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Gig Economy Payments: Gig at the Speed of Light

The internet is streamlining the way the world works. The millions of gig workers out there no longer need to punch in from 9 to 5, nor do they need an office, or even need clothes in some cases!

As long as you have a smartphone, computer, and internet, you can make money in your pool in your backyard.

But there’s one aspect of the gig economy that isn't keeping up with the 'on-demand' times, and that’s getting paid. Ironically, payments can be a rigmarole when working on the internet, even though getting work can be as simple as logging on.

Here at WeGoLook, we are a leader in paying our gig workers quickly and on-time. We pay directly to our Lookers on Friday, the week after the completion of a Look. Simple as that. No waiting, no hassle.

Today we want to explore how other gig platforms stack up regarding payment speed. Let's go!

 

How to Get Paid: That is the Question!

First, the client has to deposit your payment through the online platform. Then the platform has to spend 2-5 business days figuring out what 5% (or whatever) of your payment is. The programmers for these apps and websites have to eat too!

Once they find their calculator, THEN they will give you your payment; which can be another 2-5 business days. It depends on how you set up your payment system with your platform because not everybody is up to speed with the internet.

Do you want direct deposit? Paypal deposit? Check? Or applied directly to your Costco MasterCard, because that's where the money's going anyway!

Financial institutions will see the pending deposit and freak out like, “What? Who is TaskRabbit, and why do they want to give you money? Is this one of them identity thievers? Is TaskRabbit code for drugs? Is Skynet taking over?”

And then after a few business days, they'll release the funds.

Finally! You've been paid...time for the new underwear you've always wanted!

 

Consider Your Preferred Way To Be Paid

Like any entrepreneurial person, you need to do your research before getting gigged down in a job where payment is too slow. Do your research!

For instance, while Uber or Airbnb may have minimum deposits and payment schedules, other gig websites like WeGoLook and TaskRabbit will deposit your money as soon as it's ready. In which case this will be a good time to ask yourself, “Do I want to rent out my car, or do I want to confirm a product from someone’s eBay transaction?”

Uber pays out to drivers on a weekly basis, and Airbnb hosts need to wait until 24 hours after check-in to receive funds.

If renting out a car on Turo, workers need to wait 3 business days following the completion of a rental to get paid.

With TaskRabbit, once a job is complete a Tasker sends an invoice to the client, who then has to pay. Following this, you need to wait the standard 2-3 business days for payment to show in your account.

Or, on Upwork, you have to wait until the client releases the funds - which can take weeks!

Because most gig websites include services that anybody can do without specialized training, you have a shopping mall’s worth of gigs to choose from. Just because you’ve heard a lot about Lyft or TaskRabbit doesn’t mean the nitty gritty of the platform is right for you.

 

What Works For Me?

In Troy’s experience, he learned the hard way how to treat his payments for services rendered like a regular paycheck. When he first requested funds from a platform, he marked his calendar and counted the number of business days it took for the money to reach his account.

Always count by business days because apparently bankers need holidays too.

That’s when Troy realized his pay days weren’t the days he requested funds. Those days are part of your new administrative duties to yourself…sort of like being your own boss.

Now, Troy only pay himself once a month simply to avoid the confusion of overlapping pay schedules. He’s a straightforward thinker. Next deadline is here. Money comes there. Why try to juggle more than you need to? That’s what a human resource department is for.

That said, many gig platforms provide automatic deposits, like WeGoLook, so you don't even have to worry about requesting funds, or minimum withdraw amounts.

 

It’s My Money, And I Want It Now!

Of course, sometimes planning ahead can be a huge pain. That’s not the spirit of the internet. The internet is now. The internet demands immediate satisfaction.

Thankfully, payment methods are catching with the gig economy. According to the 2017 PYMNTS Gig Economy Index, 75% of gig platforms disburse payments within the week, but to many, that’s still not fast enough.

Many gig platforms recognize the urgency for money, so they are leaving the payment schedule up to you. Stripe, the payment platforms from many gig websites, is beginning to offer immediate payments as soon as they have been processed.

However, they may charge a convenience fee, so be aware.

As an entrepreneur in the gig economy, you will learn very quickly that nothing is free in this world.

But, it sure is nice to have the freedom to work when you want, with whom you want, and on the jobs you want!

You just need to do your research on how fast you'll be paid for the work you've already completed.