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Elance, Rent-a-Coder, Freelancer, and other Freelancing sites are Terrible

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Group Member
Nov 3, 2009 3:46:13 AM
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Too many cooks spoil the broth If you are even thinking about using Elance, Rent-a-Coder, Freelancer.com or any other online freelancing site, get ready for some Brain Damage! These sites are terrible for both the clients and the freelancers and here are just some reasons why:

For Clients:

  1. What if I don't know exactly what I want? Too bad! These sites want a piece of the transaction so they control your freedom to work directly with the client to help define the project to meet your business goals!
  2. Who is actually doing the development? Because you cannot work with the freelancers directly, you may THINK you are working with a qualified freelancer but they just hand the project and a programing book off to a high school student!
  3. These prices are too good to be true! They are! The freelancers are forced into a competitive bidding process so early in the project that is so heavily weighted against them that they are forced to underbid poorly defined projects. In fact, these projects are typically a miserable experience for the freelancers and you are likely to get crap back!
  4. Why can't I find top-notch professionals? On these sites, the freelances are incented to do quick and dirty jobs to meet hard deadlines. Scope can and should change as you learn more about the project. It is nearly impossible to do Agile or intelligent development in this way!

For Freelancers:

  1. What is up with these project descriptions!? Very few clients can spec the projects properly because they are NOT experts. That is why they are on the site in the first place!
  2. What are you even bidding on!? Freelancers are expected to Bid on projects that are so loosely defined that they are taking on enormous risk, stress, and risking their integrity by bidding on these projects.
  3. Why can't I just contact the client or freelancer and work with them!? These sites are so afraid that you will get around them and that they won't make their ridiculous margins that they don't let you contact the client directly and work with them on your own terms.
  4. What is up with these expert guarantees!? Rent-a-Coder has projects that require the freelancer to put up 10% or more of the total project payment in case you are LATE. As if the poorly defined projects and bidding process weren't risky and stressful enough, they want to stick to the freelancer again!
  5. Why are they so expensive!? Elance and Rent-a-Coder are bloated software that try to do way too much and charge way too much. Because of their fear of losing their enormous margins, they get in the way of communication and progress. They charge 10+% of the revenue for adding little or no value other than a simple bulletin board with search capabilities (a prettier craigslist).
  6. Are these projects even profitable?! - online bidding drives the prices down and pushes the prices so low that few qualified freelancers can actually afford to do them.

Conclusions:

  1. Although there is a better solution on it's way by early next year (subscribe here to be notified), we strongly recommend that we all just avoid these sites and let them die; they are spammy misrepresented garbage messing up the marketplace.
  2. Like other for- profit lead generation machines in the Auto, Real estate, Finance and many industries, these sites are parasites: they add no value to anything: they are noise and they clutter the market they pretend to serve.
  3. When you choose to hire out work from freelancers (a very smart and recommended thing to do), you should start by evaluating and choosing an expert vendor on the highest level first, then, in the process of hiring that project manager, seek advice before specking-out anything. For instance: we offer a free consultation to anybody, anytime: for anybody planning any kind of marketing program of any kind, from the first logo to the website to the video to the market research, to viral advertising, technology, hosting, radio and TV Advertising, agency services: as do most qualified professionals.
  4. Choose the most qualified, highest level vendor possible, and spec and project manage with them, so that the planning process includes the benefit of their advice as part of the contract: you should have the final word, but you should solicit their advice and input every step of the way to achieve the best result!
  5. Always check credentials and references before buying anything from anybody anywhere, search for negative press on the Internet, ask for credible references, and recent proof of performance: this technology changes constantly, and only the best of the best can perform here consistently!

Brian Bento

Why believe me? I am Brian Bentow: (Google me!)

CTO for SocialMediaSystems.com LLC, and MoviePals.org Entertainment LLC

If you want the answer to a question or a free consultation, call or email our business development department:

805-827-2450 freeadvice@socialmediasystems.com

Group Member
Nov 3, 2009 4:04:23 AM
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A big Thumbs Up for you Brian. I tried to work with Elance before, and they are Terrible.

A lot of these types try to at least impress you with a lot of fluff. They don't even attempt to do that. They are just a bunch of noise but there's no music.

Bev King, Virtual Assistant

Group Member
Nov 4, 2009 6:45:11 AM
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Thanks for posting this article! Hopefully others will review this before signing up with these companies. I had a terrible experience with rent a coder. I have not worked with the others. I totally agree with you Bev!

Group Member
Nov 4, 2009 8:47:55 AM
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I'm really glad that the article resonated with you guys!

The painful experiences that my friends and I have had doing freelance work has inspired me and my team to create a new type of marketplace! One that gives people complete freedom to do their business, saves them time, and leads to better results!!

