OK, so you’re really good with Microsoft Excel.  You can write bi-conditional nested if statements and vlookups that make peoples head spin.  You’re the only person in your tri-county area that can make a dynamic pivot chart with multiple vertical axes that retains its formatting.  Maybe you’ve even created user-defined functions that have replaced your entire secretarial staff, or written VBA subroutines that made your co-workers shed tears of joy.  Well, this post is for you; the lonesome few that have mastered the tools and are solving complex problems at work, but are looking for a way to tie it all together in a way that takes your career to the next level.

I see two distinct paths you can take as an Excel Guru:  The first is you quit your job, become an independent contractor spending 8 hours a day solving complex issues with various implementations of Excel and Business Automation.  Excel consultants such as these are in demand and making enormous hourly rates. The other path is for those who love the challenge of climbing the corporate ladder, taking on more and more responsibility, and eventually leading other Excel gurus .  Both of these routes have one major thing in common: you have to be able to connect your technological savvy with the business needs of your client or boss.

So how exactly do you translate those skills into value-added business skills?  Here’s an example to get you started:

“The Holy Trinity” -  Raw Data Tab / Static Formula Columns / Pivot

Here’s a framework in three steps that works when you are given a weekly raw data feed and asked to make a report.

1) The Raw Data

First make a “Raw Data” tab on your Workbook and paste that data in exactly as it is in the weekly report.  Don’t delete unneeded columns, or filter out erroneous records, we’ll let Excel do that for us later on.  Any steps you take to pre-process the data now are steps that you’ll have to take each week, which means more work and more potential for making “human” mistakes.  “Paste in the new data, hit refresh, and you’re done” should be your new mantra as you design the report.

2) Static Formula Columns

Next you’ll want to make static formula columns on the raw data tab.

You have data like this:

The first thing you want to do is add calculated fields for values that you’ll need to pivot on later.  The trick here is that the Raw Data coming in each week must always have the same number of columns, say A through H, so that you can add your formulas to I, J, K, etc and know that when you paste your new data in next week they won’t be written over.  The most common formulas here are breaking the “Date” field into “Month”, “Data”, and “Year” (as outlined below) but the possibilities are endless.

Once you’ve added the new columns, enter the formulas

Once you’ve entered all of your formulas, “fill” them down to the bottom of the data.  To more easily identify these calculated fields columns later on, I always make them a different color.

Some other examples of useful columns here are:

• City or State using a vlookup with some unique identifier on another sheet
• Actually constructing your unique identifier key by concatenating several other values together, e.g. =A1&A2&A3 (this one can be really useful in certain situations)

Remember that if you’re dealing with a dataset that has a varying number of rows each week, you’ll have to make sure to drag the formulas down to the end of the new data once you paste it in over the previous weeks data.  That’s a heck of a lot less painful that re-creating the report from scratch each week.  If you wanted to really get fancy you could even do a:

=if(iserror(your_formula_here)=true,”",your_formula_here)

Which would make the formulas blank on rows that didn’t contain data.  Then you could pull the formulas down “to infinity” and never have to worry about it again.  Just watch out for bloated file sizes.

3. Putting it All Together
Here’s is the fun part: Now we’re going to take the data, along with its static formula fields, and translate it into something readable and useful by businesspeople. Data-wise, focus on using pivot tables or pivot charts when possible to automate the report.  Also, ask the client if they are interested in a dynamic report (where the user can interact with the data via pulldown menus, etc.) and design accordingly. 

• W.I.F.M.
  • The one question on a person’s mind when they look at your report is going to be “What’s in it for me?” Think about the needs of the person looking at your report, and cater your deign to those needs.  Try to keep out extranous or non-essential information and get right to the point.
• K.I.S.S.
  • “Keep it simple, stupid!” You’ll want to keep the design of your report elegant and simple, yet rich with useful information.  Here are some experts’ take on report design to help you discover the process yourself:
    • Check out Edward Tufte, who is the quintessential master on the topic of data visualization.
    • Check Out John Peltier’s Site for great tutorials on how to build elegant charts and other visualizations in Excel
    • Get some great design ideas from FlowingData.com
    • The Infosthetics Blog
    • Some great ideas for the advanced user can be found on this blog post, over at Smashing Magazine

Here are some other Excel topics we’re considering writing on next… cast your vote in the comments below for which one you like best, or suggest your own idea:

• Upgrading to Excel 2007: Navigating the Minefield
• Statistical Analysis for Excel: The Missing Guide

My faith in professional online etiquette was called into question last week, when I spotted a rather unflattering eBay auction—posted by a professional dealer no less—advertising a car. In a single run-on sentence devoid of capital letters, the auction promised heightened sexual attraction for anyone in the driver’s seat, contained several obvious spelling mistakes, and concluded with no less than 18 exclamation points. If ever there was an example of how not to conduct business online, this auction was it.

Acting professional in online communications, whether through email, online postings, or profiles, should be a matter of common sense for oDesk providers and buyers alike. Unfortunately, the comfortable anonymity that stems from communicating through a computer keyboard can be quite deceptive. As a result, the automatic etiquette-check in our brain that separates professional communications from informal situations may never get tripped. Should this happen, lucky individuals will just eat a crow sandwich and move on. Those less fortunate could miss key employment opportunities or even lose clients.

Blogs and guides for more detailed “netiquette” are everywhere, but Netmanners.com should be a prerequisite for anyone venturing into a professional online career. Carol Bory’s daily blog on business etiquette and Marcia Pledger’s suggestions are also worthy reads. If you don’t have hours to study the finer points however, these six etiquette tips can help ensure you don’t commit a professional faux pas.

• Don’t use smiles or emoticons. These are fun, cute ways to convey emotions in an informal email or forum post, but they don’t belong in a professional communication. Good rule of thumb: if you’re not sure a particular passage will be taken correctly without a smiley or emoticon, don’t use that passage.

• Don’t get fancy on fonts or formatting. Formatting can change between computers, fancy fonts or multi-colored formatting can sometimes be difficult to read, and frankly, it also looks like a cheap attempt to get attention.

• Keep email attachments small. Under 256 Kilobytes (Kb) is a good rule of thumb. If you’re unsure what kind of connection your recipient is using, contact them first to ask permission on larger attachments.

• Don’t use internet lingo or abbreviations. Everyone likes to LOL, but AFAIC, such lingo is far too informal—and potentially confusing—for anything but basic chatting between friends.

• Include your email address in your closing signature. Aside from being convenient, some mail readers don’t display email addresses. Sure, one could just hit reply, but what if your message was forwarded to someone else?

• Don’t type angry. You will type things when you’re angry that you’d never, ever say to someone in person, and if you send it, you will regret it.

Microsoft Silverlight is a browser plugin that allows the delivery of rich media experiences over the web. If you’ve ever watched a movie on Netflix using “Watch Instantly” then you are familiar with the power of Silverlight’s video streaming capabilities when coupled with Microsoft’s IIS Media Services Server. While streaming video was Silverlight 1.0’s main focus, iteration 2.0 expanded upon that, offering the ability to run programs written using any .NET language. Version 3.0 has been out since July (notice the spike on the trend chart for Silverlight developers below) and boasts the ability to stream 1080p HD video, as well as a slew of upgrades that speed up performance and improve the development process.

Silverlight on oDesk
There are currently 520 programmers on oDesk with Silverlight experience. oDesk’s data on the trends for Silverlight developers shows a significant increase in demand over the past six months. While this isn’t as impressive as oDesk’s data on recent Flash developers trends, Silverlight 3 offers some fantastic new features that should keep the demand for talented Silverlight developers on the rise.

Key Features
Highlighted below are some of the key features that Silverlight offers. See Scott Gu’s article on Silverlight 3 for more in depth reading.

GPU accelration – Processing of video and graphics can be offloaded to the client’s graphics card, making streaming of 1080p and rendering of 2D and 3d graphics less CPU intensive.

Smooth Streaming – Microsoft’s IIS Media Services Server can vary video streaming bit rates on the fly to insure smooth playback, regardless of client’s CPU load or network congestion.

Codec Support – H.264, MPEG-4, and AAC formats are now supported, as well as the ability to write custom decoders.

Offline Support – Silverlight applications can be configured for local installation and offline use.

Expression Blend 3 – A developer’s tool for Expression Studio that offers a whole other blog post’s worth of tools, including: importing photoshop layers, Sketchflow application prototyping, support for behavior components that encapsulate complex design interactions, and much more.

How To Get Started Developing
Microsoft is offering all of the tools needed to get started for free. Download Microsoft’s Web Platform, which includes Visual Web Developer, SQL Server Express, Silverlight Tools and IIS and ASP.NET Extensions.

Silverlight.net is a great place to read tutorials, and view example projects, and Shawn Wildermuth’s Blog has some great examples and screencasts as well.

Considerations
When choosing to use a new technology, it can be tough to justify being one of the early adopters. Some statistics are showing that Silverlight 3 is currently installed on nearly 20% of all computers. While this is great – especially considering it has only been available for just under 3 months – it is no where near Flash’s 80-90% installation representation. However, Silverlight does tackle some media applications, particularly streaming video, that Flash and Java just can’t handle as well.

Telephones didn’t always come with tiny pop-out keyboards and message screens. Once upon a time, people would actually speak into phones to talk directly with other people. No text messages, no email, no internet browsing, just actual conversations with folks who listen and respond with phones of their own.

There are many freelancers and providers out there who believe business can be handled through emails and text messaging alone, but the truly successful entrepreneurs know this simply isn’t true. There’s a time and a place for both written and verbal communications, but nearly 20 years of email, the rapid rise of text messaging, and other social networking mediums have erroneously de-emphasized the importance of telephone conversations. The fact is a single telephone conversation carries a far greater impression than the best email ever could. That may frighten many of those used to online communication here in oDesk-land, but the advice offered from Gotta Know Online and Associated Content—not to mention our tips below—will show you there’s absolutely no reason to fear the speaker.

Smile when you make a call or answer the phone.
Smiling has the unconscious effect of giving your voice a very friendly, upbeat tone, and that’s how every business conversation should begin.

Always identify yourself on incoming and outgoing calls.
If you’re a freelancer, this can be as simple as answering calls with “Hello, this is Chris,” or “Hi, this is Sandy, how can I help you?” If you’re working for a company, include their name as well. On outgoing calls, always identify yourself to the person that answers, even if you need to speak to someone else. A good example would be “Hello, this is John Doe calling, may I speak to Richard?”

Be an active listener.
Active listening is a fancy way of saying “pay attention!” Turn off music, close the office door, or if necessary, go to a different room where you can offer your complete, undivided attention to the person you’re talking to. Active listening also means you’re not just a silent partner. As the other person speaks, let them know you’re paying attention (or in the cell phone age, that the call didn’t drop) by offering simple acknowledgements such as “sure” or “I see” to the things they say.

Leave short messages.
If you have to leave a message, make it short and to the point. Offer your name and number both at the beginning and end of the message, with a sentence or two in the middle explaining your call. A 20-second message is usually sufficient to get the point across; anything longer should be addressed in the callback.

Resist the urge to take a business call while on personal errands.
Cell phones allow us to talk shop anywhere, but taking a business call while you’re eating dinner with the family or standing in line at the grocery store is not a good idea. Let it go to voice mail and call back as soon as you’re in a more suitable location, even if it means making a quick trip to your car. It may appear as though you’re showing dedication to your clients or customers, but choosing to take a call while rapped up in a personal activity almost always makes the caller uncomfortable, and if you’re in a public setting, you risk blaring out potentially sensitive information.

