14
Where the Work Is: Virtual Freelancing Hotspots

According to tradition, legendary bank robber Willie Sutton was once asked why he robbed banks. “Because that’s where the money is,” Sutton is reported to have said.

“Sutton’s Law” applies as well to finding virtual freelancing jobs. Why go to sites like Elance.com and Guru? Because that’s where the jobs are—and where you’ll find a diverse and remarkably skilled and affordable labor market to tackle your own overflow projects.

Not only do these online job marketplaces offer projects for self-employed specialists, but they’re also a great place to find the extra help you need to grow your business on a project-by-project basis.

Connecting With Clients Across Town and Around the World

If your business lends itself to project work, consider creating a profile for your company on one or more of the virtual freelance sites such as Elance, Guru, ODesk, or Freelancer. (If you’re in a more specialized field, such as software development, there are equally specialized freelance sites available too.)

Companies and solo professionals hire out through these sites for many reasons. Some make a dedicated commitment to bid daily on projects, understanding that competition is intense and that global competition favors low pricing. Other companies or individuals bid on projects in the hope of amassing a portfolio, updating skills, or landing larger, more lucrative assignments once they establish a relationship with an online client.

If you decide to throw your hat in the virtual ring, make sure to fill out your provider profile with complete information. Include a photo or logo, attach work samples and references, and spend some time developing short, concise proposals that you can mix and match as suitable jobs arise. You’ll also need to fill out the information necessary for Elance and other sites to pay you and provide an end-of-year 1099 form (U.S. residents).

On virtual freelance sites, your track record of past projects is a visible form of credibility. Not only can prospective employers see how many jobs you’ve completed, but they can also see the ratings and comments posted by your clients. Needless to say, this makes customer service a top priority, and even then, some negative ratings are inevitable. Go the extra mile to make clients happy, but also develop a thick skin and realize that you won’t be able to please everyone all of the time.

Elance and other online freelance sites support a level of global competition that makes it unlikely you’ll win bids charging top dollar, especially without an online track record. Many employers hire from these sites looking for bargain prices and are able to hire the help they need because prices trend toward the low end of the spectrum. You may want to decide up front that you will only bid on certain types of projects that you can afford to do for a low introductory price. It’s also important to realize that the sites do charge a “finder’s fee” percentage to professionals to obtain projects through the site, and many sites require that future projects with the same employer be contracted through the job site for a certain length of time (meaning that repeat business will also be subject to the finder’s fee percentage).

Virtual Assistance: Getting (and Affording) the Help You Need

In the early days of your business, like most entrepreneurs, you probably did everything: sales, Web design, research, and sweeping the floors. That’s a fact of entrepreneurial life during a company’s early days, but business owners who don’t learn to delegate often find their companies unable to grow beyond what one person can handle.

Good help is affordable, especially when you hire the right skills on a per-project, as-needed basis. That’s where online job marketplaces such as Elance, Guru, ODesk, Freelancer, and similar sites come in. Need a copywriter, graphic artist, or someone to help with administrative support? Think about the specific skills required, how many hours you would spend doing it yourself, and how much you’re willing to pay to have someone do it for you, and then post your job through one of the job marketplace sites.

Within a few minutes to a few hours, you’re likely to receive bids from professionals all over the world. Hourly rates tend to be incredibly competitive because of the global nature of the labor pool, and you’ll find freelancers of all levels of experience offering their services. Read through the proposals carefully, narrow them down to the people who appear to be the best fit, and then go a step further to review your prospects’ online portfolio or to interview them via e-mail or Skype.

In addition to helping you connect with professionals who can help you delegate essential tasks, sites such as Elance help you manage and track projects. Once a job is awarded to a freelancer on Elance, employer and freelancer have access to a secure project workroom where documents can be uploaded and downloaded, and comments and questions can be posted. Completed jobs can be paid for through Elance using PayPal, which shields the details of the employer’s and freelancer’s credit card or bank account data while enabling direct deposit of funds once a project is finished. Elance even generates 1099 tax forms for U.S. freelancers, making it easier for employers and freelancers alike. Pricing varies by site, but on Elance, it’s free to hire. (Freelance workers pay a percentage to the site.)

With online job markets, it’s easy to hire (and afford) the help you need on a one-time or repeat basis. The project format makes it non-threatening to try out a new freelancer, and easy to rehire professionals who have provided satisfactory performance. This provides the elasticity many small businesses need, giving them access to skilled help when the budget permits, without committing to a fulltime or part-time employee they might not be able to afford on an ongoing basis. Online freelance sites also open up a pool of skilled labor unrestricted by geographic boundaries, making it more likely that you can find the right mix of skills and price to suit your needs.