Our mission is to create a marketplace that makes clients and freelancers happy!

Group Member
Nov 4, 2009 8:59:16 AM
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Elance. rentacoder, and getafreelancer are all the same - bidding blind while the site blocks your ability to directly contact the customer outside of pm. It's a great deal for elance who get a piece of each transation.

Group Member
Nov 6, 2009 8:43:11 AM
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Brian - the marketplace you are working on sounds interesting. Please keep me in the loop on launch. We too have had our challenges with freelance sites. We however create detailed RFQ's and project descriptions that we require to be signed before a provider is chosen. Of course this doesn't always assure that the project will be completed correctly but it does help. It also helps that we ourselves are programmers and techie people so we can better communicate project details. I think there are many issues going on here much of which you already detailed.

1. Complete project descriptions are not given so there are no clear guidelines to the freelancer. The freelancer is then expected to bid a flat fee on a project that has not been detailed or communicated well.

2. Freelancers on these sites try to low-ball each other to get the job. Our company always dis-regards low ball bids but then again we understand what it takes to complete a project.

3. It is too easy for freelancers to drop off and just stop communicating (no accountability).

4. You are not always hiring who you think. Oftentimes who you hire is a project manager who pushes the project down. We have had this issue going through professional US based companies too. You know the ones that charge 5x as much and claim they only have top level, highly skilled programmers? These companies often act as the project managers and simply push the project down to low-level programmers. This is even worse because you now have to deal with an extra layer of communication. I guess what I am trying to say is these issues are not only present through the sites you mentioned but the freelance (contract) industry in general.

4. Often times project owners don't understand how things really work. They do not have an understanding on programming, web development, etc. so do not have a realistic view of what a project really takes to complete. They can not effectively troubleshoot or test the delivered project because they don't have the skills to get into the code or backend to see how things look/work.

We personally never outsource core business development. It is just too risky. We do all core business development in house and will only outsource small projects. If your new system addresses many of the things I outlined above we will absolutely check it out.

Misty Lackie
Go Smart Solutions, LLC
http://www.gosmart4u.com

  1. Edited by RealEstateAdvertise on Nov 6, 2009 10:19:51 PM
Group Member
Nov 6, 2009 9:50:02 AM
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Exactly Misty, they are trying to make a commodity out of a professional service, because the people doing the decision making do not understand the technological impossibility of their approach working well for services: it is like the guy who wishes he could represent himself in court: he lacks the background knowledge and experience to make informed decisions, and he has a idiot for a client, too LOL

If any body requires clarification, call me, I do not bite: 805-827-2450

Group Member
Nov 6, 2009 9:57:20 AM
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Very nice, site, Misty, at http://www.gosmart4u.com, excellent navigation and calls to action: no video?

Group Member
Nov 8, 2009 1:31:25 PM
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I would love to, John. Thanks for your thoughts.

My thoughts in response to the initial post of this blog:

I understand some of the points the author was making, however at the same time I'd like to share my own personal experience with Elance.

I hired a programmer via Elance about 45 days ago. The process was much different than when I had originally tried their site out about 5-6 years ago. I was able to have a real-time chat interview directly with three prospects I had narrowed it down to, and was able to set specific milestons withe regards to the project at hand. I had specific and direct communication with my hire throughout the job, and he performed the exact duties we had outlined for the job, and to the exact specifications the project entailed. He did all this and finished up ahead of schedule and nailed our budget to the penny.

I believe part of the reason he was able to bid a better price was not only that he was an independant programmer, but also located in Ireland. The pay scales for the same programming services found outside the US are often considerably less than one would find hiring a company or individual located in the United States.

Yes it's true that some of these sites had a rather rough start, and that these sites aren't necessarily for everyone. However with proper communication (this means both asking AND answering questions) they definitely can fill a need, and can fill it well.

I'm currently in the middle of another contracting project that I filled via Elance, and believe it or not, this hire is from Kathmandu, Tibet! He's doing an excellent job thus far, had excellent references, and a comparatively high percentage of repeat customers. This "repeat customer" value that Elance displays, I personally feel, is a very good way to judge a potential hire. If a customer hires a programmer or company a second time to do work for them, then there obviously must have been a good value during the first go-round.

Again, these services might not be for everyone, but they by no means can be classified as "terrible" in general.

My thoughts only, please feel free to respond on the board if you have any specific questions with regards to my experiences with Elance.

best Regards,

-John Mizerek

Group Member
Nov 9, 2009 3:28:41 AM
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So can I then conclude that this was not you first experience in doing something like this and perhaps for that reason, it went better than has been previously noted in this chain?

May I ask what you paid for these projects, so I have some idea what to expect?

Thanks,

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