Why do Upwork sourcing agents charge so little? Here’s why: 

The simple truth is that many—if not most—aren’t earning the bulk of their income from their hourly rates or package deals on Upwork.

You can probably guess where this is going. 

Most are double dipping: 

1. Building commission into the client’s per unit cost 

AND 

2. Getting a kickback from the factory 

The dipping often continues

Not to mention also getting commission from freight forwarders, storage facilities, customs brokers, or anyone else they introduce you to along the way. 

And most are not upfront about this. Why would they be? It’s not in their best interest. But in my view, withholding this information from trusting clients isn’t just unfair; it’s morally wrong. 

It absolutely incentivizes them to want their clients to have higher prices and higher volumes—which is rarely ever in their client’s best interest. 

Buyer beware + other options

So that $20 / hour Upwork fee might seem like a deal up front. But over time you will pay many multiples higher in actual cost. An even bigger kicker is that they may withhold the factory information to force you to order through them forever. 

This whole practice is wrong. 

So if you’re hiring on Upwork, beware and ask a lot of questions up front. Or look at hiring a flat fee no-commission agency. Xiaofeng Wu and I run one of those over at China Product Pros.