Evaluation of potential projects in the modern market

Question

Electronic commerce

Consider the following standard situation - a customer posts a description of his project (at the concept level) on some project exchange (odesk, elance, etc.).

The state of affairs on the market now is such that in response, it receives dozens of offers from outsourcers (freelancers and companies). These offers are of varying degrees of adequacy (from “I will work 20 hours a day for $1/hour and do everything ASAP” to full-fledged commercial offers).

Customers also come in varying degrees of savvy, but in most cases, at this stage, everyone is interested in one thing - how much the project will cost approximately and how long it will take.

We all know the pitfalls regarding project evaluations (for example, heregood review). It is obvious that at this stage (when there are even no requirements) it is extremely difficult to give any estimate close to the real one. But the customer wants to know, and the performers have to dodge somehow - give a rough estimate with a wide range, describe and take into account risks as much as possible, formulate assumptions.

After that, the customer looks at this whole bunch of motley offers, usually filters out completely inadequate and very expensive solutions, and then continues to communicate with someone from the middle of the list.

The correct upper estimate of the project at such an early stage will invariably be large (because the uncertainty is extremely high). At the same time, the need for the project and competition in the market forces us to give lower estimates (otherwise, the customer will simply ignore the proposal, even if the estimate is actually adequate). And the result is a sad situation for the performers - from the very beginning they are forced to put themselves in disadvantageous conditions, risking otherwise just being left without a job.

Actually, I'm interested in how you (as performers) deal with this problem and get projects?

It is also interesting how projects usually end in which customers choose cheap performers, but here, I believe, hardly anyone will share.

Answer 1

Actually, I'm interested in how you (as performers) deal with this problem and get projects?

Customers find it themselves, word of mouth, I name an interesting price for me personally, I don’t focus on the Indian market , otherwise it’s not interesting to work.

It is also interesting how projects usually end in which customers choose cheap performers, but here, I believe, hardly anyone will share.

Here, only from the words that came to me for alteration of customers, not really a selection, but still. Small projects are closed more or less normally thanks to the feedback from freelancers who just came to the market (something that takes a couple of days and costs up to $100). Anything larger is either stretched for an indefinite period, or the performer simply disappears, having hit on this several times, the customer is either completely disappointed in outsourcing or stops chasing the price and is looking for reviews and portfolios.

Answer 2

Actually, I'm interested in how you (as performers) deal with this problem and get projects?

Personally, I don't go after quantity. I am interested in adequate customers who will not save a penny and understand that they pay for the work done, and not for promises at the beginning.
But in principle there is such a problem. Not even that the estimates are large, but that people have a budget beyond which they can go, but not just like that, but reasonably. Therefore, first of all, even before any numbers, I try to establish a dialogue in order to start speaking the same language. And when it comes to numbers, I already describe in a language understandable to the customer what I evaluate. Sometimes the first level of WBS is enough.

It is also interesting how projects usually end in which customers choose cheap performers, but here, I believe, hardly anyone will share.

Well, I have enough stories about how they chose cheaper ones instead of me and then came to me with half or crookedly done work. But one should not think that all those who take work cheaply - they are of worse quality there or something else. In fact, there are quite a lot of Chinese, Indians or Filipinos who do their job quickly and accurately, but take little. Their main problem is that they work in a stereotyped way, they can screw up something that is not quite standard, but they sculpt their standard work well and quickly.

Answer 3

Actually, I'm interested in how you (as performers) deal with this problem and get projects?

I show my work.

It is also interesting how projects usually end in which customers choose cheap contractors.

Nothing.

Answer 4

Masterme , RicoX , Wott , natnal , thank you for your answers!