VWorker

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vWorker
vWorker Logo VWorkerLogo.png
vWorker Logo
Type of business Privately held company
Type of site
Employment website
Available inEnglish
Founded2001;23 years ago (2001)
Dissolved November 19, 2012;11 years ago (2012-11-19)
Headquarters Tampa, Florida
Area servedWorldwide
Founder(s) Ian Ippolito
Industry Recruitment
RegistrationRequired for posting projects and applying for jobs
Users 2.5 million
Current statusDefunct; acquired by and redirected to Freelancer.com on 19 November 2012
The vWorker Office VWorkerOffice.jpg
The vWorker Office

vWorker was an employment website that enabled companies to outsource projects and independent contractors to find work. Together with Elance, Freelancer.com, Guru.com, and Upwork, it was one of the largest global freelance marketplaces of its kind. [1] It organized and streamlined the management of outsourced employees. [2] [3] [4]

Contents

On November 19, 2012, Freelancer.com acquired vWorker "for a price in the millions" and the URL was redirected. [5] [6] [7]

History

vWorker was founded in 2001 in Tampa, Florida by Ian Ippolito under the name of Rent A Coder. [6] Ippolito had previously launched the Planet Source Code website for sharing the source code of computer programs and wanted to create a platform for intermediating paid programming projects. [8] [9]

The type of job board that he had in mind differed from a static Craigslist-type online bulletin board by being enriched with features that would exclude the possibility that employers give out advance payments for work that does not get delivered when agreed or that does not meet their requirements, and the chance that contractors deliver their work online but never hear back from employers who choose not to pay. [9] These protective features included time tracking software for pay-for-time projects, escrow accounts into which employers place the funds for a job and from which the mediating company pays contractors when the work is delivered, arbitration support for settling disputes, and a double blind rating system from previous employers and contractors for reputation management to build trust and credibility between parties who do not know each other. At the time the features were introduced, Rent A Coder was the first online marketplace to protect both employers and employees with escrowing and arbitration. [9]

vWorker added several innovative features including trialsourcing, in which a competition is used for an initial sample of work, before hiring the freelancer in a traditional outsourcing manner.

Contributing factors to its growth were improved technological infrastructures (high-speed internet, open source and rapid development tools), increased competition and demand for expertise not available internally, [10] [11] and the late-2000s financial crisis that made employers look for project-based alternatives to full-time employment, [10] [12] [13] while the smaller number of available full-time jobs in people's immediate physical location made many of them become self-employed or try freelancing to earn additional income. [11] [14]

On April 15, 2010, the site expanded to a hundred new work categories that included, in addition to programming, also graphic design, writing, personal assistance, paralegal work, and others. To reflect the wider site audience, the company changed its name to vWorker, short for "virtual worker". [15]

The company was listed on the Inc. 5000 ranking of the fastest-growing private companies in the United States for 4 consecutive years from 2007 to 2010. [16] [17]

In 2010, the site had approximately $3 million in revenue. [18]

As of 17 November 2012, 1.3 million projects had been posted on the site with users earning $139 million. [6] At that time, the site had 15 workers and $11.1 million in revenue. [19] [20] [21]

Business model

vWorker allowed employers to post projects and jobs on the website. Workers who were registered with the site competed for the opportunity to work on the projects by posting bids. Employers chose the bid they preferred and escrowed the funds with vWorker. When job were completed, employer authorized the release of the funds to the worker. [22]

Employers did not pay any fees to list their jobs and workers were not charged subscription fees. vWorker made money by charging 6.5%–9% commission fees on successfully completed hourly projects and 7.5%–15% fees on fixed price projects; the commissions included strictly enforced arbitration and payment guarantees.

According to the model described, vWorker was not a freelancing marketplace in a traditional sense where workers created works on their own initiative, and then try to market and sell them while keeping the copyright to their work. On vWorker, all projects were performed on a work for hire basis in which an employer requested a certain task to be performed according to his or her specifications and received the copyright to the work produced.

