Upwork: how it works, how much Connects cost and how to get your first order

Upwork is one of the largest freelance marketplaces in the world. Unlike on Fiverr, here the initiative belongs to the client: the client posts a job, and freelancers send proposals. In Lithuania Upwork is searched for about 2 900 times a month.

This part of the guide covers how Upwork works for a freelancer: what Connects are, how much the platform takes, how hourly and fixed-price contracts differ, how payment protection works and how the money is withdrawn. Fees and deadlines were checked in the Upwork help centre in October 2026.

How Upwork works

1. You create a profile: specialisation, hourly rate, experience, work samples.
2. You search job posts or wait for invitations from clients.
3. You send a proposal – you pay for this with Connects.
4. The client chooses a freelancer and sends an offer to enter into a contract.
5. You work under an hourly or fixed-price contract.
6. After the security period the money becomes available and can be withdrawn.

Connects: a fee for the chance to make an offer

Connects are Upwork's internal tokens used to pay for sending a proposal. According to the Upwork help centre:

• one Connect costs 0.15 USD, and they are sold in bundles;
• how many are needed for a specific proposal is stated in the job post. The number depends on the size and scope of the project and on demand, and can change while the post is active;
• with additional Connects you can boost your proposal to the top of the client's list – this works on an auction basis.

The practical conclusion: a proposal costs money even if you do not get the job. So it is worth sending fewer but more precise proposals – only to posts whose requirements you really meet.

How much Upwork takes

Upwork applies a variable freelancer service fee – from 0 to 15% per contract. The platform states that the amount is set according to factors that help maintain a balanced and competitive environment for different kinds of work. Three rules matter most to the freelancer:

• the fee percentage is shown when you send a proposal or when the client sends a contract offer – so you know it in advance;
• once the contract starts, the fee is locked in and no longer changes;
• the fee applies to all earnings, including bonuses.

There is also a separate case – Direct Contracts, when you bring to Upwork a client who is not yet on the platform. A 5% fee applies to them, and 0% for active members of the paid Freelancer Plus plan.

Hourly and fixed-price contracts

In a fixed-price contract, if the client neither approves the work nor requests changes within 14 days, the funds are paid out automatically. For this period to start counting, the work must be submitted through the “Submit Work for Payment” button, not simply sent in a message.

Payment protection

One of the reasons freelancers agree to pay the commission is protection against clients who do not pay. It works only if the conditions are met.

In hourly contracts

Hourly payment protection applies when:

• you logged the time with the time tracker of the Upwork desktop app;
• the activity captured in the screenshots is related to the contract;
• you added notes describing the work or activity labels in the work diary;
• the activity level was sufficient;
• you did not exceed the weekly hour limit set in the contract;
• you have verified your identity and the client uses a verified billing method.

The protection does not apply to manually entered time, bonuses and fixed-price projects.

In fixed-price contracts

Here escrow protects you: the client deposits the milestone amount before you start working. Upwork states two conditions – the milestone must be fully funded before work begins (the “Funded” label is shown next to it), and the submitted work must match the milestone description. The protection does not apply if you work without an active funded milestone.

How to withdraw the money

For a freelancer living in Lithuania the cheapest method is a transfer to a local bank. Earnings accumulate in dollars, so pay attention to the currency exchange rate: it can cost more than the transfer fee itself.

How to get your first order

• A narrow profile. In the headline – a specific service and field, not a job title.
• Samples. Upload to your portfolio work similar to the jobs you are looking for.
• A short proposal. In the first two sentences show that you have read the post and understand the task; only then write about yourself.
• Small first projects. A short fixed-price job brings a first review faster than long negotiations over a big project.
• Checking the client. Before sending a proposal, look at whether the client's billing method is verified and what reviews other freelancers have left.

Taxes in Lithuania

Earnings on Upwork are income from activity, which you declare in Lithuania. Which form of activity suits you is explained in the ACS.lt article “Self-employment: registration certificate or business certificate”. Since the clients and the platform itself are abroad, VAT obligations can arise even before you reach the 45 000 € threshold – this is worth discussing with an accountant before your first contract.

Frequently asked questions