Outsourcing using Elance

I have been using Elance for about 18 months to outsource a variety of tasks.  Over that time, I have outsourced or out tasked approximately 18 projects with a mixture of successes.  Now for those that are experienced with the concept of outsourcing, then this post is probably of little use, having said that I come across a large number of small business owners that are just bogging themselves down with mundane tasks that are just begging to be outsourced, yet they have no idea on how to use sites such as Elance to outsource.

So in this post I am going to run through some basics of the Elance website and provide some hints & tips when it comes to posting tasks on the site which should hopefully prevent you having a bad outsourcing experience.

First things, first.  Elance is essentially a giant marketplace that allows you to post work tasks for completion.  The site covers a full range of categories from Web design right through to simple administrative tasks.  Basically, if it can be done with a computer, you will pretty much find somebody willing to do it for you.  There is an awful lot of providers in the Web design, Graphic design and Virtual Assistant categories, so if you need work doing that falls into those areas then you are bound to find a good number of willing participants.

The key is in the post

The key to success with using Elance is down to your initial job posting.  It sounds blindingly obvious but the more descriptive you are, the more chance you are going to get decent providers responding to your requirements.  There is a restriction on the number of words you can use in the post field. However, you can attach documents, which provide the required level of detail.

Set the expectations of the provider, tell them exactly what you expect of them.  If you want them to provide daily updates, make it clear.  If want communication via IM, tell them.  My first job postings were at best crap, and I had some rather poor experiences as a result.  It follows the old adage – rubbish in, rubbish out.

Beware the tyre kickers

You will find that as soon as you have posted your job, you will find almost instant responses that generally go along the lines, of “We have read your bid and fully understand your requirements, and can deliver in 3 days” Rubbish!!  Certain providers just scan the titles and provide a set of pre-canned responses, generally with a low bid.  To qualify this out, I add a sentence in the post description along the lines of “Please quote code XXXXXX in your bid, if you do not submit this code then your bid will be disqualified”  Once I started doing this, I was amazed how many providers were not reading the bid description, at least with this method you do not need to waste time on those that cannot  be bothered to read the brief.

Set a realistic budget

Again simple, but I am often surprised how often jobs are posted with inadequate budgets.  The point of using Elance is not just to get something done on the cheap, it’s to save you having to do it!  Elance have a minimum post price of $50 so if you think the job is worth less than that – it really is pointless posting it.   Most people have a perceived understanding of what a particular piece of work is worth, however if you are unsure, just spend a little time going through similar job postings and you will soon get a feel for the right pricing.

Provider Selection

Once you have posted a job.  Standby for an influx of providers offering to do the work.  At first this can seem somewhat daunting.  First things first, remove all those that have not met the original post criteria, that will probably clear out a far few of the responses and allow you to focus on the ones that have met the criteria.  Secondly, ignore the pricing at the this point.  Review all the responses and do the following:

• Check out each providers validated skills – It will be on their provider profile
• Check out the feedback scores
• Assess the quality of the bid.  Does it meet your requirements, have they grasped what you want and is it reflected in the bid?
• Make a shortlist
• Interview the shortlist using the PMB (private message board) or over a telephone/skype call

When interviewing don’t be shy about asking pointed and challenging questions.  I tend to interview them as if I were hiring them for a full time job.  It takes a bit of time but it will pay dividends in the long run.  On the flip side now is a good opportunity to enforce to the providers exactly what you need.  If you are hiring an admin task don’t be afraid to ask for examples of previous work and also set them a little test in the initial brief.

Don’t always select on price

There are no hard and fast rules on this, as I have had success with providers that are the cheapest but to be honest they have been the exception rather than the rule.  Likewise the expensive providers are not always the best.  I now select based on the quality of the responses and now more importantly how I get on with the supplier during the interview phase.  If I don’t feel that I have a rapport with the provider then I tend to steer clear of them.

Set your milestones

Once you have selected a suitable provider you will be given the opportunity to set “Terms” which are typically a set of payment milestones.  Set realistic milestones based on the job.  Some providers are upfront with how they like to work.  Some choose payment on delivery others 50% up front and the remainder on completion.  Again offer to set milestones that you are comfortable with and only release the funds from Escrow when you are satisfied that the milestone has been completed.  If things do go pear shaped then Elance do provide a dispute resolution service which should hopefully clear up any issues.  You can find more information here.

So in summary, tread carefully, outline exactly what you want both in terms of the delivery and from the provider and you should have a pleasant experience using Elance

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