Guide

What does an Upwork client actually cost you in connects?

How to work out your real cost per view, reply and hire on Upwork from the connects you buy, including boosts and refunds, with a worked example.

Published · By the ProposalIQ team

The short answer

Add up the connects you spent on proposals, including boosts, and subtract any connects Upwork gave back. Multiply by the price you actually paid per connect. Divide by the number of clients who hired you. That is your cost per hire in dollars. Divide the same amount by views or replies instead and you get cost per view and cost per reply.

It sounds obvious, but hardly anyone knows their own figure. Upwork shows your connect balance, not what a client cost you, and connects are bought in bundles and spent one proposal at a time, so the dollar cost never shows up anywhere.

The formula

  • Net connects = connects spent on proposals + boost connects − connects refunded
  • Connect spend = net connects × the price you paid per connect
  • Cost per hire = connect spend ÷ hires
  • Cost per view and cost per reply = connect spend ÷ views, or ÷ replies

Three details decide whether the number is right:

  • Use the price you actually paid, not a list price. If you bought a larger bundle at a better rate, or used free monthly connects, your real price per connect is different. Pick one method and use it every month.
  • Include boost connects. Boosts are part of what the proposal cost. Leaving them out makes boosted proposals look free.
  • Subtract refunds. Upwork gives connects back in some cases, for example when a job is cancelled. Only what you did not get back is a cost.

Leave invites and direct offers out. They cost no connects, and counting their hires makes proposal spending look cheaper than it is.

A worked example

Example - illustrative figures
Proposals sent
60
Connects on proposals (60 × 16)
960
Boost connects
+120
Refunded
−40
Net connects
1,040
Connect spend at $0.15
$156.00
Views / replies / hires
24 / 8 / 2
Cost per view
$6.50
Cost per reply
$19.50
Cost per hire
$78.00

The numbers are made up to show the arithmetic. They are not a benchmark - your own figures are the only ones that tell you anything.

The month that started ProposalIQ worked out much cheaper: 83 net connects and one hire, at the $0.15 per connect actually paid, is $12.45 per hire. It was also one hire from thirteen proposals, which is far too few to plan a budget around.

Is your cost per hire good or bad?

It depends entirely on what a client is worth to you. A $78 client is a bargain if the first contract is $1,200, and a loss if it is $60. So compare the cost with the gross profit the client brings in: what they pay you, minus what the work costs you to deliver.

Example - continued
First contract
$1,200
Profit margin
60%
Gross profit
$720
Cost per hire
$78
Gross profit ÷ cost per hire
9.2×

ProposalIQ uses the same rule marketers use for customer acquisition: above 3× is healthy, and below 1× means the connects cost more than the work pays. Clients who come back for repeat contracts raise the gross profit, so the ratio usually improves the longer you track.

What to do with the number

  • Budget connects like ad spend. Once you know cost per hire, you know roughly what next month’s connects should buy at your current rates.
  • Find the expensive stage. A high cost per view means you are paying for proposals nobody opens, which is a job-selection problem. A cost per reply far above your cost per view points at the letter. The view rate vs reply rate guide covers how to tell the two apart.
  • Check that boosting pays. Boost connects go into the total, so work out the cost per hire for boosted and unboosted proposals separately (see the boost guide).

Tracking it automatically

In a spreadsheet you need a purchases tab and a proposals tab, and you have to keep them reconciled. ProposalIQ keeps every purchase, proposal, boost and refund in one ledger where connects go in and out. You enter the connects once, on the proposal. Balance, burn rate, cost per view, reply and hire, and the profit-to-cost ratio are all worked out from that ledger. See unit economics in the docs.

Keep reading

Get these numbers for your own proposals. Free to start, no card.