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Site Wide Message: (current site time 2/9/2010 12:47:19 PM EDT)
Update for Indian coders using PayPal: As you know, PayPal recently blocked payments to India, including the
ones we sent. Our PayPal rep found a workaround that allowed us to resend them on the the 5th, and unlike previous attempts, these payments have not yet been returned to us (and we believe it worked). However we have never received a coherent answer from PayPal as to why they blocked any of the payments to start with, so this workaround may or may not work next month. If you wish to avoid the uncertainty and switch to Payoneer, they are offering a special to Indian workers. If you tell them you are from Rent a Coder and signup before February 28th, they will waive the typical $9.95 activation fee and expedite shipping for free (which will give you the card in hand in 7-10 days of approval). Click here for questions or to signup.

Software Coder Frequently Asked Questions:

1)  I want to get paid for my programming skills.  How does “Rent a Coder” help me?

     Rent a Coder allows you to cash in on your areas of expertise.  It automatically notifies you of new programs and questions in your areas of interest and expertise.  You can then bid on the ones you are interested in.

      After the customer accepts your bid, you create the program or answer the question.  When you’re finished, you are awarded the bid amount.

 2) What does this service cost?

     Rent a Coder generally charges coders a Rent a Coder Fee of 15% of the final bid. This fee covers buyer advertising, buyer credit card/PayPal processing, security verification of buyer payments, facilitation/arbitration, site costs and a small profit. The Rent a Coder Fee is reduced for different auction types and/or if the buyer uses a preferred payment method. See the Rent a Coder Fee comission schedule for complete details. Addtionally, on very small projects, there is a minimum fee of $3.

As an example: if your bid of $100 is accepted by a buyer in an open auction, you will receive $85 after completing the work:

Accepted bid price:    $100
15% Rent a Coder Fee -  $15
     -----------
Your Profit    $85

     The Rent a Coder Fee and your end profit are conveniently calculated and displayed for you whenever you confirm a bid.

3) What is a preferred payment method and how does it help me?

     When a buyer sends payment via a means that is less expensive for Rent a Coder to accept and process, Rent a Coder passes the savings on to you. When a buyer uses a bank to bank wire transfer or snail mail check to escrow all of the funds for the bid request, the winning coder receives a Rent a Coder Fee reduction of 2.5%! This can be a great way to make some extra money with very little extra effort. So if you are comfortable enough with your buyer to suggest the payment method, ask them to escrow funds via one of these means. When they do, the auction will be marked with a special icon, and you'll make more money...just like that! Note: The preferred payment discount began on 8/26/2004 1:00:00 AM.


4) How and when do I get paid?

     After the buyer accepts your bid, his or her money is held in an escrow account.  After you deliver the product and they acknowledge that they received everything (in pay for deliverables projects) or signoff on your time card (in pay for time projects), you will be credited with the escrow amount minus the Rent a Coder finders fee.  All credits accumulate in your account until the credit cutoff date of your choosing arrives (either the middle of the month, the end of the month or both).  We then pay you that total on or before the following 7th day. (Note that you can also choose to not be paid, until your account goes above some amount that you specify).   You can choose to have payments sent to you via a number of methods. Please see the Payment Options Matrix in your Seller agreement for full details on the different payment methods.

5) I am a U.S. coder. How are IRS 1099 forms handled?

     In compliance with Internal Revenue Service rules, all U.S. coders who make $600 or more in a year receive an IRS 1099 form from Rent A Coder. Per IRS rules, a copy is also sent to the IRS. For U.S. tax information on the Expert Guarantee, click here.

6) How are buyer and seller disputes handled (arbitration)?

     Most transactions are completed harmoniously, but every now and then a buyer and coder cannot come to an agreement. If this happens to you then you can simply request one of the Rent A Coder arbitrators place the bid request into arbitration to determine if the contract was met or not. During a court-like process, the arbitrator follows the rules of arbitration to determine what has and has not been delivered, and may even test the final deliverables to verify a buyer's flaw list. (For complete details, see the complete rules of arbitration in either the buyer or seller legal agreements). To ensure fairness, all parties have already agreed in advance to abide by the Rent a Coder settlement.

 7) How can I promote myself to make customers more likely to accept my bids?

     You can do this via your registration profile.  Here are some typical things you can do to get more bid acceptances:

1) resume

2) a sample of your portfolio

3) a company logo

4) a personal photograph

5) a list of your areas of expertise and certifications.


8) What protections are there for coders?

     Rent a Coder has a number of features to protect your safety. 

  
First, you can instantly check the reputation of any customer who is posting a project. You can review their ratings (from 1 to 10), read the feedback that previous programmers have left about them, as well as learn other things about them, such as their 'non-action' ratio (i.e the # of times they didn't choose a coder on the site), and other important statistics. Read this carefully before deciding whether or not to make a bid.

