Despite complaints about Upwork's increasing connect prices, it actually benefits users by making the platform more elite and reducing competition. Historical data shows that each price increase results in a rise in Lead Reply Rates. The cost per reply remains the same due to higher reply rates and lower competition. Additionally, shorter cover letters have been found to yield more replies.
Every day, I come across endless complaints about the decline of Upwork.
Hey there, it’s Vadym here - founder of GigRadar.
It's part of my job.
They complained about it:
- 6 years ago when it was free to apply for any job
- 2 years ago when it was $0.75 to apply
Now, Upwork is raising connects prices again.
- 1 year ago when it was $2 to apply
And guess what? They keep complaining.
But guess what they're missing.
Upwork is becoming an elite work marketplace.
They reject to see the opportunity.
Yes, they're pushing the low-cost workers out of the equation.
What does it mean for you? (assuming you are not one of them)
MORE CLIENTS!
Historically, every increase in connect prices on Upwork has resulted in a steady rise in Lead Reply Rates for GigRadar's customers. And as always, I support my claims with solid data:
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Despite the complaints from others, GigRadar users (and probably all those who persist on the platform) are seeing greater results from their bidding endeavors as Upwork increases costs.
It's a simple math problem. Let's imagine you are applying for your favorite jobs.
Proposals: 40
Spend: $100
Lead Reply Rate: 25%
Cost Per Reply = 100 / (40*25%) = $10
Now let's imagine Upwork increased connects prices by 20% which resulted in 20% of your competition giving up on it and increased your reply rates.
Proposals: 40
Spend: $100 + 20% = $120
Lead Reply Rate: 25% + 20% = 30%
Cost Per Reply: 120 / (40*30%) = $10
Surprise! Your cost per reply hasn't changed. Connects are more expensive - but reply rates are higher (due to lower competition).
(I'm lucky GigRadar calculates my CPR for me) 📡
So what happened here?
We saw an increase in replies with the same 40 proposals, all while maintaining our Cost Per Reply.
Want to get more replies? Shorten your cover letter. We have studied 4+ million proposals and found out that shorter cover letters win. I even did a real A/B test to prove it.
Want to have a powerful framework for split-testing and Upwork campaign management? Talk to our reps:
Ready for your Upwork success story? Book a demo with GigRadar below!
