Hourly Jobs vs. Fixed Price Jobs

Since I started working from home, I have been asked several times on how I charge my clients for the online tasks I did for them. And since I wanted to encourage some of my close friends and relatives to try their luck as online worker like me, I would patiently explain to them the basics of working online and it would usually starts from the question: How do I charge my client?

There are two types on how you could charge your client—one is per hour basis and the other one is per project or fixed price. In searching for online jobs, both the contractor and client look on the kind of jobs to offer and being offered. In this article, allow me to differentiate what hourly jobs and fixed price jobs are as well as their pros and cons.

Hourly Jobs

These are mostly the kinds of job that starts from scratch and need extensive collaboration between the contractor and the client. One great example of a task that is usually executed on per hour basis is website creation. Creating a website could not be perfectly done in a single day that is why in every finished section, a communication between the contractor and client is important. Revisions are most likely to happen before the final launching of the website.

Pros:

• Both contractor and client can have a detailed report of the activities while doing the task. Odesk has Work Diary wherein the client can see how much work the contractor did for a specific time.

• Payments are guaranteed.

• Flexible working time (time difference between the contractor and client is never a problem as long as they logged in).

Cons:

• You cannot work on a computer or laptop without the Odesk Time Tracking Tool (if you work regularly in a company and installing unauthorized program is prohibited).

• Work reviews from the client are needed before processing of payment.

Fixed Price Jobs

These are jobs with specific requirements. Let say, the client need a Press Release Article. You as the contractor definitely have the idea of how much time and effort it would take to finish the task. You give your fixed rate and that’s it.

Pros:

• Once you finished the task, you’ll get paid.

• Work on the job anytime you are free. You can do it during break time on your regular job or while you are on a coffee shop. Fixed jobs on Odesk do not require you to log in their Time Tracking Tool.

Cons:

• Does not guarantee payments. Since there is no working diary as basis, you cannot be 100% sure you’ll be paid by your client.

• You cannot demand payment for revisions or back jobs.

It is up to the worker which type of job s/he will choose, however, most contractors and employers choose hourly jobs because of the detailed report and guaranteed payment schemes.

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