My hypothesis was that I would be able to pick up a steady stream of jobs, from serious customers ready to launch their projects quickly. I found out otherwise, but in the end, I did manage to break through the newbie phase. Here's how it happened.
Projects
To be sure, there are tons of projects to bid on. From small to large, covering every aspect of software development (the area I'm interested in -- there are many other categories of jobs), and all with their own budget and project description.
The description is probably the most problematic part of the equation. Often they are vague (high level, no details), unrealistic ("I need an app just like Angry Birds. Budget $500"), or just don't make any sense. After a while, you get to realize within 10 seconds of reading whether there's some meat to the project or whether it's time to move on to the next one.
Customers
The customers you'll run into are as varied and unpredictable as the project descriptions. It pays to check their profile when considering a proposal. Find out how many projects they've actually followed through with, and what kind of feedback and rating they have -- it works both ways. Another good indication of seriousness is whether or not they have a verified method of payment. Considering how simple PayPal is, not having this most basic step should send at least a small warning flag.
Getting the first project
As a new member on freelance sites, you have no rating, no feedback, and are up against bidders who have tons of feedback and display five or six figure incomes from jobs on the site. Winning your first bid can seem difficult, and likely will be. Here's some suggestions that might help.
The objective is simply to win a bid, complete a project, and get positive feedback. Look for jobs that are simple and clearly stated. Jobs with lots of bids reduce your chances, so while you can bid on these, don't make it your focus. Also, try to watch for local business. You may gain a slight bit of trustworthiness if you live anywhere near the customer. It is highly important to be professional, and keep good contact during the bidding process (good advice at all times, really). Once you make a positive connection with a client, getting the first job will be easier.
In the end, with a bit of luck perhaps, you'll get the first job. It's a struggle, but once you have it, you're off the ground.
A full time income?
After many bids, and a few successful projects, I had a pretty good idea of where things were going with freelancing. Full marks for fun and enjoyable work. Low marks for making a good income from it.
Looking at my bid history, you wouldn't think this to be the case. I bid on enough work to keep me busy full time, even if I only won some of the jobs. Besides just not winning bids, I found that many customers simply didn't select a bidder. Others take weeks to decide, and you may or may not get the job. Still others simply cancel the job for various reasons.
I think freelancing via Elance and other websites is possible if you do things right and can put the time and effort into it. You certainly need to be bidding constantly and probably for bigger jobs a lot of the time. Consistency is a big factor too, as the longer you're around, the more you'll be trusted, and the more likely you'll be to get repeat business.
The next step
Freelancing has been a great experience and one that I want to continue. It won't be my full time income anytime soon, but over time I could see it becoming a bigger part of what I do, or just a really great source of revenue on the side.
The next step: Building the client base, and refining the process of making bids to be more successful.
