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(Guide) How-To: Hire Effectively Hire Freelancers

InLikeFlint

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Hey what’s up guys!

It has been a while since I’ve started a high quality thread, and I think everyone on the forum could find a way to use this information and apply it to his or her own situation.

My experience in this field comes from having contracted multiple freelancers, and from setting up jobs for jobs that I then decided not hire anyone for. Not all of my experiences have been successes, and one was actually a huge failure that I lost a lot on, more on this later. I’m not here to sugar coat the experience or to tell you a perfect way to hire a reliable freelancer, but this is the approach I take, and after tweaking it and going with my gut feeling, I have seen improved results.

I will start by sharing my story of how I had trouble with hiring freelancers, and will continue on with some tips to use when hiring one. I have employed these techniques since my mistakes, and it has been smooth sailing since then!

Yes, the format is made so that you are forced to read my story before you get to the good info :p

How I messed up hiring a Freelancer:

I’ve been through this process a few different times. However, when I first started I was very naïve and ignorant. I thought I had everything planned out, but I didn’t at all, and I paid for it.

One of the primary reasons I wrote this for the forum to benefit from was so people don’t make the same mistake that I did. It really was a pain in the a$$ for me, and I feel foolish for letting it happen. But I learned from my mistake and I now have developed a method for hiring freelancers that offers a lot more protection for the employer.

I decided I wanted to develop a mobile app as one of my endeavors. It was soon after my concussion, during my recovery in fact, that I got the idea. I knew I wanted to make money, and I thought apps would be a great way to do it.

So I planned out what I wanted, the details of the app, the abilities, and an entire outline pertaining to the app. I then researched on where to hire developers. I stumbled upon Elance and listed a job with a few details on the app.

I received 30+ proposals of people from all over the world. I was amazed at how many applied and the diversity of the applicants. I eagerly read all of their proposals and sat back wondering what to do next. I decided to write up questions for each of them, and it ended up being too long for their message board, so I attached it as a separate document to be filled out and sent back. Thus the idea for my questionnaire was born.

I read through all the responses and started declining people I wasn’t interested in working with. I ended up narrowing it down to 2 different candidates. A team that coincidentally was located in a city about 45 minutes from where I live, or a team out of Romania. I got both of their emails and emailed back and forth with the two teams (separately not a group email) asking questions to make my decision. I loved the idea of working local, but the proposed price for my app was 5 times more with the local company.

Being the foolish child that I still am I took the cheaper offer. The team had a legitimate website with previous app work they developed, samples of icons they made, a write up on their whole team, a contract ready to sign, an NDA, and recommendations from other clients. I bought into all of it.

I took about 3 weeks to fully develop the idea of the app before making a payment. We worked out all the fine details and eventually we got to the payment. They wanted to do 50% before and 50% after, while I supported milestones, or payment upon receiving the app. They convinced me and we went their route. I made the payment through PayPal and they got working.

Our deal was that they had to email me everyday so that when I woke up in the morning I would have an email waiting with a progress update. They did this perfectly for the first month and things were going swimmingly.

Then they would miss a day here and there. I told them to get back on track and didn’t think twice. Then the one-day every week would turn into 2-3 days at a time. I warned them again. Then they had a string of misfortunate events that to this day I still don’t know if they were real. Things like the project manager tearing his calf and having to be in the hospital, a series of floods in Romania that wiped out Internet and phone service, and finally the project manager quitting and the second in command taking over.

At that point I obviously knew something was up and I questioned the legitimacy of the company. The second in command took over and explained that it was their leaders fault for making fake promises and that he would send me what they had so far and refund me and be done, or he could finish the app up and not accept the second 50%. I was just getting into exams at this time and figured that I would give him until break to try and finish, and if not then I would take the refund and my property and would have time over break to find a new team.

Exams went by and I was on break. I emailed him asking where he was at and he said the beta was ready and he would send me the link. The last email I ever received from him had a file attached called “App Beta†but also an error message that says, “Google was unable to download the rest of this fileâ€. Whether it was actually the beta attached, I will never know. After that no more emails were received, and about 3 weeks ago I received a notice returning my emails saying that the email address they were sent to no longer exists.

