The truth about "Data Entry" freelancing jobs

When browsing through sites such as oDesk for Data Entry jobs, the first thing anyone will notice is the average pay rate of those jobs.

Here's a list of the average "data entry" hourly rate from the oConomy:

That seems pretty low, doesn't it?

It does…if you're only looking at the dollar amount. When you factor in cost of living and the actual tasks people are hired for, however, it's not unusual nor unwarranted.

The typical data entry job that comes into job boards are usually mindless, repetitive tasks that anyone with a computer can perform. The typical provider hired for these jobs live in countries where the $900 I pay in rent every month is more than they make in three.

When it comes to jobs that requires only that you know how to turn on your computer to copy and paste, would you pay someone $10/hr or $3? When your country's minimum wage is $8 USD per day, would you apply to a $3/hr job doing nothing but copying and pasting for 3 hours a day?

You'd be stupid not to!

The oDesk Insider Blog explains how the (data entry) commodity market works best:

Before I go any further, I'd better explain what I mean by a commodity market. To me a commodity market is one where all products are essentially the same and they primarily compete on price. Oil is a commodity, as is wheat and a number of other products. The thing to remember is that when you are dealing with commodities no one source will give you a better product than any other. A barrel of oil is a barrel of oil. It will convert into the same number of gallons of gas whether it comes from the North Sea, Saudi Arabia, Venezuela, or Kuwait.

Can you prove that you can copy and paste faster than I do?

When you're competing in a market that has no way of proving that your work can be better than the next person's, the only other method of comparison is price.

But don't give up!

Just because it's difficult to compete on some of the easier data entry jobs, doesn't mean you can't get work.

It does, however, mean you'll have to come up with a different plan of attack. Be sure to write targeted cover letters, complete your profile, and if you have any items to add to your portfolio related to the types of jobs you're applying to, ADD THEM.

Be patient, persistent, and be willing to adapt to the trends you notice, and you'll land a job. Once you get the first job, the rest will come easier – it's almost guaranteed.