Crowd Sourced business models (Dronebase/Droners.io)

[TMBAerial]

OPINION/RANT: So I am finding myself a bit put off by these Uber for drones businesses like Dronebase and the new Droners.io (powered by PrecisionHawk). While I have been on 20 Dronebase missions (real estate/insurance) earning $1735 over 8 months and 2 Droners.io insurance missions earning $209.25 in the last 2 weeks and I can't really fault anyone for trying to run a business....I feel like us professional drone pilots are being taken advantage of with the amounts they pay out. Dronebase pays me $80 to go take 10 aerial photos for a Real Estate "Plan-O-matic" gig which takes all of maybe 15 mins once on site OR I get $70 for an insurance risk assessment gig that requires 60-80 photos and takes 30+ minutes on site. Why such a pay disparity? I can go to the Plan-O-Matic website and see that they charge $279 for the 10 aerial photo package and while I have no idea what Eagleview pays Dronebase (or what Allstate etc pays Eagleview) I had one instance where Droner.io sent me a "lead" for an insurance risk assessment gig starting at $100 which I declined because I was not available for the date, then the price increased to $150, which I again stated I was out of town that day...the price then increased to $250 which just made my jaw drop because of the disparity in pay out pricing. So in my mind I'm thinking ok, this is what you need to pay me for ALL risk assessment gigs going forward.....how does it go from $100 - $250 in the span of 2 hours? These pay outs are to say the least sketchy. I get that Dronebase and Droners.io have overhead costs but geez there are so many middlemen in this process (I know I know capitalism in action) between them - precisionhawk-eagleview - insurance co etc. These payouts to pilots seem paltry considering travel time, wear on equipment and all the time we put into honing our pilot skills, getting certified etc. Not to mention the training that both Dronebase & Droners.io require before you can gain missions/leads.
I will say that the gigs within an hours travel are worth it IF I get multiple gigs a week but the ones over an hour away just aren't (I've done the math) and I have expressed this to both entities that they need to increase pay outs for those. I realize there are many pilots and some may be closer and I know I can choose NOT to participate but my concern is this:

If you are a pilot for hire make sure that you truly do the math on what it is costing you to accept these missions and realize when you are actually losing money. Travel time, gas, equipment wear and tear. Your time spent gaining skills and certification are the cost of doing business but realize that what you possess is "a particular set of skills" and perishable ones at that. Don't under value yourself and in turn all of us.

I am NOT a hobbyist with a toy that is just going to fly anyway so I might as well make some cash. I am a professional with a substantial investment in time and equipment. I feel we are being strong armed out of making a living with these crowd sourced business models.

I'm curious how others feel about this.

 

[RunningWithScissors]

....how does it go from $100 - $250 in the span of 2 hours?

They're trying to run a business, they know what they can afford to pay, and they're simply bidding out the work for lowest acceptable cost. You start low and raise the price until someone bites. No mystery there. Why would anyone pay more for a service than they have to?

 

[TMBAerial]

They're trying to run a business, they know what they can afford to pay, and they're simply bidding out the work for lowest acceptable cost. You start low and raise the price until someone bites. No mystery there. Why would anyone pay more for a service than they have to?

And I do get that but it's like any other business once the industry gets flooded with "professionals" that don't understand their value and under sell their skills it affects all of us.

 

[BigAl07]

We have so many that will "take any pay" just so they can say they are PAID! I can point you to several operations that will work for pennies on a dollar. The good news is that is a self correctly problem in most cases. Those who are just looking to add a few dollars to their wallet and have no "skin in the game" will always drive the market into the ditches but that's the case with any industry.

 

[RunningWithScissors]

And I do get that but it's like any other business once the industry gets flooded with "professionals" that don't understand their value and under sell their skills it affects all of us.

Oh, I get that. Happens in every industry, but the hiring companies don't care about that as long as they get what they need at an acceptable cost and risk. Not much you can do about that except sell yourself and your services as a value-added option and distinguish yourself from the competition. Again, nobody in their right mind is going to pay more for a service or product unless they perceive there's added value for the additional cost, especially if they're running a business model. Don't know if that approach would work with the companies you contract with. Might be a talking point, though. Good luck.

 

[TMBAerial]

Yea I watched it happen in the video/film industry once everything went digital and was more affordable that literally ANYONE could buy a camera and call themselves a professional photographer/videographer and would as has been said here 'drive the market into the ditches". One difference here IMO is film/video isn't regulated. To be a legitimate commercial pilot requires proven skill. I just want to voice my concern and perhaps spread information to other pilots to make sure they don't under value themselves...do the math....are you actually losing money? Why would you consistently do that? My goal is for these companies to pay a fair wage which I feel so far they are not. That 150% increase in payout as an example I gave in my original post was a real eye opener. I don't have to do business with then, I'm just venting. On another note to have a successful drone pilot business these days you pretty much have to specialize in a particular field. BUT these "Uber" gigs can supplement your income. Thanks for the feedback.

 

[TMBAerial]

this guy feels me

 

[ravedog]

They're trying to run a business, they know what they can afford to pay, and they're simply bidding out the work for lowest acceptable cost. You start low and raise the price until someone bites. No mystery there. Why would anyone pay more for a service than they have to?

Over simplification. Silicon Valley has perfected the recipe for silo-ing a market - it's called the GIG economy. An algorithm + internet access + app + crowd = highly efficient way for the customer to crowd source the lowest price. Gone will be the personalized service. And as with any Gig-economy-in-an-app solution, it's a race to the bottom, and a race to give the job to who clicks first. Gone is rewarding anyone for length of service or even quality of work. You have to remember, that the ones paying for the gig often want max for min. With that formula, you remove all sorts of specialized personal service. You are now no different than someone who is barely competent.

There will always be a need for specialized one to one client/service provider relationships - boutique drone services, if you will - but get used to it - if Silicon Valley can think of "disrupting" a sector - they will - and as long as there's a market for it - you will see this happen again and again.

Someone mentioned Uber as the model - it is, but many other Gig apps are doing this... it's a race to independent contractor everything and shift your relationship from client to Silicon Valley. You can fight this, but the writing is on the wall...

 

[doecliff]

Yep I have heard this same thing time and time again. The easy answer is to not fly for dronebase etc. Go out and start your own business and charge what you feel is fair. Their are a lot of guys doing exactly this but the ones making big bucks are at a higher level of equipment and experience, Better than any guy with a phantom will ever be. the "uber" type drone company's are keeping the market depressed and it will self correct to a point but the fact remains that taking aerial photos etc is common and easily done by most people. Its not that technical or at least not as specialized or technical as we would like to think. It sucks because the market is crowded, theres a lot of competition so basic supply and demand keeps prices low. Not much you can do except make yourself stand out from everyone else and be better than the next guy. i would love to do this full time and make good money but the industry is still in its infancy and finding itself. Big money is already doing the big money jobs so were left local real estate shoots for peanuts.

 

[RunningWithScissors]

Not much you can do except make yourself stand out from everyone else and be better than the next guy. i would love to do this full time and make good money but the industry is still in its infancy and finding itself. Big money is already doing the big money jobs so were left local real estate shoots for peanuts.

Well said!

 

[Kennyv66]

this guy feels me

View attachment 98190

Oh they are not devaluing the business my friend they are devaluing you and I, they are still charging the clients a hefty amount of money for your services... They are the pimps and apparently we are their whores?