Modern freelancing marketplaces are frequently also said to be characterized by a reverse auction type bidding system [23] in which sellers compete to offer the lowest price that meets the specifications of a buyer's bid request, and prices decrease during the auction as sellers compete to offer lower bids than their competitors.

The bidding system on vWorker differed slightly from that general model. Because vWorker used closed or hidden bidding, a person who submitted a bid did not know the prices that other bidders quoted and could not modify his or her own bid accordingly, so there was no necessary decrease in bid amounts during the auction. It also turned out that the lowest bid on vWorker was chosen only by 20% of the employers and that most buyers tended to choose the bid that was submitted last. [23]

Criticisms

In 2004, workers in Livingston County, New York accidentally released private information about low-income and foster care families on the vWorker website while posting a project. [24]

vWorker was also sometimes used by students to hire people to do their homework. [25]

vWorker's solution was to strengthen its copyright and intellectual property complaint system so that it can be used by site users and members of the public for removing sensitive materials. Professors could use the same system to remove projects for homework because the professor who created the homework owns the copyright.

See also

Related Research Articles

A work made for hire, in copyright law in the United States, is a work that is subject to copyright and is created by employees as part of their job or some limited types of works for which all parties agree in writing to the WFH designation. Work for hire is a statutorily defined term and so a work for hire is not created merely because parties to an agreement state that the work is a work for hire. It is an exception to the general rule that the person who actually creates a work is the legally-recognized author of that work. In the United States and certain other copyright jurisdictions, if a work is "made for hire," the employer, not the employee, is considered the legal author. In some countries, this is known as corporate authorship. The entity serving as an employer may be a corporation or other legal entity, an organization, or an individual.

Freelance, freelancer, or freelance worker, are terms commonly used for a person who is self-employed and not necessarily committed to a particular employer long-term. Freelance workers are sometimes represented by a company or a temporary agency that resells freelance labor to clients; others work independently or use professional associations or websites to get work.

A subcontractor is a person or business that undertakes to perform part or all of the obligations of another's contract.

An independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement. Unlike employees, independent contractors do not work regularly for an employer but work as required, when they may be subject to law of agency. Independent contractors are usually paid on a freelance basis. Contractors often work through a limited company or franchise, which they themselves own, or may work through an umbrella company.

A general contractor, main contractor, prime contractor, builder (UK/AUS), or contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of a building project. In the USA a builder may be a sole proprietor managing a project and performing labor or carpentry work, have a small staff, or may be a very large company managing billion dollar projects. Some builders build new homes, some are remodelers, some are developers.

Construction management (CM) aims to control the quality of a project's scope, time, and cost to maximize the project owner's satisfaction. It uses project management techniques and software to oversee the planning, design, construction and closeout of a construction project safely, on time, on budget and within specifications.

Guru.com is a freelance marketplace. It allows companies to find freelance workers for commissioned work. Founded in 1998 and headquartered in Pittsburgh, Guru was initially known as eMoonlighter.com.

Upwork Global Inc., formerly Elance-oDesk, is an American freelancing platform headquartered in Santa Clara and San Francisco, California. The company was formed in 2013 as Elance-oDesk, after the merger of Elance Inc. and oDesk Corp. The merged company was subsequently rebranded to Upwork in 2015.

A vendor management system (VMS) is an Internet-enabled, often Web-based application that acts as a mechanism for business to manage and procure staffing services – temporary, and, in some cases, permanent placement services – as well as outside contract or contingent labor. Typical features of a VMS application include order distribution, consolidated billing and significant enhancements in reporting capability that outperforms manual systems and processes.

Freelancer is an Australian freelance marketplace website, which allows potential employers to post jobs that freelancers can then bid to complete. Founded in 2009, its headquarters is located in Sydney, Australia, though it also has offices in Vancouver, London, Buenos Aires, Manila, and Jakarta.

