Why I Am Changing How I Outsource

Published by 83 Comments

Those who share my belief in following signs in life won’t be surprised when I say that sometimes the sign-posts, the omens, even as they relate to my business, are slow to come to my awareness, while at other times there’s too many obvious indications that I just have to pay attention and take swift action. Often things build up over a period of months or even years, with small sign-posts opening up ideas in my mind, which eventually coalesce into a stream of repeat exposures telling me that it’s time to make a change.

Although I’ve outsourced tasks in my business many times over the years, I’ve never really embraced the whole concept of building a solid team around me. For the last few years that has been okay, because I’ve been developing projects that didn’t require too many components to make work (it’s a simple system that I reveal in the Membership Site Masterplan), nor have I worked on more than one big project at a time. I’ve made good money using this system, but there is only so far it can take me. If I want to expand and grow, I need more help.

In recent months I’ve been cruising. I started a few new things, including a charity called Mark It Up and launched an elite coaching program, however I haven’t focused too much energy on these things, but of course I want to and will – they are still important pieces of the puzzle that is my life. I’ve had plenty of ideas for new things to do, but I haven’t committed to anything because I want to be absolutely sure I want to do it.

In truth, I’ve been happily blogging, making a good living from it and spending time on other aspects of my life. Much of this I talked about in this article – Do You Focus On What You Really Want?.

However all this is about to change. I can feel it. The signs are all too clear and I believe it begins with getting serious about how I outsource so I can expand my capacity to get things done.

Outsourcing In Big Ways

Recently I wrote about the importance of outsourcing your technology management as the first big step to growing your online business and recommended you check out Tyrone Shum’s Mass Outsource course. Before that I interviewed John Jonas, one of the top internet marketers when it comes to outsourcing to the Philippines and recommended his ReplaceMySelf program. Before John, there was the interview with Tim Ferriss, who definitely popularized the idea of outsourcing to a much larger audience thanks to his 4-Hour Workweek book.

Just this week, John Reese, an internet marketer I’ve always admired, but feel is a bit of an enigma in terms of exactly how he does what he does (I’m curious to know exactly which businesses he runs make the big money), has gone into launch phase for a new course on outsourcing.

I just finished watching John’s first video and I’m going to keep an eye on this one, because Reese is always doing things a little differently, usually a little better and almost always on a much larger scale than your average internet marketer.

You an check out the video and get email notifications when the next free videos are available here, after your enter your email address into the form -

John Reese’s Outsource Force

This video series is part of a launch campaign for John’s latest training product, Outsource Force, which is going to show how he uses outsourcing to make his millions online in all kinds of different markets and industries. The course is going to be around the $2,000 mark, so not for everyone, but I plan to pick up a copy. The launch videos are free.

One of the first lessons I finally fully absorbed in the last few days thanks to John Reese, is how important it is to hire people on a full time basis, rather than a per task or per project basis, which is not too prohibitive as you can find full time staff for around $300 to $500 a month. Previously I understood that hiring full time is possible, but Reese really hammered home why it makes such a difference in terms of performance (it increases staff loyalty, helps foster long term relationships and commitment, when it’s not just focused on one project your staff feel a stronger devotion to you and vice versa, etc).

I’ve seen how good this can be first hand because Gideon, my partner in the Become A Blogger project recently hired a full time Filipino, who has proven to be exceptionally helpful. Nearly every website, landing page and tech element Gideon has produced this year was created by or with help from Gideon’s new full time worker. He’s been such an efficient worker that sometimes Gideon has had to think on his feet for new tasks to give him, which as you can imagine is a good motivational tool for Gideon to get more done quicker in his business.

In another example of how important outsourcing the right way is, just last week I interviewed James Schramko. James, as he explained in finite detail during the interview, has teams of outsourcers working for him all over the world. He has people do everything from setting up websites, creating videos for Youtube, building links, organizing his flights and hotels when he travels, cleaning his pool, developing software and even managing other outsourcers. Consequently, James has more online income streams than pretty much any marketer I know, which is especially cool given he runs it all from his home office by himself.

That last point about outsourcing your outsourcing is especially powerful if you’re thinking big picture and big business. Outsourcing is great, but it takes work to find the good people, train them, and keep them working. The big goal should be to outsource the management of your outsourcing. In other words, you hire someone to handle the hiring and control of contractors. In an ideal situation, you have ideas for new business projects and only need explain what has to get done to the one manager, who then goes and makes it all happen using your team of outsourcers.