While these tips provide a good foundation for telephone etiquette, remember that the best phone jockeys develop their own unique style over time. Have any other suggestions to maximize professional telephone conversations? Feel free to share your tricks of the trade in the comments section below.

There have been an increasing number of stories about issues with online security, and there are plenty of folks out there looking to gain access to your personal information with malicious intent. Below are a few of our tips to help you stay safe when working online.

Be wary of anyone asking you for personal information online. In general, be cautious when giving out personal data online. It can be hard to determine who is receiving that data, and who is responsible for ensuring its security. Once your account is established with us, oDesk will never proactively ask you for your personal information, unless it is in response to your contacting us via our support channels. If you are asked for these items and are uncertain if the person asking is truly an oDesk employee, contact our support team – we can help you identify illegitimate requests.

Educate yourself about phishing. “Phishing” scams are when an outside party tries to get you to release your information in an email or through a site that mimics a legitimate one. Wikipedia says: “In the field of computer security, phishing is the criminally fraudulent process of attempting to acquire sensitive information such as usernames, passwords and credit card details by masquerading as a trustworthy entity in an electronic communication. Communications purporting to be from popular social web sites, auction sites, online payment processors or IT Administrators are commonly used to lure the unsuspecting public. Phishing is typically carried out by e-mail or instant messaging, and it often directs users to enter details at a fake website whose look and feel are almost identical to the legitimate one.”

Defend yourself. Your defense against phishing is to check the browser address bar after you click on a link to make sure it took you to the destination you expected. Do not enter your login credentials on a site that does not reflect the expected URL in the browser address bar!

Updating your passwords is an easy way to reinforce your security measures. Use 8 characters minimally and include mixed case, digits, special characters – the more the merrier! Please make sure that you NEVER use your oDesk account password in any other services.

Forgot your password? Sometimes, the security question can be used by others to access your online accounts – many people use security questions whose response is easily guessable or whose answers can be located in a quick online search. Change your security questions into a second password. Pick any question, but add to the answer an additional password (8 letters, numbers, etc)- this way, your security questions become another line of defense in protecting your online accounts.

And, finally, if you believe your account on any service has been compromised for any reason, contact that company’s support team immediately, as well as any other organization that may be linked to that account.

There are thousands of freelance Web developers listed on oDesk who you can hire to build your site. But, how do you…
…pick one for the job you need done?
…keep costs down?
…keep the developer from snowing you on time estimates?

In my experience there is one key consideration that determines your best path to hiring a developer. The determining question is: Are you technical?

This is a trick question for some people. I have friends that consider themselves technically adept. They enthusiastically read up regularly on geek blogs and forums. They can discuss expertly and in-depth about the latest developments in platforms and applications. However, they do not have any real world programming experience. So when they try to manage their oDesk programmers, they inevitably get into trouble. They think they are speaking the developer’s language, but in the end both parties get frustrated and confused. The work is delayed. They end up burning more developer hours than my non-tech-loving friends.

In other words, my technology enthusiast pals know enough to be dangerous, but not enough to be useful in hiring and managing programmers. I am not technical myself but thankfully my business partner is, and he manages all hiring and communication with the programmers. Here is a quick litmus test he created to see what side of the fence you lie on.

#1. What is the process that takes place when you upload a file in php?

#2. The opposite of rel=nofollow is “followed”. True or False?

If you understand the lingo but cannot nail the answers to the questions completely and coherently, then you are not technical.

If you are technical:

• Test your applicants’ coding abilities. Ask each applicant to solve a programming problem. If they try to assure you they know the answer but don’t want to solve it, cross them off the list.
• To control costs, consider hiring at an hourly rate vs fixed price. You have the ability to give very specific and accurate work requirements. By getting tight time estimates and keeping in regular contact with your developer, you can have more control in making sure all billable time spent is on the right things.
• To save money, consider taking a chance on a provider with zero or little oDesk experience. It is riskier, but programmers with no oDesk history tend to be cheaper and more appreciative to be given the nod. They also tend to have fewer jobs going at the same time, which means you will get more of their undivided attention. To hedge your bets, give a new provider a small project, say less than 2 hours’ worth of work, and then cap the provider at 2 hours/week. If they produce shoddy work, are late or can’t get the job done in the allotted 2 hours, cut them loose and try someone else.
• Always be as detailed as possible in your specifications. If you expect them to use a particular platform or programming language, spell this out. Real life examples are always useful. For example if you want a rotating photo gallery, give them a list of websites that already have this implemented.

If you are not technical:

• Stick with applicants that have at least 500 hours of oDesk history and an average feedback score of at least 4.0. These applicants have an extensive and transparent performance record which is invaluable for the person who cannot evaluate the applicant’s work on a peer level. Look for buyer comments that compliment the provider for accurate time estimates and ability to communicate.
• To cap your spending, consider limiting the number of approved hours on the job or hiring for a fixed price. This reduces the risk of the provider either unintentionally or otherwise soaking you for overages.
• When communicating with the programmer, speak plainly and use layman’s terms. A good programmer will come down to your level and it will be easier for both of you. Resist the urge to get fancy and use coding terminology. I wince when a colleague, in talking to his programmer, constantly makes references to “Java” not knowing that Java is a completely different technology from “Javascript” which is what he really means.
• Always be as detailed as possible in your specifications. Real life examples are always useful. For example if you want a rotating photo gallery, give them a list of websites that already have this implemented. Telling or showing them what you DON’T like is also useful.

Jenise Uehara is an internet marketer based in the San Francisco bay area, focusing on urban clothing and streetwear.

Whew! Do NOT try to say that title aloud ten times fast!

Last week, we had asked everyone to submit their best “Remote Working” or “Remote Management” tips for a chance to win a $100 Amazon Gift Card. We received many wonderful responses, and we managed to narrow down the list to our top 10 tweets.

It’s a good thing we drew the winner randomly, because all of the tips we received were great! We had a hard enough time picking our top 10, let alone a single winner!

Thanks to @chaviebugsey on Twitter (our unofficial random number generator), our winner of the $100 Amazon Gift Certificate drawing is:

@tjlytle (Tim Lytle):Make sure you (and your client) know the difference between an employee and a contractor.Tim Lytle is a Technology Consultant & oDesk Contract Web Developer. Owner of timlytle.net ltd since 2003, his oDesk adventures have been mentioned on the BBC’s Click and in Forbes Magazine.

Congratulations, Tim!

Here are the Top Ten #oTip Tweets (in alphabetical order) and our responses to them:

	@AnneSemana (Anne Semana): That’s simple. Use oDesk!!! – Best tip ever! Our response: Yes, we like shameless self-promotion! Who doesn’t?
	@arronguy (Arron Washington): Don’t friend clients on Facebook. Ever. Our response: Funny, but true. We doubt you’d want your buyers knowing which Twilight character you should marry, or the top 5 people you want to punch in the face.
	@CrystalsQuest (Crystal Woods): Silence ISN’T golden. New clients need reassurance of you checking to clarify anything unclear BEFORE you go ahead and do it Our response: This is a MUST. ALWAYS ensure both you and your buyer know what the expectations are for each assignment BEFORE you start.
	@Deepa7476 (Deepa Govind): Never respond to email in haste, No body expects instant updates. So collect your thoughts, present them well & use spell check. Our response: We couldn’t agree more…especially if you’re upset!
	@EricaFenik (Erica Fenik): Overcommunicate. Clear expectations + execellent results = WIN for freelancers + buyers. Our response: Yes, this was sent in by an oDesk Staff member (so it disqualifies her from the prize), but this is very sound advice.
	@JoannSondy (Joann Sondy): My #oTip based on 15+ yrs of serving clients remotely = email isn’t always the answer. Pick up the phone occasionally! Our response: Absolutely! Even though our teams are staffed by oDesk providers, we have weekly conference calls to make sure everyone is on the same page.
	@likke (Fleire Mae Castro): Network with other oDesk providers. Referrals will be appreciated. Who else is gonna help you but other freelancers, right? Our response: Yes! Even though you’re competing in the same job field, you can still make friends and help out other providers – who knows? They may get too busy to take on work and refer clients to you (or vice versa).
	@michelem (Michele Marcucci): When you submit a proposal double check what the buyer is asking for and if you’re in doubt ask a question within the proposal Our response: There are no such things as stupid questions…okay, maybe there are sometimes – but don’t be afraid to ask questions! It can save you lots of time and money in the long run.
	@mylescxy (Mylene Sereno): Before letting out a loud sigh or scream “Whew! Whatta day!” while talking to a buyer on GoogleTalk, make sure your mic is turned OFF! Our response: I think we’ve all been there before!
	@tjlytle (Tim Lytle): Make sure you (and your client) know the difference between an employee and a contractor. Our response: Absolutely! This is the most important, yet highly misunderstood, aspect of freelancing!

A few weeks ago, I was contacted by Ruven Meulenberg (author of “The Unplugged“) who had mentioned oDesk in his book and wanted to delve a bit deeper into our motto of “Changing How the World Works.” We had a very fruitful conversation, and you may see future guest posts from Ruven and his team on this blog, but I wanted to begin by introducing you to the book and some of the principles presented in it.

There are some extremely powerful ideas addressed in this book, especially when  you consider the entire thing is only 95 pages long! The writing is a bit “rough” but the concepts are solid and definitely worth diving into.

It starts by discussing the effect change has on a project (specifically a development project, but I think the idea can be almost universally applied.) As developers know, it is the change process in a project that complicates things. Freelance software developers feel this pain especially, as the specs for a project change and they may have to shift their contracts to account for additional time spent moving this item over there and modifying that background color from red to blue. The key to managing change, Ruven says, is moving all change to the beginning of the process.

That’s right. All changes happen early on. In order for this to work, the second principle needs to be enforced. This is understanding that every development should be fundamentally the same and accepting the need to lay out a roadmap that can be applied to all development projects. Ruven asserts that all projects run the course of Cloud – Create – Contstruct – Control. (Essentially: brainstorm, design, build, test/tweak.) The book delves into this concept deeply, and I think the idea presented within this framework is pretty powerful for non-technical people to understand how the development process works – especially realizing that the Create process begins with an end vision and works backwards to the startpoint, while the Construct process that immediately follows begins at the start and builds logically to the finished product. (For some this might seem like a no-brainer, but it was a real eye-opener to “admittedly-only-minorly-technical” me!)

One of my favorite sections of the book described software and Web-ware creators as “artists”. This particularly resonated with me, as I always felt that there was an inherent creativity to the creation process of technology, one that was seldom recognized as such (at least outside of the video game community). Where “The Unplugged” gets its name from is the idea that creativity is constrained by rigid systems – and that technology in and of itself is a mathematical, rigid construct. The idea here is to free software developers and UX designers from their computers and give them more free-form tools to create with. The book then gives a hearty pitch for Guimags, the invention of Ruven and his team, an interesting blend of whiteboard and magnetic design board intended to open up the creative process in a hands-on and intuitive way.

I’m not a developer, so I can’t tell you definitively how effective their product is, but the process seems sound (Cloud – Create – Construct – Control) and widely applicable to many creative fields. Where it gets a bit exciting though, is the end of the book, where Ruven addresses applying the process and the tools to projects. He talks quite a bit about changing the way the world works by balancing the application of technology and talent on any given project, and the idea that freelance providers are a smart, flexible and economic way to tap into skilled talent at the points in process where it is needed the most.