    Second, by the time you begin work, each customer has already pre-paid the bill for the bid request and Rent A Coder is already holding it in escrow.  This means that you don't have to worry about getting 'stiffed'!  If you complete the work as specified, you can be confident of being paid.

    Third, should you ever get into a dispute over what has been delivered with the Buyer, you can enlist the help of a 3rd party. Just place the bid into
arbitration with a Rent a Coder arbitrator. They will determine what has actually been delivered (or not) and the Buyer (and yourself) has already pre-agreed to abide by their decision.

9) How does Rent A Coder compare to other sites in the industry?

     Click here to compare us to other sites in the industry.

10) How is my financial and personal information kept safe?

   All sensitive information is protected via the highest level of SSL encryption (128 bit) to prevent it from being intercepted by unauthorized parties. Once the information arrives at our data center, it is password-protected in a datastore. The data store is additionally fortified by an ICSA Certified firewall that blocks out instrusion attempts. Additionally, we subscribe to vendor security notification lists, and install new vendor patches as promptly as possible...most often with 24 hours. Finally, 3rd party security experts go through all of our system on a routine basis looking for holes, and anything they find is promptly sealed and documented.

11) Can non-US users use PayPal?

Yes, Pay Pal works in a number of non-US countries. For a complete list, as well as information on opening up an international account, see the Pay Pal international account info page. Please note that Pay Pal will charge a money conversion fee to convert the funds from US to your local currency.
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12) I don't understand how I communicate with the buyer and/or get clarification on the specs?

   To communicate with the buyer or ask questions, simply post a comment on the bid request (a bid with a comment and no bid amount). The buyer will be emailed a link to your posting and if he or she responds, you will receive an email of their response as well. It can then continue for as long as the two of you need to communicate.

13) What is the Expert Guarantee?

The Expert Guarantee is a useful feature, if you happen to be a buyer and...
  • ...have a crucial deadline and MUST find an expert who will finish the project on time.
  • ...OR...have too many "look-alike" bidders and aren't sure how to separate the experts from the amateurs.
The Expert Guarantee is also useful, if you happen to be an expert coder, whose bids are getting crowded out by a throng of less qualified bidders.

     If you fall into any of the above categories, then the Expert Guarantee solves your problem, by quickly connecting expert coders with serious buyers. Here is how it works. At the beginning of the project, the expert coder puts their own money "on the line", to prove that they have the skill to complete the project and are also 100% committed to completing it on time. They do this by placing a deposit into escrow, which is a percentage of the bid amount (for example 10%).
  • If the expert coder completes the contract as promised (100% by the deadline), then they receive the deposit back (along with full payment for the work, as usual).
  • If the expert coder does not complete the contract, then they forfeit the deposit. The deposit is used to pay for the buyer's cancellation charge, and the remainder is donated to a non-profit charity. (The money is not kept by Rent A Coder, nor the buyer).
  • If the buyer is responsible for the project failing (for example: by pulling out prematurely, withholding important information, etc.) then the coder receives back the deposit. A coder does this via the arbitration process.
(Note: To reimburse Rent A Coder for the cost of processing the deposit, the coder is sometimes charged a small, non-refundable processing fee when making their deposit. The coder can eliminate or reduce this fee by choosing a less expensive method of payment).

     This above is merely a brief overview of the Expert Guarantee feature, and there are many additional important details that are not included here. Please DO NOT USE THIS FEATURE, until you've read and understood all of those details. Links to frequently asked questions and the detailed legal agreements are below:

Frequently Asked Questions: Buyer | Coder
Legal Agreement: Buyer | Coder


14) I am not an expert, but want to bid on a project. Should I still put down an Expert Guarantee?

   NO...do not put down a deposit because you will most likely lose it (as well as receive a poor rating). Instead bid on a project where the deadline is not as crucial (i.e there is no Expert Guarantee required). Also, make sure you are truthful to the buyer about your level of expertise. If you do this and enter arbitration, your deliverables will only be judged at performing competently at the level you claimed to be at. On the other hand, if you pretend to be more of an expert than you really are, your deliverables will be judged at that higher level...and you will most likely lose arbitration and receive a poor rating. Honesty is always the best policy.

15) How do I pay for an Expert Guarantee?

   Once the buyer accepts your bid, you have up to 3 days to pay for an Expert Guarantee. You can use the funds in your coder account (from other jobs), or you can use any of the normal site payment methods (which are currently credit card, PayPal or a check mailed via postal mail). If you choose the latter, just remember to factor in the time required to send the payment as well as the delay of any possible security verification (if you haven't preverified or completed them already). It is a good idea to pre-verify in advance to avoid an emergency sitaution.

