Hourly Vs. Fixed Price Jobs

Buyers may post Hourly or Fixed Price job assignments in the oDesk marketplace. Choosing the appropriate payment model is as important as setting the budget. Buyers should carefully consider the options and choose the model that best fits their job. Providers should also be familiar with both models in order to make informed job application decisions.

Hourly Vs. Fixed Price: What's the difference?

Criteria	Hourly	Fixed Price
Job Length	Long-term jobs, often >2 months	Simple, short-term jobs, normally <2 weeks
Specifications	Ongoing work Relationship flexible to change	Well-defined jobs Clearly defined requirements stated upfront
Scope	Can easily handle change of scope	Unable to handle change of scope
Example Jobs	Develop custom software Spearhead SEM campaign Virtual Assistant Illustrate a book Rewrite web content Edit commercial video Remote bookkeeper	Write simple script Create Interactive Flash component Convert files Design Company logo options Scan website for errors Write single article Translate short document

Hourly Job Assignments

Buyers hire Providers as hourly-paid workers and pay them weekly based on verified time logs. Providers logging hours online using the oDesk Team tool are guaranteed payment. Offline hours require approval from the Buyer. The Hourly model is designed to facilitate longer working relationships and to cope with changes in project specifications or scope.

Hourly	Buyers	Providers
Advantages	Pay for verified time spent on your job. Develop a relationship with a Provider. Skip the hiring process and work with the same Provider on more projects.	Log time to guarantee payment. Develop long-term working relationships with Buyers. Earn predictable, steady wages.
Disadvantages	Time and effort estimates can be made, but are not fixed. It may be more or less than originally estimated. Management requirements often higher than Fixed Price jobs.	Must be online to log time and keep a detailed Work Diary. Time and workload estimates can be made, but are not fixed. It may be more or less than originally estimated.

Fixed Price Job Assignments

Buyers hire Providers to do a job for a set bid amount. Buyers need to write detailed job descriptions to help Providers make informed bids. The Buyer pays once the Provider successfully completes the job’s requirements. The Fixed Price model may be preferable for shorter assignments and when there is a low risk of changes in project specifications or scope.

oDesk does not guarantee payment on Fixed Price assignments. Providers should discuss their needs for upfront or milestone payments during the interview process. Although Buyers are not required to agree to a prepayment scheme, about 70% of Fixed Price jobs do have upfront payments.

Fixed Price	Buyers	Providers
Advantages	Set the budget at the start. Pay only for work that meets your requirements. Try a Provider before hiring them long-term.	Work without logging hours online. Build up your work history and feedback score with short projects. Try a Buyer before accepting a long-term assignment.
Disadvantages	Receive fewer candidates because some Providers prefer Hourly jobs. May have to manage Providers without the help of the Work Diary.	Earn the same amount of money whether you finish in more or less time than originally estimated. Risk nonpayment if the buyer decides your work does not meet their requirements.

When applying to a fixed price job, providers will see the screen below. They must check the 'I Agree' box before they can apply to your job.

screenshot

Keywords: Fixed Price Hourly job assignment length payment model guaranteed listing type scope difference choose

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Hourly Vs. Fixed Price Jobs

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Hourly Vs. Fixed Price Jobs

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