Your First Outsource Job - Selecting a Freelancer

POSTED BY StevenPratt on Nov 20 under Internet Marketing, Outsourcing

Let me make it very clear. The better the clarity of your job offer, the more likely people will bid on it.  I’m not saying you have to give all the details, but you need to create a very concrete requirement.

Look at it from the viewpoint of the freelancer. They are usually going to bid based on how much effort it takes them to do the job. If it’s not possible to accurately gauge the effort required, there’s no way to create a decent bid.

If you’ve followed the directions from part I in this series, you should have a pretty solid job offer. With a solid offer, you will receive plenty of bids. I’d say that on average, for the last year, I’ve been getting over 50 bids for most of my projects. Some highly technical ones get as few as 8-10. Some of the easiest get will over 100. Asking to get some articles written will most likely bag you 40-60 bids.

So You’ve Got Your Bids

Now, how do you separate the wheat from the chaff? Most of the freelancer bid sites have similar information. For the purpose of explanation, we’ll use getafreelancer, my favorite for this type of work.

The following graphic will show you some of the information you’ll receive with each bid.
bidinfo

Different Types of Bidders

If you have a quantity of bids, and now understand what the bid looks like, and what the bid information means, you can start evaluating the bids.

In general, the bids will come from 6 types of bidders.

  1. Spammers. These guys don’t even read the details, they throw a bid out on everything. One way to combat this is to place a distinctive comment in your project requirement. For example: “Please write the words “Read and Understood” at the beginning of your response to indicate you have read and understood the requirements. Bids without these words will be ignored.” If you get a low-ball bid that says something like, “Hello, let’s get going, thanks!” I’d probably run.
  2. Newbies. These bidders have no previous experience (or very little). Their bid prices may be all over the place. Again, for the most part, at this point you are better off ignoring this. If neither of you have much experience at this, you’re more likely to have issues. With a few jobs under your belt, you may want to go mining here as well.
  3. Low Experience, Low Prices. There are bidders out there who do a good job and are looking to grow their business. They are willing to charge below market prices to build up their experience, and to create new business relationships. They are the most likely to be influenced by the aspect of future business. I will consider some of their offers.
  4. High Experience, High Prices. These guys have been there and done that. You can review their work, and see the capability. They are often ‘teams’ and sometimes will present the work of one team member, and put a different on on the job. I’ll sometimes choose these if I know the rep of the bidder, and need exceptional work, fast.
  5. High Experience, Low Prices. Yep, it happens. Lots of experience, low-to-reasonable price. Many times they’ve either done the job before, or have enough expertise that it’s very easy for them. Also, different areas have different per hour rates. US may be more expensive than India, but the Phillipines may be much cheaper than India. Obviously this is the sweet spot for our bid analysis.
  6. Low Experience, High Price. Unless you’re just a good samaritan, or a sucker, why would you go there?

Making Your Choice

Personally, I like to look at the most experienced, high rated bidders, take the top 10-20% for example, and look at the best prices being bid by them. I’ll verify from their past history that this is their main area of expertise. I’ll then mark anything more expensive than the one or two I pick out, “not interested.”

Next I’ll go to my remaining bidders, and look for those that have some experience, (at least 4-5) and find the best prices among these.

If the price difference is negligible, I’ll go with the most experienced, and start the final discussion before assigning the project. If there is a big difference, I may go with the cheaper one, or, quite often, I’ll do both! If the cheaper one is 1/3 of the price of the more expensive one, I’ll sometimes offer them the same contract, just for them. I can build up a stable of inexpensive freelancers this way, who will likely be loyal to me, if I gave them business when they were starting out. With articles, graphics, simple things, it’s quite reasonable to create two projects. Assign the current one to the high-bidder, and create a new one, with ‘closed’ bidding, and offer it to the cheaper one at the previously bid price.

At this point I know what I want done, and I know who I want to do it, and how much I should pay.

Next, it’s time to finalize details. Make sure you have multiple ways to contact them. Review their previous work. Make it clear how many sample you need for things like graphics. Determine a payment schedule. Make it clear when a project is finished. Get all this agreed to BEFORE you finally assign the task.

NEXT: Managing Your Outsourced Task

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1 Comment so far
  1. Earth4Energy April 4, 2009 2:46 pm

    Excellent post. I like these posts most of all, practical information that all bloggers can use.

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