Business Is Very Slow Without Help

Unless you are exceptionally gifted in multiple areas AND hardworking, in which case you can attempt to do everything yourself, you will need help to grow your online business. Even if you can do everything yourself, you’re placing a serious cap on your potential if you choose to.

In short, outsourcing really is the only way to succeed online long term. As John Reese pointed out in his video, outsourcing is the number one skill every internet marketer needs to know to be successful.

I’ve spoken at and attended a handful of local events in Australia over the past several years. Often at these events you will find the same people, which is fine, there’s nothing wrong with focusing on your education by attending multiple live events every year.

The problem with some of these people is that they attend workshops on how to build an online income and become financially independent, and have been doing so for years, without moving forward.

As I see it, there are two core reasons for this -

  • They continue to repeat the same activities, day after day, week after week, which unfortunately don’t lead them to what they want. For example, they keep working a job they hate, and even when the look to change, they find another job, which they will eventually hate as well.
  • They fail to find any means to scale what they are doing – they don’t find any leverage. For example, they have a consulting business or services based business and refuse to take on any help or keep chasing a business model that only keeps them busy and doesn’t make them rich.

If, after three years of attending events, hearing the same advice over and over again, and you’re still not implementing it, then you really need to get help. The problem is not your lack of knowledge, it’s your lack of implementation. If you want things to change you’re going to have to start making smarter decisions, and one of them is to outsource. Outsourcing is the best form of leverage we have in business.

A good first step – and this is by far the most common mistake that can be easily changed in a matter of days – is to hire a tech person. If you haven’t outsourced this, then seriously, I’m going to have to slap you. I don’t know how many times I’ve written that sentence in my blog posts. Just get it done already.

I’m in the process of taking my own advice, and although I have tech people around me, I want to expand and get a full team so I can stop feeling restricted by my inability to produce the technical components of what I want in my business. We’re looking for a full time designer and programmer right now as I type this, probably from the Philippines, or perhaps Eastern Europe.

I’m doing this now, because I’ve decided to commit to rolling out some new projects and most importantly, build a team so I can get all the little things I’ve wanted to do, done.

If you’re feeling the same urge as I am, then I recommend you start hiring right now, or if you need more advice and guidance in this area, go sign-up for John Reese’s free videos as I’m sure we’re going to learn a lot from even the free content –

Watch John Reese’s Videos Here

I’ll be grabbing a copy of this product myself once it goes on sale and if you decide to do the same, I’ll have a cool bonus for you if you buy through my affiliate link, which is above.

For the time being, enjoy the videos, and start thinking about all the projects you could roll out right now if you had a team of people working around you.

Yaro Starak
Outsourcing

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83 Comments

  • I know you’re right but i really can’t pass the idea that “no one can do this thing like me”, i tried to outsource some tasks but the time i wasted and the horrible results i got convinced me to do everything by myself.

    If i remeber well one of your mentors is Eben so you know what a “star” is and you know how incredibly difficult are to find.

    I’ll check Reese’s course but the message that with $2 you can hire a star is simply not true.

  • Hey Yaro,

    I couldn’t agree more with you on this topic!

    Also John’s new course looks awesome and with it’s HD videos to present and high quality of content it’s definitely going to be something I’m considering as well.

    • AP

      Hey Tyrone, (AP From Sydney)

      How did you product launch go? Below, about what you expected (in Sales) or above?

      AP

  • Tom

    Something that has always bothered me about outsourcing is that it is no different than Wal-Mart, or Nike, or other American companies hiring cheap foreign labor to manufacture their products, or provide services.

    While it is admirable that so many Internet Marketers are providing a good living for individuals and families in the Phillipines, and other countries, it is a prcatice that simultaneously takes that same job away from a fellow American, or countryman (Australian,etc,)

    This is the how America slides into being a third world country – and when it does maybe our workers can be hired to do ultra cheap, skilled work by a Filipino entrepreneur.

    All of you getting rich with this hugely popular practice hopefully will, one day, reap the karmic effects of your unbridled greed and pompous attitude that somehow you are doing good.

    • I fail to see how creating a job that is outsourced to another is “taking a job away from a fellow American…” By definition, if you are creating a job it did not previously exist.
      Fortunately, your chauvinistic attitude, as well as your mercantilist grasp of economics, are rapidly becoming very outdated. Also, what’s wrong with working for a Filipino entrepreneur?

      • So you want to give up your 15- 50 dollar an hour aussi/us job and start work for a Filipino at 2 dollars a day —- I dont think so

      • There’s nothing wrong with it, per se, but from a nationalistic standpoint, I do understand how it can annoy some people. They see that the job is serving their country but being done by someone from outside the country. So they feel that’s taking a job away from one of their own countrymen. Tough line to draw.

        Till then,

        Jean

      • That was right on point Tyler. I love the “By definition, if you are creating a job it did not previously exist.” Perfectly said.

    • I can see how outsourcing work can be detrimental to a country, not so much in the online realm, but with things such as the production of goods. Having said that, 99.9% of people are damn hypocrites.

      Tom, look at the tags of each of your clothing and I bet something you are wearing right now was made in China. That is a product of outsourcing. The device you are using to make this comment was made in either China or Taiwan, again, a product of outsourcing.

      Also, the people who are most effected by the loss of jobs caused by outsourcing are the major supporters. Lets look at Joe the machine operator. His wage isnt that great so he is forced to buy the cheap stuff. The cheap stuff is cheap because it was made in China. He wont buy the expensive local stuff.

      Since he and many others don’t buy locally, his work outsources it all to China. Joe is out of a job and has even less money. He really has to get by on the cheap stuff supporting Chinese made goods even more.

      We all do it, it doesnt make it OK but its the way the world is going and noone really does anything to stop it. Youself included if you are using anything made in China right now.

    • I would have to strongly disagree with you on this point. I have thought about it long and hard in my business as well.

      Here is where I stand.

      I do not have the time, money or resources to hire a full time employee here in the United States. If I did hire someone in the U.S. I would have no money to run my business. So, Outsourcing is especially helpful to entrepreneurs (such as myself) who want to get a lot done, but have not the time to do it all and don’t have the money to pay someone full time in the US.

      So what do you do? Hire someone who is damn smart, is exceptionally talented, and wants to work hard with you.

      I no doubt will eventually hire people within my own local community to help me but until I get to that point I have to outsource.

      Im’ing is not like working at Wal-Mart so you cannot even compare the two. We live in a global economy and I for one am proud to help out another person in a different country who needs the work and the money. We are all people, and we all deserve to better our lives. I am all for hiring within my country but until I get to the point where I can, I will be outsourcing. And even once I do get to the point where I can hire locally I still will outsource for certain things as well.

      Outsourcing done correctly, and you will be a much happier person in your business. I personally am not going to buy John’s course as I don’t think you need to spend $2k to learn how to outsource, but to each his own.

      Tyrone Shum and John Jonas both have done an excellent job of teaching me a lot what I know and I cannot recommend John Jonas’s course enough.

      - Kyle

      • Great comment Kyle. I completely agree. As much as I would want to support the local economy, it doesn’t make sense for a small internet business to do so. With a minimal budget, it is obviously better to outsource to get quality work for a decent price. It is simply a business decision.

    • Amen Tom!
      As you sow, so shall you reap.
      Nothing in life is free, and just because it’s cheap doesn’t mean I should purchase it. You/we get what you/we pay for in life.

      The lowest common denominator is not usually the brightest crayon in the box. And I’m NOT okay eating dirt under an “equality” bunch of hogwash or exploiting others causing them to eat dirt [i.e. selling out fellow countrymen].

      Socialism didn’t work in the USSR and it won’t work here either because it is a zero sum game. The people end up eating dirt and those who hire them enjoy all of the fruits of their labors. And the people are hated by those who exploit them. But Russia showed us that the human spirit cannot be exploited and surpressed forever.

      And if you still think cheap is good, then ask the auto engineers — who engineer low end vehicles to “expire” in 3 to 5 years. But, hey, keep telling yourself that buying the 3 year vehicle is a “better investment” than the Volvo [the 25 year vehicle], and that you’ll come out ahead with it….. I’ll take the Volvo [and the $$ difference] to the bank, thank you very much!

      p.s. Judas went to hell in the end.

      • Joyce,

        Outsourcing is a FAR cry from Socialism. I for one am strongly opposed to socialism. Outsourcing is the EXACT opposite. It is Capitalism operating to the fullest extent!

