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The one mistake that hurt my business big time, and how I turned it around

Anything related to matters of the mind

JasonC

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Outsourcing is so much easier than working hard.

There seems to be this idea that we must do everything to succeed, or we must improve upon our weaknesses to succeed. But I'm convinced that's ridiculously inefficient. It's so much easier to outsource the work.

So I'm doing internet marketing, and in the past, I spent a lot of time trying to master copywriting (which is a skill that requires TONS of time and practice, like learning an instrument). I also attempted to learn a whole bunch of marketing methods: SEO, blogging, product creation, affiliates, email marketing, social media, video marketing, forum marketing, etc. All the while I was learning all sorts of technical mumbo jumo like html. As you can probably guess, all of this was slowing me down, big time!

Instead of taking full advantage of producing time, I ended up spending long hours trying to learn everything.

So what am I now doing that's different?

Simple: I'm paying a whole bunch of other people to do all this stuff, so I can do what I'm good at. I'm now working on things that interest me. And other people are doing the hard work (yet for them it's not so hard). It amazes me to see how easy it is when you have 15 people on Odesk or Elance doing work for you, and they're generally real good at what they do, and they enjoy it!

Lifting a car is easy with a group, yet very difficult alone.

I recall a millionaire saying that a person can't become a millionaire by themselves, they need the support of others, and it really does make things so much easier. So don't do what I did and try to do everything alone. Find people who are good at what they do and are willing to pay you for it. The amazing thing is, there are people in 3rd world countries that would gladly be paid a few bucks an hour to do your work. Why? Because to them, those few bucks have significantly more value in their local currency than they do in the western world.

By outsourcing, you are literally giving them jobs (even if it's temporary). They get to make decent money and you get work done for you for cheap. In that sense, doing business is perhaps one of the most compassionate things you could do because businesses provide jobs. In other words, you are giving people a potentially better future. So that's yet another reason to outsource!
 
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1step

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What is your strategy for employment terms? Are they part time or full time? Do you hire or avoid a particular region?

I know a lot of people love the Philippines because of their english skills, I made one hire that didnt work out but I will hopefully need a new VA soon
 

AgonI

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Tim Ferris on his 4 hours work week book has a full chapter(or two) on outsourcing to VA's. It's definitely a time saver for those who have the money to pay them.
 

JasonC

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What is your strategy for employment terms? Are they part time or full time? Do you hire or avoid a particular region?

I know a lot of people love the Philippines because of their english skills, I made one hire that didnt work out but I will hopefully need a new VA soon

Hi 1step, Of the hires that I've made, there were a few duds. That happens every now and then. Basically, look for those who logged in many hours. My partner and I hired several people who had over 1000 hours logged. A few others who were much cheaper had less hours but they did a good job. We didn't avoid any particular region and all of them are part time. Another thing you could do is get on skype and talk to them before hiring them. Based on what they tell you, you'll get a sense for what kind of person he/she is.

We also hired people over at Fiverr, so obviously this is just for a short gig.

Lastly, you may want to write down all the ideal qualities you want in the people you hire (as well as what you don't want) so you can be very clear on the type of VA you want. This makes it easier to sort. It's kinda like going out on a date.

Some dates would be a complete waste of time (like those duds I mentioned) but others would be a perfect fit because you know what you want. And with this clarity, you can naturally avoid the ones that don't fit. So one bad experience with a VA shouldn't be a reason to not hire again, just as one bad date shouldn't be the reason to not ever go on a date again.

I've been on many dates that were "bad investments" lol But that doesn't mean I'm going to never date again. Hope this helps!
 
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Tom.V

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The one key point I want to add to this is:

Make damn sure you can tell quality workers and their work from the rest. You still need a strong foundation in whatever industry you are in, if just for quality control. I too am in IM, and I feel that I need to know everything I can about copywriting, SEO, PPC, marketing, and social media. That way when the time comes to start outsourcing, I know exactly what kind of quality and specifics I am looking for in a worker. Leaving little to no room for error.
 

cashflow3000

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The one key point I want to add to this is:

Make damn sure you can tell quality workers and their work from the rest. You still need a strong foundation in whatever industry you are in, if just for quality control. I too am in IM, and I feel that I need to know everything I can about copywriting, SEO, PPC, marketing, and social media. That way when the time comes to start outsourcing, I know exactly what kind of quality and specifics I am looking for in a worker. Leaving little to no room for error. <a href="http://rungs.com">Rungs - Climbing the Ladder

did you outsource your sig?
 

Nick

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Find people who are good at what they do and are willing to pay you for it. The amazing thing is, there are people in 3rd world countries that would gladly be paid a few bucks an hour to do your work. Why? Because to them, those few bucks have significantly more value in their local currency than they do in the western world.

I think any business savvy entrepreneur is aware that outsourcing can dramatically cut costs.

The reason so many people get burned when outsourcing is that they have unrealistic expectations of what prices are in other countries.

For instance, Romania (where we are doing iOS development) has a relative cost of living 45% lower than USA. There are websites online where you can calculate this ratio.

Which means, if an USA company quotes you 10,000$ for a project, you can definitively outsource it to Romania and pay for the same project and the same quality around 5500$ (converting the 10k into local currency).

However, if you outsource it and someone quotes you 2000$, don't say awesome, outsourcing is very cheap!. Somewhere, some value is being lost, outsourcing is cheaper, but it's not making miracles and reinventing basic economics. Most probably you are either getting a sub par developer, or the USA company over charged you, etc...

You need to have some basic common sense when it comes to outsourcing as well. The ones that are getting burned by outsourcing are the ones that have unrealistic expectations in the first place.

Being able to outsource effectively is a huge competitive advantage that a western company can employ to get an edge in the marketplace.
 

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