Outsourcing presents one of the most significant challenges for professionals in today’s global workforce. Across industries, from manufacturing to technology, there are skilled individuals worldwide willing to perform the same tasks for a fraction of the cost. Competing in such an environment requires more than just expertise — it requires strategy.
Take the freelance market as an example. Platforms like Elance (now Upwork) host hundreds of thousands of professionals vying for the same opportunities. In competitive fields like design or development, the sheer number of applicants can feel overwhelming. Many professionals find themselves grappling with the realization that competing solely on price is not sustainable.
This is where the concept of becoming a “premium service provider” emerges. Companies like Mercedes-Benz, for instance, do not compete on cost. Instead, they emphasize luxury, quality, and unparalleled customer service to justify their premium pricing. This same principle can be applied in freelancing: positioning oneself as a high-value provider instead of participating in a race to the bottom.
Testing Assumptions to Stand Out
Before committing to this premium approach, testing assumptions becomes essential. Two key questions need answering:
- What strategies are successful competitors using to stand out?
- How can those strategies be surpassed with superior preparation?
To explore these questions, a simple yet effective test was designed. A fake job posting was created on Elance, posing as a client seeking a web developer. This test served to gather insight into how the competition operated.
Structuring the Test
The posting was deliberately designed with a clear purpose and strategic intent. Each element was tailored to extract valuable information:
- High Budget: A job priced significantly above the average (e.g., $10,000 instead of the typical $1,000) aimed to attract top-tier candidates. High pricing often acts as a filter, discouraging underqualified applicants while encouraging confident, skilled professionals to apply.
- Fixed-Price Model: Marking the job as a fixed-price project helped uncover the rates and negotiation tactics employed by competitors.
- Detailed Requirements: The posting outlined specific needs and skill sets required for the job, mirroring the skills the tester already possessed. This allowed for a direct comparison with the competition to understand their positioning and proposal strategies.
Observing the Results
Once the test went live, proposals from various candidates began to pour in. Each submission provided a wealth of insights: the language used in proposals, the way candidates justified their rates, and how they presented their qualifications. The process revealed patterns in how top-performing freelancers operated and highlighted areas where their strategies could be improved or outperformed.
The Results Are In
Within just 30 minutes, 71 proposals were submitted from freelancers around the world. Statistically, each applicant had a slim 1.4% chance of being hired. However, these numbers provided an opportunity to analyze the competitive landscape and uncover patterns in the hiring process.
Regional Breakdown
Here’s how the proposals were distributed by region:
- Over 50% of bids came from India and South Asia.
- North American applicants accounted for about 25%.
- The remaining 25% came from other parts of the world.
Now consider this in the context of hiring trends. Elance’s lifetime hiring data shows a stark contrast:
- North America dominates the hiring market, awarding the lion’s share of the 1.5 million jobs on the platform.
- The next closest region is Australia, with just over 150,000 jobs awarded.
Observations
The imbalance is clear. Most job postings are created by native English speakers in North America who prefer working with other English speakers, but the majority of applicants come from regions where labor costs are much lower. This creates a familiar challenge for American freelancers.
Despite the preference for hiring locally, American freelancers often lose out to foreign applicants offering drastically lower rates. While hiring managers may prefer to work with someone who speaks their language and understands their needs, they hesitate when confronted with higher prices.
The key to success, then, lies in overcoming this resistance and making price a non-issue.
Reading the Proposals
With the proposals flooding in, the next step was to analyze the competition. The objective was simple: understand what successful freelancers were doing to stand out and identify strategies to surpass them.
While reviewing all 71 proposals was unrealistic, a few distinct patterns emerged that separated the strong contenders from the rest:
1. Sponsored Proposals
Some freelancers invest in “Sponsored Proposals,” using paid credits to ensure their bids stay at the top of the client’s inbox. Only three freelancers per job can sponsor their proposal, making this a standout tactic.
Sponsored proposals signaled two things:
- A willingness to invest in landing the job.
- Increased visibility, which made them hard to overlook.
