Saturday, October 28, 2006

Lessons from an Elance Pro

I just completed a project on Elance, and I have to say that the results were excellent for the price. In fact, Elance has proven to be a surprisingly good source of talent, despite my having had to pay for a few duds here and there.

I got a fantastic product designer off Elance.

And now this Indian firm did a fantastic job on a site for probably 1/10 the cost of what a US developer would have charged.

But that’s not the point of this blog.

He did two things that EVERY web developer should do at the end of a project, whether on Elance or not:

1. He thanked me for my kind words, gave me the invoice, and asked if I wouldn’t mind paying right away.

2. He asked for me to provide a favorable testimonial to him, which I did.

He also did something else that I liked: As we reached the end of the project, his developers indicated that they were going to fix all remaining issues “right now.” And they worked with me for an hour via IM to fix those issues. So rather than going back and forth for days to wrap up the final details, they wrapped up right away.

That was refreshing, and the developer also noted that I could of course come back with issues in next 30 days if any came up.

Now he did do one thing that most of you will find annoying, and I did too: At the very end, when invoice was due, he asked me how much I wanted to pay (vs. referring to our original agreement). He suggested a bonus was in order. In some ways, I agree with him because he went above and beyond and provided tremendous value. But his real bonus will come from 3 additional projects I have for him. And asking for something outside the original agreement bugged me.

However, before dismissing this technique as obnoxious, please note that it can be a good technique to use at the beginning of a project (when it is more appropriate) when negotiating with a client, although it can’t be done on a bid site like elance. Negotiation studies have found that asking for a little bit more after almost finalizing an offer can work well. For instance, car dealers (not that any comparison is in order between developers and car dealers) will ask for $100 or $200 more after receiving an acceptable offer from a prospect. You can do the same.

I hope the above 2 paragraphs don’t take the point of this entry too far from the main points:

1. Present the invoice immediately and ask for prompt or immediate payment.

2. Ask for testimonials with every project.

3. Wrap up projects quickly. Don’t let them linger.

This entry was posted on Friday, December 9th, 2005 at 8:56 am, contains 457 words, and is filed under Selling Web Design Services. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed. The views and opinions in this blog post are those of its author.
This post has 19 responses so far beley Says:
December 9th, 2005 at 9:27 am
That’s good to hear… great advice and I’m glad you’ve had such good results from eLance. I’m thinking of getting bids for an upcoming project that would just be too expensive domestically. It’s nice to know people are getting good results from outsourcing.

And I totally agree with the 3 main points… excellent advice, as always!


jacarandabill Says:
December 9th, 2005 at 10:57 am
I am rentacoder coder. My experience comes from about 60 succesfull projects there and numerous other outside of rentacoder.

1. Present the invoice immediately and ask for prompt or immediate payment.

Yes but you always have to give the buyer some time to fully test the deliverable. In addition, you have to be very carefull how you will ask about the immediate payment. There is the “danger” to sound to eager to finish and move on without caring about any critical bugs or fixes.

2. Ask for testimonials with every project.

It isn’t necessary if the project finished succesfully.
I never asked for a good testimonial. The buyers always feel that they have to say a nice word.

3. Wrap up projects quickly. Don’t let them linger.

That is really important. I totally agree.


nemanja_nq Says:
December 9th, 2005 at 12:25 pm
I am thinking to join elance like provider. :) Nice article.


Someone who cares Says:
December 9th, 2005 at 12:35 pm
Are you proud of the fact you are sending your business outside the US? It sounds like it. That’s unfortunate.


Anonymously Says:
December 9th, 2005 at 12:50 pm
Are you proud of the fact you are sending your business outside the US? It sounds like it. That’s unfortunate.

You need to grow up… Globalization is good for the US, Andrew saved money and if you don’t like it too bad.


bobsorenson Says:
December 9th, 2005 at 2:40 pm
Globalization may be good for the US as a whole in the long-term. But then again if we as a Nation are not able to innovate and improve productivity here in the US at a fast enough pace, the standard of living of many people will fall significantly. If your standard of living is not falling it is easy to post anonymously a “grow up” comment.

