FAQ: Why does Freelancing.hk charge freelancers a flat-rate introduction fee instead of sales commissions?
A flat-rate introduction fee is far cheaper for the freelancer. The fee charged by Freelancing.hk represents only 1.0% of the total income generated from the introduction. This is much less than the 10-40% ongoing sales commission charged by the agent for the entire duration of the project (including extensions).
The flat-rate fee per introduction approach has some clear advantages:
- There is no need for ongoing reporting in order to calculate this month's invoice.
- The freelancer´s sales expenses in finding the next contract remain low. According to our user surveys, 37% of all introductions lead to an assignment* (i.e. on average, an investment of approximately 5 hourly rates is required per new customer).
- The relationship with the client is yours to develop with no further charges for any subsequent assignments resulting from the relationship (new regular customer).
- Accurate & realistic freelancer profiles. As the freelancer pays the introduction fee, they are motivated to ensure that the information provided in the profile is accurate and realistic. Profiles that are overstated or inaccurate would result in the freelancer paying unnecessary introduction fees.
*: Average conversion rate. Our most professional freelancers get up to 80%.◄ Back to FAQ
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