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Setting Up Your Proposal Terms

Yuliia Slu avatar
Written by Yuliia Slu
Updated today

Proposal Terms let you define the rates and pricing strategies used when submitting job proposals. With the right setup, you can streamline your workflow, manage expectations more effectively, and focus on winning projects that match your value.

💡 Understanding Upwork Pricing Models

Upwork supports two primary payment types:

Hourly Rate Jobs

You specify the hourly rate you expect to earn. This is the amount the client sees on your proposal.

Fixed Price Jobs

You propose a total fixed amount for the full project. This can be set in two ways:

  • By Project: A single fixed price for the entire job

  • By Milestone: Multiple payment stages tied to specific deliverables

📍 Where to Set Proposal Terms

Go to:

Bidding Settings → Terms & Boosting

Choose one of the following modes:

  • Constant Proposal Terms – Manual, fixed-rate bidding

  • Smart Proposal Terms – Automated, dynamic bidding based on job budgets

🛠️ Setting Constant Proposal Terms

Set fixed, reusable values that apply to all proposals.

Step 1: Hourly Rate Settings

  • Define Your Hourly Rate

This is the total rate clients will see in your proposals.

ℹ️ Note: Skip this step to continue using your Upwork profile rate.

  • Set Auto-Increase Frequency

Automatically raise your hourly rate over time.

Options: Never (default), Every 3 months, Every 6 months, Every 12 months

If selected, set a percentage increase between 1.0%–99.9%.

Step 2: Fixed Price Settings

Choose how you'd like to handle fixed-price jobs:

✅ By Job Terms

Accept the client’s proposed budget as-is for every fixed-price job.

✅ By Milestone

Break the project into payment stages:

  • Milestone Description

Describe each project phase.

  • Due Date

Set in days from project start.

  • Milestone Amount

Between $5 and $5000

  • Total Project Duration

Unspecified, <1 month, 1–3 months, 3–6 months, or >6 months

ℹ️ Note: You can add up to 15 milestones per proposal.

✅ By Project

Set one fixed amount for the entire job, regardless of the client's budget.

  • Set Amount

Between $5 and $1,000,000

  • Set Duration

Unspecified, <1 month, 1–3 months, 3–6 months, or >6 months

🛠️ Setting Smart Proposal Terms

The Smart Terms feature is a Premium tool that automatically calculates your proposal amount based on your preferred rate range and the job’s listed budget. It helps you stay competitive while saving time.

🧠 How Smart Terms Work

Hourly Rate Jobs

If the client’s range is $15–$35/hr, and your preferred range is $25–$40/hr:

  • 0% Bid Percentage → You bid $25/hr (your minimum)

  • 70% → You bid $29/hr

  • 100% → You bid $35/hr (client’s max)

ℹ️ Note: Your bid always stays within your defined range and the client’s range.

For Fixed Price Jobs

If the client’s budget is $1000:

  • 0% → You bid $1000

  • 10% → You bid $1100

  • 70% → You bid $1700

📍 How to Enable Smart Terms

In Terms & Boosting, switch from Constant to Smart mode.

⚙️ How to Set Up Smart Terms

Step 1: Hourly Rate Settings

  • Set your Minimum and Maximum Hourly Rate

  • Define your Bid Percentage

Step 2: Fixed Price Settings

  • Define your Bid Percentage

💬 Need Help?

If you need support or have questions about setting up your Proposal Terms, reach out anytime at [email protected] – we’re happy to assist!

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