Six Ways Freelancer Helps Corporations Save Money and Build Efficiencies

by Peter H. Diamandis on June 23, 2015

Peter H. Diamandis · Business Creativity in Business Marketing Strategies · June 23, 2015

InnovationIn this ongoing series of blogs, we’re featuring content from entrepreneur and author Peter Diamandis. His new bestseller, co-written with Steven Kotler, is “Bold: How to Go Big, Create Wealth and Impact the World.” These blogs, written with Bob Hughes, explore many themes that are central to our current WE Cycle.

Readers can find more about forward-thinking executives, groundbreaking technology and the insights that Peter Diamandis shines on society in “Bold,” and in Peter’s own website

In this blog, Peter speaks again with Matt Barrie, CEO of Freelancer.com, the global workforce site. He talks about why corporations should use Freelancer to become more innovative.

While the entrepreneur can do everything on an extraordinary budget thanks to Freelancer.com, even larger corporations can use it to drive innovation, if the right people within the organization can take the initiative.

“Larger corporations are always a bit slow to get in there and adopt new technologies,” Matt Barrie said. “We do see jobs all the time from Wells Fargo, General Electric and so forth — but it’s not part of any corporate strategy. We’re pretty sure it’s not part of any corporate organizational strategy to use marketplaces like Freelancer,” he said. “It’s individual contributors who are sitting in their job going, ‘Wow, graphic design’s going to take until next week to return my PowerPoint presentation! I’ll just put $30 into Freelancer and get it done and just move on.’ And so we see brochures from Wells Fargo, we see PowerPoint presentations from just about every company you can imagine,” he said.

Barrie how corporations could utilize Freelancer.

1. It’s much cheaper, and it’s a driver of efficiency. “If I was a CEO of a big company, I would basically make it a strategy to where possible as a first step try and use the resources on sites like Freelancer in order to power the business,” Barrie said. “You can strip a ridiculous amount of cost out of some of these businesses. You can get a huge leverage in terms of productivity of every single person. In Freelancer itself, every single one of my staff has to hire freelancers as part of their job to get things done.”

3. There is much less overhead. A Freelancer project costs about a tenth of what a similar job would cost on an hourly rate in the U.S., Matt said. “In a large corporation you also have all those other overheads in management. So, we’re talking a disruptive difference in terms of cost benefit. In terms of productivity, there is also leverage. Remember that we have skill sets from 7 million freelancers around the world. So if you suddenly need a resource in acoustic engineering or genetic engineering or biotechnology or someone’s expert opinion on a mathematical model you can find it in a snap,” he said.

4. There are fewer fixed costs. “You’re either doing it on an hourly basis where the next hour you can say, ‘We’re done with the project. I don’t need you anymore,'” Barrie said, “or you do it on a fixed-cost basis where you know what your costs are ahead of time and they’re small. It’s extremely liquid.”

5. Timeframes are exponentially shorter. “The timeframes for these jobs being finished is probably faster than doing them internally at an organization,” Barrie said. “It would blow your mind just how quick and liquid the market is now. If I post a mainstream job like copywriting or web design, I can guarantee you that within 60 seconds I will have people bidding on the project. The marketplace now is designed to be so real-time that literally you post a project and within 60 seconds you’re seeing things flashing up on the screen. You could take a project that maybe would have taken you two weeks to get done in a conventional organization and with Freelancer have it posted at 5 p.m. as you leave work and have it arrive in your inbox 9 a.m. the next morning.”

And Matt offered a sixth bit of advice that he believes should convince corporations to change their way of doing business.

6. Pick something important you want done, and see how it can be done through Freelancer. “Give it a go and then your mind will open once you see what you get,” Barrie said. “Pick something hot. Don’t pick something easy. Pick something that you really want to get done, something you’re not happy with the way someone in the organization is doing for you right now. You will see just how game-changing Freelancer is.”

[rps]

Previous post:

Next post: