Please Whitelist This Site?

I know everyone hates ads. But please understand that I am providing premium content for free that takes hundreds of hours of time to research and write. I don't want to go to a pay-only model like some sites, but when more and more people block ads, I end up working for free. And I have a family to support, just like you. :)

Please think about the value you get from this free site, and consider adding it to the whitelist for Adblock. To do so, just open the Adblock menu and select "Disable on freelancingguide.net". Or go to the Tools menu and select "Adblock Plus Preferences...". Then click "Add Filter..." at the bottom, and add this string: "@@||freelancingguide.net^$document". Then just click OK.

Thanks for your understanding!

Sincerely, Charles Kozierok
Author and Publisher, The Online Freelancing Guide


NOTE: Using software to mass-download the site degrades the server and is prohibited. Any such attempts may result in your access to the site being automatically blocked. Please be considerate of other readers -- and my server -- and thank you for your cooperation.

Custom Search






Table Of Contents  The Online Freelancing Guide
 >  An Analysis and Review of Popular Online Freelancing Marketplace Sites
      >  Criteria for Choosing Online Freelancing Marketplace Sites

Previous Topic/Section
Bidding, Client Interaction and Project Award Policies and Mechanisms
Previous Page
Pages in Current Topic/Section
1
2
3
Next Page
Dispute Resolution and Arbitration
Next Topic/Section

Escrow Services, Work Tracking Systems and Payment Guarantees
(Page 2 of 3)

Escrow Services

The trust problem outlined above inevitably boils down to a classic “you go first” dilemma: whoever goes first must trust the other party to follow through with their end of the bargain. If the contractor does the work in advance, he/she must trust the client to pay after the work is completed; if the client goes first (via an advance payment) he/she must hope that the freelancer won’t just take the money and run.

Escrow breaks this deadlock through the involvement of a third party that is neutral to the transaction. When escrow is used, the client makes a payment in advance, but not to the freelancer’s account. Instead, the funds are held by the escrow agent while the work is performed. When the work is done, the funds are released by the escrow agent to the freelancer.

The advantages of this are obvious; in essence, it allows both client and contractor to “go first” while eliminating much of the risk. The contractor does the work before being paid, but he/she knows the funds are there when the work is completed. The client pays before the work is done, but knows the contractor can’t take off with the funds, and that they can be returned safely if the contractor flakes.

Because of the value this represents, most of the larger freelancing sites do offer an escrow service, usually run by the site itself. In fact, there’s only one large freelancing marketplace where no escrow is supported: oDesk. This is partly because their site is largely oriented towards hourly work, but it’s a significant impediment to flat rate projects.

It’s worth pointing out that escrow is not a panacea. It is still possible for problems to arise, most notably if the client and contractor cannot agree on what constitutes properly completed work. In this situation, the site’s dispute resolution or arbitration system may come into play. Fortunately, these situations are relatively rare, and escrow works well most of the time.

Note that some sites charge an additional fee for using their escrow service.


Previous Topic/Section
Bidding, Client Interaction and Project Award Policies and Mechanisms
Previous Page
Pages in Current Topic/Section
1
2
3
Next Page
Dispute Resolution and Arbitration
Next Topic/Section

If you find The Online Freelancing Guide useful, please consider making a small Paypal donation to help the site, using one of the buttons below. You can also donate a custom amount using the far right button (not less than $1 please, or PayPal gets most/all of your money!) Thanks for your support -- it's hard to make a living writing free material these days.
Donate $5
Donate $10
Donate $20
Donate $30
Donate: $



Home - Table Of Contents - Contact Us

The Online Freelancing Guide (http://www.FreelancingGuide.net)
Last Site Update: October 21, 2011

© Copyright 2001-2011 Charles M. Kozierok. All Rights Reserved.
Not responsible for any loss resulting from the use of this site.