Remember that if you do not escrow the Expert Guarantee within 3 days (or decline the project in that time...per the below), the buyer will be switched to another coder and you will receive a poor rating. To avoid this, only bid on Expert Guarantee projects if you intend to follow up on them.

16) What is the cost of using the Expert Guarantee?

Depending on the method you use to deposit funds, there may be a small processing fee to cover our expenses. Full details are here.

17) I would rather not pay a Expert Guarantee processing fee. Can I reduce or eliminate it?

Yes, you can reduce or eliminate the cost by choosing a less expensive method for us to process. Full details are here.

18) Can I "back out of" an Expert Guarantee project?

   Once you choose to escrow the Expert Guarantee, it is final...and you cannot "back out of it" if you change your mind later. So do not commit to this type of project unless you are willing to fufill the contract 100% by the deadline.

   However you do have up to 3 days from the time the buyer accepts your bid, to choose between escrowing the Expert Guarantee or declining the project. During this period, you can decline it with no penalty. A decline would simply be recorded as a neutral rating on your record. Please note that the normal 24 hour grace period for cancelling projects is not honored on these types of projects, since you actually have the previously mentioned 3 days to make a choice.

19) If I complete the project, how is the Expert Guarantee returned to me?

When you complete the project and receive the escrowed funds, the Expert Guarantee is simultaneously credited back to the deposit account in your coder account. (To see it, go to 'My coder Financials' in the left hand menu, and look at the coder deposit section.) These funds are then available to you for use on a future Expert Guarantee at any time.

If you wish to receive the funds back, then you can request a refund from finance. They will process it as follows (depending on how you paid for it):

Payment type Refund available
Credit Card/PayPal These will be refunded back to the orginal credit card or PayPal account that they came from. Please note that due to chargeback rules, these CANNOT be refunded to a different credit card or PayPal account, nor transferred to your coder credits for payout during your next chosen pay period.
Snail Mail These can be refunded back to you via snail mail (note: a $2.00 postage and handling fee applies). Or you can choose to transfer them to your coder credits for payout during the next pay period you have selected.
Bank to bank wire transfer These can be refunded back to you via bank to bank wire (note: a wire transfer fee applies--$10.00 U.S.; $20.00 International). Or you can choose to transfer them to your coder credits for payout during the next pay period you have selected.
Transfer from coder account These will be transferred back to your coder credits for payout during the next pay period you have selected.


20) Why are forfeited Expert Guarantees donated to charity?

After covering the buyer's cancellation charge, the remainder of the Expert Guarantee is donated to charity. We do not keep the funds, so as to avoid even the appearance of a conflict of interest during the arbitration process.

21) If I go into self mediation (or arbitration) can the Expert Guarantee be PARTIALLY returned to me?
The Expert Guarantee is a deposit that either is 100% refunded or forfeited. As a result it may NOT be split as a result of self mediation or arbitration.

22) How are U.S. taxes handled for the Expert Guarantee?

Disclaimer: The following is NOT guaranteed to be accurate. Neither Rent A Coder nor Exhedra are tax professionals, nor licensed to give tax advice. Do not rely on the following, but instead, consult your tax professional, as the law may be complex, subject to interpretation and/or change without notice. (This tax information applies only to U.S. coders. If you are a non-U.S. coder with tax questions, please consult your local tax professional for appropriate answers. Rent a Coder is not familiar with your country's local tax laws.)

As described above, your earnings on projects are reported to the Internal Revenue Service (I.R.S.) on IRS 1099 Form. Handling this is very straightforward. However the status of an Expert Guarantee it more ambiguous. Should it be treated like a deposit that you place in a bank? Such money is "held" by another party, but is still "your money" and thus no taxable event occurs when it changes hands. Or should it be treated as an expense when you deposit it, and earnings when you receive it back? Only your tax professional can answer this question for you. For informational purposes only, here are two possible ways to handle it. Both result in the same net tax result, but do it in different ways. The IRS may not consider one or both of the above methods proper. Again, be sure to consult with your tax pro before actually filing your taxes.

  • Option A: Bank Deposit Method
    This is the simpler of the two from an accounting perspective. If you consider Expert Guarantee deposits to be like a bank deposit (as described above), then you do not have to record when you deposited them, nor when you received them back. The only thing you would record (as expenses) would be:
    • Any Expert Guarantee deposits that you FORFEITED that year.
    • Any Expert Guarantee processing fees that you paid that year.
  • Option B: In/Out Method
    Record each Expert Guarantee deposit as an expense the year that you escrow it. If and when it's returned to you, record it as an earning in that year. It is considered "returned" when it is either refunded back to your credit card/PayPal account, etc...OR if credited to your seller credits account via a transfer.
You can see your yearly financial summary related to the above information by going to "My coder Financials" and clicking on "Show My Expert Guarantee Yearly Summary Info".

