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I use a guy who works from home. I've been pretty lucky, he's been very good. I think he appreciates what I pay and my timeliness of paying, so he works extra hard. He does have a fair amount of Internet problems and electricity blackouts, maybe once a week he's down for 2-4 normal work hours, but he always makes up the time... I really can't imagine everyone would do that.
My guess is its very hit or miss.
Another problem you may run into is computer quality. Meaning, a computer in the Philippines will still run $6-700USD. Thats close to 6 weeks salary for a decent paid Filipino. Odds are their home computer is sub-standard and they'll need something better. I had this problem with my guy, but I trusted him and gave a loan. Basically I took $50 out of his pay every month for a year, it worked out fine.
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