Elance Blog

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Combined Data From Elance And oDesk Enriches New Online Work Reports

Our latest Global Online Work Report and U.S. Online Work Report are each out now, which is news in itself.

But what makes these reports even more newsworthy is, they’re the first to include the combined data of both Elance and oDesk. The significance of this fact was not lost on analysts and journalists who closely follow online work (and rely on Elance-oDesk to be the industry bellwether), including Andrew Karpie of Staffing Industry Analysts.

In a recent article Mr. Karpie notes that the powerful new consolidation brings even greater insights to our collective understanding of online work today and in the future. In his post he points out that the reports “draw from the (combined) Elance-oDesk data warehouse, which contains the world’s largest and most comprehensive set of data available regarding independent work happing (online).”

He went on to further explain the significance of the combined reports:

There were quite a number of interesting data points in this new combined data set. One was a revelation that the current annualized run-rate of Elance-oDesk gross spend/freelancer earnings of $940 million, which CEO Fabio Rosati mentioned in a briefing call, was fast moving toward $1 billion (at that level, Elance-oDesk would weigh in around the same size of the 35th largest global staffing firm — and growing much more rapidly). In addition, there was truly revealing data, such as there now being 2 million U.S.-based freelancers registered on Elance-oDesk (with 248,000 new US workers registering January through May 2014).  The report also pinpoints the natural—and ever more rapid — ebb and flow of different skills in demand:  Demand for Data Science, Internet Security, and Android App Development is growing noticeably, while demand for Facebook Development, Ajax Programming, and Joomla! Development is noticeably falling off.

And so, while these published reports reveal some interesting data points, they also reveal — like the tip of an iceberg — the enormous data resources and insights that online staffing platforms make possible. 

Here at Elance-oDesk we’re excited to now bring additional insight to online work. This will allow our many communities greater understanding of the market. This is especially true for freelancers who can visit our Trends section to see what skills are in demand, so they can adapt, remain relevant and grow their careers.

Elance-oDesk CEO Fabio Rosati also expressed his commitment to providing this increasingly valuable information to our communities. "Never before have we enjoyed such visibility into work — from the number and nature of jobs, to demand for skills, to where and how the work gets done," he said. "We live in a connected age when millions of businesses and professionals can collaborate with anyone with unprecedented ease. Together with our customers, we are re-imagining where, when and how work gets done."

For a few highlights from our online work reports (which cover data from January through May of 2014), you can also check out this quick recap.

The Slow Demise Of Email: How To Benefit From Changes In Remote Communications

Occasionally we invite Elance-oDesk clients to discuss issues of importance to businesses and freelancers who work in our marketplaces.  Here are some thoughts from Tobias Schelle, a Danish entrepreneur who’s the Founder and CEO of 24slides.com.


There is enormous value in taking advantage of talent outside your geographical area.

Companies who understand how to utilize the best skilled freelancers, regardless of their location, will win in the long run. But it requires a big change in how we communicate.

Unfortunately, 99% of us (including myself) have been trained to use email regardless of what we want to communicate about. It’s an ingrained habit that is so hard to change because everyone else is doing it. I’m not against email as a tool, but I’m against how it’s being used. Sure, email is great for the initial contact, simple discussions, report and notifications.

Yet, imagine a world where it is as normal to talk to someone from Vietnam or Ukraine as to the guy next to you in the office. It’s a world with no language barriers nor cultural misunderstandings. This is the future. It’s when technology enables us to imitate real-life face-to-face communications.

On a short term, it might be the phone on your desk that shows a 3D version of the person you’re speaking with from Spain. In the long run, it might be you inviting someone into your virtual 3D office. It would be like meeting in person. Wearing your virtual glasses, you’ll have full information and background of the person you’re speaking to.

Today’s technology is moving much faster than our adaption to it. The first step is to start using what’s tried, tested, and immediately available now.

The Remote Communication Ladder

I’ve created what I call, The Remote Communication Ladder. It’s not the future of communications, but it’s a snapshot of the technology we have at hand right now and their effectiveness (time/value ratio) for communication about tasks and projects.

Video call

This is currently the closest we get to real-life communication. It’s effective because it also allows non-verbal communication. Things that would otherwise be hard to explain such as feelings or intentions are possible. Small talk which contributes to a strong relationship is possible as well.

7 Financial Tips for Millennials Who Freelance

Occasionally we invite professionals to wax poetic about issues of importance to freelancers on Elance. Here are some thoughts from entrepreneur Eric Riley.


