Disintermediation: Why you should work within the system
Why shouldn't I just take the work outside the system?
The easy answer: it violates oDesk's terms of service.
It's called disintermediation and it's against the rules. So don't do it.
Hiring is completely free on oDesk. Unlike nearly every other job board out there, you will not be charged money to post a job or a profile. We earn our fee for hosting your relationship, and offering a platform for project management, billing, payments, accountability and trust.
That said...
...we know that some people may want to work outside the system in order to 'save the 10%'. Here are some reasons why you (a buyer or provider) shouldn't bypass the safeguards of the oDesk system:
I am a Buyer. Why should I keep my projects inside the system?
1. Accountability - pay only for hours worked
With oDesk, you get the security of knowing that you are paying only for hours worked for you. oDesk Team logs your providers' time precisely. Both screenshots and memos are captured, giving you complete visibility into what the provider was doing and for how long. If your provider adds additional time to his/her Work Diary (aka 'offline time') you have the opportunity to approve it. No padding hours! You will find that a 'full-time' oDesk provider may rarely log 40 actual online hours in a week, so you may find that even with the 10% fee, you end up paying less than you would without oDesk. On the flip side, your provider may ask for a slightly higher hourly rate to compensate for the 'oDesk Team Haircut'.
Are you or your provider uncomfortable with oDesk Team? I am the Director of Product Management at oDesk, and I run oDesk Team, just like you.
2. Consolidated billing saves time and hassle
Transferring funds is a pain, especially if you are paying multiple people each week. Doubly so if they are in different countries! oDesk gives you one bill for all of your activity, no matter how big an oDesk Team you are managing. We take care of getting the money to your providers, who can make withdrawals via the payment option of their choice. We also offer the cheapest possible payment vehicles for your providers.
3. Financial reporting by contractor and project
You can download your financial transaction detail for each contractor to .csv each week. And with multiple teams, you can divide your contractors by client or project to facilitate easy invoicing and accounting.
4. Build your reputation and get better candidates
The more hours you accrue through oDesk, the better you look as a Buyer to potential candidates. Many providers will only work for Buyers with an assignment and feedback history on oDesk. They count on your reputation to prove your are reliable enough to work with on a long-term basis.
I am a Provider (or Provider Company). Why should I keep my projects inside the system?
1. Accountability - guaranteed payment for hours worked
A common experience for remote contractors is the buyer who promises to pay $X, and then when the time comes, renegotiates, or just walks away. With oDesk, this risk goes away. All time logged via oDesk Team is subject to the oDesk Payment Guarantee, and you always have a record to show exactly when you were working and what you working on.
2. Automated, prompt billing - never chase a client for payment again
In a typical remote contract, you're lucky if you get paid in 30 days; how often have you had to wait 60 or even 90 days to get paid? On top of that, the money you're owed is always in the air, leading to awkward conversations. With oDesk, the billing is handled for you from start to finish - we bill your buyers, collect the money, and add the funds to your account. That way you can focus on what you're best at - delivering a great product for the client. What's more, we pay you every week - you wait only 10 days from the end of the week get your funds. In addition, logging hourly work shields providers from the danger of a credit card chargeback.
3. Safe, secure, low-cost payment
We do not make any money on payment transactions. You can use the oDesk Debit MasterCard powered by Payoneer, wire transfer, Moneybookers or PayPal, with no additional fees from oDesk whatsoever. This gives you tremendous flexibility whether you want to receive your money in USD or your local currency. Learn more about receiving money on oDesk.
4. Build your reputation, get better jobs
The more hours you work and the more feedback you receive on oDesk, the more attractive you are to potential oDesk buyers. Many providers with a strong track record on oDesk never even apply to jobs - rather, buyers find them and directly invite them to interview. Having recent work activity on oDesk makes sure that you appear high in provider searches as well.