Because it works somewhat like this:
Work is posted.
Work post appears on line.
[Imagine 'work poster' spending time and 'money' posting].
Bids are made.
Bids appear to WP.
[WP too needs to 'imagine' time and 'money' spent in tendering].
So now WP and Freelancer have 'time' and 'money' as mutual capital.
So WP and F. play a game = the one who succeeds in winning now has 'T' and 'C' as a surplus -
This plays out according to this formula:
nP-nB = xT.C.
nB-nP = yC.T.
Winner takes it All, but Loser too l-earns to Fall.
I think that Suleimaan is saying that clients can drain freelancers time, and freelancers can drain clients time through some sort of mathmatical tug-of-war. Since time = money, someone is losing capital (time or money) in the exchange.
So a client can spend very little time writing a job post, and very little time vetting talent, they are saving TC (time capital). By doing so, it requires many freelancers to spend more time on writing proposals, and by putting the burden of creating the project specs on the freelancer. The client saves time and money, and the freelancer loses time and money.
The end product is the same, and the fixed price for the project is the same. The difference is who spends more time on the project, the client or the freelancer.
Also consider that a client may spend 10 minutes writing a job posting. Then if it get's 20 bids, and each freelancer spent an average of 10 minutes writing, then freelancers invested a total of about ~3.4hours of time bidding on a small project a client spent 10 minutes creating. On top of that, small projects have small budgets and may not even be offering $$$ to cover the 3.4 hours freelancers spent on bidding.
As far as I can tell it's:
T = Time
C = Capital
WP = Work Poster
F = Freelancer
nB = Number of Bids
nP = Number of Posts
x = some value of Time
y = some value of Capital
Maybe I'm wrong but it's fun to guess!
Not to mention that his math doesn't really make sense... I was trying to interpret his ramblings into something understandable.
It's like he discovered utility and the cost of lost opportunity due to low quality clients. He's pointing out that lots of low priced jobs is beneficial to the client, and detremental to the freelancer.
Some years ago, I had a kitchen installed. I loved it - all the mod cons - very pretty and minimalist - so minimalist it took some time to figure out the inbuilt hotplate, and two years to figure out the oven, which doesn't even have icons.
In the book of words there is an equation (I might post it for Voros to figure out). Trial and error and flashing lights (provided there is not an electricity cut) gave me clues as to temperature and length of cooking time.
I used to be rather a good cook. These days, my efforts are limited.
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