I was bamboozled, and it was entirely my fault. Looking back on it I see hundreds of mistakes I made.


What sites should I use?

Elance: This is a personal favorite and frankly is my go-to for freelancers. I found their site was really easy to navigate around, and I generally receive a high number of proposals for my job. They have a large pool of freelancers with a wide variety of different skills. These freelancers come from all over the world, and all have pros and cons. The price range of proposed workers is also very inconsistent. Some freelancers work for a few bucks an hour, where others ask for double or triple minimum wage in their hourly prices. One big draw about this site is that people here want to work, they take time to contact individual workers and most of them will go to great measures to secure a job.

oDesk: oDesk is very similar to Elance. While I have used it much less, it still has a lot of positives. The biggest issue I had with it was I thought it was somewhat difficult to navigate the site, primarily when trying to respond to messages or decline proposed offers. Similarly to Elance, oDesk also boasts a large network of freelancers that have many unique skill sets, come from all around the world, and ask for a range of hourly wages. oDesk candidates are also very motivated to obtain jobs, and will put in a substantial amount of time and effort to make the top of your list.

Fiverr: I have only used Fiverr once or twice, however, I have a friend who has had nothing but positive results from the site. He praises it and uses it on a regular basis for his business. One thing about Fiverr is the candidates tend to be less professional or less experienced. A quick look at the site will show people asking to make shout out videos for Facebook and Twitter. The best part about Fiverr, in my opinion, is that virtually all jobs only cost $5, hence the name. This creates an even playing field for candidates so that under cutters don’t always look like the best option. It forces you to look at the freelancer for their skillset and experience, rather than their price.

Freelancer: I have never used Freelancer, but a colleague of mine refuses to use any site but this one. For one, it has one of the largest client pools of all Freelance sites. Freelancer does however offer the promotion of free products as one service, which is less likely to be found on Elance or oDesk. Freelancer is a good choice for affiliate marketing and referral programs.

CraigsList: I have used CraigsList on many occasions, and I have found that it is primarily hit or miss. There are plenty of great buyers and sellers on CraigsList, and hardworking individuals looking for a job, but there are also a handful of “bad applesâ€. The biggest draw to CraigsList is that it works in your local area, so you will be finding people in your town or city to do your work. This opens up the possibility of face-to-face meetings, which are a great way to get to know a proposed worker.

I’m sure there are other sites out there, but these are the main ones, and the ones I have experience with and feel comfortable commenting on.

How do I post a high quality job?

At the end of the day, a proposal that is out of this world isn’t going to get that many more proposals than an average proposal. Most sites, Elance and oDesk especially, have freelancers who look in their categories, and apply to every job available using a copy and pasted proposal that DOES include their skill and experience, but don’t be fooled into thinking the individual type out all that information just for you.

Be as specific as possible. The most important factor of posting the job is making sure that freelancers know what you want done, it’s very frustrating to receive proposals from someone not possessing the skill set you require because they were confused by your job posting.

Don’t share any vital information in the beginning. Keep that for talking to a freelancer personally, you don’t want your sensitive information out in the public for anyone to see. Stick to the basics, things like what language you need the work to be done in, what programs the individual will need knowledge of, and time frame.

Make sure you fully fill out the job posting. Budget is a big one that will keep your offers in the ballpark you are looking for. Make sure you explicitly say if there are any special requests or quirky aspects of the proposed job.

What do I do once people apply for the job?

There are a lot of routes you can go when you first receive proposals. Keep in mind, you should have close to all the proposals you will get after 2 days. A few will roll in after that, but not near as many as in the beginning. My average number of applicants is right around 20.

There will be a lot of applicants to filter through, if you’d like you can start by eliminating proposals that are too pricey for you, or if you prefer local, out of the country. I generally leave all proposals in the beginning because I never know if someone will surprise me.

My next step is generally to write a detailed questionnaire. For my last posting, looking for a Virtual Assistant, the proposal was 3 full pages – single-spaced. You could say I went overboard, but it helps ensure I limit possible candidates to only the top-notch workers. If anyone is interested in seeing the questionnaire, feel free to message me and I will send it to give you a good example to follow.