According to a poll conducted by the Kauffman Foundation, 54% of millennials either want to start a business or have already done so. But it takes a lot of courage to delve into entrepreneurship, especially if you're recently out of college or new to the workplace. And though there are many benefits to being a freelancer, maintaining a healthy budget on a fluctuating income isn't always easy. To lessen the inevitable stress and shore up your chances of success, it's essential to make your personal finances a priority.

1. Set Aside Savings First
Have you ever heard the term, "pay yourself first?" It refers to the act of setting aside money for savings each month prior to outlaying cash on anything else. Not only does this practice provide you with a steadily growing nest egg, but it gives you a better idea of what you can reasonably spend each month.

Consider setting up an automatic transfer from your main bank account to a separate one at the beginning of each month, or set up an IRA with an automatic contribution. Don't wait to see what you have at the end of the month to save - make your savings a priority.

2. Use a Personal Budget
Most people don't like to budget, but to effectively manage their finances, millennial freelancers don't have a choice. Given the fluctuating nature of monthly income, the only way to stay in the black is to carefully monitor what's coming in and going out. There are lots of free budgeting websites, such as BudgetSimple, Mint, and BudgetPulse, so choose one and start tracking your finances.

And don't forget, U.S.-based freelancers are responsible for paying quarterly taxes. Use IRS Form 1040-ES to estimate how much you'll owe, and set money aside accordingly.

3. Save on Monthly Bills
It's important to develop a spirit of frugality as a millennial freelancer. This doesn't mean you can't buy the things you want, assuming you can pay for them, but it does mean always being on the lookout for ways to save. For instance, if you rarely watch TV, cut back on your cable TV package by dropping down one tier on your channel lineup. Or similarly, look into switching your smartphone data plan to something more affordable - according to BillShrink, many households pay for as much as 8GB of data each month, but use only 25% of that.

The possibilities for cutting back are practically endless. Little things, such as adjusting your thermostat to attack your home energy bills, or clipping coupons to save on groceries, can go a long way toward ongoing financial health.

How Elance-oDesk Helped Me Start and Grow A Successful Business

Ah, the 9 to 5 grind … how I don’t miss it at all. My name is Joshua Rodriguez, I’m the owner and founder of a personal finance blog, freelance writing agency, and marketing firm. However, it wasn’t long ago that I was going to work, punching a clock, living on a schedule I was forced to live on, and loving it because I felt like I had no other choice.

Why I Decided I Wanted To Start A Business

About 5 months 7 months ago was my 3 year anniversary at a relatively small marketing firm. When I first got hired, I absolutely loved it. They didn’t force me to sign a non-compete agreement, I was open to be creative, and the team was awesome. Unfortunately, over time I realized that my bosses weren’t the people I thought they were. After about a year, I went from jumping out of bed and showing up to work 30 minutes early with a smile on my face to hitting the snooze button so much I made it to work just in time to button up the last button on my shirt.

To put it simply, I absolutely HATED MY JOB! Unfortunately, like most people, I had very little in savings, no fall back plan, and I felt like I had to deal with the hand I was dealt. Fortunately enough, my desire to leave my job gave me the drive I needed to finally get up and start doing something more with my life.

That’s When My Business Was Born

About a year and six months into employment, I decided I would start a personal finance blog. I’m what most people would call a personal finance nerd crossed with a…well, I’m just a nerd. I like to write, I like tech, and I like what most people don’t, dealing with the challenges that come up financially.

At this point, I ran into a new problem. I had a blog, and I was writing pretty consistently, but that’s all I had the time to do. Because I was working 40 or more hours a week, I only had 10 to 20 hours that I could work on my blog each week.

As the manager of a marketing firm, I quickly realized that although I had time to come up with great topics, the knowledge to make my posts valuable, and the skill to write in a way that people would enjoy, I simply didn’t have the time to do any marketing for my blog. So, essentially I could build a Ferrari of a blog, but I had no time to put gas in its tank and make sure people saw it.

And So The Search For Help Begins

About 2 months into blogging, everything I had to do to build a following and maintain a quality blog became overwhelming. I considered quitting several times, but the urge to quit blogging didn’t surpass the urge to quit my day job. So, I stuck with it. I knew if I was going to keep blogging I needed help!

I started by putting an ad on Craigslist. The good news that came from the ad was that there were tons of people that wanted to work for me. The bad news was that few were qualified.

3 Vital Steps to Making More Money as a Freelancer

Obviously everybody wants to make more money. But how do you optimize your cash flow as a freelancer with limited working hours?

My companies hire freelancers regularly. When we’re deciding who to hire for a project, there are specific skills and qualities we look for.

I’ll describe them in some detail – and I recommend you incorporate them into what you do and how you present yourself as a freelancer. Do these and I’m certainly more likely to notice and hire you – and I’d be willing to bet others looking for good freelancers will, too. Here we go.