For those of you who know oDesk well, this concept may sound familiar. I’m looking forward to hearing your thoughts in the comments below. Do you think the concepts above are sound? Have you read “The Unplugged?”

Last week I began my series on pricing with some heavyweight current theory. I believe it’s almost always worth the time to become a better pricing and negotiation expert as the actions taken in the few hours of settling on terms can affect the output of countless hours working under those terms. A big part of negotiation is confidence and mental conditioning–how you react and respond will signal how ready you are to do business. People found ZOPA a valuable topic and I’ll find a way to drill deeper into it in future posts – the gist to keep in mind with ZOPA is all about knowing your customer intimately.

This is a topic many bloggers cover and, in that spirit, this week’s post is about exercise for the pricing mind. I’ve collected some of my favorite blogs on the topic of pricing programming and freelance services and extracted the quotes I found most useful.

A web design service’s blog tips on pricing:
“Some potential clients will think your prices are high no matter what you charge. Some clients will understand what’s involved with designing and developing a website and others will not. Because there are people out there willing to design a website for next to nothing, some clients will think that you should be willing to do the same, even if your service is completely different. Try not to worry about turning clients off, and focus more on proving a service that’s worth the price (and being able to explain why it’s worth the price).”

A web design blogger’s top pricing tips:
“Some jobs will present challenges and opportunities for you to improve your skills and your experience. If you are interested in learning a new aspect of design, you may want to seek out projects that will provide those opportunities and price your services to be very competitive. Of course, if the job is a learning experience for you, you should communicate this with the client so they understand the situation and so they do not assume that you are an expert in this area.”

An MBA’s guide to consulting service pricing:
“One reason for so many different rates charged by consultants is that we operate in a world of imperfect knowledge. The first step in achieving better fees is to understand the difference between working as a temp and running a business. When consultants realize that their positions are as valid as those of the clients they serve, they will be able to set fees and estimate time for projects that let both of them achieve your goals.”

Competition: GigaOm on pay trends in the US, the pressure is on:
“Six months ago, more than half of U.S. employees couldn’t fathom taking a pay cut, but now 42 percent are willing receive a lower paycheck if it increases the likelihood that they’ll keep their jobs. Employees are also willing to do more than just take a pay decrease — nearly three-quarters are willing to take on more responsibilities at work and 64 percent would work longer hours to increase their job security.”

Nine freelance pricing factors:
“Signs that demand is high include too much work coming in, other freelancers being overloaded and people telling you they’ve been struggling to find someone to do the job. Signs that demand is low include finding yourself competing to win jobs, a shortage of work and fellow freelancers reentering the workforce.”

How to be a highly paid freelance programmer:
“Contribute to open source projects.”

Think from the buyer’s perspective
“Ask the developer some probing questions about the most important parts of the project. You will likely discover some assumptions that you or the developer are making.”

I’m curious to see what people’s favorite quotes from these selections are. Post your favorite quotes into the comments!

Many of you already know that we love Twitter and love finding and retweeting great tips and stories. But now, we think it’s time for us to take a break from hearing ourselves talk (oops, did I say that out loud?).

We want to hear what YOU have to share!

• Are you on Twitter?
• Do you have a great tip for remote working or managing remote workteams?
• Can you annotate it in 120 characters or less?

If you answered YES to all of those questions, enter our Twiveaway for a chance to win a $100 Amazon Gift Certificate!

All qualified tweets will receive an entry into our contest. We will hand-pick the top 10 tweets and post them on our blog. A winner will then be randomly drawn from the top 10.

What makes a qualifying tweet, you ask?

It’s simple, just follow these steps:

1. Follow @oDesk on Twitter
2. Send an @ reply to @oDesk with your tip
3. End your tweet with this hashtag: #oTip
4. Make sure your entire tweet (including @oDesk and #oTip) is less than 140 characters

That’s it!

Here’s an example of a qualifying tweet (we sent a similar tweet to @mashable last month):

@odesk When emailing a buyer, ALWAYS spellcheck words like “shift” before hitting send…one letter makes a BIG difference! #oTip

Be insightful. Get creative. Add a dash of humor. Show us what you’ve got!

Deadline for submission is Thursday, July 2nd.

Well, the estimated date of Twitpocalypse has come and gone. Some of us are left wondering, what would we have done if it wasn’t only certain third-party Twitter clients affected… What would have happened if the entire Twitterverse imploded? What could we accomplish if we were forced to reclaim minutes that are otherwise spent twittering?

Maintain your online reputation

Sure, with Twitter gone you can’t update your followers about that awesome blog you’ve been reading, but you can take a few minutes to make sure those looking for you online are actually finding the real you. Try Googling your name in quotation marks to see what comes up – those with unique names should only find things that directly connect to your real online activities. Got a more common name? Change your online profiles to include a middle initial to help you stand out from the crowd. Finding something that you’d rather not have public? You’ll need to contact the owners of that site to ask that they remove it.

While it may not seem important, potential employers have been known to search the Internet for potential warning flags before hiring. That picture of you dancing on the table at the holiday party last year? Warning flag! This quick search could save your job prospects and your online reputation.

Build your portfolio

You’ve done a lot of excellent work recently, but the last job detailed in your portfolio was from 2005. It’s time to beef it up with some of your more recent fantastic jobs. On the same note, make sure that your portfolio contains plenty of background information about each job and a URL to the work itself (if available) to round out the description and give buyers plenty to reference when considering you for work.

Blog

Unless you’re a professional blogger, blogging always seems to fall to the bottom of the priority list. But your blog can give buyers a better idea of your writing skills, as well as giving a stronger sense of your interests, hobbies, and personality than your resume can ever show on its own. Take a few moments to look back over your past blog posts to make sure you’re staying on topic and showcasing your talents to the best of your abilities. Then, tackle a new blog post and commit to getting it written, edited, and posted by the end of the week!

Don’t have a blog? Look at your industry and decide if one would be a boon to your business. Will having a nicely-written, regularly updated blog benefit your work and highlight your talents? If so, plan out your first few blog posts, set up a schedule that fits your availability, and post regularly!

Link Building
Check all of your online content and make sure that each one links back to your profile. For example, if your blog is updated often with witty, engaging commentary on your industry, make sure you’re linking to it every chance you get – on your resume, in your cover letters, on your oDesk profile, etc. Likewise, make sure your blog has links back to your oDesk profile, your Twitter account, and your online portfolio. Connecting the dots online will showcase your work while making it easier for potential employers to find you!

Update your network

Take a quick peek through your emails and make sure you have complete contact information for everyone you’ve had recent conversations with. Then scroll through your address book and pen a note or two to the folks you haven’t touched base with in a while. You never can tell who might know someone needing your particular skillset, and sometimes a brief email is all it takes to bring you to the top of their list for consideration!

Get Outdoors

Sometimes, a scenery shift is a refreshing change that can reinvigorate your work routine. Don’t just watch the sunshine from your desk, take your work outside for a bit. Tethered to a power cord? A quick walk outdoors can have the same mood-boosting effect, and can give you a fresh perspective on your work when you return!

Play

I’m serious. Certain types of play can boost your brainpower and kickstart the creative juices – just what the doctor ordered for long stretches at the keyboard! Pick a game that will strengthen your mind: word games increase vocabulary skills, sudoku betters problem-solving ability, memory games improve, well, memory!  A personal favorite game to play in just a few minutes is FreeRice.com – a vocabulary word game that donates grains of rice to help end world hunger. I hone my word skills while helping others – a great way to improve myself in just a few minutes!

What do you do when the Fail Whale strikes?

Since the start of 2009, technical writing has enjoyed an upswing in interest from buyers – a review of technical writing jobs posted on oDesk in May 2009 shows a rapid climb to reach nearly three times what they were a year ago! In honor of this tremendous growth, here are some of the top technical writing blogs we’ve found  – raising the bar in educational value, tech-savviness and even humor!

Tom Johnson’s blog, I’d Rather Be Writing: claims to be a blog about the latest trends in technical communication. And, while it doesn’t claim to be funny, personable, and surprising readable for all skill levels – it should. His blog is also the source of original podcasts interviewing tech writing luminaries.

To say Ivan Walsh has been around the technical communications block would be a vast understatement. As he puts it: “When I started out, it was Lotus 123 not Excel, WordPerfect not Word, and Windows actually had windows. Aldus developed PageMaker, which was bought by Adobe and became a sensation on the Mac platform.” His blog posts are short, informative, and heavy on the product reviews – great for finding the latest tools and tips to use them!

Janet Swisher’s blog bills itself as “Musings on technical communication, open source software, and related topics,” but the blog seems to come alive with “reflections” on various conferences and industry events she attends. Its similar to receiving postcards from a close friend, making candid remarks on everything – from the keynote speaker to the design of the menu in an Amsterdam coffee chain.

The Content Wrangler seems to make the “most referenced” list in technical writing blogrolls. It’s easy to see why – Scott Abel’s blog touches wide range of topics, and uses product reviews, book references, conference insights, and expert interviews to support his tagline argument of content being a business asset worthy of management.

Anne Gentle’s just write click blog covers her many and varied interests, but its clear that her focus in on tech writing and tech writing pubs (with up-to-the-minute commentary on social media).

“Examining documentation and help systems since 2002,” Usable Help provides brief snippets linking to current news and thoughts on documentation. Explores timely items such as: “Are games the last bastion of documentation?”

Blogger Gordon McLean states, “I consider myself a jack of most trades, master of few and I’m happy to keep learning.” His One Man Writes blog always has short, informative blog posts on the menu, with a dash of British humor for flavor!

Did we miss one of your favorites? Comment on this post to let us know!

If you have a website that hasn’t seen any change in a while then it’s time to give it an SEO (Search Engine Optimization) checkup. There are some simple tasks you can perform that will significantly assist the success of your website in search engines.

Google Analytics:

Google Analytics is free, easy to use and incredibly useful. If you are not paying an SEO company to optimize your website and get it ranking in search engines, then this is for you.

What do you get: Google Analytics will tell you how many people are visiting your website, what keywords brought them to your website, what websites referred them to your website, where they are from, how much time they spent on your website, what page they entered your website, what page they left your website and much more.

The information is fantastic. However, ensure you analyze it and act on it. There is no use having so much relevant information and not taking any action on it to ensure you are tweaking your site the right way. One of the most important pieces of information you will gather from Google Analytics is what type of visitors you are attracting to your website. Are they the right type of visitors and potential clients? If not, tweak your Title meta tag and your content to let the search engine know, for example: you want people who were searching for “web design” not “web development“.

Check your links:

There are many tools available today, free to use, that will tell you if you have any broken links. Be sure to use these, and correct any broken or missing links you may have.

Meta information:

Examine your Title meta tag on each page. Is it reflective of the content on each page? Does each title meta tag contain the relevant keywords for each page? Be sure to consider making the title location specific if relevant, such as “iPhone development, Melbourne, Victoria”.

Examine your Description meta tag. Make sure that each page has a different meta tag description. Google does not like repeated information.

Spread the word:

Go to your favorite search engine and search for something based on keywords that you should appear on. Perform two different kinds of searches, global and location specific.

Examine the back links to make sure that you are also listed in the same business directories as the top ranked websites. You can do this quickly using a “back link checker.”

Do this often to increase your search engine ranking.