The primary focus of the questionnaire is to weed out lazy applicants. Just by sending the questionnaire I generally lose 5-6 candidates right away. Another 3-4 when the filled out questionnaire is read, because they didn’t follow directions, or didn’t answer all of the questions. This leaves a good set of candidates that know the value of hard work and are willing to work hard to get this position.

I always start the questionnaire with a little intro that thanks them for applying and gives them an idea of what the application will be, and how I factor it into the application process. Then I move to an “about me†section where I give background information on my business and myself. I include hobbies as well because there is a chance you will connect with someone in these areas. Then there is a generic set of questions that I ask to all applicants, and then a set of personal questions based on their initial proposal. The personal questions include questions about their time zone if they are international, or about how XYZ experience will benefit me.

Some examples of questions I asked when screening applicants for my VA:

· How are your skills suitable for assisting me on a regular basis? Please be specific with characteristics that you have and how they will set you apart from the rest.
· Are you comfortable with your English linguistic and grammatical skills to write articles and reports and outlines when necessary, and also to proofread papers and documents I write? How will you ensure they are flawless?
· How will you work as an individual that is more productive and higher quality than the teams of individuals that are applying? Their offers are attractive because they offer a variety of skills that ensure that virtually any project will be completed. How can you counteract this and benefit me as an individual rather than a team?
· You are one of the higher priced applicants that I have received. I acknowledge that you responded to this in your initial application, but now I want to know where the value of your service for the price will come in specifically for my situation, please be as in depth as possible.

Yes, writing the questionnaire takes a lot of time. But it shows applicants that you are serious about the job and will compel them to be serious, or to withdraw their application. By making them jump through hoops, you are testing their abilities to work hard and diligently. By being professional in your process, you are in turn demanding that only professional individuals seek you out and pursue the job.

The next step is to setup a phone or Skype interview. These shouldn’t take you more than 15-20 minutes, keep them short and limit the number of questions you ask. Don’t repeat questions that you have asked in your questionnaire. Structure these questions to be more specific and personal, so they address the applicant as if they are about to get the job.

Here are some examples of my interview questions from hiring a VA:

· Are you okay with working part time initially and then increasing the amount of hours after a few weeks, once we are more comfortable working with each other?
· How do you prefer to handle payments?
· What types of tasks won’t you do?

When you are conducting an interview it is essential that you have an idea of what you want their answers to be. Also keep an eye out for certain personality traits that are shown through their answers. Are they going above and beyond the initial question? Do they address questions tailored to your specific situation? Are they being personable? These hidden questions should all be answered by the end of the interview, and can help you narrow down applicants.

How do I hire the individual I select?

The hiring process is probably the easiest part of the entire ordeal. If you are doing it through Elance or oDesk you will have to decide whether you wish to do business through the sites – the site acts as a middleman with payments – or to do it solely between you and your employee.

I support using the in house payment option for a month or two and then when I’m comfortable with my employee I cut out the middleman. That way both parties are safe initially, and the site gets their finders fee for connecting me with a group of applicants. In my opinion, they deserve it.

Make sure you outline the scope of the work, including hourly pay, number of hours per week or month, and anything else vital to their work. I suggest entering into a contract and an NDA with your employee to protect your ideas and property, but it is not required.

One thing to remember is to be long to hire, quick to fire. If they are not getting the job done, cut them off and find someone who will do the job right. It isn’t worth wasting your time or your money.

In Conclusion…

I hope this guide helps anyone who is looking to hire a freelancer. I feel that some of the concepts can also be applied to hiring traditional employees as well. I also hope that individuals on the forum who were asking for advice on hiring freelancers can relate back to this thread while they go through the process.

Special shout out to Windsurfer for posting a thread asking about hiring a VA. I wrote a long reply to his thread, which inspired me to create my own thread. Sorry Windsurfer if I am sort of hijacking your thread, you gave me permission to post this, but you still deserve credit!

Let me know if anyone has any other questions regarding hiring a freelancer, or more specifically hiring development teams or virtual assistants!