        You are going to tell me that it is “wrong” to hire someone in another country which benefits their economic situation when otherwise they could be Struggling to find a job (which I know is the case where I outsource from – Also the Philippines).

        I’ll state it again, a small business such as mines which does not have the necessary funds to expand as I would like. So I should just keep doing it all myself running in circles until I have the capital to hire locally? Oh wait maybe I could ask the GOVT for a handout, screw that. They can keep their damn money they already steal from us.

        And you will say that giving other people who may otherwise never have this kind of opportunity a chance to better their lives and economic condition is also wrong?

        I strongly stand by my decision to outsource and if you are still against it then by all mean “whatever floats your boat” but you need to examine all angles and understand this has NOTHING to do with socialism. Socialism is an evil practice and Outsourcing in the sense I am talking about has nothing to do with it. The outsourcing I am talking about is technology based and isn’t about putting people in sweatshops and making them work 15 hours a day in horrible conditions. The guy who works for me work 40 hours a week and gets paid more than the national average wage and I give him more opportunity to advance than he would ever get in his situation. I am 100% for hiring locally, but not everyone can do it. I will do it that is for sure, but that take MONEY which I do not have enough of to hire within the U.S. That being said there is still nothing wrong with outsourcing in the sense we are talking about.

        And BTW what makes you so sure Judas Escariot went to hell? Christ knew Judas would betray him. It was part of the plan, do you think Christ could have stopped it if he wanted too? Christ died for all of our Sins including Judas. Let God judge Judas and everyone else. It is not your place to condemn him to hell.

        - Kyle

    • I have heard/read other takes on this, Tom. One Phillipino outsourced employee could catapult your (online) business to a position where you can finally hire one or two Americans…

      However (along those same lines) if you do it all yourself, you are not bringing your business along fast (enough) to be able to employ any Americans in the near future…

    • Tom,

      I have the deepest respect for your consideration of the people involved and your obvious love of our country. And I’m sure these positive qualities could be put to good use and help improve things for all of us with a stronger understanding of economics.

      One of the best books I’ve found is Basic Economics by Thomas Sowell. He covers all the essential elements of economics in a clear and relevant way. And as he point out in the book, we’d all be better off if the average citizen (and politician!) had a better understanding of these principles.

      -Eric

    • I thoroughly enjoyed this article by Yaro, and didn’t quite interpret it in the way you did, although I certainly do see your point. Outsourcing should be done with the local economy in ind if it is to be sustainable in the long term. You do raise a good point, Tom.

  • I have been a Virtual Assistant since June 2009 and even I outsource.

    I quite like the project management side of things, so like getting to know the project and finding the people to execute the project.

    Whilst I am still doing some of this myself, I actually have another assistant to help me with this now, as I am personally taking a new direction.

    You end up enjoying and loving life more when you know how to let go of the things that you don’t know how or enjoy doing. Giving you more free time to do the things you love.

  • I completely agree with you about outsourcing. I recognized some time ago I need outsourcing to help my business grow. What I have been struggling with is what to outsource and what to do in house. I am already outsourcing some of the web work. I am trying a few things, and hopefully as the business grows I will be able to outsource more of the work and focus more on running and growing the business.

  • Hey Yaro,

    1. I don’t use the word “outsource” because it implies that you’re abdicating responsibility. From the moment I read 4HWW, I knew something was fishy with the whole “outsourcing is a magic bullet” thing.

    2. Calculate the value of an hour of your time. Pay someone less than that amount, and you’re making that much per hour without working. That’s how fortunes are made.

    -Jesse

    • “Outsource” is just the best way to run a digital business. Outsource accounting, seo, mail etc. I don’t think it implies abdicating responsibility (though it could be used that way), just leveraging the talents of others so you can focus on your talents.

      The difficult part though is calculating how much an hour of your time is worth for a given activity because sometimes things in life have an intangible value. Instead I would view it as what I just said, getting rid of tasks that are a drain and focusing on the creative flow.

  • Virtual assistants would really become more loyal if you gave them full-time work. You are also sure of higher quality since they won’t tend to other sources of income and focus on doing their tasks well.

    • I definitely agree with this. I’ve dealt with many freelancers who seemed to rush through things as they try to manage multiple clients/projects. When you have a full time employee they will be sure to focus enough effort on all of your projects. Ultimately they would produce better work and they would be more reliable.