Greed over compassion.


ptpnewmedia Says:
December 9th, 2005 at 2:44 pm
Capitalism and innovation rules! If you don’t like the game, don’t play. If your standard of living is affected, be creative and come up with a new way to better yourself instead of passing blame. That really just ticks me off!


whitestorm Says:
December 9th, 2005 at 2:51 pm
Andrew is a businessman and as such he has to think of the bottom line when he makes a business decision as to who he hires for a project. Why should he pay ten times the amount just to keep the money in the US if he can get the job done for 10% of that amount in a satisfactory way? If Westerners (and I obviously include my native UK in that) can’t compete on low cost, high quality software development these days then it’s time for innovation amongst our institutions of learning and commerce to help workers become more productive or efficient in other areas as happened when the Far East took away our traditional heavy industries and, especially in Northern Ireland, our staple shipbuilding and textile industries which we had been world leaders at the beginning of the 20th Century.

Continually paying over the odds for suppliers just to keep the money in the country of origin will ultimately lead to loss of productivity, efficiency and profitability all across that country. I have no problem then with using low cost suppliers to help make my products and services more profitable.


aneitlich Says:
December 9th, 2005 at 3:15 pm
This is a great discussion, so a new blog entry has been created just for it. See the next blog entry….

http://www.sitepoint.com/blogs/2005/12/09/business-ethics-and-morality/


webgirlNY Says:
December 9th, 2005 at 3:18 pm
After viewing elance’s pricing, I don’t believe he got it at 1/10 of the cost. I think that’s an exaggeration. I’m sure there are some US firms who would quote 10x the cost, but I’m also sure that there are US firms whose quotes would be in line with elance. Maybe Andrew can show us the site and tell us what he paid?

elance’s pricing isn’t that far off of my pricing and I’m a designer and developer (asp/sql) with 7 years experience.

And while I find compelling arguments on both sides of the globalization debate, I’m not going to discuss that here. However, Andrew does seem to enjoy pointing out that he hires overseas designers. It would seem he’s already given up on US designers and maybe even looks down his nose at the lot of us. Which may be the best for his bottom line. Fine. But I for one am not going to follow all the links he posts to his (unimpressive) websites and buy products from him.


webgirlNY Says:
December 9th, 2005 at 3:25 pm
In other words, we’re good enough for him to sell to, we’re just not good enough for him to buy from.


GDA Says:
December 9th, 2005 at 3:46 pm
Can we see that site?


EOBeav Says:
December 9th, 2005 at 8:58 pm
Andrew is an American, but didn’t SitePoint originally begin by an Australian designer? Many of the posts in the forums and in the blogs are from international sources, so it shouldn’t really offend anybody in here if a contributor is hiring some of his labor outside his native country.

I’m an American, and I can see the value of buying American first from my own ethnocentric perspective, but I just can’t see that happening on a site like SitePoint.


Brian Says:
December 9th, 2005 at 9:03 pm
lmao

I am curious…
What percentage of the the things you wear are made in the US? One percent? Two percent?
Your beef… Is it from the US or Argentina (where a huge amount of US consumed beef comes from)? How about your other food … Is it mostly from the US?
You automobile… Is it American made, by Americans for an American company, using American parts?
Your home entertainment items… Is any part of your home theater American made by an American company?

Take a look around Walmart, Ikea, Home Depot, Lowes Home Improvement, etc. These companies are rich off of imported products. Where do you shop? Exactly, what percentage of your income goes to buy products made in America, by an American owned company?

So, Andrew uses an overseas firm to build a great product for less than it would have cost to build the same product domestically. His company is stronger for the savings, and America is stronger when our companies are stronger.

Crying when a foreign company offers more value and better service for less money is a complete waste of time. In general, people will always buy what they believe is the deal for their money.

The issue is not what Andrew paid. The issue is why are you and I not on eLance, offering more value at a competitive price. So, quit bitching and learn to compete in the international IT market.

-Brian


Javier Cabrera Says:
December 10th, 2005 at 4:57 pm
Your beef… Is it from the US or Argentina (where a huge amount of US consumed beef comes from)?
Yeah! our beef are just the best in the world ;) but here they are expensive because it is best to sell outside. I’m complaining? well… no.