Cheers!
- Sam (InLikeFlint) -
 
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Chris_Willow

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Man, why didn't you use escrow?

It's a small fee, but at least you're protected (and the freelancer too)...
 

AmyQ

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Thanks for sharing your mistake, InLikeFlint. Always better to learn from others, than make the same mistakes myself!

Would you mind sharing your success? Which sites have you hired from, for which positions and what was the result? We have hired plenty of independent contractors/freelancers, but never from a website. We have done research on some of the sites you mentioned, but haven't felt comfortable pulling the trigger.

Also, as a side note, you referred to your independent contractors/freelancers as " my employees" a number of times. We have been advised by our lawyers to avoid ever using the term "employee" for an independent contractor in any correspondence with them. Obviously, this forum isn't correspondence with your contract worker, but just to let you know.

Along the same lines, be careful with defining hours worked. You can define the outcome/product you want from an independent contractor and give them a deadline. If you tell them what hours to work, you may find you have an employee on your hands, which gives you an entirely different set of legal and tax obligations Independent Contractor (Self-Employed) or Employee?

ETA: Two more questions.

Do you have to 1099 US contractors through these sites or do the sites use an online payment system that sends out a 1099k?

If you cut out the middleman and pay them directly, are you sending out 1099's or are you again using online payment processing to avoid the hassle?
 
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tamo42

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You'd only 1099 contractors who are individual US taxpayers. You would not (or at least don't have to) 1099 a foreign contractor or a business that you are outsourcing to.
 

AmyQ

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Tamo42, agreed about the US contractors, which is why I specified US contractors in my questions.

Disagree slightly about sending 1099's to US businesses. You do not have to 1099 an incorporated business, but you do need to send 1099's to LLC's, LP's etc unless they elect to be taxed as a corporation. Tax Question - Issuing MISC-1099 to a LLC | ALG Tax Solutions
 

InLikeFlint

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Thanks for sharing your mistake, InLikeFlint. Always better to learn from others, than make the same mistakes myself!

Would you mind sharing your success? Which sites have you hired from, for which positions and what was the result? We have hired plenty of independent contractors/freelancers, but never from a website. We have done research on some of the sites you mentioned, but haven't felt comfortable pulling the trigger.

Also, as a side note, you referred to your independent contractors/freelancers as " my employees" a number of times. We have been advised by our lawyers to avoid ever using the term "employee" for an independent contractor in any correspondence with them. Obviously, this forum isn't correspondence with your contract worker, but just to let you know.

Along the same lines, be careful with defining hours worked. You can define the outcome/product you want from an independent contractor and give them a deadline. If you tell them what hours to work, you may find you have an employee on your hands, which gives you an entirely different set of legal and tax obligations Independent Contractor (Self-Employed) or Employee?

ETA: Two more questions.

Do you have to 1099 US contractors through these sites or do the sites use an online payment system that sends out a 1099k?

If you cut out the middleman and pay them directly, are you sending out 1099's or are you again using online payment processing to avoid the hassle?

Sure thing! Most recently I was looking for a Virtual Assistant. I haven't hired anyone for good, but I have tested out two different individual's work for a few hours at a time. So far so good. This was by far the longest process because there were a lot of qualified candidates, and I want to make sure I hire someone that is going to go above and beyond. Hired from Elance, Virtual Assistant, no problems yet.

I actually thought about not using the word "employee" to describe them when I was writing it, but I decided against changing it, I don't use it when I talk to freelancers or post jobs, so don't worry.

Not sure if this would still fall under employee, but I said that I would be looking for around 7 hours of work a week during the summer, and it may increase during the school year. I don't tell them at the beginning of each week or day how many hours to work, I give them a task and give them a time limit to complete it. They are paid on an hourly basis. By "defining hours" I mean to estimate how often they will be doing work for you, this helps them decide because some work for multiple clients or have prior engagements that only allow for a certain amount of hours to be worked.

Not sure about the 1099, I would assume that the site handles that, they know PayPal, and I believe PayPal handles it. When I cut out the middleman I still use PayPal, but I don't use it through the site anymore, it's just sending funds straight from my account to the account of the freelancer.
 
