I am actually an Elance veteran and have done well on Elance and I really think that your client's agreement could work but Elance does charge for their services (I think 8.75% at this point). However, there are some perks to using Elance. One you can establish a reputtion there and receive positive feedback from your client, you'll be able to snag other writing jobs on Elance which could positively impact your income also.
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