I found Elance to be a competent and the best outsourcing website to give me an exposure of 40 international freelance projects. From September 2007-December 2008, the buyers used to be very good and even used to pay without being asked for. I got almost Rs 75000/- for the first 20 projects. I have also been a buyer and am very satisfied with the old providers.
But afterward, when they changed their bidding structure, there are bitter experiences only.
Once the project is awarded and the buyer delays/refuses to fund the escrow, he is free to give any type of alibi and all the documentation fee to the tune of 8.75% are landed on the provider.
They should refund the number of bids if the buyer cancels the project or declines the offer. I have at least 50 such cases and not even a single bid was refunded. I think majority of buyers and providers out there are using elance to get connected over a petty sum and then deal directly avoid making payment to elance. I even reported their security and reputation flaws but they were thankless and even deleted my report in the forum. They even refunded the money I deserved back to the buyer.
Now, they are just concerned about absorbing as many providers as they can and since it is an internet industry, they should do it. But they should not forget their old providers too who are their backbone. I have seen many talented providers are actually leaving elance and going to other sites.
Elance should take action against those buyers who are contacting the
providers directly. It should not disclose contact details and make it
mandatory for all the conversation via PMB.