Buyers: Manage like a pro on oDesk

Up until now, my posts have been strictly provider-centric – there are many ways that a provider can get scammed or lose out on an opportunity because they just don't know any better.

Buyers, however, are just as susceptible to "wrongdoing" in the freelancing world. It's nice to think we can find someone to do our dirty jobs for us, but without keeping a watchful eye on the progress being made, it's easy to be taken advantage of.

oDesk provides two types of billing methods to help you pay for and manage your projects efficiently.

Hourly Assignments

On hourly assignments, your credit card is filed in the system, and providers punch a clock (so to speak) to log time. oDesk soared to extraordinary heights when they introduced the hourly billing model to the freelance job board market. Hourly assignments are great for long-term projects, projects that do not have a well-defined outline for procedure.

When you hire a provider for an hourly assignment, you are given the option to limit the maximum amount of hours logged per week – this is great when starting on a new assignment with a new provider. It keeps you weekly bills budgeted while you get a feel for the provider's work speed and efficiency.

Pros: Long-term flexibility, weekly budget by limiting hours, best for projects without a clear outline

Cons: Potential for abuse by providers

Fixed Price Assignments

On fixed price assignments, payments are made solely at the discretion of the buyer. This means you have control over when and how much your provider gets paid. Fixed-price assignments are generally recommended for short-term projects that have a clear, well thought out plan for how the assignment is to be completed. If you don't have a clear idea of what you want done, and how you want it done, the fixed-price model may not be the best option, as providers may not find your plan or budget feasible.

Fixed price assignments are perfect for small jobs or per-item payment plans (i.e. hiring a blogger for $10/post).

Pros: You control how much and when a provider gets paid, good for short-term projects with detailed specifications

Cons: Time logging is not required which prevents tracking and accountability, bad for long-term projects with unclear specifications

Avoid hourly abuse

When hiring a new provider for an assignment, it's imperative that you make use of oDesk's tools and monitor the work diary. While the majority of freelancers on oDesk are honest, hard-working providers, it is possible to abuse the system if you do not verify the work being done.

Some providers simply embellish their qualifications and as a result, the amount of time it takes to complete a project may be tripled. Some providers will notice when you are not monitoring their work, and will log hours to the maximum weekly limit, just because they can.

For the first few weeks, you must remember to check the weekly time logs (oDesk sends them out every Monday) and dispute hours that were improperly logged – view the screenshots in the work diary and if anything is not related to your assignment, file a dispute.

oDesk's hourly model is an incredible time-saver when used properly, but it relies on you doing your part in managing your team. You have a window of 3 days to verify work logged, if you do not, you will not be protected (it's all written in the agreement that you signed when you posted your job).

The first 2-3 weeks of an assignment should be plenty of time to gauge whether or not you have a trustworthy provider. Do your part to make sure you've found one before it's too late!

Hire correctly

Deciding how to hire is the most important step. Both billing types have their pros and cons. Hiring using the wrong billing model can potentially cost you a lot time and money…or both!