While you were clear to point out the ‘selection bias’ in this study, I think you are still understating the obvious inherent conflict of interest here. Elance is in the business of promoting both freelancing and the use of freelancing marketplaces, and the study is designed to do just that. It also has a small sample size (just 350 people). Simply put, I think this study has about all the impact as one put out by McDonald’s telling us that young people like to eat burgers and fries.

Even leaving that aside, I have to wonder just how many of the responses are based on the reality of freelancing as opposed to the common misconceptions about it. Many people view freelancing positively due to romantic stereotypes that are portrayed in the media, and ironically enough, by the freelancing sites themselves. Elance has frequently been criticized for reinforcing stereotypes of freelancers as being slothful free spirits who live a life of luxury, working in their pajamas or in cafes for a couple of hours a day. The truth is that the few online freelancers who are able to really make a living for themselves are hard-working professionals, many of whom only are where they are because of years of experience gained both freelancing and at full-time positions.

With regard to your comment to John, you may not realize the extent to which many freelancers replace the risk of being fired from a job with the risk of losing their ranking or even right to use a freelancing site. One bad review from a client can have a dramatic impact on a freelancer’s ability to secure future work. The sites themselves can and do change their ranking systems and other elements of their terms of service at any time, for any reason, which can have a deleterious effect on a freelancer’s career if he or she is too reliant on them. Marketplaces also have the power to ban people from their sites for pretty much any reason they wish, which can result in years of hard work building up a reputation profile being completely wasted.

Best regards,

Charles Kozierok
Author / Publisher, The Online Freelancing Guide
http://www.freelancingguide.net