Note: The earnings on your 1099 form will NOT include any Expert Guarantee financial information...so that it is possible for you to report your taxes using either of the above methods.

23) What is ExpertRating Certification and how does it work?

Click here for full details on the ExpertRating certification program.

24) I'm getting a warning about my Internet Explorer browser being old and possibly buggy. What is this all about?

   You are running an old internet browser (Internet Explorer v5.x) that Microsoft has found a number of bugs in. These bugs will not only cause problems for you on some of the advanced features of Rent A Coder (like posting bids and attachments), but also exposes you to security risks on all sites on the Internet.
 
      Microsoft provides new and upgraded versions of its software for no charge via download from the Internet, or via CD for a nominal charge.  You are highly recommended to take advantage of all the latest bug fixes and security advances by downloading the free newest version of Internet Explorer. To learn more click here.

25) Is contact information allowed in bids? How about in projects > $500?

   To protect our fee, contact information is never allowed in any bid, no matter what the project amount. However, to facilitate the requirements gathering stage of larger projects, the site "Information Release" system allows you to release information to buyer without having to post your contact information in the bid. For complete information click here.

Copyright Information

26) Why is violating copyrights considered a fraudulent action?

     RAC takes copyright issues very seriously since the same can lead to a lawsuit against the person making use of the software that contains copyrighted material – who in this instance would be the buyer. Although copyrights may not be strictly enforced in all countries, they are in the USA. When working through RAC, both buyer and seller are working under US law and therefore the copyright laws governing such practices in the USA apply to all projects undertaken on RAC and RAC arbitrators are responsible to ensure that projects undertaken on the site do not contravene the relevant laws.

Therefore it is possible that a project can come into arbitration for something completely different and the Seller still lose the arbitration for violating copyright laws.

27) How can one violate the copyright laws on a project?

     One of the most common methods is the use of third party code and/or reuse of previously written code (for another project on or outside RAC).

28) What is third party code?

     Third party code is any code that the Seller has not written from scratch and has/had obtained from another source and includes free code, free modules, free components, open source code, licensed code obtained for a specific person, code previously used in another “work-made-for-hire-project” in which the exclusive rights were sold to another person and also code that the seller had written themselves and submitted to sharing type sites. In other words, it is any line(s) of code or components that the Seller cannot sell the “exclusive rights” of to another person. If the Seller did not write it themselves, they cannot sell it to another. If the Seller did write it themselves but has already sold it, they cannot sell it again.

29) Why can I not re-use my own code?

     The base contract in most of the projects on RAC states:
>>>3) All deliverables will be considered "work made for hire" under U.S. Copyright law. Buyer will receive exclusive and complete copyrights to all work purchased.
3b) No part of the deliverable may contain any copyright restricted 3rd party components (including GPL, GNU, Copyleft, etc.) unless all copyright ramifications are explained AND AGREED TO by the buyer on the site per the seller's Seller Legal Agreement.

This means that the Seller cannot even reuse the code that they had written earlier for some other project(s) since they had agreed to give that Buyer "exclusive" copyrights on this project. If the Seller wants to re-use their own code then this is only possible for code that had not been sold exclusively to any previous person. The Seller is required to explain to the new Buyer that the code has been used, but that no exclusive copyrights had been sold and also notify the new Buyer whether or not they would own the copyrights of this particular code.

30) What does “Work made for hire” mean??

     In simple words it means that the buyer will own “exclusive” copyrights to the work. The author/coder will not own any copyrights to the work unless something else has been negotiated prior to bid acceptance.

This does not simply mean that this work is contract work. This requirement is related to the copyrights.

For more information on copyrights please visit: http://www.copyright.gov/

31) Where can I read more on RAC’s stand on the above points?

     Information can be obtained in the Seller Contract under the headings “Additional Copyright Indemnification of Work Produced for Buyer” and “Third Party Code”. Furthermore in most projects, more information is contained in the base contract in the project, more particularly in point 3 of the legal section.

However, it should be noted that even if the Buyer removes the Legal section from the contract in the project, this does not give the Seller permission to use third party code, since this issue is also covered in the Seller contract with RAC.

Pay for time

32) What is the difference between pay for time projects and pay for deliverables projects?

Click here to read all about the differences.

33) Can I get an overview on how pay for time projects work?

Yes, click here for full details.

34) What is a manual entry?

If you forget to log your normal time via the desktop application (or wish to subtract time), you can add a manual entry. This is done on the weekly time card page. Remember that the buyer is never under any obligation to accept manual entries, so it is much safer to simply log your time via the desktop timecard application. Click here for more information on entering manual entries.



Other Information

35) Can you give me more advice?

   Yes. Check out these
additional articles for coders...













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IISPROD11 at 2/9/2010 12:47:19 PM