All Things oDesk
February 21, 2007 by Guest Blogger

Hey oDesk-ers,

We are excited to announce that oDesk now offers the option to post fixed price jobs. This option is in addition to the hourly jobs we currently support.

What is Fixed Price?

Fixed Price lets buyers hire a provider to do a job for specific bid amount. The buyer then pays once the provider successfully completes the job’s requirements.

Why Fixed Price?

We've been listening to the oDesk Community, and here are some examples of what we’ve heard. Users told us that while an hourly relationship is great for longer projects with changing requirements, fixed price was often preferable for shorter projects with fixed requirements.

How to use Fixed Price?

  • Buyers – go to www.odesk.com and post a job, and you'll have the fixed price option next to our standard hourly option.
  • Providers - go to the jobs page, and select "Fixed Price"

We'd love for you try it and let us know what you think.

Check out the Fixed Price FAQ in Community to see why we're launching fixed price, how it works, and what it means for you.

Thanks!

Jason

  • sam

    I just saw a project posted under fixed price category and the project budget is $1 !!! I don't know why Odesk is promoting such a feature? Is it really a feature ????

    check the posting:

    Firefox plugin development (Budget: $1.00) Fixed-Price (Beta) (Posted on March 28, 2007)

    Fixed-Price

    ID: 159097
    Primary Skill: XML
    Planned Start Date: March 28, 2007
    Planned End Date: April 4, 2007

    Budget: $1.00
    Buyer Hours: -
    Description :
    We're a startup looking to develop a Firefox plugin for a demo. If you are a a good FireFox plugin developer and want to help us build this demo, please contact us. Before getting project details, you will need to sign an NDA. Technical skills required: * Firefox plugin development * XML (client-side) Time-frame * Immediate

  • Rachel Rhodes

    One of the reasons I have been interested in joining oDesk.com as a provider was specifically the hourly rate system. Fixed price only works if the buyers have a reasonable notion of pay vis

  • Viktor

    Fixed prise is sux. I really don't like that option in oDesk...

  • John Kaiting

    I like this idea. We can now get a fixed amount even if we are done with the project earlier!. That would give us more money and also YOU have the option not to use it anyway within the system.

  • Johnny Bravo

    Stop being so lame and become a real company. Elance, Guru and the rest could not make this work, what makes you think you can

  • Hemang Dani

    Hello,

    It is exciting to know that oDesk is about to launch or has already launched the Beta release for Fixed Price Model.

    When I hear this caption, I have mixed thoughts.
    I will like to raise few questions,
    What will be the unique selling points of oDesk now ?

    1] Guaranteed Payment - this will not be possible, as payment will ocme only once the project is complete, irrespective of the hrs or labour put in.

    2] Remote Monitoring - this will again be in trouble, as provider and buyer may or may not use oDesk team.

    3] Provider Expectations - This will be in crisis, Reason being, Providers trusted the role model of oDesk and reason why they opted themselves out of other websites like getafreelancer.com, rentacoder.com, elance etc.

    To me, I can definately envision this as a negative step moving forward, As I do not see now any major difference between oDesk and other freelance market websites. Also in a way it will be lower in rank, reason being, escrow system is not in here which does exists in other websites and ensures little saftey of the provider.
    The market value of the providers will go down by posting porjects with max limit even though it may not be justified. As ther will not be any screening on the project scope and buyer will have all advantages.

    All in all, I strongly think, this step will create following issues, which really will need to be sorted out and thought and handled effectively.

    1] Provider's safety.
    2] Provider's trust.
    3] More of Arbitrage may happen.
    4] No control on jobs posting, there can be a project like this having max limit of 200$ in retrospect of 1000 USD in actual.
    5] There will be no effective value of a provider labour/hr.

    Please consider this as a serious threat to the role model of the business policy and any consideration here, will for sure...make providers happy.

    All in all...Please brainstorm further before the actual launch to provide a win win situation for Buyers, Providers and oDesk itself.

    Please consider this as purely my thoughts and I really apologize if it sounded hard or harsh to anyone so assocaited with odesk in any way.

    I thought ..It will be great if I can voice out the concerns as a provider.

    Thanks
    Hemang

  • Steve

    There are times when fixed pricing can be very effective for providers. If you work quickly, if you have worked on a similair project or are comfortable with the project objectives, it can be profitable for providers. However. I recommend clearly defined objectives, project scope, exact details. AKA. no changes to the project are allowed. I want XYZ, by Date - and you deliver within those parameters. Have a pre-contract agreement that states, changes additions or alterations will occur at an hourly rate above and beyond the fixed-price.

  • http://www.google.com mick

    i agree, fixed price jobs is a really stupid addition. it causes a bidding war which is no good for anyone except the buyer (what a suprise). odesk is all about getting the best for buyers, and not looking out for their supposed 'global work force'... you should be encouraging better pay rates for providers, instead of figuring out ways to get workers in the third world to work for $1 an hour.

  • Manu

    Suggestions
    ------------
    1. Roll Back Fixed Price. Instead Introduce Budget and limit the no of hours a provider can bill calculated by budget/hourly rate of that particular provider.

    2. Assure payment to provider.

    3. Always Insist on budget. ('open to suggestion' leads to bidding wars)

    4. Educate the buyers

    5. To stop buyers from taking advantage of providers by opening multiple accounts and posting jobs with very low budgets, the budgeting option should only be available to buyers who have significant amount of buyer hours accumulated. Budget option should be a "privilege" and not a "right". If you
    open it to everyone, providers will get screwed.

  • Amrit

    I am not at all excited with this option, worst update ever to odesk system. Why would someone come to odesk now(for providers?). this is a bad option and a very bad one indeed.