Nathan Sinnott is the Chief Executive Officer of Newpath WEB, an award winning online marketing and web design agency. For more information, please visit newpathweb.com

I can do that. No, really, I can! And I can do the job as cheaply as everyone else. I’m an every-man. Whatever you need, I can provide it. Whatever you want, I can do it. Whatever you say, I’ll jump to it. You and everyone else.

But hey, wait before you run away from me. I’m special! Different! Much more different than all the other different people, and more special than the most specialist. I specialize, you see?

Take a long, long, long look at what I specialize in. Can’t see what you want? Wait, I’ll add it to the list. Can’t you see how versatile I am? I’ll work exclusively on your project, and everyone else’s.

I’ll be available night and day, as long as I’m not doing my other job. I’ll answer your every query, as long as I’m not off learning other skills. I’ll deliver my work speedily, just as soon as I’ve read a tutorial on how to do it.

Does the above sound familiar to you?

It’s all too easy to fall into the trap of the fat kid in the free candy store, grabbing everything, and having no time to enjoy anything.

The internet has allowed us not only to reach a geographically greater audience, but also to be all things to all men. In seconds we can change our profile, or add something to our portfolio. We can be who we want to be today, and someone else tomorrow. And this might seem great, empowering even, but it’s not. If you say you can do everything, you will appear to be just anyone. A nobody.

I saw a sign written white van on the way to work today. It said: J. Bloggs, building foundations

I thought, “If I ever need to lay foundations for a house extension, I’ll go to them.”

So what did they do right that I’ve been doing so wrong?

By specializing they differentiated themselves from the rest. And that’s what we freelancers have to do on oDesk. The more we focus our profile and portfolio to just one thing, the more outstanding we appear to be in that area.

You may ask, “But won’t I lose out on lots of other work?”

The answer is this: How can I lose out on work I’m not getting anyway?

Narrow your focus and become outstanding!

Rob de Jongh is a freelance architectural visualization consultant based in the UK. He specializes in SketchUp and writes a blog about it at www.provelo.co.uk. He’s fairly new to oDesk, and like you, he has trouble focusing his portfolio to get most buyer interest. Check out his profile and leave some helpful comments below.

We’ve been using oDesk for a while now to subcontract out programming, data entry and virtual assistance services. We’ve been pleasantly surprised with the quality of people, but it took a while for us to get into our groove and figure out how to best use oDesk to our advantage. Below are 7 steps that we’ve learned while using oDesk, should make your employer experience a lot easier and more useful.

1. Establish Clear Objectives and Talents

When looking for an hourly hire, make sure you know what you’re looking for. Don’t just put up an ad for “PHP Programmer”. Instead, establish what skills you are looking for: PHP Developer with 4 Years Experience, extensive knowledge of XML and PayPal integration. Not only does this help you attract more experienced candidates, it will help you figure out what you’re looking for.

2. Keep Clear Lines of Communication

Just as you want to hear from employees, they want to hear from you. Keep them informed of anticipated work, project completions, and even why you let them go. This makes it a much more beneficial experience for everyone involved.

3. Test before Hiring

If you’re not sure about a potential hire, hire them first for a small fixed pay job. That way you can judge their skills without committing to a long term project. You can also limit their amount of hours initially to get an idea of a skill level. For certain jobs, like writing, you can ask for specific samples from potential hires.

4. Know the going wage

I see this one a lot – You can’t hire competent programmers from North America for the same price you would someone from overseas. Cost of living and taxes just won’t tell you. So if you’re angling for the homeshoring angle, be prepared to pay more than you would for someone overseas, and plan accordingly.

5. Use the tools at your disposal

oDesk has great tools available built in to help you work with your workers, so make sure to learn about them and use them. If you hire for long term projects, consider using tools like Basecamp or DeskAway to fully integrate your hire into your team.

6. Feedback is king

The oDesk feedback system has been a tremendous help in evaluating new hires. Written feedback often speaks volume about a candidate’s abilities, or lack thereof. Be prepared to give those who have no feedback a chance however, and ask them to compensate by lowering their rate temporarily. As a corollary, leave feedback for your providers so other employers can benefit as well.

7. Speak Softly and use the Carrot System

Your hires are humans too – treat them with the same respect you would offer employees in your office. More importantly, bonuses for those who are worthy will continue to keep them in your employ for a long time. Rewards often work more wonders then fear of any punishment or layoff.

Ari writes about cell phones for cellphones.org. cellphones.org uses oDesk providers for customer service, data entry, and various backend tasks.

Oggetto is a growing web-development company in Taganrog, Russia. Its staff of 15 has years of expertise in consulting, web design, web-programming, server administration and more, but only spun off as an independent company in early 2008. Oggetto’s staff met on oDesk and teamed up to capture even more work in the oDesk marketplace. We talked to Paul Sedacove, the company’s CTO and project manager, about his approach to remote work.

Q:  It can be difficult to create a reputation from scratch over the Internet. How did Oggetto establish itself in the oDesk community?

A: I agree it’s kind of a problem, but we were lucky. We had a couple of customers we knew before and we brought them to oDesk. That allowed us to start with normal rates, and when some first jobs were successfully finished in time, we got very positive feedback. Beside this, our guys successfully passed tests on oDesk and it helped us to represent ourselves as a professional development company.

Q:  The larger a provider company is, the more skills its staffers might have. Did Oggetto set out to be an all-purpose solution for any buyer’s needs?

A: Well, what I have to say on this point is that we do only what we can do the best way. For example, any kind of web-programming work is not a problem for us, but we will never take the copywriting job because English is not our native language and we are programmers, not writers—we can’t do that job better than others. Or we would never take an iPhone-application job, even if it is related to the buyer’s website somehow—we don’t know the technology. This is something like a credo for us, and it’s a very important decision in my opinion.

Q:  How important is customer satisfaction, and how far should a provider go if problems arise, the budgeting goes wrong, or there are unforeseen circumstances?

A: Customer satisfaction is crucially important for us, and I believe it should be so for any company that would like to build a strong reputation. From another side, it can be impossible to do everything a client asks without changing the timeline and/or budget. That’s why we pay a lot of attention to analyses and estimations. We try to give only promises that we will be able to meet. We try to provide as accurate an estimation as we can. If we see some issues prior, we try to notify the about these issues and bring his attention to them. After that, everything we promised should be kept. If our budgeting was wrong, it’s our problem and we need to finish.

Q:  What advice do you have for buyers? When they approach a provider or a provider company, what can they do to make sure they hire the best provider, or get the most out of the job?

A: I’d like to advise them to pay more attention to checking the experience of the provider: check feedback, tests, portfolio. oDesk provides everything to show this experience to the buyer, so the right company will have it. Also, don’t believe cheap prices. It’s the first reason to start thinking, “What’s wrong with this provider?” Qualified providers will never have too-cheap rates. And of course, it’s very important point to get a detailed understanding of what you are asking the provider to do. Only if you have that may the job be successfully realized. If you don’t have the business-logic explanation, nobody will realize your job the way you need.

Q:  What are the signs of a buyer/job you just don’t want to try for?

A: Absence of specifications or a good explanation of scope. We don’t work with buyers who don’t know exactly what they want or can’t explain it. I don’t mean technical aspects—I’m talking about business requirements for the job. Based on my experience, I can tell for sure that if you take a job and you aren’t absolutely clear on the scope, the job will never be successfully done, or at least you will never meet the timeline/budget. At the least, you will have problems and a lot of headaches. So we don’t work with the buyers who ask us to do “something, but something definitely cool.” I’d like also to mention that we always pay attention to a buyer’s oDesk history, and usually it reflects the actual status of the buyer.

Q:  What’s your advice to new providers trying to establish themselves on oDesk?

A: Chose an area and try to be the best in it. Don’t apply to the jobs when you are not 200 percent sure that you’ll be able to perform it. Don’t promise anything that you cannot meet.
And I’d advise them to pay attention to filling out their profile: It’s critically important to represent your skills and abilities in the correct way. Don’t forget to enter information about your background, to populate the portfolio, pass tests, etc. All of it will bring you more chances to get the job.

Q:  Part of your role at Oggetto is as a project manager. What’s the most important skill for being a good project manager?

A: I think a PM has to be a very responsible person. He also has to keep many different projects in his mind; this is a kind of talent, I think. Another key point is availability. I am available for the client 24 hours, 7 days a week. So, if you are not ready to receive phone calls in the middle of the night, this job is not for you. A PM should have some technical background and be a great communicator. He should always be able to find a way where both customer and team are happy.

Q:  The global economy is in serious turmoil. Have you seen signs of the crisis in the oDesk marketplace?

A: Of course the crisis is everywhere—but I can’t state that oDesk has stopped offering good opportunities for providers. There are a lot of interesting jobs there, and oDesk statistics prove it. So, dear providers, everything is in your hands.

Coder and Web designer Danalyn West started doing freelance Web design in 2002, but it wasn’t until last summer that she dedicated herself to full-time freelancing. She and her husband had relocated for a job that fell through after the move, leaving them both unemployed. “Panic ensued,” she says. Remembering that she’d once used oDesk as a buyer, she spent a week getting her profile as a provider in shape, and encouraged her husband to put himself online, too. “Within a week, my husband got his first job, albeit low-paying at first, and a few days later, I got my first assignment,” she says. She’s kept increasingly busy since then, and has also been an active presence in the oDesk forum and on her SavvyLancer.com blog — offering advice through both forums to freelancers and buyers, particularly regarding the oDesk marketplace.

Q:   In the six months you’ve been active as a provider, what have you learned about marketing yourself to buyers?

A: I learned that Mom lied when she said “don’t judge a book by its cover.” First impressions always count, and on oDesk, it happens with your profile and cover letter. If buyers make it past your cover letter, be able to back it up with a strong portfolio.

Q:  Any tips on developing trust with new buyers? How do you approach your first conversations with a buyer?

A: Just do the job and do it well — that’s the best way to build trust and credibility. Whenever possible, I always like to offer buyers suggestions for improvement (i.e., “Instead of doing that, you can do this and reduce the amount of work you have to manually do by X%”). I can’t tell you how many times this has won me the assignment.

Q:  When you’re choosing which jobs to apply for, what tips you off about the best opportunities, versus the ones you decide not to pursue?

A: There are two things I look for when applying to jobs:

1.  Detailed specifications about the job — I can’t properly bid on a job if all I know about it is, “I need a blog.” When buyers know what they want from the start, it makes it a whole lot easier to get the job done right!

2:  The buyer’s previous job history — If a buyer’s previous assignment history for comparable work is much lower than my current rate, I’ll save us both time by not even applying.

Q:  If a buyer asked you what he/she could do to attract the best providers, what advice would you give?

A: Be detailed in their job descriptions. Not only will it give the buyer a solid foundation to judge candidates on, it will also yield more accurate quotes (particularly on fixed-price jobs).

Q:  You started out on oDesk with a lower rate, and have steadily raised it, yet you’re still quite busy. Has it been tricky, getting your rate where you want it to be?

A: My first job was for $12/hr. Once I had that first hour logged, it put me in the “more than 1 hour” search range, and that’s all I needed to get my foot in the door. I feel I have a strong enough portfolio. I think that, coupled with my feedback score, helps prove my worth to buyers.

Q:  On average, how many buyers are you working for at any one time, or how many projects do you tend to take on in a given month?

A: I’m always working on at least two projects. How many projects I accept depends on how involved the project is. Right now, with five active projects of varying degrees of difficulty, I wouldn’t take on anything highly complex — I’d stick to things that I can knock out in a couple of days.

