Australia-based Gihan Perera (www.gihanperera.com) helps consultants, speakers, authors, and trainers turn their expertise into information products that generate additional on-line and off-line income. We asked Gihan to share some of his experiences using Elance.

You've awarded a number of projects in a variety of disciplines. How do you choose the winning bidder?
To me, two things matter most:  Proven results and prior experience.

For proven results, I look through each provider's feedback. Many providers get good feedback, but a few get outstanding feedback, and that's always a good sign. And if the feedback is recent and for similar projects to mine, that's an even better sign.

For prior experience, I usually ask for a sample of past work they've done for similar projects to get an idea of the quality of their work and to confirm they know what I'm looking for. For instance, if I need a book written, it's more useful for me to see a sample book chapter than a single article.

What can a provider do to differentiate themselves from other bidders?
Respond directly to my project description. Sometimes bidders provide a generic description of their services without any real connection to my project. If they don't even bother making a genuine attempt to make their bid specific to my request, it makes me wonder how much effort they'll put into the project itself. I ignore those bids immediately.

On the other hand, I favor providers who clearly demonstrate they've taken the time to read my project description. Some, even before I ask, provide a sample of previous relevant work, which is an excellent touch. A few have even gone as far as doing part of my project as a sample, which is even better – but certainly not essential.

Your buyer feedback shows you provide good project instructions. Do you have any tips for new buyers posting a project?
Generally, I request intermediate milestones so the provider can send me the work they've done so far to review. Checking progress is even easier to coordinate with Elance's Milestone tool. I like to verify the provider is on track and to correct things early in the process if they seem to be going wrong.

Have you developed any ongoing business relationships with Elance providers?  Any tips for buyers and providers who want to create ongoing relationships?
I like creating on-going business relationships in general, not just through Elance. So yes, I often go to Elance to find a provider for an initial project but with the intention of on-going work with them. In fact, I often state this in my project description. I can tell when a provider wants to win ongoing business:  They work hard to understand my needs, anticipate ways they can provide better service, and consistently deliver on their commitments. 

What difference has virtual outsourcing made in your business?  Do you to operate differently than you previously did?
Elance has made a huge difference to my business. I can focus on my core skill of creating original content, and then outsource the production to experienced providers who do it better than I can myself.