Tag Archives: contest

Hourly, Fixed Price, or Contest? What’s the best way to hire freelance contractors?

There are pros and cons for each project type. The best type really depends on several factors such as the project length and the type of project (software, graphics, marketing, etc.) Pros and cons are listed below.

Hourly

Pros

  • Very flexible, a good idea if the project is not thought out at the beginning.
  • Most freelance job sites like oDesk, Elance, and Freelancer have software that lets you monitor the contractor’s progress.
  • Better for long term projects

Cons

  • As an employer, you are never sure what the final cost might be.
  • It requires monitoring of the contractor to make sure that they are not wasting time (and therefore money)
  • A worker could work a long time on a project and you could find out at the very end that it is incompatible with your system. The worker would still be paid.

Fixed Price

Pros

  • You know what the final cost will be
  • Great for small projects

Cons

  • Inflexible. If changes need to be made to the project, then changes need to be made to the contract.
  • More upfront work is required to make sure that you put all the details into the contract

Contests

Pros

  • Great for getting a variety of responses for graphics projects

Cons

  • Can be more expensive than hiring a single worker
  • Not appropriate for all project types