In The Ring: Showdown Between Free and Paid Freelance Bidding Sites

March 13, 2009

In the first corner, weighing in with no membership fees, an abundance of freelancing jobs and insane competition, are the free freelance bidding sites. In the other corner - we have the challenger, weighing in with monthly membership fees, freelancing jobs that are limited in numbers but of higher quality - we have paid freelance bidding sites.

If you aren’t aware, the term “freelance bidding site” is used to describe an auction-style community that connects buyers with contract workers.  Business owners and individuals who need assistance with their projects will post the details of what they need to the website, and then freelancers can “bid” to perform the work.

There are advantages and disadvantages of each type of freelance bidding site – here is what you should know if you are considering using these sites to market yourself as a freelancer:

Free Freelance Bidding Sites

photo credit: neurmadic aesthetic

Free bidding sites for freelancers make it possible for you to place bids on projects you could complete without paying for a membership fee or per-bid fee.  That doesn’t mean it’s 100% free, however.  Some sites take commission if you are awarded the work; but paying a percentage of your project fee after you get the work is typically better than paying a flat rate all month without a guarantee of getting the project, right?

There are a couple of disadvantages of using free freelance bidding sites.  First, because it is free to create an account and free to place bids on work, the number of people you are competing against is much higher than a freelance bidding site that you have to pay to bid or be a member of.

Secondly, these sites tend to offer the lowest paying freelance jobs.  It’s quantity over quality in most cases on the free sites.

Since most of the free-to-bid sites also are free for the buyers to post projects, there are a ton of jobs that are posted that don’t ever get awarded.  Freelancers are bidding for the work, giving samples, etc – and it turns out that no one is ever selected, which can be frustrating and seen as a waste of time.

On the positive side of free freelance bidding sites though, you can easily get your feet wet on a free site without risk.  You can bid on as many jobs as you think you can handle, get some experience applying and putting your best foot forward, and hopefully land a job or two to build up your client references and testimonials.

Examples of free-to-bid bidding sites include:
Getafreelancer.com
Rentacoder.com
Odesk.com

Paid Freelance Bidding Sites

There are a number of freelance bidding sites that charge a membership fee for freelancers who want to place bids and apply for work posted on the site.  While it may seem like an expense you don’t want to deal with, you might find it to be worthwhile.  Jobs posted on paid freelance bidding sites tend to be of better quality (pay more money) than those posted on free bidding sites.  You’ll have less competition since only serious freelancers will pay a membership fee or pay per-bid to find work.

Some of the paid bidding sites have options for free bids as well, but typically the advantage will be given to those who are paid members of the site in some way or another.

Examples of paid bidding sites include:

Guru.com
Elance.com

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Protect Yourself when Submitting your Resume

March 13, 2009

As a freelancer, there’s a good chance that you’ll still need to maintain and update a current resume to be sent out for review by potential clients or subcontract employers. A self-employment resume will be similar to what you would use if you were seeking job with an employer on a non-independent basis but may also contain specific information that outlines and defines your specific skills and talents, as well as examples of your work.

When you’re working as a freelancer, it’s likely that you operate a small business, one that you may even run from your own home. Many freelancers choose to apply for and use an Employee Identification number instead of their social security number for tax purposes, but not all freelancers will. There’s a multitude of security concerns that a freelancer needs to pay attention to, though not everyone just starting out will realize the need for such security measures until they inadvertently become a victim of fraud.

When you send out your resume, it typically will go to people with whom you do not have an established business relationship. Essentially, you could be setting yourself up for big trouble by sending the wrong information out to strangers. Here are some things you should never list on a freelance resume or website to help protect your privacy:

Never Disclose Your Address
If you work from home and include your home address on your resume/website, you’re leaving yourself open to unwanted visitors. You can also be providing information to make it even easier to steal your identity.

Never List Your Social Security Number
As mentioned previously, if you’re working as a freelancer, you should apply to receive an EIN number for tax purposes. You should never provide your personal social security number for any reason that is not legitimate.

Never Send Your Bank Information
There will be times that a client will request to pay via direct deposit from bank to bank. By providing your bank information, you leave yourself open to having your account wiped out. Instead of accepting such types of payments, you should look into alternative arrangements, such as PayPal, to use for payments. If a direct bank deposit is the only way, set up a separate account for such transactions and keep little money in it.

Review Contracts Carefully
If a prospective client requires paperwork for subcontracting opportunities, be careful what you’re signing. Read the contract’s fine print and be sure you’re clear about what you’re committing to in writing.

What You Should Include on a Resume
It’s acceptable and expected that you will provide basic resume information such as work history and experience. You may also want to provide any website addresses where clients can learn more about your work, as well as the URL’s for any online work samples you have. Always think about what you’re including in your resume, your website, and your references. Never, ever assume that everyone with a job opportunity is legitimate.

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