A starter deduction is a common fee structure you may encounter as a new freelancer. It's a one-time charge applied to your first payment from a client via a freelancing platform.
What is Starter deduction?
A starter deduction is a one-time fee or commission taken from a freelancer's first payment on a platform. It's an introductory charge separate from the platform's standard ongoing service fee. Think of it as an initial onboarding or processing cost for your first project.
Why is this important?
This deduction directly impacts your take-home pay from your first project. Understanding it helps you price your services accurately and avoid surprises. It's a key factor in calculating your real earnings when starting on a new platform.
How does it work?
When you complete your first paid project, the platform calculates the fee. For example, if your project fee is $100 and the starter deduction is 20%, you receive $80. After this first payment, the platform's regular, often lower, commission rate applies to future work.
Pros and cons
The main pro is that it can be a one-time cost, leading to lower fees later. The cons include a higher initial cost reducing your first paycheck and potential confusion if the fee structure isn't clearly communicated upfront.
Conclusion
A starter deduction is a standard practice on many freelancing platforms. Always read the fee schedule before accepting your first project to budget correctly. Once you pass this initial step, your earning potential per project typically increases.
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