The world is changing fellows, this discussion is the living proof of it. You will always find people who is afraid of change; so… don’t take it personally. Just play the game; those people will end up playing too.

Cheers
Javier Cabrera


friendsterindia Says:
December 11th, 2005 at 3:14 am
US based software professionals can subcontract work to indian firms.They can handle the marketing part.Or they can come to india and start their developement centre here at low rates. Visiting india is not expensive.Try visiting bangalore,hyderabad,delhi, chennai, kolkata etc. Hire a consultant. You can easily get Office at technology park. Put a ad in naukri.com and you are ready to start operations in India.You can also contact me at techtiger@goowy.com . My friend’s firm is building largest tech park in Kolkata.You can get really great value from me related to property and hiring best talent.


aneitlich Says:
December 12th, 2005 at 2:14 pm
While the point of these blogs is not supposed to get personal about me and my buying habits (as the issues discussed are supposed to be bigger picture), this blog entry seems to have gotten personal in a non-factual way. I hate when that happens.

I checked my Quickbooks for this year about where I purchase services. 75% of the services I’ve purchased from designers and developers are from people who reside in the good ol’ USA. 25% are from overseas resources. So please stop assuming that I see it as a virtue to look overseas.

I look for best source in terms of quality and price. In this case, I was fortunate to find excellent quality and excellent pricing.

But do me a favor if you don’t mind…let’s focus on the big picture strategic issues. Don’t try to extrapolate or project who I am, what I am about or my philosophy. If you have a hunch about what I believe, email me privately and ask. If you have a “beef” about who I am and what I represent, email me privately and rant all you want.


Inversarium Says:
June 14th, 2006 at 8:09 am
@ Someone who Cares!?

What’s the big deal about outsourcing work?

The net’s a global village and it doesn’t matter who you get your work done from as long as it’s done good.

And personally, I think more on terms of being a citizen of the world than of ‘just’ my own country. I love my country and people just ‘as much’ as I much as I love ‘every’ other country and its people. So if I have to outsource work ever, I’d do it just as happily as I’d get it done here in India.

And btw, if I wasn’t a designer and needed design work done according to my frame of aesthetics, I’d definitely be getting it outsourced! I wouldn’t be thinking, “Damn! I’m sending business outside India. How unfortunate!”

Get the bigger picture and be more open system. Just my two cents.


Inversarium Says:
June 14th, 2006 at 8:23 am
And oh yeh. Almost every audio CD I’ve ever purchased has been of a foreign artist and rarely Indian (except for psytrance!). Where does “how unfortunate” come in from here?
This is a follow up to the Elance Pro blog a few entries ago.

I have a second project, similar to the one that the Elance Pro just did for me. He once again impresses me with his ability to close business. Here is how it worked:

1. I sent him specifications for the project.

2. This morning when I hit the computer, he instant messaged me immediately to thank me for the specs.

3. He asked me my budget for the project. I told him that it should be less than the site he just did for me. He agreed and suggested a ballpark. I agreed to that. He asked if I could start today; I told him early next week.

4. Now it gets interesting. He asked me if he wanted me to have him post the project for him. I said sure.

5. So he posted the project on my behalf and awarded it to himself!

This action not only “closed the deal” for him, but did two other things:

1. He saves 4.75% on elance fees by doing this on a repeat project.

2. He is able to automatically invoice me for half the project fees right away.

So with a brief IM conversation, this developer managed to close a second project. I love that kind of speed and efficiency!

This entry was posted on Tuesday, December 13th, 2005 at 8:02 am, contains 215 words, and is filed under Selling Web Design Services. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed. The views and opinions in this blog post are those of its author.
This post has 15 responses so far VodkaFish Says:
December 13th, 2005 at 3:39 pm
I know some people here like it—but I hate “instant IMs”, and they seem very common from people working overseas. The moment I log on I get bombarded with them. I don’t mind IMs, but I don’t prefer to conduct a lot of business over them. I’ve met few who do, but Sitepoint seems to be an exception to that (observed) rule.


davestarr Says:
December 13th, 2005 at 5:39 pm
Vodka,

You’re of course totally entitle to your preferences but for myself I wish more people would get into conducting business with IM. It’s much more responsive than email, easier to control, and easier to keep records on.

