How To Get Started With Online Labor Exchanges
The first thing you read on oDesk is a value proposition that could apply to any of the leading labor exchanges: "Hire, manage, and pay remote contractors as if they were in your office." The devil, of course, is in the details.
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Some sites offer more engaging interfaces than others. Some have larger pools of providers. But they all basically work the same way. After inviting prospective buyers to tour the site and read testimonials, the sites encourage them to post a new job in a particular category, such as Web design. A buyer may choose to limit the search to highly rated providers in a certain geographic area or can expand the search worldwide.
The labor exchange notifies prospective providers who meet the buyer's criteria, and they generate a response. Buyers will study the providers' customer ratings, endorsements, and often work samples before choosing to respond. Some buyers will insist on a proof-of-concept before awarding jobs to prospective providers. This audition (sometimes paid) transfers a bit of risk to service providers, yet it also helps to establish trust -- and it lays the groundwork for a future working relationship.
One of the most popular options for both buyers and sellers is payment escrow. The buyer deposits payment (usually by credit card or PayPal) directly to the labor exchange, which agrees to hold the funds until the services are completed satisfactorily by the provider. If there is a dispute, the labor exchange helps to resolve it. And for this service -- essentially a form of collections -- the labor exchange charges a percentage of the fee.
For transactions conducted essentially by strangers working in remote offices, the escrow is another critical trust-building component of the relationship. The bottom line is that it is wisest to start with a small, noncritical project to learn how the sites work and to gauge the complexity of managing a contractor located outside of your office.
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