Q:  You’ve mentioned that you’re phasing out outside clients to focus on work through oDesk — why?

A: The short answer is that I’m a coder, not a collection agency. I absolutely love the billing system here. I like knowing when I’ll get paid, and that my payment is guaranteed. Not to mention that it has cut my Quickbooks time in half, so it’s a win-win situation!

Q:  Is the payment system what you like best about oDesk?

A: Aside from the payment system, I love the community. I’ve made some great friends through the Community Forums, some of whom I keep in contact with even outside of oDesk. There’s a lot to learn in the forums here, and I recommend them to all new providers.

Q:  Which aspect of oDesk would you most like to see improved, and how?

A: As a provider, I’d really like to see an option to favorite (and comment on) buyers. There are some buyers I’d like to make notes on, and I’d love to see those notes on new jobs posted by those buyers.

Q:  Your SavvyLancer.com site offers advice for freelancers. What motivated you to start the site, and how do you find time to keep it up?

A: I started the blog in October/November just to have someplace to write. When the Good Morning America segment aired, and provider signups shot through the roof, I decided to push forward with the site. The community forums is what keeps my topics going — I usually formulate posts late at night (after work) and schedule them for the next morning.

Q:  Beyond “making a living,” do you have any specific goals in 2009 for your work on oDesk and/or SavvyLancer?

A: The biggest goal I have for SavvyLancer is to just keep posting three times a week. Sometimes, with deadlines, family and stress, it’s easy to forget about blogging. For now, my Monday/Wednesday/Friday schedule should be manageable enough without frying my brain.

For freelancing, I plan to work for oDesk … they just don’t know it yet!

A few weeks ago, a single line in a blog post caught our eye. Discussing a busy week during the holiday season, the blogger wrote, “This week is pretty packed for me. Sunday, I bought my mom a brand new wheelchair. Thanks to oDesk, I was able to save enough to buy her wheels! Now it will be easier for her to go outside.” To learn more about her heartwarming story we dropped her a line. The writer is oDesk provider Alisa E, in the Philippines. She joined oDesk this summer, quickly picking up work in data entry, link building and more.

Q:  This is your first experience with freelancing online. What made you decide to try oDesk?

A:  My son was diagnosed with epilepsy and had frequent seizures, so I had to quit my job. My husband introduced me to oDesk. He knew someone who was working on oDesk and suggested that I give it a try so I could still work from home.

Q:  Within days of joining in late August, you’d landed some jobs that are still ongoing. That must’ve been great.

A:  I was pleasantly surprised. I’ve read in the forums that some providers take months before they get an assignment here on oDesk. I am grateful to the buyers who trusted me and gave me work.

Q:  So what did you do right? How did you approach your first attempts at getting work through oDesk?

A:  I followed the tips oDesk posted in the forum: I completed my profile, took some tests, and applied to assignments that I feel comfortable with. I try not to recycle my cover letters because every assignment is different, and when I finish my cover letter, I always ask: “Would I like to hire me after reading this?”

Q:  Is all your work via oDesk now?

A:  I work entirely on oDesk. Occasionally, I have other projects, but most of my work week is dedicated to my oDesk assignments. Nothing wrong with having regular in-office work, but nothing beats being available for your family when they need you the most. That’s what I like about oDesk—my son can just burst into the room and give me a hug while I’m working.

Q:  The wheelchair for your mom—what a great present. Have you given it to her yet, or will she get it at Christmas?

A:  Oh wow! I was so happy when I finally bought my Mom her “wheels”! Before my Mom had the stroke, she loved going outside. Someone gave her an old wobbly wheelchair but we couldn’t go far on it. Early this December, I found an ad in the Internet from someone selling wheelchairs. I took the money I saved and immediately bought her one. And I’m so glad I did! I have already given her the chair, and the look on her face was priceless. Her face lit up when she saw the shiny new chair. She didn’t mind having the gift before Christmas, she was all smiles.

Q:  For 2009, do you have any goals in terms of work or earnings?

A:  oDesk has exposed me to a lot of jobs or freelance work that could be done over the Internet. For work goals, I’ll maximize the resources found online and learn some lessons in basic web design and on Internet marketing. Personal goals, I’d like to save enough again and hopefully contribute to a feeding program for less fortunate kids. Somehow, it’s been my experience that when I give out more to other people, more blessings seem to come our way. And maybe I can upgrade my PC!

Q:  If someone who was just signing up as an oDesk provider today asked you for advice, what would you say?

A:  oDesk works! To make it in oDesk one needs to be globally competitive: be skilled and knowledgeable in your work. You need to have a lot of patience, determination, and you need to give your best in all the work that you do. Also, never lose hope!

Q:  If a brand new buyer company were joining oDesk and asked your advice in posting jobs, or hiring or managing oDesk providers, what would you say?

A:  We are here on oDesk because we want to work, and we will work hard. Let us know what the job entails, what qualifications you need, so that we know if we can live up to your expectations. Give us a chance to tell you what we can do by interviewing us, and if you do hire us for the assignment, do check on us sometimes to ask how we are doing so we’ll know if we are on the right path and so we can serve you better. We need you as much as you need us, and we are here because you are.

Todd Olson is the cofounder and president of 6th Sense Analytics. The company, formed in 2004, makes analytic tools that give software developers very precise metrics for managing the progress of a project. The Morrisville, N.C., company has eight in-house employees and one contractor. While many buyers discover oDesk through business connections, Todd really had a trusted source — our CEO, Gary Swart.

He came to oDesk because he had a unique problem: a client in Long Beach, Ca., requested integration with a legacy system, and the system — a VAX mainframe — had become so rare that there are very few programmers left who can write code for it. Olson needed someone who both knew VAX and had the newer networking and application development skills the project required. Even with nearly 120,000 providers on oDesk, it took awhile to find the right person. But find him they did, in Florida. So, remotely, a Florida provider worked for a North Carolina company serving a California client, and everyone was happy. (You can read the whole story here.)

Q:  Since that initial project, have you continued to hire oDesk providers — and for what?

A:  We’ve begun to start. We’re looking to outsource odd jobs, tasks that we don’t have skill sets for internally. First, we ask whether we have the skill sets in house for this. If not, we look at oDesk. Second, is this a one-time change? If it is, we look at oDesk.

Q:  At this point, are you regularly relying on the same providers, or do you find yourself hiring from scratch as each project arises?

A:  Honestly, hiring from scratch. We go after specialists, not generalists, so we need to find new folks often.

Q:  Your product includes the ability to monitor the work developers do on a project, much the way oDesk allows buyers to look at providers’ work in progress through the Work Diary. As software creates new levels of transparency in the workplace, what are the key challenges that come along with that change?

A:  The number one challenge is the cultural challenge posed by full transparency. The second challenge is educating people on interpretation of the data. Facts empower better decision-making, but you have to understand that these facts can be distorted or taken out of context to make poor decisions. It’s important, like with any data, to be smart and look at the whole picture.

Q:  With the economy in such turmoil, do you find yourself planning to turn over more work to outsourced workers, or to minimize such projects entirely until the economy clears up?

A:  I definitely think we’ll look to outsource where it makes sense. Hiring a full-time person is a huge commitment for a small company and reduces flexibility. Outsourcing provides flexibility and the ability to be more creative in the sourcing of activities.

Q:  What recommendations do you have for buyers moving forward in this downturn?

A:  First, evaluate your technology needs and see what people you currently have who are absolutely critical and cannot be replaced. For all else, evaluate whether outsourcing makes sense. In the past, I had good people who simply weren’t fully utilized. This is a great opportunity to use something like oDesk. Having a full-time employee and paying benefits for 10 hours a week of work isn’t wise.

Second, don’t shy away from business opportunities due to lack of skills. Often, folks will say, “It will take forever to hire someone with those specific skills,” and they’ll decide to turn down business that requires a unique skill set. Honestly, I never thought I’d be able to support the VAX legacy system the customer requested. I was fully prepared to fail. I was really surprised when I found more than one possible resource on oDesk.

In an economy like this, the companies that respond best to customer needs will do the best.

Q:  What advice do you have for providers looking to continue their freelance success in the face of the current downturn?

A:  Continue to work hard on broadening and deepening skill sets. It’s absolutely survival of the fittest. I think most customers want the absolute best possible resource. Being just another PHP developer or something is not as attractive as being one who has a larger variety of skills, strong certifications, etc.

Q:  What would be your top tip to providers on how to better present themselves in responding to a job post?

A:  List all your skills, even the ones you think are niche or legacy. You never know when someone may be looking for that specific skill set.

Q:  What’s the most important lesson you’ve learned as a buyer, in how attract or select the best applicants?

A:  Be specific in your requests. Conduct a detailed interview and ask how the applicant will solve the problem. Make sure there’s a plan in place and that the individual understands what they are getting in to. The number one cause of failure in any software project is poor requirements. The better you can think about and document what you want, the better the experience will be.

There are thousands of ways you can ruin a cover letter. Buyers often have to weed through a list of 30 or 50 or 100 candidates. Every little detail that’s off irritates the person who reads your cover letter. It’s your first — and perhaps only — chance to impress a potential buyer. Mess up and you’ll be immediately crossed off the list. Providers who understand this harsh reality can use it in their favor. Want to write more refined and effective cover letters? Follow these tips to help your letter stand out from the crowd (in a good way)!

• Keep it short. If your cover letter is as long as this essay, cut it by at least a third. All the buyer wants to see is a polite greeting, a sentence or two summarizing your profile’s relevant highlights, and perhaps another sentence or two about things that don’t show up on the profile — you recently completed two projects similar to the job at hand, for instance. Then a polite closing.
• Follow directions. If you’re asked to answer specific questions or include a key word in your reply — do it! Beware of typos: Write in word processor, heed the spelling & grammar checks, and read your letter out loud. Try asking a friend to review it before you send it in — even native speakers will benefit from the feedback.
• Never use a canned cover letter. Buyers can tell. The right few hundred words will prove you read the entire job post, including the requested skills, links, and oDesk work history.
• Watch your tone. Even if the buyer writes in a casual voice, you should sound serious, yet relaxed. This is a letter from one professional to another. Don’t be funny, wordy or overly flattering. Be helpful and confident, not arrogant, and especially not needy.
• Easy on the jargon. Use technical terms correctly and cut the marketing-speak. The buyer won’t be impressed by your plans to “actualize” your “proven potential” to “deliver maximal results” to “drive customer satisfaction.” Contrary to some job-hunting guides, you cannot hypnotize the buyer with “energizing” buzz words.
• Link to examples. List and link to or attach work samples to demonstrate your aptitude for the job. If your profile portfolio doesn’t already include the relevant items, don’t forget to add them afterwards!

You’ve worked hard to polish your profile. But the buyer will never bother to look at it unless your cover letter serves as a concise, effective teaser. If Hollywood can boil a two-hour movie down to a 90-second preview, you can get your cover letter under 300 words and manage to leave your audience wanting more.

Just six months after signing up as a provider company, oDesk jobs account for 25% of five-year-old Ahmedabad, India-based DIGICorp’s workload. We talked to cofounder Abhishek Desai about oDesk’s part in the rapid growth of his online custom application development business.

Q:  Some providers describe a learning curve before establishing themselves on oDesk. When did it click for you?
A:  I think the best thing I did was creating my profile and my company’s profile as per guidelines provided by oDesk. Also, I apply to carefully selected jobs that I think we are really capable of doing. And I write personalized cover letters for all my applications. I don’t believe in just copy-pasting readymade cover letters. Because of all these, I can say I hit the ground really fast after becoming a member of oDesk.

