Fee Structure

Understanding how fees work on Opengates is essential for both freelancers and clients. Knowing exactly what you will earn (as a freelancer) or pay (as a client) helps you price your services competitively and manage your budget effectively. This guide breaks down every fee on the platform with clear examples and real numbers.

Overview of Opengates Fees

Opengates charges a service fee on completed transactions to cover the costs of running the platform, including payment processing, escrow management, customer support, dispute resolution, security infrastructure, and ongoing development. The fee structure is designed to be simple and transparent.

The most important thing to understand is that clients pay exactly the contract amount — no additional platform fees are added on top. The service fee is deducted from the freelancer's earnings when escrow funds are released.

Standard Service Fee (12%)

Every freelancer on Opengates starts with the standard service fee of 12%. This fee is automatically deducted from your earnings each time a client approves your work and escrow funds are released.

How the 12% Fee Is Calculated

The fee is calculated on the total contract value (or milestone value, for milestone-based contracts). Here are some practical examples:

Example 1: Small task

• Contract value: $50
• Service fee: $50 × 12% = $6
• Freelancer receives: $50 − $6 = $44

Example 2: Medium project

• Contract value: $200
• Service fee: $200 × 12% = $24
• Freelancer receives: $200 − $24 = $176

Example 3: Large project

• Contract value: $1,000
• Service fee: $1,000 × 12% = $120
• Freelancer receives: $1,000 − $120 = $880

Example 4: Milestone-based project

• Total contract: $500, split into 3 milestones ($150, $200, $150)
• Milestone 1 fee: $150 × 12% = $18 → Freelancer receives $132
• Milestone 2 fee: $200 × 12% = $24 → Freelancer receives $176
• Milestone 3 fee: $150 × 12% = $18 → Freelancer receives $132
• Total fees paid: $60 → Total freelancer receives: $440

As you can see, the fee is applied to each payment individually, not as a lump sum at the end.

Premium Service Fee (7%)

Freelancers who subscribe to the Opengates Premium plan enjoy a significantly reduced service fee of just 7%. This is a 5-percentage-point reduction that can result in substantial savings, especially for freelancers who handle large or frequent contracts.

How the 7% Fee Is Calculated

Let us revisit the same examples with the Premium fee:

Example 1: Small task

• Contract value: $50
• Service fee: $50 × 7% = $3.50
• Freelancer receives: $50 − $3.50 = $46.50
• Savings vs. standard: $2.50

Example 2: Medium project

• Contract value: $200
• Service fee: $200 × 7% = $14
• Freelancer receives: $200 − $14 = $186
• Savings vs. standard: $10

Example 3: Large project

• Contract value: $1,000
• Service fee: $1,000 × 7% = $70
• Freelancer receives: $1,000 − $70 = $930
• Savings vs. standard: $50

Example 4: Milestone-based project

• Total contract: $500, split into 3 milestones ($150, $200, $150)
• Milestone 1 fee: $150 × 7% = $10.50 → Freelancer receives $139.50
• Milestone 2 fee: $200 × 7% = $14 → Freelancer receives $186
• Milestone 3 fee: $150 × 7% = $10.50 → Freelancer receives $139.50
• Total fees paid: $35 → Total freelancer receives: $465
• Savings vs. standard: $25

Is Premium Worth It?

Whether Premium is worth it depends on your monthly earnings on the platform. Here is a simple way to think about it:

If the monthly savings from the reduced fee (5% of your monthly earnings) exceed the cost of the Premium subscription, then it pays for itself. For example, if the Premium subscription costs $10/month, you would need to earn at least $200/month on the platform for the fee reduction alone to cover the subscription cost.

But remember — Premium also comes with additional benefits beyond the fee reduction:

• Priority visibility in search results, which can help you win more contracts
• Enhanced profile features to stand out from other freelancers
• Additional gate keys included each month
• Access to premium-only features and tools

What Clients Pay

Clients on Opengates do not pay any additional platform fees on top of the contract value. If a client agrees to pay $500 for a project, they fund exactly $500 into escrow. The service fee is entirely on the freelancer's side.

This transparent pricing model makes it easy for clients to budget for projects and ensures there are no surprise charges. The only cost to the client is the agreed contract amount, plus any standard payment processing fees that may be applied by their bank or payment provider for the initial transaction.

Gate Key Costs

Gate keys are tokens that freelancers use to apply for tasks posted by clients. Each task application typically requires one gate key, though some premium or high-value tasks may require more.

How Gate Keys Work

• Freelancers purchase gate keys through the Opengates platform.
• Each application to a task consumes the required number of gate keys.
• Gate keys are non-refundable once used on an application.
• If you are not selected for a task, the gate key is still consumed — this is by design to encourage thoughtful, high-quality applications.

Gate Key Pricing

Gate keys are sold in bundles, and the per-key cost decreases as you buy in larger quantities:

Premium subscribers also receive a monthly allocation of free gate keys as part of their subscription, reducing the need to purchase additional keys.

Why Gate Keys Exist

Gate keys serve an important purpose on the platform:

1. Quality control — They discourage mass, low-effort applications and encourage freelancers to apply only to tasks they are genuinely qualified for.
2. Better client experience — Clients receive fewer but higher-quality proposals, making it easier to find the right freelancer.
3. Platform sustainability — Gate key revenue helps maintain and improve the platform for everyone.

Fees on Different Contract Types

Fixed-Price Contracts

For fixed-price contracts, the service fee is straightforward:

• The fee is calculated on the total contract value (or each milestone's value, if milestones are used).
• The fee is deducted when the client approves the work and escrow funds are released.
• If a contract has multiple milestones, the fee is deducted from each milestone release individually.

Hourly Contracts

For hourly contracts, the fee calculation works similarly:

• The fee is calculated on the total billed amount for each billing period.
• At the end of each billing cycle, approved hours are multiplied by the hourly rate.
• The service fee is then deducted from that total.

Example: Hourly contract

• Hourly rate: $25/hour
• Hours worked this week: 10 hours
• Gross earnings: $25 × 10 = $250
• Service fee (standard): $250 × 12% = $30
• Net earnings: $250 − $30 = $220
• Service fee (premium): $250 × 7% = $17.50
• Net earnings with premium: $250 − $17.50 = $232.50

Premium Subscription Details

The Premium subscription is a monthly recurring charge that gives freelancers access to the reduced 7% service fee and additional platform benefits. Key details include:

• Billing cycle: Monthly, charged on the same date each month
• Payment method: Same methods as other payments (card, M-Pesa, bank transfer)
• Cancellation: You can cancel at any time. The Premium benefits remain active until the end of your current billing period.
• No long-term commitment: There is no annual contract — you can subscribe and cancel as needed based on your workload.

Understanding Your Total Costs as a Freelancer

To give you a complete picture, here is a summary of all potential costs for a freelancer on Opengates:

1. Service fee — 12% (standard) or 7% (Premium) per transaction
2. Gate keys — Variable cost per application
3. Premium subscription — Optional monthly fee
4. Payout fees — Small fees may apply depending on your payout method (M-Pesa or bank transfer)

When pricing your services, it is a good practice to factor in the service fee so that your take-home amount matches your expectations. For example, if you want to earn $100 after fees on the standard plan, you should price the contract at approximately $114 ($114 × 88% ≈ $100).

Fee Comparison: Standard vs. Premium

Here is a side-by-side comparison to help you decide:

The higher your monthly earnings, the more you save with Premium.

Still need help? Contact our support team and we'll be happy to assist you.