Invoicing through Elance/odesk vs going direct

King.

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Dec 26, 2010
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I've been using a freelance developer I found on elance for a few years now. Every time I give him work he bills me for the hours through elance. I told him he could just invoice me directly, and I'd wire the payment to him, to cut out Elance's middleman fees. He told me he's totally fine with elance, and that they 'deserve' it.

Are there any advantages to continue working through a freelancer site like elance once a relationshp has been made? For single projects, it makes sense, because of the safety of milestones and escrow. Perhaps paying through elance also allows them to build up their hours billed, which would increase their reputation in the site. That's all I can think of, anything else I'm missing?
 


Sounds like they get a bunch of other clients through elance/odesk and don't want to get shitlisted.

The whole milestone/escrow thing might have them feeling safer as well.
 
I would re-check the rules. Last time looking if you try to take the work away from Odesk you can get banned.
They can't lock that person down for all eternity. It doesn't make sense. This guy I'm using has worked on a whole bunch of new projects for me, we discuss outside of elance, there's nothing that should tie us down to the site, yet he always likes to bill me through elance.

Sounds like they get a bunch of other clients through elance/odesk and don't want to get shitlisted.

The whole milestone/escrow thing might have them feeling safer as well.
Maybe it's just convenience. Doesn't make any fucking sense to me though.
 
I hire tons of people through elance/odesk and although I always ask them to bill me directly, most of them choose to do it through those platforms, even if they have to pay a fee.

My last contractor had 1,000+ hours with a 5 star rating on his profile, and his hourly fee was $30 per hour on his profile, but he only pocketed $27 an hour after odesk fees. I asked him to bill me $30 per hour directly through paypal to save the fees, he still chose to keep using odesk... go figure. I think odesk must be providing them with free blowjobs or something.
 
Not like I'm trying to bullshit you or anything, I'm stating that's why he might be hesitant. This is from a simple Google search (what I was saying to do above).

While some hires on Odesk are more than willing to jump on Skype and do a payment through PayPal some may not.

https://www.odesk.com/info/terms/client-policies/

5. Payments

Soliciting or processing payment outside of oDesk is prohibited for the safety and security of all oDeskers. If a freelancer solicits work to be done and paid for outside of the oDesk platform, please report them immediately.
For more information, please see Section 2.4.3 of the oDesk User Agreement.

I'm not going to publicly condone cheating Odesk out of their fee. Just saying that I've witness accounts getting closed from it, it's in their rules. A lot of people get away with it, but if reported they will close the account.
 
Some of these guys have spent years building up their profile, history and reputation on these sites.

Why would they risk getting banned just so they can make an additional 10% coding your ewhoring bot?

Even if you are offering a full-time gig, nothing is gauranteed in this world.

Take your head out of your asses.
 
How are you guys asking them?

What I do is ask them for their email on oDesk. Then, over email, I ask them if they want to reduce their cost of payment processing from 10% to 2%.

Every time I've asked, they've agreed. I also pay 50% upfront and 50% after delivery so its safe for them.
 
If he mainly gets work from Elance then those 5 star reviews are a big part of his marketing.
 
From what my freelancers have told me, they prefer to bill through oDesk because the more they've billed and the more hours they've racked up, the better their profile looks and the more jobs they get.

Sure, it costs them 10% to do it but if it increases their chance of getting more work once they've finished writing your $0.01/word articles, why wouldn't they do it?
 
I do alot of stuff on freelancer sites, and I try my best to keep people through the platform despite the membership fee, the % cut, and the awful interface. Two reasons:

1) The platform brings me customers, escrows funds, and bans clowns that try to fuck with my beer money. When they go reading through all my PMs for arbitration and stuff, I want them 100% on my side. Mods have pulled through for me in the past, they earn their take as much as I earn mine. The relationship might not be obvious, but its definitely there.

2) The reviews are worth ALOT. They increase your projects and your billings per project. We're talking 30-50% of my profit here. Doesn't matter what your rating number is or how many reviews you've got, you'll always need more to keep ahead of that other guy that's always bidding on the same project as you. I still encourage people I've been doing repeat business with for years to leave a quick review note after every payment.

The only time I will take a client off platform is when I know they already have payment infrastructure setup on their end, and its enough of a bitch for them to go through the platform that it puts my business at risk.

sooooo ya, exactly what OP said.
 
This has always been a big concern for me since I launched odesk. I am glad to see that most of the freelancers taking advantage of my site are honest hard working folk.

I also own elance, but we just got a Google penalty. Should I 301?
 
Maybe the freelancer is just new in the freelancing biz and is still afraid not to get paid.
 
If you are dealing with U.S. providers its easier for you as well. No dealing with 1099's, W-2's or stuff like that.
 
Indian outsourcing recognized.

Isn't that costing you a lot in fees though? I'd suggest Moneygram instead.

He's in the Philippines. It's like a $5 fee. But he gets to pick it up immediately, and it's in his local currency.
 
Once you build that trust I think its always good to look after your developers/workers etc, treat them with respect heck if my developer says can I pay him WU its easier, I know once hes done the job im happy to pay him however - even in monopoly money if he chose so...