.  
• Mediation Services - If disputes arise, buyer and providers can turn to Elance Mediation.  Elance Mediation is only available for Escrow projects.  Elance does not charge any additional fee for mediation. 
• Project collaboration platform - In order to work effectively with your buyer on Elance after the project has been awarded, Elance offers various tools to communicate and define project scope.  Business Terms allow the buyer and provider to document scope, deliverables, milestones, timeframes, price, acceptance of deliverables and completion of milestones. The Project Message Board allows buyers and providers to send quick communication to each other, and all content is tracked and recorded for you.  Project Workspace can be used to upload and share project files.  Invoices enables you to manage billing online.
• Invoice Management - Ability to invoice buyers and keep track of paid and outstanding items. You can print these electronic invoices and also send reminders.

What is the Project Fee Percentage?

The Elance Project Fee ranges from 6.75% to 8.75% of the total project value.  The fee decreases as you complete more business on Elance as follows:
 
6.75% if the provider's past 6-month earnings exceed USD 40,000
7.75% if the provider's past 6-month earnings are less than USD 40,000 but greater than USD 10,000
8.75% if the provider's past 6-month earnings are less than USD 10,000

The total project value is the greatest of:

 * the awarded  proposal amount
 * the total invoiced amount
 * the total paid amount

When is the Elance Project Fee deducted?

After a buyer pays provider, Elance will apply the project fee on the date payment is received and money is deposited into the provider's Account.  If no payment is received within 45 days of the project acceptance date (60 days for escrow projects), Elance will apply the fee automatically unless the project has been cancelled. The possible Project Fee billing scenarios are described below:

Projects using Standard Payment (non-escrow projects):

1. The Project Fee is billed when the provider invoices the buyer through Elance. The fee is based on the invoice amount. The provider must pay the fee within 45 days.

2. When the buyer sends a payment to the provider that exceeds the invoice amount, a Project Fee is billed based on the payment amount. In such a case, the fee is automatically deducted from the payment, and the remaining amount is deposited into the provider's Account.

3. If the provider has not invoiced or received payment for the full proposal amount within 45 days after accepting the project, Elance automatically bills the Project Fee based on the difference remaining between the proposal amount and the total invoiced or the total payment amounts. The provider must pay the fee within 15 days of the Project Fee invoice date.

NOTE: If the provider has a positive balance in the Elance account at the time the Project Fee is due for payment, the fee will be deducted automatically from the provider's Elance Account.

Projects using Escrow Payment:

1. The Project Fee is billed when the buyer releases payment(s) for the escrow milestone(s). The fee is based on each released milestone amount. The provider must pay the fee within 60 days.

2. If the provider has not received payment for the full  proposal amount within 60 days of accepting the project, Elance automatically bills the Project Fee based on the difference remaining between the proposal amount and the total payment amounts. The provider must pay the fee within 15 days of the project fee invoice date.

NOTE: If the provider has a positive balance in their Elance Account at the time the Project Fee is due for payment, the fee will be deducted automatically from the provider's Elance Account.

For more information regarding Elance Escrow, click here.

Fee Adjustment

If none of the Project Fee scenarios above apply to the project, the provider may dispute the Project Fee by submitting a Request Fee Adjustment Form. To find the form:

1. Log in to MyElance.

2. Click the 'Provider Activity' link on the left navigation menu.

3. Click on the ‘Accepted Projects’ link.

4. Locate the project and click on the ‘Request Fee Adjustment’ link for the project.

5. Complete and submit the form.

It may take up to 7 business days for Elance to complete the evaluation and processing of the Fee Adjustment Request.