Crowdsourcing Infographic: Choosing Between Fixed Fees and Hourly Rates

By | February 28, 2012

One of the most important issues in using service marketplaces is choosing between fixed fees and hourly rates.

Originally all the service marketplaces used fixed fees. Odesk, by introducing hourly pay supported by a provider monitoring system, grew rapidly, resulting in almost all the other service marketplaces following suit with this model.

However one of the many challenges for those new to using crowds on service marketplaces is working out whether to pay fixed fees or hourly rates.

We addressed this issue in Chapter 8 of Getting Results From Crowds. Below is the relevant excerpt from the book, supported by visual icons to represent the different situations. Each row shows the situations that support the use of fixed fees or hourly rates.

Click on the image for full-size pdf

  • Nick

    this is simple, yet entirely accurate..I interact with my “crowd” partners in much the same way as this..

  • Noel Gil

    great differentiation

  • Casey Armstrong

    Nice! Inspires the right kind of thinking we need to move forward with the future of microtasking and distributed labor…

  • George Beaton

    Ross this schema is applies to professional services like law as well. The infographic is a powerful communication tool..

    • Ross Dawson

      Thanks for the observation George. While the framework was developed for relatively low-value tasks on service marketplaces, I did notice after I’d created it that was pretty much all relevant to higher-value professional services. I should probably do a slightly modified version for a professional service firm audience.

  • Chaoliang Colin Gu

    Great infographics. I think the hourly fees in general gives task issuer more control and management power, but at the same time it needs them to put more efforts in the process. Hourly fees in some cases may worry task issuers cause they have no idea how much they will end up paying for the tasks.

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