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AdamMaxum

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Thanks for the overview. I do a lot of hiring through these types of sites and below is my method as reference.

I typically use elance, but I'll sometimes use odesk and guru if elance doesn't produce any leads.

So what I'll do is craft the proposal, nothing fancy. Have it be simple and define what you need. Make it go live. Around 20 people typically submit a proposal, however it's completely dependent on what you need. The more specific you are, the less people will apply. If you're looking for SEO or web design you tend to get 30+ proposals. Which I'll add, be very wary about SEO on these freelance websites...it's typically terrible.

Once I get the proposals, I'll browse through and begin hiding anyone that doesn't look good. I judge this on 2-3 factors initially. If you're from India/Africa/China - I'll dismiss. If you're highly priced without a solid portfolio, or your portfolio sucks, I'll dismiss. The reason behind the location is because -- You will waste more time with people from those 3 locations, than you will anything else. Time is money. Their communication usually sucks, they will take your money and run, they don't understand your project requirements even though they say they do, and they don't make deadlines. Of course, this is a vast generalization and there are great people from India, but it's honestly not worth the time finding them unless you're really on a small budget and have time to waste.

Okay - so sometimes I'll whittle down all the applicants from this process and that's OK. Simply close, and post another job or try another website. Don't settle when looking for someone to work for you. I 'prefer' USA based freelancers as much as possible, simply for the time zones and communication factor. Communication is KEY.

If I still have applicants - I'll check cost and portfolio. If I think they have the skills and their price is reasonable, I'll send them a message. In my message I will say - Hey, thanks for applying. Do you have skype or email?

Now, this part is also important to me. The quicker the response, the better. It shows that they are online a lot, and that they can respond in a timely manner. Of course, this isn't a deal breaker, but another factor to consider. If they take 3+ days to respond, you should be wary as that shows they may not be online very much.

You'll get a few different responses to your skype/email question, but the ultimate goal is to get them to chat with you outside of the freelance website. I feel like the messaging back and forth on these sites causes a time delay and you don't really get to know the guy/girl you're working with. I need to skype and/or email to really get a foothold on who they are, what they are like, and can I trust them.

Once I get them to communicate w/me outside of elance - I can than begin to gauge their eagerness and willingness to work with me and start to develop a level of trust. You'll tell a lot about someone after just a couple minutes of back and forth on skype.

Now after all this .. I have found someone who could 'potentially' do work for me. You aren't out of the clear yet, because people will sometimes do anything to get hired, but once they are, they flake out for whatever reason. So be aware of that.

I start by giving them a test. Typically a small task to once again, examine trust and also their skill level. For example, I hire a lot of web design and developers. For a web design guy I'll have them create a banner or make a small design change. For a web developer, I'll give them access to a little website and have them change something related to the code. Small tasks that are meant to see if they can handle a bigger project. You'll learn a lot from just this small task. How long it takes them? Could they do it? Did they do it right? Etc.

The last bit of advice is money. I prefer to pay through paypal. It's just easy. Once i get the freelancer off of elance or odesk I'll first ask "are you okay with getting paid through paypal, or would you rather go through elance?" Most say paypal, some say elance. Which is perfectly fine. I will still work with people on elance, as long as I have a communication method outside of elance with them. That's important.

Depending on the type of worker/job it is, I will set up different payment methods. Typically, for web development, you pay after the job has been done. I'm also usually open to 50/50, but again, do small amounts first to test their trustworthiness. Build up to the large job...this is key. Simply paying someone 500+ upfront with no history is risky no matter what it is. Again, like people mentioned above, for these large amounts escrow is best, especially on Elance. It's hard to get ripped off through their system.

That's about it. As you can tell, hiring people isn't cut and dry. It's a process. I try to build relationships with people because I always need help with projects and it's good if you can have a list of people you can trust to get a job done. I guess you could say 'building a network'. I've been doing this for almost 2 years now, and for the most part, people will come and go. That's just how it is. Usually it's because they disappear at some point or another..so always be wary of that. The Internet allows people to come and go without a care, so when moneys involved, be very careful. Good luck!
 

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