As CEO of accounting software provider Billy’s Billing, I’d like to give you three concrete, practical pieces of advice, aimed at increasing your freelance income. To put them most simply:

1.     Make smart working choices

2.     Build an effective profile

3.     Delivery what your clients want

Those might sound awfully obvious, but stay with me here. Let’s dig into them a bit.

1. Work Smart: Do What You Do Best

To optimize your freelancing efforts, stick with the kind of projects at which you excel.  You’re probably already a specialist in some area or other. Great. Build on that – become more and more expert in that area. The more specialized and proficient become, the greater value you offer and the more you can charge.

The market moves fast and more and more freelancers enter the scene all the time. Most newcomers try to get an edge into the market by dumping their prices – just as you probably did when you started out. Well, it works, so why not? But there will always be clients more focused on expertise than low price. So be the one with that expertise. Work toward being a specialist, not a generalist.

With the rise of sites like Elance, it’s become easier for clients like me to find competent freelancers. So your skill set and portfolio should make you standout in your chosen niche – an expert who can be counted on to turn over top-quality work, and well worth the higher fees you charge. Sure, you may have to take on some more general jobs as you build your expertise and portfolio in your area of focus. Bills do have to be paid, after all. But be diligent in cultivating that niche and before too long you’ll be a recognized, sought-after, well-paid specialist.

2. Don’t Just Tell It – SHOW It

Every time we post a new job on Elance, we’re looking for people with strong portfolios. This is often the factor that decides whether or not we go forward with a new freelancer.  

How To Start A Business Without A Product

Occasionally we invite Elance-oDesk clients to discuss issues of importance to businesses who working in our marketplaces.  Here are some thoughts from Yaro Starak, an Australian-based businessperson and blogger who runs Entrepreneurs-Journey.com (among other ventures).


"What do you want to be when you grow up?"

My answer as a child was "banker", but that's only because I liked winning all the money in the game monopoly. As I became a teenager and entered university I still didn't have a good answer to the "what do you want to do?" question.

However I did know one thing - I did NOT want a job.

I was absolutely adamant that going to some place from nine-to-five each day, working to earn a linear wage, was not for me. My only real goal was to figure out a way to avoid full time employment and preferably make enough money to live off, and have plenty of spare time to do other things.

Odd Jobs And Odd Businesses

During and after university I made a living working casual jobs and starting internet businesses.

At one stage I made money offering web design and hosting. Later I had a little e-commerce website selling a collectible card game called "Magic: The Gathering". Finally after playing around with all kinds of ideas, I started a business that made enough money to live off. 

I read a book called the "Perfect Store", which outlined the story of how eBay started. I liked the book because it talked about a business model called "many-to-many". This means it has many suppliers (people selling things) and many customers (people buying things), and makes a profit connecting the two groups. The many-to-many model can scale rapidly because there are no constraints on supply or customers - each can expand organically to meet demand. Elance-oDesk is another brilliant example of the many-to-many model, connecting contractors with customers.

I wanted to do something similar.

My business started as a language translation and proofreading service. I planned to hire contractors as the work came in, so first I built the website and made the services available for sale. When a customer came through with a job request, I would take the details and go to outsourcing sites to find people to give me a quote to do the work. I would grab the best quote, tag on an extra fee usually about 50%, which I would keep, and then gave that as the quote to my client.

I later refined the service to focus on essay and thesis editing and proofreading for university students only. I also hired regular contractors who became part of the editing team.

The Final Step: True Freedom

My business was easy to run, but there was one problem - I was glued to my email all day. I had to constantly check the inbox to make sure I did not miss any jobs that came through with tight deadlines. I didn't have to work many hours to keep the business going, but I did have to stay close to an internet connection all the time. This made it difficult when traveling or if I just felt like having a weekend off.

To solve this problem I hired one more contractor - a person who took over the email customer service. I hired a work-at-home-mum on a contract basis, who managed all the emails between editors and clients. This left one or two hours work per week at most for me to do on the business.

I created a true lifestyle business that made money without me doing much more than a few hours a week.

Although I later sold that business, I have since never had a full time job. My original goal to avoid employment is still in place today. Thanks to the internet anyone can start a business and tap into outsourcing marketplaces like Elance-oDesk to deliver products and services.

You can even start something based just on an idea. Offer your concept for sale, and once you get a customer, go find the contractors to deliver. This is the best way to learn if your business idea will work.

Good luck!


5 + 1 Questions With Elance-oDesk Staffer, Jaisimha Sethuram.