2. Captivating Copy and Pitch
Proposals that hooked the client within the first sentence or two stood out immediately. This became increasingly important as the volume of bids grew — capturing attention early was critical.
3. Tailored to the Job
Generic copy-paste proposals were easy to spot and quickly discarded. Proposals that referenced specific aspects of the job demonstrated attention to detail and proficiency in English, eliminating concerns about communication barriers.
4. Price Point
Price played a pivotal role, but not always in the way expected:
- Low Prices: Proposals with unrealistically low bids were immediately dismissed. They often signaled lower-quality work and a lack of seriousness.
- High Prices: Surprisingly, higher-priced bids sometimes piqued curiosity. They prompted questions like, “What makes this freelancer worth so much?” This led to further scrutiny of their pitch and profile, which often revealed higher-quality work and better qualifications.
5. Skill Set
Ironically, skills were often the last factor considered. Only after a proposal passed the initial four criteria did the applicant’s skill set come into play. This highlighted how much weight was placed on first impressions and communication over technical abilities.
Narrowing the Applicant Pool
By applying specific criteria, the original pool of 71 applicants was reduced to a much more manageable group of 10-12 candidates. Each of these individuals possessed the necessary qualifications and qualities to handle the project successfully.
The challenge, then, became deciding which of these equally capable candidates to hire. The determining factor turned out to be personal interaction.
The Importance of Personality
When qualifications and skills were evenly matched, the deciding factor was whether or not the client liked the freelancer. Building a personal connection became critical. Freelancers who made an effort to establish a relationship stood out, while those who didn’t demonstrate care or empathy failed to differentiate themselves.
In the end, relationships mattered. A prospective freelancer who could communicate well, understand the client’s needs, and show genuine interest in the project had a significant edge.
Designing a Winning Strategy
This insight — that personality and connection were decisive factors — inspired the creation of a new strategy aimed at making proposals irresistible to prospective clients.
Identifying the Right Clients
Before investing time and effort into crafting proposals, the focus shifted to identifying the right clients. This wasn’t about pitching to every job posting available; it was about selecting opportunities carefully.
The distinction is subtle but crucial:
- Look for reliability. Clients who demonstrate clear, consistent, and reliable behavior in their job postings are more likely to value a freelancer’s time and effort.
- Focus on quality over quantity. It’s not just about getting any job — it’s about finding clients who are willing to pay for quality work.
For example, if a website project wouldn’t yield at least $1,000, it wasn’t worth pursuing. This price point reflected a focus on value and ensured that time and resources were allocated to projects that aligned with long-term goals.
This approach highlighted the importance of precision and intentionality in creating not just proposals but also professional relationships that led to sustainable success.
Conducting Client Research
Before crafting a proposal, thorough client research is crucial for developing a tailored pitch that resonates deeply. The goal is to uncover insights about the client’s preferences, history, and expectations to create a compelling and personalized presentation.
Key Areas of Research
- Purchase History
- Look for clients who are frequent users of the platform and have spent a significant amount of money.
- Indicators like 3 or 4 green dots on their profile suggest that they are serious and reliable buyers.
- Feedback History
- Check reviews and feedback they’ve left for past freelancers. This is an invaluable source of information for understanding their preferences.
- Identify:
- What they liked about previous freelancers.
- What they complained about, so those issues can be proactively addressed in your pitch.
- Personal Details
- Dig deeper into their profile to find personal information that can be used to connect on a human level. Look for:
- Name, profession, and location.
- Likes, dislikes, hobbies, or any other relevant details.
- Dig deeper into their profile to find personal information that can be used to connect on a human level. Look for:
Using Research Effectively
Incorporate these insights subtly into the proposal. The goal is to show that the pitch is highly relevant to the client’s needs without appearing overly rehearsed or intrusive.
Standing Out with Over-Preparedness
After gathering client-specific details, the next step is to create a highly customized proposal that exceeds expectations. This involves not only addressing the client’s stated needs but also proactively solving potential problems they might not have anticipated.
The Power of Video Proposals
One standout technique is the use of video pitches. Despite their potential, video proposals remain underutilized. Since building a relationship is key to success, video proposals provide an edge by creating a more personal and engaging interaction.
