There are 2 types of freelance jobs on freelance job boards like oDesk, Elance, etc. – let’s call them hourly assignments and fixed price jobs. Soon we will talk about applying to freelance jobs successfully and interviewing process as a freelancer but in the meantime – let’s see how to decide on your own which type of freelance jobs is for you.
This post is based on my personal experience on oDesk and Elance. Maybe the payment policy and conditions vary on other websites but in any case, here I’ll share some basic info and tips which would help you make an informed choice.
Hourly paid freelance jobs
I used to prefer these type of jobs. I still prefer hourly assignments when working on oDesk because they are guaranteed by the system. You only need to log in to your team room application and record your work properly. If you remember the blog post I wrote earlier about oDesk, I shared that this application captures your screen once in every 10 minutes, building your โwork diaryโ. Based on your work diary, your earnings are automatically paid to you in the end of the work week. Elance has a similar functionality – the Work View tracker.
Hourly paid freelance jobs have their pros and cons:
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Fixed price freelance jobs
The payment for this type of projects is not guaranteed in oDesk. To filter bad clients who might not pay you at all, you can ask for upfront payment but they not always agree to that; oDesk isn’t good for fixed price freelance jobs.
Elance however has escrow service and it does guarantee fixed price projects payments if both parties (freelancer and client) have agreed to use escrow.
It is very important that you get to know the client better before agreeing to a fixed price contract, especially on oDesk. Check out their client’s feedback and history. Ask yourself at least the following questions:
– Did they have small or large-scale projects so far?
– Did they launch primarily fixed price or hourly paid contracts?
– What are their reviews and feedback?
– What is their feedback on previous fixed price freelance jobs?
Another tip is not to think all clients are the same. For example, if a client refuses to pay upfront and you see that all of his previous contracts are fixed price with 5 star reviews from other freelancers, obviously this is a person who will pay you eventually. He just needs to make sure first that your work is top-notch. However, if you encounter a client who doesn’t want to pay upfront, his reviews vary and h doesn’t have previous fixed price jobs – don’t bother communicating with them, you risk wasting your time and working for free. Check out one other post about filtering bad clients for more details how to recognize and stay away from “bad apple” clients ๐
Anyways, here’s in brief pros and cons of fixed price jobs on oDesk and Elance:
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Remember the trial tasks as well
Sometimes, clients want freelancers to do some kind of trial task – to see their working style and quality. That’s fine. However, be careful not to take upon a too long or too complex test task. If you are not approved for the position, most often you won’t be paid for the trial task either. Don’t simply refuse a trial task – in your potential client’s eyes, this is your skills put to the real-life test! If you live up to the client’s expectation and requirements, the freelance job is yours ๐
I think that it’s great that you offer your personal experience in your posts, Diana!
Thanks, Lorraine! I guess if i have struggled with something – chances are other freelancers are struggling, too. So sharing my experience seemed like a good idea ๐ Thanks for appreciating my posts and tips!
Hey, it’s the least I can do… ๐
from an employer perspective, fixed price is the solution when you can define the scope of work while hourly is best when you have only an idea of what it should take to accomplish…
I also like to do small fixed price trials (always pay for them – and think employees should demand payment – there is no free lunch and that is best established at the beginning of a relationship) to see real work in my own context
oh, i wish all clients were like you, Oren! ๐
i agree with the differentiation you did between fixed price and hourly jobs… and i also agree that paid trials is a great way to “probe” the other side, to see if you can work together with the other parties… small paid trial is a great way to decide if you want to enter a long term contract and relationship with a client/freelancer or prefer to part ways on good terms when you still have the chance. Thanks for your comment! ๐
I’m definitely learning that not all clients are the same, but for now I am sticking to fixed project prices for my editing projects. I always ask for a sample up front, so I have an idea of the level of editing needed. Your posts give me lots of great ideas for venturing into more writing projects as well.
thanks for your comment, Jeri! Recently i also find that writing on flat rates is way better for me as a freelancer – so i guess it’s similar with editing gigs.
Thanks also for the feedback – i am glad my posts give you food for thought and help you grow and prosper ๐
I used to prefer hourly clients, but recently some of my best clients have been ones for which I’ve done project amounts. I’m learning how even if you only do one job for a client, the client can be a lifetime source of referrals, so best to keep both of us happy when working on the project. And yes, so important to know the client before giving a project amount. If I don’t get good vibes, I can’t say yes to doing the proposal. In my work (building websites), we have to work together.
Thanks for stopping by, Leora! And yes – what you say about one time client being a life-time of referrals is SO true, thanks for adding it and for sharing your insights! ๐
I know this is two years too late, but one flaw I find disturbing about oDesk hourly billing is that you’ll essentially get paid twice a month. The week you work is charged Monday, but the client has up to 5 days to review things, then there’s the 6 day hold. Mathematically, it’s impossible to get paid weekly using the hourly schema.
Hi, Greg – your math is flawed somewhere because you can get paid on a weekly basis – I do ๐ If you work every week, you get paid every week – only the first payment is late, so to speak, because of the holding period… you do get your payments with a week delay time every time but again – if you work every week, you get paid every week ๐