For individuals new to Elance, things can be a little confusing at first, especially if they've never had a membership at a freelancing site before. One of the things many newbies don't know about is Elance Escrow. Below, we'll discuss the escrow option in-depth so you can understand precisely what it is and what it's used for.
What Exactly is Escrow?
Escrow is an option that allows both freelancers and project posters to feel secure about the payment. Clients or buyers put the total amount of money that has been agreed on by both parties into escrow when they hire the freelancer so that the freelancer knows it's there and waiting for the project to be completed. This tells the freelancer that the project poster has every intention of paying, so long as he or she is satisfied with the work and level of quality.
What Happens After the Project?
When the project is completed and the project poster is satisfied with the project, he or she can release the payment. It will move from the escrow into the freelancer's account, allowing him or her to transfer it to PayPal, receive a check or utilize Elance's debit card program. If there is a conflict or debate, the freelancer or project poster can take it to Elance's conflict resolution system.
What are the Benefits of Elance Escrow?
Rather than paying the freelancer before the work is done and risking losing the money if the project is incomplete, never finished or not finished up to the project poster's standards - the project poster can basically give the freelancer an IOU. Using the escrow system allows the project poster to be sure that the work is great before paying.
For the freelancer, it's more reassuring to see that the money is there and waiting rather than starting the project with absolutely no proof that the buyer is intending on paying for it. While most project posters and freelancers are perfectly honest people who will do what they say, there are unfortunately some out there who are only out to get what they can without paying. Escrow helps alleviate concerns so that the project can go smoothly and without bumps or delays.
Elance escrow is an excellent option for both buyers and freelancers and will help ensure that the focus is on the project and not the fear of receiving low quality work or not being paid.