Prompt I am new to freelancing and low on budget. I am planning to set up an Agency on UpWork with two of my friends (Python backend developer and Front-end developer). UpWork charges an upfront 20 USD on monthly basis for an Agency account. What other costs should I plan for like the cost of connects? Answer along with monthly cost estimates. Also suggest what should be my bidding strategy as I would have limited connects. How can I optimize that.
Along with the $20/month Agency Plus fee on Upwork, an agency should budget for connects, service fees, and potentially small costs tied to financial transactions. With limited funds, careful bidding and disciplined use of connects are essential for new teams.upwork+2
Upwork Agency Cost Breakdown
-
Agency Plus Membership: $19.99/month (required to run an agency and submit agency proposals).upwork
-
Connects: Connects are used to bid on jobs and cost $0.15 each. The number of connects required per job varies from 2 to 16, with higher-value or popular jobs sometimes requiring more.reddit+2
-
New agencies receive some free connects each month; the rest must be bought. For estimation, 50 connects = $7.50, 100 connects = $15.
-
-
Upwork Service Fee: Once you win and complete a contract, Upwork takes a commission of 0%–15% (most agency contracts are ~10% as of 2025).upwork+1
-
Boosted Proposals (Optional): You can “boost” your bid to get more visibility—this can cost dozens of extra connects but should be used sparingly if on a budget.gigradar+1
-
Other Costs: Withdrawal (payout) fees and currency conversion fees (typically $0.99–$2.50 per withdrawal if not using USD).thegigger
Example Minimum Monthly Cost (2025)
| Item | Estimate |
|---|---|
| Agency Plus Fee | $20 |
| Connects (100/month) | $15 |
| Withdrawal Fees | $2 |
| Total | $37/month |
Connects spending can go up fast depending on your bidding volume and job types, so it's wise to start with a strict budget (e.g., 50–100 connects/month).
Bidding Strategy for Limited Connects
-
Focus on “Dream-fit” Jobs: Only bid on projects that closely match your skills and portfolio as a backend/frontend agency.gigradar
-
Avoid Popular/Spammy Listings: Highly competitive jobs require the most connects and rarely yield results for new agencies—skip those in favor of smaller, more targeted listings.upwork+1
-
Smart Filters: Use filters to zero in on recurring/reliable clients, appropriate budgets, and verified payment only.
-
Custom, Specific Proposals: Personalize every bid—reference client details and showcase relevant past projects to boost response rates, thus maximizing connects ROI.
-
Limit Boosting: Only boost proposals when a job is a near-perfect fit and low in proposals (Tier A/B as in upwork guides); otherwise, save those connects.gigradar
-
Track and Review: Log every proposal, connects used, responses, and success to constantly refine your targeting.
Optimization Tips
-
Allocate a set number of connects weekly (e.g., 25/week max) to spread out opportunities and avoid burnout.gigradar
-
Prepare two or three extremely strong proposal templates with proof of work artifacts from your agency teammates.
-
Determine your “Revenue Per Proposal” to measure if connect spending is justified by actual earnings.gigradar
-
Consider “anchor skills” (like combining backend and frontend for full-stack pitches) in every proposal for stronger value.
Being methodical, targeting only closely matched jobs, and tracking ROI are key to success for budget-constrained agencies starting out on Upwork.upwork+3