Q:  When you’re choosing which jobs to apply for, what tips you off about the best opportunities, versus the ones you decide not to pursue?
A:  We tend to apply to jobs of a certain size, usually four weeks or longer. That does not mean we don’t do smaller jobs — if a job is interesting enough, we tend to pursue it. From the job description a buyer has written, you get to know how much the buyer is interested in really going forward. I like to work with a buyer who is equally excited to have his/her project up and running.

Q:  If a buyer asks you how to attract the best providers, what’s your advice?
A:  Carefully choose them by reading their cover letters first. Make sure you have providers who have written a personalized letter for you. This means the provider cares about your job and he/she has already spent time understanding it. After that, it depends on the interview. Go for the provider who is as passionate for your project as you are.

To read the full interview, click here.

CogWise Software specializes in building Ruby on Rails web applications. Based in Nashville, TN, USA, the company was founded in January 2007 and started hiring oDesk providers last November. The company relies on oDesk to simplify administration and to provide the bulk of its manpower–with only two in-house employees, it has 12 to 15 oDesk providers working on projects at any time.

The company had been known as BluePaw Software, but was rebranded as CogWise just this week. CEO William Bridges says the new company is a fresh partnership with an oDesk provider, and the time was right for a new start. “CogWise is also about building long-term, mutually beneficial relationships with clients and building our own internal software projects that my partner and I have thought of.”

Q:  Do you have a small group of providers you work with regularly, or do you tend to seek new providers to suit each individual project?
A:  A little of both. As we’ve grown, we’ve needed more developers. We actually look in the oDesk marketplace and outside, but we always have new developers sign up for an oDesk account, because it makes things a lot easier to manage. Our strategy is to have two or three small teams and some specialists for technology outside our core interest.

Q:  How do you manage your providers? What have you learned about setting timelines, specifying deliverables or managing communication that’s unique to the remote worker relationship?
A:  We use a project management software package called RedMine to foster communication. We usually have one lead developer who sets up tickets, milestones, and the deliverable schedule, and then the other programmers help execute that vision. Remote situations can be difficult and rewarding in many ways. We usually pick a lead that can somewhat overlap the programmers’ schedules if they are in a remote time zone, as proper communication is key. Language and cultural differences must be understood by the lead or by myself. I usually take time to understand those differences for each country we hire from.

Q:  Some buyers describe a learning curve before they began using oDesk effectively. Did you just hit the ground running, or was there a point where you really “got” it?
A:  We had a few rough experiences early on in understanding how to do this as well. Really, the way we solved it is as follows: Since most of our customers are English speaking we pick an American, European or someone who understands Western culture extremely well to lead projects and use them as a bridge. It’s more costly to do things that way, but that person also spends less than full-time working on the project. They are able to explain the technical intricacies going on in the project in a way that can be understood easily to us and that we can quickly plan for.

For the full interview, click here.

Customer support representative, as a discrete job or as one facet of the "virtual assistant" position, is a great opportunity for a provider with strong interpersonal skills and a natural ability to solve problems. But it can be hard to stand out among applicants for a job involving human language and "common" interpersonal skills.

Review your profile:

• Spelling and grammar mistakes can kill your chances. You’re asking to represent someone’s business to the world.
• Mention "customer support" in your skills list or the title. Make sure your profile reflects your interest in the job.
• Take the right tests. Placing highly in oDesk’s Call Center Skills Test and our Email Etiquette Test demonstrates your skills and show you’ve taken time to establish your abilities–you’re not just answering this job post because, "What the heck, I’ve got a phone …"

Nail the interview:

• Be professional, positive and polite. The buyer is thinking, "This is the voice my customers will hear. This is the attitude my customers will encounter."
• Ask smart questions. A customer support person or versatile virtual assistant is a problem solver who deftly cuts to the heart of a matter to come up with a quick, appealing solution. Ask about the kinds of questions callers will bring, the tools and authority you’ll have to solve them, the training you’ll get and the metrics that will provide feedback on your efforts. Can you listen in on a few calls, live or prerecorded?
• Treat the the buyer like a customer. When the interview finishes, ask whether there’s anything else you can do for the buyer right now, and wish her a good day–leave her feeling the way she wants her customers to feel.

Do the job:

• Keep a reliable schedule. If you aren’t able to make a consistent time commitment right now, these jobs probably won’t work out for you.
• Provide frequent reports. There may be a degree of autonomy expected–after all, the buyer is outsourcing the work to you–but let him see that you are thorough and responsible, and provide all the information he needs to be confident in your work.
• Make people happy. You’re a creative problem solver, within the parameters your buyer sets out. Never tell customers, "Hey, I dunno," or "That’s not my department." Be positive, empathetic, and utterly solution-oriented: "I will get back to you with an answer" or "Let me ask my manager."

If you’re a quick-thinking "people person," you could have a lot of success helping buyers keep their customers satisfied. Just make sure that from the minute you apply for the job, you know how to keep your customer (the buyer) satisfied, too.

Outsourcing customer support can be nerve-wracking. If you hire someone to build a website but don’t like the result, you’re out some time and money. Failures in customer support will cost you clients. Yet, if your in-house resources are drawn too thin, you can’t do a good job of managing your customers, either.

There are reliable, responsible people working from home, and the cost savings over hiring and housing office staff are obvious–there’s a reason it’s a growing trend. JetBlue has thousands of people fielding customer calls from their homes, and the airline consistently ranks high in customer satisfaction.

So it can be done. The question is, how do you do it right?

Profile Details: Scan feedback for comments that praise not just work product, but interaction: “a joy to work with,” “an excellent communicator,” “very responsive.” Also look for test scores; oDesk offers certification in email etiquette and call-center skills. Anyone serious about the job will have taken the tests and scored well.

Enjoy the Interview: The best customer service people are extremely competent and genuinely dedicated to helping you out. They’re sympathetic and friendly, but always professional, not chatty. When you interview your candidates, make sure they’re giving you the vibe you want your customers to get.

Asset Allocation: Does the candidate have the time to commit to the schedule you need? Does she have the necessary technology and a quiet place to use it? Does she demonstrate the problem-solving skills the job requires?

Role-play: Practice a few scenarios to see how your top candidates perform. Can your prospective hire listen in on a few well-handled calls? You should definitely monitor the first few calls after you hire her and provide very specific feedback.

Measure Up: Set metrics for customer satisfaction that will let you assess your worker’s success, and provide a mechanism for rewarding her for a job well done.

Picking out an expert in human language and interaction can be harder than finding a programming whizz, but the combination of competitive pricing and premier talent available on oDesk makes this kind of outsourcing a viable, and valuable, option.

It’s easy to find skilled workers on oDesk–post a job, check out providers’ profiles, interview. It really is that simple, but a few tricks can help you get more from our global network of nearly 100,000 remote workers.

Feedback: The first thing you’ll do is check the provider’s feedback and work history, but don’t just count stars. Look at what your candidate’s impressive 4.5 score really means to you.

• How many people contributed to that rating? Everyone’s gotta start somewhere, but the length of their track records should matter.
• Were they short projects or long? A ten-hour job is one thing, but longer assignments reveal the ability to handle complex jobs, manage relationships and deliver consistently, so weigh feedback on that 200-hour project more heavily.
• Are they getting repeat business? Seeing the same buyer IDs come back is a stronger recommendation than the highest written praise.
• What about ongoing projects? If the provider has a lot of continuing jobs, check whether she’ll have time to meet your deadlines. But be encouraged when a provider is still engaged in a project after logging 400 hours: She’s proven herself indispensable.
• What kind of jobs are listed? Your prospective Java developer lists a full alphabet soup of skills: ActiveX, CSS, J2EE, PHP, the works. If most of his projects have been in PHP and CSS, even dazzling feedback might not qualify him for your six-month J2EE project.

Portfolio: Feedback lets you see whether a provider’s work made the buyer happy. The portfolio lets you see whether their work makes you happy.

• Is it good enough? Do you like your prospective writer’s “voice”? Do you find that prospective web designer’s last site attractive and easily navigable?
• Is it big enough? Does the portfolio contain work of the scope you’re hiring for?

Skills: Scores on oDesk skills tests expose work style as well as competency.

• Can he back up his skills? Does the candidate list 100 skills on has taken only 2 tests? Chances are, you need a well rounded resource. If he has taken tests in some subjects but not those that pertain to your job, don’t hesitate to ask him to complete other tests. It should take the provider only 30 minutes and it is both a sign of interest in the job as well as a yardstick for you to compare candidates.
• Does she have enough tests? Don’t just look at the test scores; make sure the candidate has a good range tests too. Note that we display the score and percentile (score better than X% of test takers), not the percentage (score X% correct).

A provider’s profile puts a lot of data at your fingertips, but to extract some of the best information, dig a bit below the surface. It’s worth the effort if it leads you to a provider good enough not only for this job, but for the one after that, and the one after that…

You’ve mastered the basics: You’ve maximized your provider profile by listing your skills, posting a portrait, taking all the relevant skills tests, and filling your portfolio with your finest work. You’re applying for jobs, but maybe you’re spending more time applying than you are interviewing. Maybe you’d like to lower the ratio between jobs you apply for and jobs you get. Maybe you’d like to minimize the occasional bad relationship–the buyer who changes terms, makes unreasonable demands, turns out to have no communications skills whatsoever. Job postings on oDesk aren’t like a newspaper classified or on some sketchy job board–there’s a lot more data that can help you spot serious buyers, figure out where to focus your resources, and to enjoy the work that you get.

What is the job? Carefully read the job description and what’s between the lines: is it well thought out and thorough? Do I believe that the buyer is a good communicator? Will she clearly outline tasks? Does the buyer come across as professional and will not “leave me hanging”? Is the job in an industry that is rife with fraud (e.g. porn or gambling?). If it’s in such an industry, can I find the company name and website?

Who are those people? Scope out the competition–who has already applied? If the buyer has been initiating contacts, those providers may have the inside track. Either way, check out the skills, feedback and pay rate of your competition. If you don’t think your profile stands comfortably against those who have already applied, you might prioritize responding to postings where you’ll be better positioned.

Who gets the job? On past listings with multiple candidates, did the buyer go with the cheapest or the most qualified? For the new listing, which of those would you be?

Amount agreed vs. amount paid: If the buyer routinely pays out more than the up-front estimate, this may mean she pays bonuses or raises. It may also mean she routinely fails to understand the complexity of a project. If you’re already tight on time, you’ll definitely want to determine which it is during the interview.

Timing: When a past job was estimated to take a week, but the hired provider took a month, that might have been the provider’s fault. If you notice this consistently across this buyer’s back listings, it’s probably the fault of an overtaxed or under-communicative buyer. This doesn’t mean you don’t want the job; just know what kind of situation you’re likely to face.

Applying to every job within your skill range becomes a job in itself. The amount of time you spend looking for work is overhead–it’s a resource going out, rather than money coming in. Using oDesk’s transparency can help you spend less time applying and more time earning money.

India’s Sun Softwares does graphic design and web development. It started with one person in 2003 and now employs 20. Owner and CEO Tarun Verma credits a lot of that growth to oDesk. Sun signed up as an oDesk provider in July 2006, but Verma says his company didn’t start using oDesk effectively until the following January. Today, about 60 percent of Sun Softwares’ work comes via oDesk buyers.

