How we run our business on the cheap San Francisco Entrepreneur Group Gary Swart, CEO www.odesk.com [email_address] April 2009

Agenda What is oDesk? What makes oDesk unique? What’s different today? 5 ways to run your business on the cheap Use free or low cost tools Avoid high cost marketing Leverage the extended enterprise Here the right resources, the right way Prioritize ruthlessly

What is oDesk?

What makes oDesk unique?

What’s different today?

5 ways to run your business on the cheap

Use free or low cost tools

Avoid high cost marketing

Leverage the extended enterprise

Here the right resources, the right way

Prioritize ruthlessly

What is oDesk? oDesk is the marketplace for online workteams, with the best business model for both buyers and providers For Buyers: Guaranteed work Every hour billed is an hour worked For Providers: Guaranteed payment Every hour worked is an hour paid Background 25 Employees, 43 remote oDesk consultants HQ in Menlo Park, CA Funded by Benchmark, Sigma, Globespan, & DAG raised $29MM to date ($16MM in the bank) Started in 2004 Where are we today? Over 237,000 tested and rated knowledge workers representing hundreds of technical disciplines & skills Both individual freelancers and development companies from 150+ countries Buyers post both Time-Based assignments and Fixed Price Jobs Buyers pay for verified hours worked or for milestones delivered Avg. time to hire is < 4 days; Avg. # candidates per job is > 20 Over $68MM in gross services performed….

oDesk is the marketplace for online workteams, with the best business model for both buyers and providers

For Buyers: Guaranteed work

Every hour billed is an hour worked

For Providers: Guaranteed payment

Every hour worked is an hour paid

Background

25 Employees, 43 remote oDesk consultants

HQ in Menlo Park, CA

Funded by Benchmark, Sigma, Globespan, & DAG raised $29MM to date ($16MM in the bank)

Started in 2004

Where are we today?

Over 237,000 tested and rated knowledge workers representing hundreds of technical disciplines & skills

Both individual freelancers and development companies from 150+ countries

Buyers post both Time-Based assignments and Fixed Price Jobs

Buyers pay for verified hours worked or for milestones delivered

Avg. time to hire is < 4 days; Avg. # candidates per job is > 20

What is oDesk? Average Job Size of $4,227 Work categories include software development , web development , graphic design , data entry and writing Summary statistics available in our oConomy Hire, Manage, and Pay contractors as if they were in your own office Do more with less Access a global client base and talent pool Be Agile See http:// www.odesk.com/community/oConomy

Average Job Size of $4,227

Work categories include software development , web development , graphic design , data entry and writing

Summary statistics available in our oConomy

Hire, Manage, and Pay contractors as if they were in your own office

Do more with less

Access a global client base and talent pool

Be Agile

What makes oDesk unique? See work as it is being done Pay only for verified work done on your project Unprecedented real-time visibility across the team Activity Logging shows keyboard strokes and mouse events in each random screen shot interval “ oDesk is a great way to make it feel like an employee who is across an ocean is working inside your local office” - oDesk Buyer Guaranteed Work. Guaranteed Payment.

Hierarchy Friction Bureaucracy Inflexibility IT-driven technology / Lack of user control Top down Centralized Teams are in one building / one time zone Silos and boundaries Need to know Information systems are structured and dictated Taxonomies Overly complex Closed/ proprietary standards Scheduled Long time-to-market cycles What is different today? Flat Organization Ease of Organization Flow Agility Flexibility User-driven technology Bottom up Distributed Teams are global Fuzzy boundaries, open borders Transparency Information systems are emergent Folksonomies Simple Open On Demand Short time-to-market cycles Enterprise 1.0 Enterprise 2.0

Hierarchy

Friction

Bureaucracy

Inflexibility

IT-driven technology / Lack of user control

Top down

Centralized

Teams are in one building / one time zone

Silos and boundaries

Need to know

Information systems are structured and dictated

Taxonomies

Overly complex

Closed/ proprietary standards

Scheduled

Long time-to-market cycles

Flat Organization

Ease of Organization Flow

Agility

Flexibility

User-driven technology

Bottom up

Distributed

Teams are global

Fuzzy boundaries, open borders

Transparency

Information systems are emergent

Folksonomies

Simple

Open

On Demand

Short time-to-market cycles

5 ways we run our business on the cheap

1. Use free or low cost tools We use it for… We like it because… Mail, Docs, Wiki WYSIWYG Blogs Communication Hiring On-demand, Quality Community Slick, Free Collaboration Scalable, Free Voice, chat, webcasts Scalable, Free Accounting WYSIWIG CRM Customizable Dashboards RSS Real-time Updates Support Web-based, Free

2. Avoid high-cost marketing Harvest demand before creating demand Search – SEO and SEM SMM (blogging, Twitter, Facebook) Make your product easy to buy Leverage your customers/users to get the word out Share whenever you can - e.g., oConomy, blog, speak at events ;-)

Harvest demand before creating demand

Search – SEO and SEM

SMM (blogging, Twitter, Facebook)

Make your product easy to buy

Leverage your customers/users to get the word out

Share whenever you can - e.g., oConomy, blog, speak at events ;-)

3. Leverage the “extended enterprise” Product roadmap informed by user input User support and training provided in user forums Enhanced functionality developed by third-parties using your APIs Quick growth and scaling of an eco-system across multiple geographies by Partners/Distributors

Product roadmap informed by user input

User support and training provided in user forums

Enhanced functionality developed by third-parties using your APIs

Quick growth and scaling of an eco-system across multiple geographies by Partners/Distributors

4. Hire the right resources, the right way See http:// www.odesk.com/w/case_study_odesk

5. Prioritize ruthlessly Test and learn Cut what’s not working Be the best solution to at least one problem

Test and learn

Cut what’s not working

Be the best solution to at least one problem

Thank you! Gary Swart, CEO www.odesk.com [email_address]