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> The other reason why I wouldn't touch a site like Gigster is that those sites almost always turn into a race to the bottom for low-value jobs for the most difficult clients.

I've never actually taken a contract from one of these sites, but having looked at them before, this has been my observation every time I've considered it. Spend 20 minutes browsing posted contracts, getting increasingly frustrated, and then just write off the entire site.

The thing is, these sites aren't well-suited for creating contract relationships. To make money, they want to keep you at the site. Plus all of the commissions, etc. It's just like Homejoy, etc -- the value add is in the initial intro, but they're trying to make money off of you perpetually. It's not sustainable and it's never that successful in the first place.

Word to the wise: if you want to build a site that does something like this -- any potentially long-term arrangement where money is being exchanged for services via contract -- start by building a cross between Craigslist and Yelp, and then, once you're established as a good way for clients to find contractors, offer them some kind of long-term value add (automatic invoicing, timekeeping, whatever). Monetize the latter, but keep the former free.



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