Perhaps you just haven’t found the right platform? I like Yahoo messenger but there are others that work in different ways that suit many other folk’s needs.

Best regards


Anonymous Says:
December 13th, 2005 at 5:43 pm
Once again—I bet someone in the U.S. could have done it just as cheap and just as well.


Mathew Says:
December 13th, 2005 at 5:59 pm
Once again—I bet someone in the U.S. could have done it just as cheap and just as well

So? Why bother going with someone else you haven’t worked with, to get the same price and quality?


willthiswork Says:
December 13th, 2005 at 6:49 pm
So? Why bother going with someone else you haven’t worked with, to get the same price and quality?

You will soon see it.


pdxi Says:
December 13th, 2005 at 8:50 pm
I think it will be best to leave the “India vs. USA/UK” discussion in the previous blog, or somewhere else. Let’s not draw attention away from the topic of this entry.


mjc Says:
December 13th, 2005 at 11:05 pm
pdxi, agreed.

The lesson here is how to get repeat business from a customer who has already bought from you. The location of either business is immaterial. I’ve heard horror stories about offshored projects and I’ve worked with very good Indian developers. In this case the developer is doing a good technical job but quite clearly an excellent marketing job which is why Andrew is using him as an example.

Elance is a place where it’s hard to compete on anything except price. You’re better off marketing yourself on quality in your local niche. Read Michael Porter, on second thoughts, don’t ;) Summary:-

You can only compete based on one of three criteria being either Best, Cheapest or one of the previous two in a niche.

Looking seriously at most of us we:

a) Don’t have the resources to be best in the world.

b) can’t compete with an offshore outfit on price.

Which leaves us with niche marketing which I’m sure Andrew’s recommended in the past. So everyone, identify your niche & be best in that niche.


friendsterindia Says:
December 15th, 2005 at 9:39 am
how can we make elance to spend more money on advertisements. currently there are few buyers and low value projects


friendsterindia Says:
December 15th, 2005 at 9:39 am
how can we make elance to spend more money on advertisements currently there are few buyers and low value projects


friendsterindia Says:
December 15th, 2005 at 9:40 am
any other online marketplaces to pick up projects …??


marcel Says:
December 15th, 2005 at 2:01 pm
I would not mind buying services from the US or India or UK. But so often I see freelancers or sellers saying “We only accept PayPal”.

In India they accept Paypal, Wire and a myriad of other payment options. I know online businesses that make $120,000 / year and only accept PayPal.
That’s not Ecommerce. The rest of the World exists you know…

For those who don’t know, PayPal does not do business with a lot of countries.

Just a 0.02 cent sidenote.


marcel Says:
December 15th, 2005 at 2:03 pm
there is also rentacoder.com


VodkaFish Says:
December 15th, 2005 at 4:38 pm
davestarr,

IM means responding at someone else’s pace or sitting and waiting for them to respond at yours. I find it great for quickie things, sending out reference links, etc., but not conducting business. I’d rather email someone and not have to worry about focusing on the IM, or I’d rather just pick up a phone (or IM chat, Skype, whatever).

I use Trillian myself, love the thing, always have windows open—but I like to keep most of my business over email or on the phone for time purposes. Time is my greatest expense and if you’ve ever had to clarify things with a slow IM conversation, it just seems too costly.


Anonymous Says:
January 13th, 2006 at 12:39 pm
Concerning Elance anyone choosing to join this service should watch their billing like a hawk. They make countless mistakes in overbilling, which they will fix but its happened to me more than once where I was double billed with Elance service fee which is 8.75. Also all the times I’ve called their 800 number I’ve never reach a live person. Their answering machine message just becomes redundant. Although someone eventually calls you back.


Kim Scott Says:
September 26th, 2006 at 2:49 pm
Elance and RentACoder are nice but I don’t like chasing freelancers that barely speak my language.

I use SoftwareProjects

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