Q: It’s important for a provider to find a client he or she can work well with. Besides looking for a project that fits Sun Softwares’ expertise, what do you look for when you see a job post?
A: We try to look for projects that are required to be built from scratch using the latest technology, and we look at the client’s comments in the job postings. At times we see some harsh comments in the job post, and we tend to ignore those posts, as there are high chances of project failure due to the client’s attitude. Some job posts call only for bug fixing–we ignore them, as it’s difficult to take those projects to completion which are already in some kind of mess. We pursue the full projects and the projects with complete specifications. The projects which are posted with complete specifications show that the buyer is really keen and would be very good to work with, as the scope has been clearly defined.

Q: When you interview with a first-time client, how do you make sure you’re understanding the project requirements and the buyer’s needs?
A: We try to get detailed specifications from the buyer, URLs of example websites, wire diagrams of screens, expected time for completion, expected budget. If the client does not provide the complete details, then we build a prototype to make sure we are trying to do what client wants. It’s very important to get the complete picture that is in a customer’s mind to make sure the project gets to completion in time.

Q: How would you advise a new buyer who asked you how to find the best providers when several applicants may have good basic feedback scores?
A: My advice would be to look closely at the portfolio links, expertise of providers, other experiences and history on oDesk, rating and comments of buyers. Buyers can choose the best providers by looking for well-laid out profiles, a good history at oDesk, and good ratings and comments from past buyers.

For the full interview, click here.

The Vision: In 1996, Jan Zands was answering phones at a Hollywood studio, trying to manage the high volume of incoming and outgoing calls with paper and pen–an overwhelming challenge. “A film producer will make about 40 calls per day and receive another 40 per day — and in Hollywood, a lot of people don’t return calls,” Zands explains. “It’s necessary to have a good system for tracking calls and what they are about, but at the time no such software existed — I saw an opportunity that a lot of other companies could benefit from as well.”

Zands saw a way to build something better, and went into business building and installing FileMaker databases to handle call tracking. He soon realized that this was a cumbersome and expensive proposition for users. ìI needed to make it into a web-based application”, he said.

The Problem: Good programmers are hard to find. Starting in 2001, Zands tried newspaper ads and Craigslist postings, then costly consulting firms and Internet-based offshore companies. Repeatedly he’d hire programmers who seemed reliable, but would end up leaving their work incomplete. “My biggest challenge was finding programmers that were affordable, but also skilled enough to finish the entire job,” Zands said. “I was wading around in the ocean of providers for over five years until I found oDesk.”

The Solution: He found oDesk in April last year. “I went on oDesk and it was awesome! I posted my job and got about 20 responses within a day,” he said. “I was able to find people at the rate I needed and was also able to look at testimonials so I was certain that these people would finish the job.” That helped eliminate the biggest frustration he’d been experiencing. “It was so important to see on a provider’s profile that there were jobs with start dates, end dates and positive feedback.”

To date, Zands has hired 11 providers, in India and Ukraine, paying rates between $12 and $20 an hour. Exactly a year after joining oDesk, the project that had languished half a decade launched. The product is online now, offering a way to not only track the status of incoming and outgoing calls, but to instantly access the log of past calls to and from a client. The company boasts Universal Pictures, Paramount Pictures, Warner Bros. and Fox Television Studios as clients.

Zands credits oDesk with helping his company get Phonesheet’s software and site out there, and with maintaining and improving both. He praises oDesk’s reliability, ease of use and easy, dependable payment options, but what matters most is what all that helped him make.

“The end result,” he says, “Is a great product.”

Based in Swindon, England, icomplete.com was conceived by three founders who, after many years of running successful small businesses, wanted to pass on their knowledge to help other companies improve their image, save time, and increase profits.

Their Software-as-a-Service Business Suite incorporates CRM (contact management), calendar, task management, collaboration tools, telephony and website widgets, plus real-life personal assistants to answer calls and undertake tasks clients don’t have time or expertise to do themselves.

CEO Stuart Hibbert is responsible for the day-to-day running of the business and specifically the product and technical teams. “Ultimately,” he says, “the buck stops with me.”

As an oDesk buyer:

Hibbert has been using oDesk for nearly a year, hiring developers within several disciplines; Java, AJAX (JavaScript) and Asterisk; as well as product testing and technical writing. “We started off with just a couple of Java developers back in June 2007,” he says. “We wanted to understand how outsourcing would work for us and which service best suited our requirements. We initially worked with two remote management services, but we liked oDesk so much that we moved those developers over to oDesk too. Our team is now nine providers strong. We tend to have a regular stable of providers – however, for certain skills we do regularly post to the community at large to see if there is new talent available.”

Q: In what way has oDesk made it easier to manage remote workers?
A: Several ways:

• Hire – Instant access to a wealth of providers located around the world. We ask all providers to undertake tests in the field which is most closely associated to the position they are applying for. We read the feedback which has been provided by other buyers.
• Day to day management – The Work Diary is invaluable to us, allowing us to be able to manage remote workers efficiently.
• Payment – We don’t have to worry about the payments to providers who are located across the globe; oDesk manages this all for us.

Q: Do you manage all your oDesk staffers directly, or have you pulled back and hired a project manager through oDesk?
A: A combination really. So far I have managed directly, but as we are developing the business I find that I have less time available. So we have just promoted one of our providers to become team leader, someone who knew how we worked and could see the vision of what we wanted to achieve.

Q: Is it difficult to give up a certain amount of oversight and direct involvement?
A: Sure it was difficult. I am one of the founders of the business, so what we are doing is “my baby.” It is always difficult to give that up. But for the development of the business and for the good of the team, it is best.

Q: What tips or advice would you have for someone considering signing up as an oDesk buyer?
A: My advice:

• Understand what you want to achieve – be as specific as possible in your briefing/specification.
• Put in proper project management – failure is usually as a result of buyers and providers not communicating effectively.
• Give your providers more than one task at a time – this way if they are waiting on anything, then they at least have another task to work on.

Click here for the full interview.

Sarah Lewis runs Abundant Media, Inc. (currently producing Findable Blogs) in Boise, Idaho, with two employees, about 15 contractors (more than two-thirds of them via oDesk). She also works as a provider on oDesk as a WordPress developer. With her experience on both sides of that relationship, she has recently written an e-book designed to help providers make the most of oDesk. “Making Money in Your Pajamas: A Freelancer’s Handbook from the oDesk Insider,” a practical, step-by-step guide to freelancing online using oDesk, with a particular focus on creating a profile that attracts buyers, and cover letters that win jobs.

Q: You’re both a provider and buyer on oDesk. In which role did you start, and how did you come to wear both hats?
A: I started as a buyer, looking for help with my quickly growing business. As I reviewed cover letters and profiles, I realized that many providers have excellent skills but don’t know how to best promote themselves. I knew what attracted me as a buyer, but I wanted to see if my observations were universal, so I initially set up my provider profile as an experiment (it worked; I applied for three jobs at higher-than-average rates and got two of them). Now I’m using my provider profile as an alternate marketing method.

Q: Having written an e-book for oDesk providers, what piece of advice do you think providers will find most surprising?
A: You don’t need to be the lowest bidder. Many freelancers try to compete on price, but that’s a mistake.

Q: Have you seen results with the techniques you’ve written about?
A: My book editor, an oDesk provider, made some changes this week to his profile based on the book’s advice, and has already seen increased interest from buyers.

Q: What’s the first giveaway, when dealing with a new provider, that this person is really sharp, or is really not what you’re looking for?
A: The speed and attention to detail in their communication. I usually have a good idea going in about their skills, but work ethic can be hit-or-miss. My pet peeve is providers who don’t read or follow instructions.

Click here for the full interview.

Buyers hiring their first remote providers might feel as though they’re going in blind. You find someone with a good rating, a profile listing the skills you need, and perhaps some encouraging scores on oDesk’s performance tests. But even after a chat or two, you’re still hiring someone half a planet away and entrusting him or her with tasks essential to your business. It’s an unnerving risk, a roll of the dice. But there’s no reason not to stack the odds in your favor.

When you buy a car, you test drive several before settling on the one for you. You don’t buy a house until you’ve had a good walkthrough – perhaps several. You don’t hire a new staff member without reading her resume, chatting on the phone, holding an in-person interview or two, and checking references. And you probably do it for several people before you settle on the right hire. It’s the same process with remote workers – only the strategies change. Instead of face-face communication, you use Web conferencing and Skype. Instead of seeing the person at work in the next office, you have the Work Diary. And instead of a three-step interview process that includes a technical test, you hire a few providers for a literal test drive. Contact a handful of likely candidates and give each a small trial before putting a long and vital project in anyone’s hands.

If you need a PHP programmer for a project that will take more than 1000 hours, you can’t afford to find out at hour 48 that you’ve hired the wrong person. Instead, contact three likely candidates and tell them you’re in the process of settling on the right provider. Hire each to do a simple project, something with a time limit of a few hours. It can be discrete pieces of your greater project or just a sample task. Ask for a Web page that will take input of name and gender and output “Hello, Mr. Smith.” Throw in a time-of-day element to get “Good evening, Ms. Jones.”

Make the test investment commensurate with the project’s scope. For a smaller project, use a simpler test. Hire your candidates to assess your site and suggest specific improvements. Give them, say, an hour or two to report how they’d make your site more useful to your customers, or more attractive, specifying how they’d carry out the effort, with cost/hour estimates. Their ability to grasp your objectives, communicate viable solutions, and demonstrate their level of detail and creativity may be as telling as their ability to provide clean, effective code.

Know what you’re looking for when you judge their introductory efforts:

• Is their work product clean, attractive, effective?
• Does it match your instructions?
• Was it timely? How did they compare with the estimates they gave or limitations you set?
• How was their communication during the project?
• Did they use the work diary well? How does their Work Diary look?

The process of hiring a remote provider requires you to refine the strategies you use to recruit an in-house employee, but there’s no reason to be any less careful and selective.

Dmitry Feduleev’s first experience with oDesk was as an employee of an affiliate. His employer, Deimand, worked mostly in its local market in Russia, but the small unit Dmitry was in also took jobs through oDesk. Last year, an entrepreneurial urge drove Dmitry to found his own company, BelVG, through which he manages a small team of mostly Facebook application developers working exclusively through oDesk. As both a current employee at Deimand and the owner of BelVG, Dmitry has a unique perspective on the oDesk provider’s experience.

Q: Last year, in addition to your Deimand work, you launched BelVG. How did that start?
A: When I started, I was working with just two of my mates, making one project for a U.S. customer. In May 2007, Facebook opened its developer’s area and I got my first BelVG project involving that. This thing interested me, and I asked my guys to learn it. We started to develop our first Facebook applications, and from there we started to grow. Now we have ten Facebook developers, three xHTML developers, and two designers.

Q: When you’re communicating with buyers, which methods are most useful for you – email, chat, Skype, etc?
A: Skype calls are the most useful things for getting whatever I want quickly, but usually it’s Yahoo chats, and email for storing all my to-do’s.

Q: As a business owner, how do you see the business climate for 2008?
A: I think this is going to be the year of business social networks, where people come not only for fun, but to make money. Also, the main streams of this year will include open social applications, Facebook applications with real substance – not only for fun – and ad startups based on this social stuff.

Read the full interview.

According to a recent article by Hispanic Business magazine, the practice of homeshoring — hiring people who work from home — is skyrocketing. The magazine estimates that there are about 150,000 home-based “agents” working for companies in the U.S. today, a number that could reach 300,000 in 2010.

