I just generally ask people I know and also use forums such as this. Basically giving details of the project/work, and then get people to submit for it.
Plus since most people I know and deal with are in my locale (Ireland), it means I can physically chase them down instead of having to class them as a "bad experience", if they dont deliver
The first time was a Brazilian coder who created a custom database driven backend for my e-commerce site. He was very reasonable and I got a very good site at a very good price.
The second time was just a couple of months ago on my latest site and chose an Irish programmer, who sorted the deisgn as well through a friend of his. Top notch communication and again a good price.
Both projects went well, but always read peoples feedback, the friend that recommended them to me had one go bad, where the programmer couldn't do what he said he could and them harrased my friend on MSN, because he only rated him 5 stars (out of ten).
When I used freelancer, was usually for small jobs that I didn't have the time and weren't that important either. Big things that requires security, and are more complicated, I prefer to do it myself. This way if anything goes wrong I know where to look. The reason I don't use ready made packages either like Joomla, etc.
I prefer to know how things work and why it doesn't. But that's just me.
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