Written on February 22nd, 2010 at 11:19 am by Vinay

4 Tips to Not Get Screwed on Elance

For those who don’t know, elance.com is a site where people can sell their services. Basically like an ebay for services instead of goods.

The way it works is you can post a job for anything from web design, data entry, marketing, ghost writing to virtual assistance and relevant service providers can pitch for your work. You then select the provider who you think best fits your request and they start working away.

Funds are placed in an escrow holding service and released once you mark the work as satisfactory.

Anything that can be done remotely can be organised over elance.

The key benefit of this system is the ability to take advantage of currency differences. You can pay someone market rates in India or Eastern Europe and have it come to a fraction of the cost in a western country.

But using this service to complete tasks does not come without complications.

I’ve done a few projects on elance now, some better than others.

Here are a few tips from my fails:

1. DON’T BE A PUSHOVER LITTLE BITCH

Seriously, this is important.

Treat your freelancer like your boss treats you – there is a job to do, no exceptions.

For people with no management experience, this can be tricky. I learned quickly as I saw a project expand from 2 weeks to 2 months! Setting rules is important as discussed below, but enforcing rules is equally if not more important.

Don’t listen to excuses like “the work was harder than we thought” or “you had too many change requests”. They shouldn’t have bid if the work was too hard. If they think your change requests are going to push out milestones, they need to request milestone changes. If they don’t, tough luck. You’re not the expert they are.

2. Make rules

Make rules for everything. How, when and in what format you want the work delivered.

Ask for periodic updates and set deliverable dates. Tell them if things are not up to your expectations you will pull the project or have them restart.

Be specific in your rules. If for example you’re having a website done, tell them if you want the site up and running on your host or if you just want the files sent. Tell them if you want social media integration, testing or support.

These should all be laid out before the job is accepted.

3. Punish rule breakers

Set penalties for rules being broken.

As an example a 5% penalty for every milestone not met.

That means, if they update you in 4 days instead of 3, hit them with a 5% penalty. Make sure you do this the FIRST time they miss a milestone. This will discontinue a pattern of abuse. Again, don’t be a pushover little bitch. Highlight punishments clearly in the rules before the project starts.

4. Don’t give feedback until you are completely happy.

This means that everything is up and running and you have tested everything. Don’t get conned into providing feedback after you see the site working well on their host, or you have a general brand theme without all items complete.

Elance workers like eBay sellers live for feedback. And once you leave feedback, you can’t change it. Many suppliers would prefer a 5 star review and 50% of the money over 100% cash and a 3 star review.

The verdict?

There is no doubt elance can provide quality work for cheap over a secure and reliable platform.

But if you let people screw you, they probably will.

The success of the project still rests on the project manager – you!

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9 Responses to “4 Tips to Not Get Screwed on Elance”


  1. Jewelry Secrets

    1 year ago

    Good tips. I’ve hired 6 different companies on Elance over the last year and have not had to exercise any of these. So I consider myself lucky. I think a lot of it depends on how detailed a proposal you set up. I make mine very long, detailed and followed up with images that show every step of the way. Time consuming to make, but it gets perfect results in the end. So far…

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  2. James H

    1 year ago

    I’m an elance worker. But I wouldn’t fancy working for someone who behaved too stringently in their job description. Even if I produced excellent results, I’m sure their inflexibility would enable them to find excuse to have a whinge. My suggestion would be to make a detailed spec, but without coming across as so hostile that it would alienate the good workers you are wanting to attract!

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  3. Amila

    10 months ago

    I’m an elance provider. If I meet a client like this, I will immediately refund and finish the project at once. Although the client pays me, that doesn’t give him the authority of making me hostile. Work is two sided, client needs my service and i’m serving him my skills. So, both parties have to respect each other.
    Very poor article.

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  4. Jane

    6 months ago

    You sound exactly like the kind of buyer I am looking for. Someone who is hostile, arrogant and demands “high quality” work for a few pennies, only to leave lousy or no feedback. With this kind of attitude, it’s no wonder you’ve gotten “screwed”.

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  5. Taz

    2 months ago

    I have been having experience working as both provider and buyer, but looks like someone had really bad experience over time and making judgment and categorizing all as one. So against the tips:

    Tip 1.
    Listening is really difficult job and actually understanding and then evaluating what other is saying is even more difficult. If one can not listen, means one is DEAF. And if one can’t understand and evaluate, means the one if DUMB.

    Tip 2.
    Makes sense

    Tip 3.
    Makes sense

    Top 4.
    Makes sense

    One should see every individual as INDIVIDUAL and do not make assumptions and JUDGMENT, just based on experiences with others, before actually dealing with the one. This is the most common mistake a human being does.

    Otherwise, one has to be quite smart to not to hire a provider which will create problems. And if one can’t, its his/her mistake, right?

    PS: I agree with Jewelry Secrets, James H and Amila’s comments.

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  6. Tina

    1 month ago

    Nice rubbish article. I will add one more – 5. Threaten your freelancer

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  7. Bill

    1 month ago

    I have worked with Elance now twice, my first project was good and now I am working with a contractor that did excatly what you have talked about. Was super great before i gave a review and practically FORCED me to give him a 5 star rating. Then after COMPLETELY stopped working for me, stating the same “okay we will work on that and get back to you” which they never did. I have been Waiting for weeks just to get my files so I can build it my site with someone esle. It has been a horrible experience and i have learned my lesson. It disgusts me when I read the review I left and cannot take it down. Does anyone know how I can warn others to not use this contractor and get screwed over the way I have????

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  8. jeff

    1 month ago

    We have been screwed by Elance and the service provider.

    BEWARE; we posted a job for customization of Couponic software and got a bid from a guy named Lenin from Bangladesh with 5 start rating, he wanted work based on the time sheet, we agreed with a deadline of 2 weeks, he put someone else on the job and we found out after 2 weeks and 2 time sheets later that they do not do Couponic and they have developed a similar software( very inferior one) and they went ahead and sumitted another timesheet and Lenin kept putting us off for 5 days and timesheet was charged to our card by Elance, we termionated their work 5 days before the pay day, but Elance charged us anyway…we have nothing from the developer and have paid the netire amount…he went on to say” I will get all the money from Elance and you cannot do a thing”…we have not posted a review yet and have put a fraud charge back on the credit card. Elance dispute just sent us a mail saying the case was closed… ThIS IS NOTHING BUT COMPELTE FRAUD… any ideas?

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