How Do You Pay Your Workers?

6 replies
Hey guys,

I'm just about to hire my first worker in the Philippines!

My biggest question is...how do you pay your workers? I found this guy on Odesk but he's going to work full time for me (he has no other contracts now and won't apply for any as long as he works for me).

Should I pay him through Odesk, paypal, or xoom, etc?

Which one has the lowest fees? I think I saw papal is only like 3.5%, and odesk and xoom are more like 10%...is this right? b/c this seems like an easy choice (but I've heard people say xoom is the cheapest so I might be missing something here)...

Also, I will be paying him weekly (not hourly) so what program do you all use to make sure they are working full time for you (or should I charge him hourly through Odesk)?

Thanks in advance guys!
#pay #workers
  • Honestly I would stick with Odesk for liability purposes. Since the worker is new, I would wait and pay through Odesk until you get a feel for his or her work. However, if he or she is established I don't see why you couldn't pay through Paypal. Even though it is a little bit more expensive, in the long run it could save you from a large headache. But, I'm not sure if using alternative payments is against the TOS for Odesk, you should investigate their policies before thinking about alternative payment options. Hope that helps!
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    • Profile picture of the author shabit87
      Originally Posted by blueseagullmarketing View Post

      Honestly I would stick with Odesk for liability purposes. Since the worker is new, I would wait and pay through Odesk until you get a feel for his or her work. However, if he or she is established I don't see why you couldn't pay through Paypal. Even though it is a little bit more expensive, in the long run it could save you from a large headache. But, I'm not sure if using alternative payments is against the TOS for Odesk, you should investigate their policies before thinking about alternative payment options. Hope that helps!
      Yes I agree, go ahead and go through oDesk for protection. If your worker did not do what he or she was supposed to do oDesk won't make you pay for it.

      And always be sure to make sure that hours are docked accuractely. oDesk actually has a screen capturing tool so you can see what workers are doing when they're supposed to be working on your tasks.

      Once you get to know a worker and trust them, then I would go with another mutual beneficially payment processor, but it may not be neccessary. That would be for you guys to decide, but please start off with paying through oDesk.
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  • Profile picture of the author YonghoShin
    Just a tip that you can consider in the future:

    I've used odesk for dozens of projects, and I always get the highest quality work in the minimum time by charging a flat fee instead of hourly.

    When you bill hourly, your priorities and the worker's priorities conflict. You want it done as FAST as possible, but the worker gets more money when he works as SLOW as possible.

    When you charge a flat fee, both you AND your worker work to get it done as FAST as possible.

    I ALWAYS pay based on performance, not time. If someone doozed around for days, do you really want to pay them for that?

    One of my friends who uses odesk a lot once caught his worker watching porn while he was "working." The hourly rate was so low, that it didn't cost him a huge loss (around 10 cents per hour), but this becomes devastating when you move onto bigger and more important projects.

    So my advice, as someone who uses odesk often and have friends who use it even more than I do:

    Pay for performance when you can. If you INSIST on hourly, review their behavior like a hawk because they WILL slack off (it's natural human behavior).
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    • Profile picture of the author TheWebGuy
      Thanks a lot for the advice! Very helpful.

      I've been listening to John Jonas for a while and he says if you hire them permanently (no end date in site)...and train them you'll get much better work.

      Have you found that to be the case? Or have you guys found that hiring contractors and paying them at the end of each project is better?

      I basically want my new employee to do a lot of my SEO busy work/customer service type stuff.

      This is all trainable/repeatable stuff so it's not like he's just doing a 1-time project.

      With that being said...how do you think I should pay him (since there are no real end dates for a project like this/milestones)?

      Thanks a lot guys! I really appreciate it.
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  • Yea I use ODesk. They take 10% but it's worth it. Seems to be working pretty well.
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  • Profile picture of the author cantstop01
    Odesk should be used until trust is gained.
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