Question I've been thinking about regarding freelancers

[John Williamson]

This may be a stupid question and I may simply be missing something, but with all these freelancers on Elance and oDesk and the like who are good at web development, social bookmarking, keyword research, link building, etc., why don't they just build their own websites and sign up for Adsense instead of working for $3 an hour?

[betsyanne]

I think some people there live in other countries, and they don't need a lot of extra money to live on there.

Also, some people are just trying to get their portfolios started, and want to show what they can do. Maybe they plan to hike up their prices once they become better known.

I have seen a few people who charge more money, but you are right - - most jobs are very low paying. I have noticed that too.

[John Williamson]

Originally Posted by betsyanne

I think some people there live in other countries, and they don't need a lot of extra money to live on there.

Also, some people are just trying to get their portfolios started, and want to show what they can do. Maybe they plan to hike up their prices once they become better known.

I have seen a few people who charge more money, but you are right - - most jobs are very low paying. I have noticed that too.

Well yes I mean I know almost all of them are from either India or the Philippines, but an opportunity to get rich is an opportunity to get rich. Period. It's universal, no matter what country you live in. If they have all this SEO and IM knowledge, which it appears they definitely do, why do it for other people? Why not capitalize on their talents themselves? I mean no disrespect, but your statement about not needing extra money is similar to an American desiring to simply make minimum wage their whole life because it is enough to live on. That is obviously not the case for the vast majority of people. It is human nature to want to better ourselves, namely to want to be filthy rich...

[junkdna]

The reason number one is that they can not open the accounts with PayPal, MoneyBooker etc. They would have a very limited access to credit cards, as well. That would rise several barriers regarding any services they have to buy in the West, like hosting or AdWords.

For example, my web designer is phenomenal guy, does 100% perfect work, but it took him almost 2 years to open PayPal account and PayPal wanted a guarantee from Western agency through which he was working.

Another thing "they need less money to live on" is very misleading, since everything is relative, from one economy to another. Living costs would be approximately the same in percentage terms, relative to average salary in that country, which still means that you need continuous employment just to pay for you living costs. And you can spend on speculative work only after you paid food, rent etc.

Third thing is that, they have their own culture and their own flow of information, which would isolate them from many things that are happening over here. Although, most young guys would be quite switched on, if things are related to their profession.

[Frank Ayres]

They are not internet marketers they just have their skills, most of the article writers and web designers probably wouldnt have the first idea about affiliate sites etc.

[chocofries]

If they have all this SEO and IM knowledge, which it appears they definitely do, why do it for other people? Why not capitalize on their talents themselves?

It's because they/we don't have enough resources or capital to use to make it on their/our own. And Adsense won't give them/us $3 per hour earnings even if they/we can make one of the most optimized websites on the net.

[yianni]

in terms of outsourcing how have you guys managed the issue of variable work quality?

and then found good providers?

[James Fried]

It is an interesting question and there are problem different answers for every person.

People have different goals, skillsets and desires.

I have worked with people on ODesk who use the money that they are paid to fund other entrepreneurial ventures.

There have also been months when I have wished that I was working for $3 per hour as opposed to pumping money into my business.

Bottom line is that it is a conversation of supply vs. demand and there will always be somebody who wants to get rich, somebody who wants to get paid hourly and somebody who wants to get paid for doing nothing.

[John Williamson]

Thanks so much to junkdna and James Fried, you guys brought up several thinks I would have never thought of. Exactly the types of answers I was looking for.

[André Silverspoon]

I guess freelancing for them is part time and most of those in fulltime might be planning to settle for their own business.