1. What’s your job here at Elance-oDesk?

 Answer: I am a Senior QA Engineer at Elance-oDesk. My responsibilities include leading a group of QA engineers, testing the product and making sure the product meets all the quality standards.

I closely interact with Product Managers and Development Engineers to understand the product and its features. My goal is to have best-in-class products.

2. What do you like most about working at Elance-oDesk?

 Answer: People at Elance-oDesk are highly passionate about their work, fun loving and help each other.

The most impressive part of the job is the over-all culture that motivates everyone to make a positive impact within the company.

3. What do you love about today’s changing world of work?

Answer:  I enjoy the flexibility to work from home when needed, team building events and Thursday Buzz (e

ditor’s note: a weekly social get-together for team members). After a fast-paced day of work, many of us get together and spend some time playing ping-pong or tennis -- which definitely acts as a stress buster.

4. What songs are on heavy rotation as you work-away?

Answer: I usually start my workday listening to Smooth Jazz, when I get of most of my strategy-type work completed. Later in the day I switch to some heavy metal/hip-hop to get some adrenaline in rush.

5. When you’re not working, what do you enjoy most?

Answer: I enjoy spending time with my wife (pictured here with me) and family.  Other than that I enjoy long drives, spending time in the gym, swimming and kayaking.

6. (Bonus question!) OK, ask yourself anything. No subject is off the table.

My question and answer:

Do you prefer a car or motorbike?

I have always enjoyed riding motorbikes; it’s a total different experience. I have previously owned 3 motorbikes, but I have yet to buy my new cruiser motorcycle (vroom vroom!).


How A Client Can Work Across 5 Time Zones (And Not Go Crazy)

Daniel Ishikawa is the founder and CEO of Furniture Leasing Corporation, and Chief Editor with Expat Relocation Network www.Expat-Relocation.net -- an information portal for expatriates relocating to Germany.


A few years ago, I ventured out of my comfort zone and on a journey to places far and wide. I did this all while sitting behind my laptop and tapping away at my keyboard, sending messages to the melting pot of cultures that is now Elance-oDesk.

Over the years at Elance and oDesk, I've worked with contractors in places that bucket lists are made of, and I have some hands-on advice to share with you.

From managing time zones to dealing with holidays, cultural considerations you've never heard of, as well as an array of differences, challenges and surprises, you learn to expect the unexpected through making connections on Elance-oDesk; you learn that the sky really is the limit and the world is truly filled with unimaginable levels of creativity.

Before I started my furniture rental company in Germany and years before I got introduced to Elance and oDesk, I worked as an analyst for an investment bank in London. I remember one incident that just shocked me back then … I called the IT department to help me with an issue and surprisingly, after a brief chat, it turned out that the IT help desk person on the other line was based not in our building, but thousands of miles away, in Singapore!

Who would have guessed that fast forward 5 years, I'd be working across several time zones? A project manager based in Colorado, a Nicaraguan graphic designer, a programmer in Ukraine, Internet marketing specialists from Israel and Russia. Are you starting to get the bucket list feel yet? The list goes on and on with voice-overs being whipped up for our company video in an intriguing 'Aussie' accent, yes, we virtually went down under.

Thanks to Elance-oDesk and its incredible network, we regularly rely on the expertise of all kinds of freelancers from all over the world on a short-term, project basis.

But let’s face it. On the surface, teamwork across countries and time zones may seem pretty unnatural and you have to address this to make sure that your work does not end up in chaos.

The immediate challenge is time zone! By the time I wake up at 8am in Germany, it’s already late afternoon for Ed in Australia and Don in Colorado is about to go to bed. But we've all got work to do, and I've got to face the fact that the world doesn't run on my time.

Another anecdote. We were working with a freelancer from Russia. Just before Easter, Don from Colorado and myself decided to take a week off for the Easter holidays. But only then did we find out that Easter is celebrated weeks later in Russia.

The bigger challenges, however, are cultural differences. As an example, I had my first videoconference with an incredibly talented developer from India. I noticed … shaking the head in a horizontal direction in most countries means “no”, while in India it means “yes”, and in Hindi language the voice lowers in pitch at the end of a question.

Again, it’s not fair to stereotype...But there are also more pressing issues such as the tendencies of certain cultures not to disagree out of fear that doing so will lead to dissatisfaction and perhaps even an upset. In Germany, where I was raised, you say “Nein”, German for “No”, or “Falsch” for “Wrong” impulsively, oftentimes not considering enough what your counterparty may be thinking.

