Hourly Jobs Or Fixed Price Jobs . . . That Is The Question

As an online freelance worker, one of the things I want to make sure is I get paid for my work. Online job sites normally offer two types of jobs for freelancers, hourly jobs and fixed price jobs. Hourly jobs are jobs where freelancers are paid by the hour while fixed price jobs are jobs where freelancers are paid based on a fixed amount.

Hourly Jobs Or Fixed Price Jobs

Hourly Jobs

Hourly jobs are similar to your normal everyday office-based jobs where people are paid based on the number of hours they work. Clients normally give freelancers a set number of hours for them to work each week. In addition, freelancers are also given a set of tasks to accomplish for every hour of work. A time tracker is used to monitor the number of hours the freelancers work each week. The time tracker also takes random snap shots of the screen while the freelancer is working. This is actually for the protection of both the client and the freelancer.

Upwork Time Tracker

Advantages

Hourly jobs are typically guaranteed jobs or the account of the client is automatically charged each time the freelancer starts the tracker. Due to this, online freelance workers will not have to worry about not getting paid. Another advantage is that freelancers are taught discipline since they are required to accomplish a certain tasks within a specific period of time. In order to do this, it is necessary for freelancers to concentrate on their work and avoid getting distracted.

Disadvantages

The first disadvantage of an hourly job is actually the same as one of the advantages depending on how you look at it. Hourly jobs require freelancers to complete a certain amount of work every hour. For article writers, it may be a certain number of words to write within one hour or for researchers, a specific amount of data to be collected for each hour of work. In this situation, freelancers may feel pressure while working, which can affect the quality of their work. They may also have to forego short breaks, especially if the client is strict. Since the time tracker takes random snap shots of the screen while the freelancer is working, checking social media accounts is a big no-no for freelancers working on an hourly job. You wouldn’t want your client to see you wasting your time checking out the latest pictures posted by the person you are stalking . . . er, following. Hourly jobs may last from a few hours up to a year. There are some jobs that can last a very long time of the client is satisfied and continues to require the services of the freelancer.

Hourly Jobs Or Fixed Price Jobs

Fixed Price Jobs

Fixed price jobs require freelancers to meet a set deadline to turn in their work. Once they submit their work and their client is satisfied, the payment is released. The funds for the payment of these jobs are normally placed in an escrow account, which means funds are available once the project is complete. While the release of the funds is still subject to the approval of the client, if the client does not approve or disapprove the release of the funds, it will be automatically released by the system after a specific period of time. But, it will still be necessary for freelancers to make a request for the release of the funds.

Advantages

Fixed price jobs give freelancers the freedom to work at their own pace. While a deadline is set for the project to be completed, freelancers can opt to work on it all in one go or take it easy and gradually complete the project. Since fixed price jobs do not require online freelance workers to use the time tracker, they will not have the feeling of Big Brother looking over their shoulder while they work.

Disadvantages

The biggest disadvantage of a fixed price job is that freelancers may risk the chance of not getting paid for their work. I’ve heard of stories from freelancers who said they worked on a project for a whole day and ended up not getting paid by their client. I have never encountered this since I take into account a number of things before I accept or apply for fixed price jobs (this will be discussed later on). One way of avoiding this situation is by checking whether the client already deposited the amount into an escrow account in the system. Freelancers may also have the tendency to procrastinate when working on fixed price jobs. This is especially true when the deadline for the project is still at least a week away. When I started working as freelancer, I normally found myself trying to beat the deadline. While my clients were more than satisfied with my work, it would have been better if I was able to finish my work well before the deadline. You can deal with this through simple self-discipline. It is important for you, as a freelancer, to set up a schedule for working and stick to it. 

While my first online job was an hourly job, most of the jobs I accept or apply for are fixed price jobs. Fixed price jobs allow me to work at my own pace. I also do not have to worry about the client seeing me checking something else while working. When I apply for fixed price jobs, I typically make sure the client is good on his or her word that the job will be paid. The following are the things I normally take into account when I apply for fixed price jobs:

• Feedback of other online freelance workers
• Feedback given by the client to online freelance workers
• The account of the client is verified

Feedback from other Freelancers

In my opinion, the feedback of other freelancers is important since it gives me an idea on the type of client I will be working for. Aside from the feedback from other freelancers, I also look at the feedback of the client on the work of the freelancers. While freelancers may have a lot of good things to say about their clients, there are also some instances when clients would not feel the same way for the freelancer. When this happens, the client may give an unfavorable feedback, which can affect the status of the freelancer on the online job site. This actually happened to me once. When I was still working with my client, our communication was great and my client even commended my work. However, he gave me a 4/5 rating for the job. I typically accept or apply for jobs posted by clients who give a positive feedback to freelancers, that is, if they did a good job.  Another thing I check is whether the account of the client is verified or not. I normally steer clear of clients who do not have a verified account since there may be instances when they do not have the funds available to pay for the project. In my seven years as an online freelance worker, all of my clients have paid me for the work I did for them.

Feedback from the Client

Actually choosing between an hourly job and a fixed price job depends on the online freelance workers themselves. Some freelancers are more comfortable working on hourly jobs while others, me included, prefer working on fixed price jobs. In the end, you have the freedom of choosing which type of job is comfortable to you.