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You’ll find these four models: Traditional recruiters. Focused on f/t placement, paid by employer, usually geographically specialized. Barrier to entry low for
by gregjor 5y ago
You’ll find these four models:
Traditional recruiters. Focused on f/t placement, paid by employer, usually geographically specialized. Barrier to entry low for this career so finding a great recruiter takes time and effort. Some recruiters will do gig/freelance placement but generally that’s not their strength.
Outsourcing firms, development shops, sometimes called “body shops.” Have their own pool of talent on their payroll. Fill seats at companies and/or take on projects. Often taking up to 50% of gross. May specialize geographically or in specific verticals, i.e. government jobs.
Online gig services, e.g. Upwork, Fiverr. More or less a self-matching service with an auction model, like eBay for gigs and talent. Main value-add is breadth of gigs and talent and handling at least some of the billing/payment process. Rates often far below local market because of global competition.
Agents, e.g. 10X Management. Do not employ talent themselves, but represent freelancers/consultants like an entertainment or sports agent. Responsible for marketing, contract/legal, billing/payment, and dealing with conflict. Take a percentage of gross.
Toptal has some attributes of the agent model and some attributes of the outsourcing firm model — I’d call them a hybrid.
Disclaimer: I have tried all of these models during my career. 10X Management has represented me since 2013.
- mittermayr 5y agoThanks for a lot for the insights on this, second mention of 10X, seems interesting indeed and pretty much what I had in mind originally.
- gregjor 5y agoI have some free (no ads, popups, or affiliate links) articles about freelancing on my web site typicalprogrammer.com
- Nextgrid 5y agoSince you’re close to 10X Management, do you know (or could ask) whether they’re doing anything in the UK/EU market? Last time I checked them out I got the impression it was primarily US-only.
- gregjor 5y agoI believe 10X has customers internationally. I worked on a gig for a company in Shanghai through 10X. In my experience US tech jobs pay more than almost anywhere else, and demand in the US exceeds supply of talent, so US-based companies offering consulting and outsourcing may not have much incentive to look for customers in the UK/EU because rates/salaries are significantly lower there. Tax and labor law issues may present problems in some cases too, I don’t know.