 I have found that the best way to accomplish the success that I'm in search of is to follow some guidelines. Here are my 3 must haves to make sure teamwork across borders works as flawlessly as possible:

1.     Don't be a good project manager, be a great project manager, or hire one. This person’s responsibility will be to maintain a high degree of structure throughout your endeavors. Experience is key here, and when you find someone who's got the years to back them up along with the wit to allow for a seamless operation, you know you've hit gold. Elance-oDesk enabled us to find a freelancer from Colorado, Don, who turned out to be an excellent choice. Don has previous project management experience with a number of blue-chip companies in the U.S. He still helps juggle so many projects for us with tremendous talent.

2.     Be direct about expectations and address cultural differences. Of course you’ll have to be careful about your approach to such differences but we all have expectations and putting them out there is the only way you'll be able to get the other party to have a full understanding of what it is you want out of a particular project.

3.     Accept the fact that some of the stakeholders in your project may be from a totally different cultural background and surrounding. What you may feel is obvious (from a cultural background) may not be for some people you work with. We are all, to a certain extent, a product of our upbringing…

Through working with Elance-oDesk I learned to not only manage projects efficiently, but also to work with and respect people from different cultures.

Elance-oDesk is filled with talent and once you put your project out there, you'll be astonished by the multitude of ideas that make their way to your inbox. 

Advice From An Elancer (Volume 21)

Welcome to Advice From An Elancer – a place to ask your Elance questions (through Elance’s LinkedIn page) and get them answered as thoroughly and personally as possible. My name is Dorothy D. and I have worked with Elance as a freelancer since April 2009. I have always tried to help other Elancers understand how things work and how to accomplish more. In Advice From An Elancer I will address as many questions as I can each week. In some cases, questions have been edited for clarity.


This week, I will address one question that is recurring. New freelancers who join Elance are continually posting this question in our LinkedIn Elance Professional Network. Hopefully, this will answer the question thoroughly and the new Elancers can look here for answers.

Question #1:

I have been on Elance for a few months and bid on several jobs but have not had any jobs awarded to me. How do I get a job?

Advice from an Elancer:

• Make sure you are in the right category for your skills. I have seen many freelancers with IT skills trying to find jobs in Writing and Translation. Choose a category that fits your strengths.

• Complete your profile. When I say COMPLETE, I mean every part. Verify your identity. It costs nothing and provides an extra layer of trustworthiness in the eyes of the client.

• Add a photo that is either a professional looking image or a company logo.

• Make your subtitle descriptive of the job that you do. “Awesome freelancer” does not provide insight into your area of expertise.

• Make your Overview/Resume clear and provide a little bit of what your clients can expect from you.

•Clearly state what services you provide.

• State any payment terms such as, “Escrow must be funded before work begins.” Even though this is policy, not all clients read all of the material.

• Add any references you have.

• Verify any licenses or certifications.

• Include a portfolio of work, ensuring that the client for whom the work was completed does not object to using it in this fashion.

• Add skills and take at least a few tests to verify your expertise in some of the areas.

• Add relevant keywords. Do not try to put multiple keywords together because it will hinder search results

Creating A Mobile App? Consider Your Ownership Options

Occasionally we invite clients to discuss issues of importance to those who hire freelancers. Here are some thoughts from Nicholas Wright. He frequently hires Elancers and is one of the founders of AppInstruct, an online course that teaches people how to make an app utilizing the Elance marketplace.


Earlier posts in this series have looked at:

How to turn your idea for a new mobile app, into an app; Explored the concept of minimum viable product; and Tips on how the start-up fundraising process works.

This week, we’ll run through the various legal ownership structures you may require to operate your business within.


The App you’re creating, will you own it personally, as an individual, or should a company own it?  Perhaps, there’s more than one creator, so will you each own half? What if you all fall out in 6 months time, what then?  Who’ll receive the income?  What about tax on that income?

These are all questions you need to ask yourself.  The good news is, there are solutions.

Structure options

Sole trader/Individual ownership

If you’re a one-man team, then this is the simplest and cheapest approach.  There are no establishment or filing costs, or regulatory fees, and by virtue of creating it yourself, then you own it. 

The risk when operating as a sole trader, is that you are personally liable for any claims in respect of the product.  For example, if your App infringed on someone else’s intellectual property, that person would be suing you directly.  This means that all your personal assets would be at risk, the family home, the car, even the television.  Whereas, if you were to own and operate through a company then, for the reasons explained below, in most cases your own personal assets would be protected by the corporate veil.

Tax structuring may provide an additional reason for moving the ownership of the asset/product/app to a corporate vehicle.  That is, by creating a corporate vehicle, you may be able to manage the ways revenues are passed back to you, so as to ensure they are as tax efficient as possible. Individual rates of income tax in most countries exceed the rates applied to companies, as seen in the chart below.