social enterprise conference 2012 matt barrie

Matt BarrieCEO & ChairmanFreelancer.comemail:

matt@freelancer.comtwitter: @freelancer

TheNext Big Thing

You are here

70% The other

of the world’s

population are

about to join

the Internet.

Source: Internet World Stats & United Nation

It’s 2011.

World Population

6,970,000,000

Number on the Internet

2,080,000,000 (30.0%)

North America266 million users77.4% penetration

North America266 million users77.4% penetration

Europe475 million users58.4% penetration

Europe475 million users58.4% penetration

Latin America204m (of 592)34.5% penetration

Latin America204m (of 592)34.5% penetration

Africa110m (of 1014m)10.9% penetration

Africa110m (of 1014m)10.9% penetration

Asia825m (of 3834m)21.5% penetration

Asia825m (of 3834m)21.5% penetration

Worldwide Internet Penetration 2011

146%

179%

352%

445%

621%

1033%

1825%

2357%

0% 500% 1000% 1500% 2000% 2500%

North America

Oceania / Australia

Europe

World, Avg

Asia

Latin America / Caribbean

Middle East

Africa

The other 5,000,000,000 people are coming)

The other 5,000,000,000 people are coming)

Worldwide Internet Growth 2000-2010

81% of Users of top sites outside USA

More Chinese in 3y than the whole of USA

The other 5 billion

are on an average wage

of $10 or less per day

The first thing they are

doing is looking to raise

their economic status.

And it’s never been easier

to learn a trade.

Free Stanford

Course in AI.

Over 170,000

enrolled, 8x the

total number of

students at

Stanford.

Free Stanford

Course in AI.

Over 170,000

enrolled, 8x the

total number of

students at

Stanford.

Simultaneously

every industry is now

digitised.

The World is Flat.

The World is Flat.

The World is Flat.

Today Tomorrow

Goods Services

What does all this mean?

What does this all mean?

The World is Flat.

The World is Flat

We are the global labor exchange

Empowering Entrepreneurs. Globally.

In the west, we provide the

productivity tool to assist

those with a spark of an

idea turn it into reality.

In emerging economies, we

empower entrepreneurs to

start service organisations.

➔ We provide the labour force that will enable the western world to power into a digital economy.

➔ We deliver jobs to emerging economies, in technical areas, that are desperately needed, at fantastic rates of pay.

➔ And we can do so delivering serendipity to both parties due to the huge wage gap.

Freelancer.com

What we do

➔ Started in 2004

➔ World’s largest outsourcing marketplace

➔ ~ 3,500,000 users from >234 countries/regions

➔ ~ 1,600,000 posted projects to date

➔ ~ $130,000,000 spent through site to date,

roughly equivalent to saving western businesses $500m to $1b in costs.. in $200 projects..

➔ In top 300 websites globally (Alexa)

Freelancer.com

Freelancer Globally

Top 300 websites worldwide.

Up from 5,000 two years ago.

Top 300 websites worldwide.

Up from 5,000 two years ago.

Peaked in

top 200!

Peaked in

top 200!

Below:Amazon.comApple.comMSN.comBing.comBBCEtc..

Freelancer.com is huge

in the developing

world.

Now ranks 21st in

Bangladesh

(155m population)

The Online Economy

Freelancer.com

“If I just have the spark of an idea now, I can get a designer in Taiwan to design it. I can get a factory in China to produce a prototype. I can get a factory in Vietnam to mass manufacture it. I can use Amazon.com to handle fulfilment. I can use freelancer.com to find someone to do my logo and manage my backroom. And I can do all this at incredibly low prices. The one thing that is not a commodity and never will be is that spark of an idea.”

“America’s Dream Team”(Tom Friedman)New York Times Editorial 2010

➔ As simple as eBay

➔ Post a Project (FREE!)

➔ Review bids (60-80 on average), ask for samples

➔ Pick one or more Freelancers

➔ Set up Milestone Payments

➔ Only release funds when the work completes are you are 100% happy!

Freelancer.com

How it works

Can see performance, skill sets.

Instant hire!

Can see complete history

of work, payments,

feedback & rating

Certifications

Small Business Owner

Want better

packaging

Need a

Website

Need some new

brochures

Need to find a

manufacturer

for new productNeed to

redesign my

showroom

Sell more!

Things I bet you didn’t

know you could outsource

280 choices for $290!

280 choices for $290!

Design a LogoDesign a Logo

iPhone App

.. for Manga

iPhone App

.. for Manga

18 Bids18 BidsUS $1300US $1300

36 Bids36 BidsUS $268US $268

Design a fully

functional Dune

Buggy I can drive at

30km / hour

Design a fully

functional Dune

Buggy I can drive at

30km / hour

US $270US $270

Wifi powered lawn

sprinkler that

accepts changes

from & reports to

Twitter / Android /

iPhone / Web

Wifi powered lawn

sprinkler that

accepts changes

from & reports to

Twitter / Android /

iPhone / Web

US $270US $270

Marketer for an

iPhone application

in Korea!