If you’re considering outsourcing solutions, homeshoring offers some advantages. Your providers are working in similar time zones, which may make it easier to communicate. Additionally, according to Business Week, employees who work from home may be more loyal than on-site employees.

To read more, here are some articles we’ve selected you may want to peruse:

1. Fortune: Commute to work in 30 seconds

2. Management Issues: Homeshoring is where the heart is

3. Seattle Post Intelligencer: ‘Homeshoring’ means that call center might be in someone’s bedroom

4. Small Business Trends: Homeshoring and its impact on small businesses

5. HR and Homeshoring Blog

6. Outsourcing Times: Offshoring vs. Homeshoring

7. IT Business Edge: Homeshoring helps companies improve customer service

8. Arbor Law Blog: Is Homeshoring the new offshoring?

9. Christian Science Monitor: Outsourcing comes home

10. CNN – How to earn more from home

11. CNET -  Homeshoring to trump offshoring?

If you are looking for some providers, check out this search for U.S.-based oDesk providers. Happy home (agent) hunting!

Last month oDesk won an SMB20 award from PC Magazine for innovative use of technology in small business. To be honest, most innovation comes out of necessity — both startups & small businesses need to be scrappy and frugal if they plan to survive.

In a followup online webcast with Jim Louderback, our CEO Gary Swart gave a brief description of several online services oDesk uses internally to help run our business (see slide 4 below). Gary then gave this summary of 7 habits oDesk practices in choosing & using online tools (apologies to Stephen Covey).

lately it’s become easy to find inexpensive hosted solutions that are quite powerful, and can make a real difference for startups and other small businesses as they’re getting rolling. not everything works perfectly just yet, but tools like QuickBase, Skype, Wordpress, and Google Docs can make life easier for folks on a budget.

(note however some free solutions may not survive the next few years of online competition, so it’s probably important to be able to export your data just in case!)

4 great tips on how to NOT get a job on oDesk from MobCode.

Here’s one way to NOT get a job:

Say nothing when you apply for a position. A typical flow in oDesk is that project sponsor posts a project. Developers see the project and submit their names for consideration. When applying for a position the developer has a chance to say something. It could be “please hire meâ€?. Or it could be: “I have reviewed your position and I am qualified to fill it for these reasons…â€?. But you have to say something. If you just submit your name and say nothing then you will find it very hard to get the sponsor’s attention. This is your first chance to make an impression and you choose to just sit there and say nothing.

Check out all 4 tips here and other MobCode posts on oDesk here.

Here is oDesk’s advice on writing a cover letter and interviewing with buyers.

oDesk is based on an hourly pay rate model rather than a fixed-bid project model. We have had a lot of debate about which model is better, both in the Community and in many conversations with our Buyers and Providers. Below are the results on the topic from our latest Provider survey:

		Response Percent
No, I am happy with hourly pay + bonuses		52.7%
Yes, I would like to add minimum commitment from Buyers		12.4%
Yes, I would like to add fixed bid projects from Buyers		9.1%
Yes, I would like to add both minimum commitment from Buyers and fixed bid projects		22.5%
Other (please specify)		3.3%

Sitepoint Tribune has a good article in their newsletter about the dangers of fixed-bid internet projects, arguing that although clients may think fixed-bid is less risky, contractors should be on an hourly basis to align their incentive with the client’s. The relevant portion of the newsletter is pasted below. You can read the entire newsletter here.

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Abid Mohsin

The Danger of Fixed Bid

Fixed bid projects are the scourge of the Internet industry. It’s well known that most estimates prove to be highly inaccurate, and most Internet projects fail to come in on time, or within the original budget.

Internet projects are notoriously difficult to estimate, and most clients require a specific budget for the project. Amazingly, most small business managers will turn around and require a fixed bid from their contractors, thus incurring the very same risk they exposed their clients to by accepting the fixed bid arrangement in the first place.

Think of it this way: if you offer your client a fixed bid, and something goes wrong, you have to incur the additional cost of correcting the problem. You’re creating a situation in which you’re at your least motivated when you client needs you to be firing on all cylinders. Is that how you want your contractors to work for you?

The fact is that fixed bid projects are always at risk of turning into the never ending project, complete with burnt out programmers and diminishing client satisfaction. Just as you wish your client would pay you by the hour (even if it results in a lower total amount), your contractors wish you would extend them the same courtesy.

Whenever possible, try to determine your potential profit margins and pay your contractors by the hour. It will result in increased quality, less fatigue, great satisfaction, and a more successful project overall.

How Can I Pay An Hourly Rate When My Client Has Me On A Fixed Bid?

If you’re on a fixed bid with a client, how can you possibly afford not to have vendors on an hourly rate? It seems as if it would be exceedingly risky and unwise to do so. After all, if there is a problem in the project, you’ll really need my contractors to come through for me. If they’re on a fixed bid and someone makes a mistake, they have to fix it for free and they’re unlikely to maintain motivation. So, your client is ultimately at risk.

How do we make this work? The answer is simple:

Margin

Margin makes a tough situation easy, and lets you sleep at night.

Let’s say I have a client who needs a ground-up Website with an online store and back-end integration. I consider myself to be experienced enough to create fairly accurate estimations, so I’ll break the project down into hourly blocks and resource allocations right at the beginning.

Note: Never estimate value, only estimate time. There is no relevance to project value since rates are arbitrary. The only useful information when projecting project costs are hours worked, which can be multiplied by the hourly rate one the estimations are complete.

So, the project might break down like this:

A total of 174 actual hours are projected.

At a rate of, say, $40/hr for local contractors, the estimated value of the project would be $6,960.

Now, I ask myself what the desired margin is on the project. Given the high potential for scope-creep and bloat on a typical Web project, I’ll want at least to triple the projected hourly requirement, for a total cost of $20,880. Most likely, I’d quadruple it, for a total value of $27,840.

Sound too high? Sure, there’s always someone’s nephew hanging around to take a project for $600. Then again, there are always clients hanging around who have already been burned by the ‘nephew job’ and are ready to pay real money for real work.

If the project is highly complex or the client is very difficult, I won’t hesitate to multiply the projected hours by 6 or even 8 before bidding on the job. As a rule, if you feel that there’s any chance that you might ‘get a haircut’ on a job, you’re selling yourself short. As a Web professional, you are expected to understand the risks of a project and price them accordingly.

If a project spins out of control and you lose money on it, you cannot blame the client or your contractors. We all know how this business goes and the problems that can arise, so be prepared.

Everyone at oDesk has the Google Desktop installed on their computers. It is a good way to search through the piles of emails and months old documents. No need for cleanly organized folders anymore, it is much easier and quicker to search with Google Desktop.

Most of us have the Desktop enabled as a Sidebar. Cool thing is that developers can create plug-ins for the Google Desktop Sidebar (not good news for Konfabulator, now acquired by Yahoo, that was creating Apple-style widgets for PCs). Naturally, the extension of that is to create oDesk plug-ins for the Google Desktop Sidebar. One of the first to come out is the oDesk MiniCamGD (version 1.0.4 can be downloaded here). This integrated into the Sidebar as a minicam window, resizing automatically, and when you click on it, it opens into a full resolution webcam shot. Take a look at my ScreenSnap.

It also integrates with oDesk Team, i.e. if you are running the MiniCamGD, it will not restrict your webcam from uploading your picture with the Work Diary. You can pause it by pressing (CTRL + ALT + P). More options and preferences can be accessed by right-clicking on the webcam picture area.
Before you go crazy… let me tell you that there is NO support for this plug-in, NO guarantees that it will work, and oDesk takes NO responsibility if the MiniCamGD plug-in makes your entire Sidebar go kaput.

Now, you may go crazy. Oh, and please do leave comments about what other plug-ins would be cool-to-have.

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Abid

Skype now offers free calls within the US and Canada.
This doesn’t really help our international providers, but it is interesting for all oDesk users in North America. Now Skype calls make sense if the laptop is closer than your cell phone…

The blogosphere is humming…with tips to help providers succeed in the world of remote work.

Mobcode offers advice on when to apply to jobs.

He also offers nice interview tips. Buyers can check the list to see what they should be asking.

For the record, here is oDesk’s interview advice for buyers and providers.

What do you guys think of Mobcode’s advice?

For the past few years, my ultimate invention candidate has been the Star Trek Transporter (illustrated on left).

“Energize!”, and you can go anywhere anytime. (My previous candidate was the Star Trek Replicator, to get my chocolate shake anywhere anytime). Why? Because the best places to work are not necessarily the best places to live (due to cost of living, deminished social life, being away from family and friends).

A lot of people end up living in foreign countries to pursue the career they want (e.g. me) and it’s not easy to spend time with your family (who live in Pakistan and the UK). Skype and Gmail allow us to remain in touch, but they don’t allow me to play with my nephew (picture on right).

I have a good friend whose main goal is to find a career where he can travel back and forth between Pakistan and the US, while not sacrificing the big bucks (he was working as a top programmer for a US company). He started a small outfit in Pakistan and was looking to get them some programming work. Naturally, I got him into oDesk as an Affiliate. He fairly quickly got a $100K+ project, quit his regular job in the US, and is now full-time involved as the Affiliate Manager.

Let me first outline some tips I got from him:

• He found job openings where his skill set was relevant (don’t blindly apply to everything)
• He applied himself, and also had his Providers apply at the same time (so they appeared together in the Candidate List)
• He clearly outlined who he was (Affiliate Manager), who else was in his team (Providers), links to the oDesk Profiles of his Providers (use oDesk Short URLs in the cover letter), and why they were good for the job
• He had a US number where he could be reached during his business hours (you can either get a VoIP box from Vonics or Vonage, or get a SkypeIn account)

But the cool thing for me was that oDesk helped him achieve his equivalent of the Star Trek Transporter. He lives in the San Francisco Bay Area, has gone to his oDesk Buyer’s offices in Texas, and spends time with him family in Pakistan while overseeing his (growing) Affiliate outfit. You could argue that it’s better than the Star Trek Transporter. Captain Kirk always worked with the same people on his ship, and actually lost a few people in every episode (the poor Red Shirts). They should have just enjoyed their chocolate shakes in interstellar space and talked to the Klingons over Yahoo IM.

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Abid

Chad Blodgett is one of the types of buyers we get most excited working with. He’s an entrepreneur. And he’s working on a great cause- helping people make healthier choices through information packaged in an compelling way.

He is a recent convert to oDesk, and comes to us with his share of outsourcing nightmares. His experience with oDesk so far has been top notch, though.

We wanted to point you in his direction because he runs and excellent blog that other entrepreneurs can learn a lot from. Check out this post about tips for improving customer loyalty. Or this thoughtful take away about what can be learned from another entrepreneur’s success.

We came across this site and thought we would share it with our community. It’s an excellent resource on the Web to keep a tab on the home shoring story- one that you can be sure to hear more off as innovative work arrangements continue to spread.

While the economic benefits of these new arrangements are very important, the site promises to be especially interesting because of it will also cover the impacts on society at large.

Skype just launched its Skypecast service. PC Mag has the story. Skypecasts are public conversations, so we might be using them for upcoming training webinars with our users.

We at oDesk are big fans of Skype, Google Talk, and Yahoo Messenger. Let us know which service is your favorite.

On that note, we’ll soon be unveiling a Jabber-based oDesk Chat service to make it easier for buyers to interview providers, and to see which providers are “online now” when searching for providers. We’ll keep you posted.