We’re pleased to share with you details about upcoming changes to PeoplePerHour’s fees structure. This is a change that will go into effect on August 1, 2012. All work that’s initiated up until July 31, 2012 will be grandfathered under your current pricing plan.
We started off with an aim of levelling the playing field and rewarding our loyal users who bill more volume through the site and give them the most competitive fee structure we can afford. So here’s what we came up with:
All work billed through the site will incur a 3.5% Service Fee, apart from the first £175 in the month (€210 and $280 equivalent) which will incur a 15% fee.
30 days at 3.5%, 1 day at 15% Service Fee!*
Why £175 you ask? That’s the earnings for someone who uses PPH as a substitute for day’s worth of work at the current average hourly rate. So with this new pricing, a typical user who puts all their work through PPH will only pay 3.5% apart from one day a month. We need to charge a little higher in that one day than we used to in order to make this work, however, for our typical PPHer who bills consistently through PPH this will mean an overall much reduced monthly service fee and a fair and square ‘the more you bill the less you pay’ policy that keeps everyone’s interests aligned.
*for months with 31 days. You get the gist.
Here are a few worked examples:
For practical purposes and to avoid a job incurring different rates from the last day of the month to the next, the way this new pricing will materialise is as follows: all invoices will incur the starting Service Fee of 15% when the invoice is paid by the client (as is now the case) and then at the end of the month a credit will be made to your PPH Wallet to adjust to the effective rate as per the above. You will be able to see a statement which shows how the rate is calculated.
Say ‘hello’ to daily payments!
Historically pay day on PPH was Tuesday and Friday, which meant that our freelancers had to withdraw funds before then. We’ve listened to your feedback, we know how important speed of payment is to you, so we’ve doubled down and are now introducing daily payments. Please note that the usual latency in the banking clearing system will still apply and affects the timing for when the funds arrive in your bank account. From 1st August when all of the above is effective, every day on PPH will be a pay day!
Flat monthly fees are over! Increase in free bid credits
As you know the Gold & Platinum membership schemes have been abolished. With that we have also enhanced the Standard (Free) usage plan upping the number of free bid credits per month from 10 to 15, which covers about 95% of our active users’ typical monthly activity. If you are an even more active user than that, you will still be able to buy extra credits on a sliding scale. This provides for an opportunity to bid on several projects per month for free and if you want to do more, you can.
More free withdrawals options
We have historically absorbed the cost of processing payments into our Service Fee, and we will carry on doing so for BACS (applicable in the UK). We are also introducing ACH for our US users, where again, we will absorb the cost of payment processing. Users who choose to get paid by PayPal will incur a charge of 1.9% on the withdrawal amount (which is a fee that PayPal charges us). Despite negotiations with PayPal they remain a very expensive option that users still would like to have. As such, we need to pass along that cost in order to make the rest of our Service Fee structure viable. We’re always investigating other payment options and will roll out changes as we solidify these relationships.
One step closer to our mission
Our users have told us many a time in the past that they want to bring their outside clients to PPH as they value the security of getting paid and the support service we offer along with the benefit of building up their profile and having everything organised in one place. The previous flat fee structure was not conducive to encouraging this.
We started with that question in mind: how do we structure our pricing so that those loyal users who end up building their entire business through PPH end up being rewarded for it appropriately? Given that these users are the driving force behind PPH it made sense to us to configure our pricing model around them.
This is what the new structure achieves. And therefore we feel it takes us – together with the rest of the changes coming soon with our upcoming launch – one giant step closer to our mission of helping people live their dream of having their own business and building it up one hour at a time.
PeoplePerHour Community Team
One last item:
For existing members with paid premium gold and platinum plans: A previous blog post indicated that these plans would cease at the end of June. As we’ve decided to roll out the pricing on the first of August, Sellers enrolled on these plans were automatically extended for the month of July. If you have any questions, please contact our support team at firstname.lastname@example.org.
Updated 31 July:
Please note that the above does not include VAT, where applicable. For complete details about the new pricing, please review our Terms & Conditions.
Thanks also to Douglas, who helped us create the image that accompanies this post. We saw his Hourlie and got in touch. He turned it around in lightning fast speed!