The results of this approach have been remarkable.
Crafting a Video Proposal
Video pitches should be framed like a story, with a clear narrative arc that connects emotionally with the client. Here’s a basic structure:
- Introduction
- Introduce yourself casually and authentically. For example:
- “Hi, I’m [Your Name], the lead developer at [Your Company].”
- Mention that you’re not part of a large agency and emphasize your passion for the work.
- Introduce yourself casually and authentically. For example:
- Building Comfort and Familiarity
- Approach the conversation as if you’re chatting over a casual lunch meeting.
- Reference the client’s project specifically and relate it to your own experience. Even a small connection can create rapport.
- Use the client’s own feedback language to mirror their communication style. For example:
- “I see you’re working on a [specific type of project]. That’s great because [insert personal or professional experience that relates].”
- Quote phrases directly from the client’s feedback, such as:
- “One thing we pride ourselves on is getting clients ‘unstuck.’ Sometimes, you just need reliable pros who truly understand your needs to step in and deliver exceptional work quickly.”
- Showcase Benefits
- Focus on a “soft sell” approach. Avoid discussing pricing in the initial pitch. Instead, highlight the unique value offered.
- Mention specific features that align with the client’s needs and go beyond what they expect:
- Fully responsive designs for all devices.
- Clean, custom coding with beautiful design aesthetics.
- Easy-to-manage CMS systems.
- SEO and conversion optimization.
- Use Descriptive Language
- Paint a vivid picture of the results, using words like “beautiful,” “stunning,” “responsive,” and “effortless” to evoke excitement and confidence.
The Negotiation Process and the $23,700 Results
Closing the deal begins with maintaining the same energy and personality that initially drew the client in. Once they reach out, it’s your job to address their questions or concerns while showcasing your professionalism and confidence. The key is anticipating objections and having polished responses ready. Overpreparation here isn’t just helpful; it’s essential.
Common Objections and How to Handle Them
“I see you’re new on Elance. Are you a new company?”
The best way to counter this is by framing yourself as an experienced professional venturing into new territory. Highlight your background and referral-based work. For example:
“We’re not new, but most of our business has come from corporate referrals. Recently, we decided to branch out onto online platforms like Elance. This isn’t our first rodeo.”
Follow this by referencing details from your video pitch or portfolio to remind them of your expertise and creativity.
“Why should I pick you when I can get the work outsourced for cheaper?”
Acknowledging this objection upfront builds trust. Use it as an opportunity to emphasize the value you bring beyond just completing tasks. You might say:
“You’re right; we’re not the cheapest firm. If price is your only consideration, we might not be the best fit. But here’s the difference—we excel at understanding and translating your vision into something remarkable. Working with us feels seamless, almost as if we’re an extension of your creativity. That level of understanding and artistry is difficult to achieve when you’re chasing low-cost solutions.”
Further price resistance
If clients remain hesitant, balance firmness with empathy. For instance:
“We generally stick to our pricing structure because it ensures fairness and consistency across clients. Our base price is $995, plus the 8.75% platform fee. However, I understand your constraints as a startup. Here’s what I can offer—we can break the payments into installments over 4-6 weeks to make it manageable for you.”
By standing firm on the value of your work but showing flexibility in payment terms, you demonstrate both confidence and understanding.
Maintaining Consistency in Personality
Throughout the negotiation process, it’s vital to mirror the approachable, upbeat tone from your initial video proposal. Clients are drawn to genuine, engaging personalities, so stay consistent in all your interactions.
The Results
By using these techniques and incorporating video proposals, the results were astounding. Over a month, I secured seven projects, including a $15,000 retainer for occasional work, totaling $23,700. This high success rate wasn’t accidental—it was the result of strategic preparation, meticulous tracking, and continuous refinement of my approach.
The response rate reached as high as 70%, a remarkable feat given the competitive nature of these platforms. The combination of careful client research, personalized proposals, and a confident but empathetic negotiation process made all the difference. By the end of the month, I had to stop taking on new clients because the workload became too overwhelming—a clear indicator that this strategy works.
