Author Topic: How viable is Elance?  (Read 163 times)

unix

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How viable is Elance?
« on: May 15, 2010, 02:19:39 am »
I want to try a new business model. Looking at Elance, is it possible to get consistent gigs?  I realize the rates seem to cluster around 30 FRNs/hour for the unix sysadmin type of work, with most of the people abroad.

I want to live somewhere rural say 3 hours from a metro region like Raleigh, NC or maybe Boston, to keep the cost of living much lower.  I don't mind a huge pay cut and I don't mind visiting the client a few times per week.

DG9

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Re: How viable is Elance? - is it possible to get consistent gigs?
« Reply #1 on: May 15, 2010, 06:01:55 am »
Give it a try, how else will you know if your business model will work?  They have a free basic service, if you get it going big enough to upgrade do so...

P.S. Don't quit your day job first.  Best of luck.

unix

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Re: How viable is Elance?
« Reply #2 on: May 15, 2010, 08:15:58 am »
Do you do any marketing with it at all or do you just seat back and wait for them to find you?

The Gorn

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Re: How viable is Elance?
« Reply #3 on: May 15, 2010, 10:36:24 am »
Do you do any marketing with it at all or do you just seat back and wait for them to find you?

I have some experience with ODesk, which is another internet based services matchmaker.

Some ODesk people make a living from it. But they market themselves aggressively within the service by keeping their profiles up to date.

The coin of the realm on all of these online bidding sites is your reputation score on the site. This is because on all such services there are too many members who belong who have no reputation, IE, no completed jobs and no client references within the service. Another way of saying this is that everyone starts there at 0 and most buyers will look for someone with non zero feedback.

IMO, you must bid plenty of low rate projects in order to gain a few paid projects that then can give you "non empty" feedback.

Every such service is glutted with third world people with very poor English and bad skills who are quite willing to present themselves as geniuses in 15 languages.  Virtually all the offshore people on these sites lie, so there is a huge unnatural inflation of provider's supposed abilities. You pretty much have to lie and exaggerate in order to stand out.

Lastly, on online services every buyer is looking for a bargain. You won't find quality clients on these sites. You run into lots of impatient and flighty dumbasses with no real needs.

A guy I ran into from Odesk who did some work for one of my past clients asserted to me that he grossed about $60K/yr and had gotten his rate up around $30.

IMO most these services are a waste of time if you need real income. And no, I wouldn't pay anything for a premium account. I've read some stories about making a go of it. Most people who do, like I said, have to dedicate a lot of effort to creating an initial reputation score.

If I remember some stories I will post the URLs here.
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The Original Henry

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Re: How viable is Elance?
« Reply #4 on: May 15, 2010, 01:10:07 pm »
Pimping your skills on sites like Elance is akin to a rocket scientist walking into a soup kitchen looking for work. As long as you don't mind serving up soup for no money you'll do just fine, otherwise you're going to be severely disappointed.

From experience I can tell you there are no shortcuts to successful independent contracting. Old fashioned networking - and lots of it - is the only way to make a successful living at it. That doesn't mean joining "Ye Old Country Club" and asking people if they have any IT projects. It means getting to know business people in your community on a frequent and ongoing basis so they'll talk to you about their problems or problems that others have asked them for help with. When you eventually hear about a problem that you can solve you have a potential contract relationship in the works. Then if you do a good job solving their problem you'll have the best salesman money can't buy for finding the next contract. Wash, rinse, repeat.

It took me about 3 years of doing this full time before I built enough stability to make it viable. Underestimating the effort required to build a contracting business is the main reason most people can't make it work. It's not something you're going to do part time while working a FTE job, and it's not something that you'll find just browsing the internet. It's a long-term commitment of building relationships and it has a lot of opportunity cost front-loaded into the package.

There's absolutely nothing that's quick, easy, convenient, or sexy about it.


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