Chapter 1 Understanding the Value of Freelancers

As the founder of a rapidly expanding startup, I have gone through the process of hiring and letting go of numerous freelancers. On average, I engage 2 to 10 contractors monthly to tackle specialized issues beyond my expertise, such as GDPR compliance, Google Ads, SEO optimization, and email deliverability.

Case Study: Google Ads

Is it feasible to set up a Google Ads campaign independently? Certainly—you could have it ready in about 30 minutes, even with no prior experience. This seems like a manageable option, so you decide to proceed.

Fast forward a few weeks: you’ve launched your first campaign using your best keywords and allocated a $200 budget for testing. Unfortunately, the results may not meet expectations, leading to the question—did you choose the wrong keywords, or are ads simply not suitable for your business?

This experience could cost you two weeks of lost progress and $200. You could attempt it again after researching best practices, but as a busy entrepreneur, you might prefer to enlist external help.

Finding the Right Freelancers on Upwork

Let’s turn to Upwork, a valuable platform for connecting with freelancers. After posting your job, you’ll likely receive a multitude of responses within hours.

Typically, you’ll find freelancers in three pricing categories:

1. Budget: Approximately $15/hour
2. Mid-range: About $40/hour
3. Premium: $80+/hour

While it’s tempting to opt for the lowest bidder, this can often lead to subpar results. Remember, the adage holds true—you generally get what you pay for.

Screening Freelancers Effectively

Before making a hiring decision, consider the following criteria:

1. Project Success Rate: Aim for candidates with a near-perfect success rate.
2. Experience: Look for freelancers who have completed at least ten projects.
3. Earnings: Seek those who have earned over $10,000 on the platform—this indicates familiarity with freelancing.
4. Genuine Feedback: Don’t just rely on star ratings; look for detailed reviews from previous clients.
5. Custom Screening Questions: Include specific questions in your job post to gauge the effort they put into their application.

When to Let Go of a Freelancer

It’s crucial to terminate a contract with an underperforming freelancer quickly. Don't let the time invested in building a relationship cloud your judgment. Here are some signs it may be time to part ways:

• They miss deadlines you set.
• They are slow to respond to your communications.
• You notice mistakes in their work that a professional should catch.
• They require excessive input from you instead of solving problems independently.

Ideal Qualities in a Freelancer

Here are traits I value in exceptional freelancers:

• Thought Partner: They offer insights and recommendations based on their expertise.
• Resourcefulness: They possess the necessary tools and connections to navigate challenges.
• Proactive Communication: They keep you informed, minimizing the need for constant check-ins.

Traits to Avoid in Freelancers

Conversely, here are some red flags to watch for:

• Lack of Engagement: They may treat your project as just another task without personalized solutions.
• Poor Commitment: Inability to adhere to timelines can be a significant issue.
• Avoidance of Responsibility: When mistakes occur, they should be addressed promptly.

The Cost of Expertise

In my experience, investing in top-tier freelancers has yielded better outcomes than trying to save money. Here’s why hiring experts is a smart decision:

• Efficiency: Experts can complete tasks faster and with fewer resources.
• Advisory Role: They contribute valuable insights that cheaper freelancers may lack.
• Focused Attention: Experts tend to handle fewer projects, allowing them to dedicate more time to your needs.

In the fast-paced environment of a startup, I prioritize results, even if that means paying a premium. You truly get what you pay for, and expertise on freelance platforms typically starts around $40/hour in 2022.

Summary and Conclusion

Engaging freelancers can significantly enhance your business's efficiency and capability. I recommend hiring experts with a flawless track record who can not only solve your issues but also impart their knowledge at a reasonable cost. Steer clear of anything less than the best freelancers, as the hidden costs of mediocrity can be tenfold—impacting your time, focus, and overall quality of work.

This video, "How to Hire Freelancers for Your Creative Business," provides insights on effectively selecting freelancers to meet your unique business needs.

In "How to Shift from Freelancer to Business Owner," learn the essential steps to transition from freelancing to successfully running your own business.