One of my favourite websites is Digg.com, and I was fascinated by the fact that his founder developed it for 200 bucks, in elance.com. Amazing. I think this shows how brilliant was that idea. I myself used getafreelancer.com, and was extremely satisfied. The benefits are that it’s cheap and quick (to find developers). The drawbacks are the distance between you and your developers, and the exposure (of your idea).
What about the fact that you are hiring an underpaid poor guy from the 3rd world? Just because western nations abuse the 3rd world and keep them poor, doesn’t mean we have to do the same.
Don’t you do the opposite when you pay this guy?
He earns more than he will on his local market, you get to help the 3rd world and your job is done.
Isn’t it of the best interest for everyone?