Talent for sale on eBay

The partnership calls for links between the two sites in the first phase, and the companies are investigating additional strategies to work together, says Maria Miller, vice president of marketing for eLance. She says eBay was interested in expanding its offerings and was attracted to eLance's 250,000 registered users.

The two companies operate in fundamentally different ways. eBay offerings are seller-driven and go to the highest bidder. The eLance model is buyer- driven: Businesses post a need, and providers bid against each other in an open format, which usually drives the price down. However, eLance professionals can also post online profiles for buyers who prefer to choose based on experience.

"In a product auction, the highest bid wins automatically. Providing freelance services is a different model," Miller explains. "Buyers choose proposals based on a combination of credentials, qualifications, and cost. The lowest or highest price is almost irrelevant."

eLance also features a rating exchange in which companies can share feedback about service providers they have hired. Service providers can also post their experience with clients they've landed through eLance. Both ratings stay online for six months.