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Conversion Fees and Non-Circumvention Clauses: What It Costs to Hire a Freelancer Directly

Conversion Fees and Non-Circumvention Clauses Explained

5 min read

A conversion fee is a charge some providers apply when a client moves a freelancer to a direct arrangement. A non-circumvention clause is a contract term about hiring or paying someone outside the provider for a set period. On DonutJobs, hiring directly costs your plan and your hire's agreed rate: there is no per-hire fee, no placement fee and no commission on wages. You choose your candidate from a pool of 50,000+ pre-tested virtual assistants, agree terms in writing and pay your hire directly, from the first message to the last day.

Want to hire directly with no per-hire fee?Create your free DonutJobs account.

What a Conversion Fee Is

Providers that introduce freelancers can earn money in a few ways: a share of each payment, an amount built into the hourly rate, or a fee when the working relationship moves to a direct arrangement. That last charge is the conversion fee. It is also called a buyout fee, a release fee or a placement fee. The name varies, but the idea is the same: the provider is paid for the introduction at the point the client takes over the relationship.

The useful question for any hiring route is what you pay, to whom, and when. Knowing that before you start lets you compare routes on total cost.

What a Non-Circumvention Clause Is

A non-circumvention clause is a term in a service agreement. It sets out how a client may hire or pay a person they met through a provider, usually for a stated period. Length, scope and remedies differ from one agreement to the next, and whether a clause can be enforced depends on its wording and the law where you and the other party are based. This article is general information, not legal advice, so ask a qualified adviser about any wording you want checked.

What Hiring Directly on DonutJobs Costs

DonutJobs is built around direct hiring, so your costs are easy to list:

  • Your plan. Start on the Free plan, or choose Agency or Pro for the full hiring toolkit. The pricing page shows the current monthly and term options.
  • Your hire's rate. You agree it with your hire and pay them directly. DonutJobs takes no commission on wages.
  • Per-hire and placement fees. None. A hire you make on DonutJobs carries no extra charge, whether you hire one person or ten.
  • Payment method costs. You and your hire agree how payments are sent and who covers any transfer fees.
  • Your own time. Sourcing, screening and managing. The ATS on Agency and Pro, in-app chat and time tracking on paid plans are there to keep that time low.

Because the relationship is yours from the first message, a long-running hire carries on exactly as it started, with the same plan and the same direct payment to your hire.

Hire Directly on DonutJobs in Five Steps

Here is how to go from role to signed offer with your costs known from day one.

  1. Create your free account and post your role. The Free plan includes one active post, up to 10 applications and chat with applicants.
  2. Browse the pool of 50,000+ pre-tested assistants. On Agency or Pro, use Magic Search and Swipe and unlimited talent-pool outreach (Agency) to message the people you want to meet.
  3. Read each shortlisted profile. DonutJobs profiles show results from an internet and hardware audit, an English communication test, a live typing speed test and a recorded voice sample.
  4. Agree rate, hours and written terms with your hire. Our guide to virtual assistants and contractors explains how the working arrangement fits together.
  5. Agree currency, payment frequency and method, then pay your hire directly. Common choices include Wise, Payoneer, PayPal, bank transfer and contractor payment tools. Our guide to how employers pay virtual assistants lists the terms to settle first.

Questions to Settle With Your Hire

Whether you hire on DonutJobs or anywhere else, these points belong in a short written agreement between you and your hire:

  • The rate, the weekly hours and how hours are recorded
  • Payment frequency, currency, method and who covers transfer fees
  • How either side ends the arrangement and what notice applies
  • Who owns the files, processes and data created during the work
  • Confidentiality expectations for client information

On a paid plan, keep your notes and the agreed terms against the candidate's record in the ATS, and send the offer through the in-app chat so the whole conversation sits in one place. Time tracking is included in paid plans, so you can check hours against what you agreed.

A Second Route: Managed VA

Some businesses want hours handled without managing a person. DonutJobs also offers managed VA in 80 hour and 160 hour monthly packages. Direct hiring suits you if you want to choose and manage your own assistant. Managed VA suits you if you want the hours covered and the management handled. Our guide to the difference between a VA marketplace and a managed VA service helps you pick.

Practical Use Cases

A founder who needs one assistant can start on the Free plan, post the role and review applicants, then move to Agency when they want pool search and outreach. An agency owner hiring a team can choose Pro for unlimited posts and five seats. A business that wants hours without management can look at a managed VA package.

Keep the Arrangement Clear

Put the agreed rate, hours and payment terms in writing before work starts, and keep a copy. If a contract with any other provider includes terms about hiring directly, a qualified adviser can explain how they apply to you. For anything involving significant sums, professional advice is worth having.

FAQ

What is a conversion fee?

A fee some providers charge when a client moves a freelancer they introduced to a direct arrangement. It is also called a buyout, release or placement fee.

What is a non-circumvention clause?

A contract term about hiring or paying a person you met through a provider, usually for a stated period. Its effect depends on the wording and the law that applies.

Does DonutJobs charge a conversion fee?

No. DonutJobs has no per-hire fee, no placement fee and no commission on wages. You pay your hire directly.

What do I pay to hire directly on DonutJobs?

Your plan, which can be the Free plan, plus the rate you agree with your hire. You can request a full refund within 48 hours of your first Agency or Pro purchase if you have not yet used the platform.

Can I hire someone for more than a year?

Yes. A hire you make on DonutJobs is your direct working relationship, so it continues for as long as you and your hire want it to, on the terms you agreed.

The most useful number in hiring is your total cost over the length of the relationship. On DonutJobs that is your plan plus your hire's agreed rate, with no per-hire fee, no placement fee and no commission on wages.

Hire Directly From Day One

Search pre-tested virtual assistants and agree terms with them directly. Create your free DonutJobs account, browse the talent pool or compare plans.

What does hiring on DonutJobs cost?

Start free with one job post, or upgrade for more active roles and instant publishing.

See DonutJobs pricing

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About Kate Underwood

Kate Underwood writes the DonutJobs blog, covering how small businesses and agencies hire, onboard, and manage remote virtual assistants.