Item: Freelancer.com Terms of Service
Rating: 30
Author: Terms.Law Editorial Team

⚠ Major Concerns

Freelancer.com has the most complaints of any platform I reviewed. Users report unexpected fees, membership charges that are difficult to cancel, disputes resolved without transparency, and aggressive tactics to push paid upgrades. Proceed with extreme caution.

Score Breakdown by Category

How Freelancer.com's terms rate across my evaluation categories.

💰 Payment & Fee Transparency (30%) 22/100

Why this score: Freelancer has the most complex fee structure in the industry: 10% project fee (or $5 minimum) per Fees & Charges, plus contest entry fees, plus withdrawal fees ($0-$30), plus payment processing fees. Total can exceed 15-20% of earnings. Fee schedules are confusing and vary by membership tier.

Industry comparison: Toptal: 65/100 (transparent, guaranteed pay) | Upwork: 40/100 (sliding scale, clear) | Fiverr: 30/100 (flat 20%, predictable) | Category avg: 39/100

⚖ Dispute Resolution (20%) 25/100

Why this score: Dispute resolution is opaque and inconsistent per user reviews on Trustpilot. Section 12 of the ToS grants Freelancer "sole discretion" over dispute outcomes with "final" decisions. Milestone disputes can tie up funds indefinitely. Contest disputes rarely favor freelancers.

Industry comparison: Toptal: 60/100 (account manager, professional) | Upwork: 45/100 (mediation, evidence-based) | Fiverr: 28/100 (buyer-favorable) | Category avg: 40/100

🔒 Contract & IP Rights (20%) 35/100

Why this score: Contest IP ownership is particularly problematic: Section 8 states winning designs transfer to contest holder, but losing designs remain unclear. Spec work in contests means you may produce significant work with zero compensation. Standard project IP transfers upon payment, but milestone disputes complicate this.

Industry comparison: Toptal: 50/100 (clear work-for-hire) | Upwork: 45/100 (custom terms possible) | Fiverr: 40/100 (straightforward transfer) | Category avg: 43/100

👁 Account & Termination Rights (15%) 32/100

Why this score: Account functionality is heavily dependent on membership tier. Free accounts are severely restricted (8 bids/month). Section 14 allows termination "at any time for any reason." Account recovery after suspension is notoriously difficult based on user reports.

Industry comparison: Toptal: 45/100 (stable once vetted) | Upwork: 38/100 (JSS algorithm, arbitrary) | Fiverr: 35/100 (monthly demotions) | Category avg: 38/100

👥 Membership & Upselling (15%) 18/100

Why this score: Aggressive membership upselling is Freelancer's worst practice. Constant prompts to upgrade, "Preferred Freelancer" programs ($199+/month), and bid limits push paid memberships. Per Section 3, auto-renewal is default with difficult cancellation. BBB complaints cite unexpected charges.

Industry comparison: Toptal: 55/100 (no membership tiers) | Upwork: 48/100 (Connects system, optional Plus) | Fiverr: 42/100 (level-based, no paid tiers) | Category avg: 41/100

Compare With Other Platforms

⚠ Key Clauses to Watch

These provisions in Freelancer.com's terms create the most risk for users.

Complex Fee Structure

High Risk

Multiple fee types (project fees, contest fees, service fees) create confusion. Total fees can exceed 15% depending on project type, payment method, and membership level.

"Fees vary based on project type, membership level, and payment method. See our fee schedule for details." Freelancer.com Fees & Charges

Aggressive Membership Upselling

High Risk

Free accounts are severely limited. Constant prompts to upgrade, "Preferred Freelancer" programs, and bid limits push users toward paid memberships.

"Free members are limited to 8 bids per month. Upgrade to Plus for unlimited bids and higher ranking." Freelancer.com Membership Terms

Opaque Dispute Resolution

High Risk

Dispute decisions are made by Freelancer.com staff without clear criteria. Users report arbitrary outcomes and lack of transparency in the resolution process.

"Freelancer.com will review disputes and make a determination in its sole discretion. Decisions are final." Freelancer.com Terms of Service

Membership Cancellation Difficulty

High Risk

Users report difficulty canceling paid memberships. Auto-renewal is enabled by default, and the cancellation process involves multiple steps and confirmations.

"Memberships automatically renew at the end of each billing period unless cancelled prior to renewal." Freelancer.com Membership Terms

Milestone Release Problems

High Risk

Milestone payment releases can be delayed or disputed. Clients can request additional work before releasing funds, creating scope creep without recourse.

"Payment is released when the client approves the milestone. If a dispute arises, funds may be held pending resolution." Freelancer.com Payment Terms

Contest Payment Risks

High Risk

Contest participants can do significant work with no guarantee of payment. Contests can be cancelled, and winning entries may not be paid if the client disputes.

"Contest holders may cancel a contest at any time. Prizes are only awarded to designs selected by the contest holder." Freelancer.com Contest Rules

Withdrawal Fees

High Risk

Withdrawing your earnings incurs additional fees. PayPal, bank transfer, and other withdrawal methods each have different fee structures that reduce take-home pay.

"Withdrawal fees apply depending on the payment method selected. Fees range from $0 to $30 depending on method." Freelancer.com Fees

Analysis

"Freelancer.com represents the worst practices in the gig economy. The business model relies on confusing users with complex fees while constantly pushing paid upgrades. The dispute system lacks transparency, and users have little recourse when things go wrong.

The membership trap is particularly concerning. Users sign up for a 'trial' and find themselves locked into recurring charges that are difficult to cancel. This has generated significant consumer complaints and regulatory scrutiny in multiple jurisdictions.

My recommendation: avoid Freelancer.com entirely if possible. The platform's practices create too much risk for too little reward. If you must use it, never upgrade to paid membership, document everything obsessively, and never do spec work in contests without guaranteed payment."

Freelancer.com Terms of Service Review Worst in Category

⚠ Major Concerns

Score Breakdown by Category

Compare With Other Platforms

⚠ Freelancer.com Issues?

⚠ Key Clauses to Watch

Complex Fee Structure

Aggressive Membership Upselling

Opaque Dispute Resolution

Membership Cancellation Difficulty

Milestone Release Problems

Contest Payment Risks

Withdrawal Fees

Analysis

Issues With Freelancer.com?

Schedule a Consultation

Freelancer.com Terms of Service Review Worst in Category

⚠ Major Concerns

Score Breakdown by Category

Compare With Other Platforms

⚠ Freelancer.com Issues?

Related Resources

⚠ Key Clauses to Watch

Complex Fee Structure

Aggressive Membership Upselling

Opaque Dispute Resolution

Membership Cancellation Difficulty

Milestone Release Problems

Contest Payment Risks

Withdrawal Fees

Analysis

Issues With Freelancer.com?

Schedule a Consultation