E-lancing, also known as e-labour, is the practice of taking freelancing work through online job offers. E-lancing websites or platforms operate as hubs where employers place tasks, which freelancers from around the world bid for. Some e-lancing websites act as intermediaries for payment, paying the freelancer directly after work is completed, to mitigate the risk of non-payment. Employers posting work on these websites set the price they are willing to pay for the task proposed.

Shiply is a UK-based limited company providing an internet marketplace where transport service requesters may list items they need to move, and where providers of transport services can bid in a reverse auction format. The website attracts a variety of transport providers, including vehicle shipping companies, household movers, general freight transporters, and other types of logisitcs companies that essentially look for jobs via the Shiply Load board, where users (customers) are posting moving requests that the providers can then bid on. The customer can then sift through the prospective bids on their posted request, and select a provider they are comfortable with. Shiply got it's start back in 2008 in the United Kingdom, but eventually expanded to several additional countries including the USA and Canada.

Fiverr is an Israeli multinational online marketplace for freelance services. Fiverr's platform connects freelancers (sellers) to people or businesses looking to hire (buyers), encouraging a wide range of services in a free market. Fiverr takes its name from the $5 asking price attached to all tasks when the company was founded in 2010 in Tel Aviv, though many sellers now charge more.

Microwork is a series of many small tasks which together comprise a large unified project, and it is completed by many people over the Internet. Microwork is considered the smallest unit of work in a virtual assembly line. It is most often used to describe tasks for which no efficient algorithm has been devised, and require human intelligence to complete reliably. The term was developed in 2008 by Leila Chirayath Janah of Samasource.

Voices is a job search website focusing on voice actors and voice actor employers, headquartered in London, Ontario. The company has a user base of more than 500,000 registered individuals and companies, and is reportedly the largest business of its kind. In 2017, Voices.com had over 100 employees with clients and voice talent in 160 countries.

A micro job is a temporary, task-type job of all types, often booked through the Internet. The practice of working micro jobs is called microemployment, and the person who does micro jobs is called a microemployee. Work may included online or in-person jobs, such as writing blogs, virtual assistant, handyman, nanny, website design, dog boarding or errands, etc. The income varies depending on the job and the fee charged by the micro jobs website.

<span class="mw-page-title-main">Ian Ippolito</span>

Ian Ippolito is an American serial entrepreneur and the founder of numerous tech companies. He is best known as the founder of vWorker, an online portal for outsourcing computer virtual work projects. vWorker was purchased by Freelancer.com in 2013 for an undisclosed price in the millions of dollars. Ippolito is also the founder of the first open-source website and a financial investment site called The Real Estate Crowdfunding Review. As an entrepreneur, he has been featured in and provided commentary for numerous publications and media outlets including Forbes, Entrepreneur, The Wall Street Journal, as well as Fox and CBS News.

Projects.co.id is an Indonesian freelance and digital goods marketplace which allows project owners and employers to meet potential freelancers. Founded in 2014, Projects.co.id provides a platform for job hunter and digital product seller in the e-commerce platform in a variety of categories.

<span class="mw-page-title-main">Nomad Health</span>

Nomad Health is an online marketplace that directly connects physicians, nurses, and medical facilities for healthcare jobs, without the involvement of third party employment agencies. Nomad Health is based in New York City.

California Assembly Bill 5 or AB 5 is a state statute that expands a landmark Supreme Court of California case from 2018, Dynamex Operations West, Inc. v. Superior Court ("Dynamex"). In that case, the court held that most wage-earning workers are employees and ought to be classified as such, and that the burden of proof for classifying individuals as independent contractors belongs to the hiring entity. AB 5 extends that decision to all workers. It entitles them to be classified as employees with the usual labor protections, such as minimum wage laws, sick leave, and unemployment and workers' compensation benefits, which do not apply to independent contractors. Concerns over employee misclassification, especially in the gig economy, drove support for the bill, but it remains divisive.

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