Marketer for an

iPhone application

in Korea!

39 Bids39 BidsUS $176US $176

Architectural

drafting of a

carwash and cafe

Architectural

drafting of a

carwash and cafe

13 Bids13 BidsUS $251US $251

Mathematical

modelling for

chemical engineering

Mathematical

modelling for

chemical engineering

Underpants

manufacturer for kids

with autism

Underpants

manufacturer for kids

with autism

Compose a rap song

to help Chinese

students learn

English

Compose a rap song

to help Chinese

students learn

English

3 Bids3 BidsUS $157US $157

US R&D firm needing

help with hydrogen

engine design

US R&D firm needing

help with hydrogen

engine design

14 Bids14 BidsUS $484US $484

Pakista

n

Pakista

n

Banglades

h

Banglades

h

Pakista

n

Pakista

n

German

y

German

y

IndiaIndia

Banglades

h

Banglades

h

UK degree, 2yr

exp.

UK degree, 2yr

exp.

Uni studentUni student

Indian companyIndian company

Chemical engineerChemical engineer

Who is bidding?

2660 Suggestions

!

2660 Suggestions

!

Lets have some fun..Lets have some fun..

What happens when we pump $25,000 into this?

What happens when we pump $25,000 into this?

441 Entries441 Entries

What does this all of this mean?

It’s never been easier to

assemble an army to help you.

What does this all of this mean?

It’s never been a better time to

start a company.

What does this all of this mean?

Every business today is an

Internet business.

What does this all of this mean?

All this stuff is free.

Virtualised computer..

Only this computer is a

hotel reservation system!

• PBX

• Hotel Reservations

• Wifi

• Minibar

• Movies

Virtualised computer..

Only this computer is a

hotel reservation system!

• PBX

• Hotel Reservations

• Wifi

• Minibar

• Movies

Free!Free!

What does this all of this mean?

All this stuff is cheap.

What does this all of this mean?

All this stuff is cheap.

Even if none of this stuff

makes sense to you,

freelancers can put it

together for you.. cheap!

Even if none of this stuff

makes sense to you,

freelancers can put it

together for you.. cheap!

What does this all of this mean?

You can start a company off a credit card

What does this all of this mean?

A new class of Venture Capital has arisen

What does this all of this mean?

Digg.com

• Outsourced original software for $60• $6000 to get site all up and running• $1200 for domain and 12 months hosting

Offer from Google for $200 million 4 years later

What does this all of this mean?

PCTools / Spyware Doctor

• Outsourced original software for $1000• Bootstrapped to profitability• Raised financing only at very late stage

Sold to Symantec for $300 million 6 years later.

What does this all of this mean?

RetailMeNot.com

• Built with $30 in one weekend• Bootstrapped to $30m in revenues

Sold to WhaleShark for $90 million 5 years later.

What does this all of this mean?

Omnisio

• Initially funded $20,000 by Y Combinator• No further financing

Sold to YouTube for $15 million 4 months later.

• 350m users in 6 years

• 800m users in 8 years

• 100m users in 45 days?!?

Internet Scale

Internet Scale Growth

2% of.. The Internet.

Alexa rank #16 in the

US

2% of.. The Internet.

Alexa rank #16 in the

US

• Founded in July 2007• Financed in July 2008• Makes silly flash games

• 2011 revenue $1.2 billion

• Founded Nov 2008• 2011 revenue $1.6 billion• Spams you deals of the day

• WSJ “made $1 billion in sales faster than any other business, ever”

Internet Scale Revenue

Years to reach $1 billion in revenue

What does this all of this mean?

The capital efficiency and

growth rates of Internet

business models are

unprecedented.. in history.

What does this all of this mean?

How would your business

change if you had access to

virtually unlimited labor at next

to no cost?

What does this all of this mean?

So what are you waiting for?

What does this all of this mean?

“Freelancer.com is the best thing ever happened in my life.. thanks to this website I am able to pay my school fees in time and not only that, I am paying school fees for my little sibling in primary school. Africa is a third world country (many are below poverty line). I can say my life has

changed totally” – Duncan Mwirigi, Kenya

“I can tell you loud that you saved my life: I was unemployed 5 years ago, too old to get a good job but too young to retire ... You could return a smile to my old/young

face” - Lautaro Lacurcia, Uruguay

Thank you

Tips on Getting the Best Results

➔ Open your mind. You can outsource anything!

➔ The better you specify the project, the better the outcome you will have.

➔ Don’t always go for the cheapest. Make sure they can do the job first.

➔ Ask for previous work, a portfolio or to do a paid/unpaid trial on some sample items.

➔ Pick people with a high reputation & good feedback.

➔ Don’t pay upfront. Use Milestone Payments.