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Source: https://writers.stackexchange.com/a/25623
License name: CC BY-SA 3.0
License URL: https://creativecommons.org/licenses/by-sa/3.0/

Source: https://writers.stackexchange.com/a/25623
License name: CC BY-SA 3.0
License URL: https://creativecommons.org/licenses/by-sa/3.0/

First, you need to decide if you are looking for someone to fix your story, someone to fix your language, or someone to fix your typos. These are very different things requiring very different skills, and probably very different levels of compensation.

Second, you need to understand where people advertising themselves as editors come from. I know of four paths, but there may be more.

1. Freelance writers and aspiring novelists who can't make a living at it who hang out a shingle as an editor. They may offer any of the above services, but there is no reason to think most of these people are any good. They might be, but it is not the thing they really want to be doing. If their website also lists a number of self published novels, then this is who you are dealing with. Unless they can give you a reference to a client who went on to successful publication after using their services, beware. A local critique group is a good place to find and evaluate these people. Almost every critique group has one, usually the founder/leader of the group. If you find their critiques valuable, that is an indication of what kind of editor they would be.

2. Professional editors. These people never wanted to be writers, they wanted to be editors. They probably belong to an editors association and they can usually show you a list of professional clients (that is, commercial or government clients, rather than aspiring self published novelists). They should be pretty reliable for language edits and typos, but their main focus is nonfiction and there is no guarantee that they have any sense of story.

3. Former book editors. They used to work as editors in the publishing industry. Maybe they got laid off or quit because their spouse moved, or to spend time with their kids. They should know story (unless they got fired by a publishing house for not knowing story). They may or may not be willing to do language and typo edits, but if not they probably know someone who does. The good ones should be able to point to successful books they worked on, and they probably maintain ongoing relationships with people in the trade. 

4. Numbskulls who know nothing about anything other than how to post an ad on a freelancing site. You can tell these easily because they are cheap. 

Beware of any editor who is just warm and supporting and encouraging. You are probably just paying them to complement you. Find an editor who makes you cry, not because they are being cruel on purpose, but because of how hard they are making you work. They might just make you better.

Original score: 3