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Outsourcing Milestones and Escrows

Set Up My ProductsHi Guys,

In my last few posts regarding outsourcing we have looked at the following:

We are now going to take a look at outsourcing milestones and escrows.

The importance of milestones and escrows in outsourcing is that they help in building the trust factor s between you and the professional freelancer carrying out your work. It is not something to take lightly so use them well.

If you want to get the best people working for you, you simply cannot ignore milestones and escrows. Milestones are especially important when you are working on huge projects and want people to give you their deliverables in smaller instalments so that you could manage work at your end as well. And in a previous post we have already seen how escrows are important.

Some websites, like eLance in particular, help you to state the form in which you want your deliverables. You could actually set up milestones for the whole project. Among other benefits, this ensures that your employee can manage the deadline in a much better manner and you can keep tabs on things a lot better.

It is ideal, anyway, to post only short-term projects at the start, until you have built a rapport with the professional freelancer. Even though everything might seem all right to you in the bid, there is always a chance that something might go wrong when the actual project is under way. If you have a long project running, it could be cumbersome to bail out of these difficult situations. However, short-term projects can help iron out issues before you go for the big one.

On GetAFreelancer, the shortest project you can post should be worth at least $30. However, on most other sites, there is no minimum limit for the project you post.

The best way to make the payment is through an escrow system. Most job sites work with escrows (which is actually the main reason why you should use these freelance jobsites as an escrow protects both parties). When you select a bidder, you deposit some money into an escrow account. This money is held by the website but not released to the bidder yet. Once they have accomplish the task, you then direct the website to release the funds to them.

Escrow helps you because should there be a case where there is a problem with the project and you don’t feel that you should pay the freelance professional, you can always ask the website to arbitrate between you. Freelance website will not arbitrate between you and the freelance professional if an escrow wasn’t made. Also by setting up the escrow, the freelance professional knows that you have money to pay for the project and it motivates them to do a better job.

Please feel free to leave a comment below. I would really love to hear from you.

Until the next time.

Have a great day.


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