    • This is a good point. You can reinforce your tryst with them by doing so as well. :)

      Till then,

      Jean

  • Thanks Yaro for the helpful advice. One cannot be a jack of all trades, so it is really important to sub out the stuff you are not good at or don’t have the time to do.

  • Ron

    Tweeting and posting this one on our forum. Great to see that you guys really admire how the Filipinos work on their projects.

  • I have never been a big fan of outsourcing until recently. I was getting bogged down my need for graphics. So I outsourced to a company in India. At first I wasn’t thrill with what I getting, but the more I worked with my guy the better he got me and was able to produce quality graphics and was on call all the time, if he wasn’t working someone else was there. It’s a love hate relationship, I wish I could hire someone that is in the states, but I don’t think I would get the same respect and sense of urgency that my guy in India gives me. Outsourcing can be a great option but sometimes you need to shop around.

  • Hey Yaro, you know I’ve heard a million times in the past year or so that I should be outsourcing more. Unfortunately, now I’m just starting a new site/blog and have no money. I wish I could hire a tech guy and someone to write some articles, but it isn’t really feasible at this time unless I took a major risk.

    For now it’s work, work, work to get this thing rolling but I do plan on using whatever little money I make when I start making it on getting a good team set up. I hope this is the right way to play it.

    • Sometimes you need to take risks in order to get your business off the ground. Have you thought about talking with friends and other people you network with about a loan or collaboration of thoughts. Maybe people you know can help you write articles or something that can help minimize your load.

  • @Tyler WebCPA, you are spot on. It appears Tom is just engaged in geographic discrimination which is as insidious as both racial and religious discrimination. Additionally, it is both outdated and economically irrational to engage in discrimination.

    Why not hire the best qualified individual at the lowest cost? Refusing to serve black people simply because they are black is economically damaging the restaurant owner. So likewise refusing to hire the best qualified individual at the lowest cost is economically damaging to the business owner.

    Plus, thinking of oneself as ‘American’ or ‘Australian’ is very demeaning. What are you, human livestock tied to a plantation merely because of some arbitrary boundary and where you were born or a sovereign individual endowed by their Creator with certain unalienable rights? http://www.youtube.com/watch?v=P772Eb63qIY

  • Ty

    I like what you said about people attending the seminars over and over. I call them seminar junkies… and they never do anything other than attend free seminars.

    The main thing with outsourcing is the financial commitment. I find the catch22 is you need to make some money… but it would help if you could outsource, but that costs money. So you need to take a risk and spend the money, hoping you get some sort of return.

    The other thing if you are new to business is knowing exactly what you need to do and what instructions to give to someone working for you. That sounds simple but can be quite daunting when you are new to this and no money in the bank.

    Starting out is hard and I stopped going to seminars a long time ago. I think I need better systems organisation and a clearer vision before I could outsource effectively.

    • Definitely agree with you on the Catch 22. The start-up phase is just killer. There’s SO much to be done, you don’t have the money to hire it out, and even if you did it would take just as much time, if not more, as doing it yourself since you have to put all your systems in place for others to do.

      Ah well… there’s a reason most people are tied to crappy jobs… they’re not willing to push through the early phase and get to the good stuff.

  • This post is exactly what I’ve been thinking about recently! You’ll never work “on” your business unless you hire an Operations Manager/Business Manager responsible for training, Leading the Team & execution. If you have to be the project manager for everything than you have just created another JOB.

  • It is time to build an empire now, ain’t it Yaro? Sooner or later you have to employ people to delegate tasks too, otherwise you’ll just run into a brick wall. Pure and simple.

  • I definitely want to do this. I’m currently working on two websites, and I find myself dedicating most of my time only to one of them. I definitely want to spend more time developing both of them, but there is not enough time in a day. Nevertheless, I’m excited about the possibilities! :)

    • Yes it definitely sounds like you need to get into outsourcing some of your work. If you feel like you never have enough time for things, that is a sure sign that you could benefit from outsourcing. If you try to do everything yourself, it will take much longer for everything to get going.

  • I’m a fan of giving my best where I have my best to give — it’s the sustainable way.

    > getting serious about how I outsource so I can expand my capacity to get things done.
    That’s the heart of it, right there — expanding capacity, and focusing on what grows you.

  • While I do see the merit in outsourcing as I have done it in the past and will be doing it again very soon, I think it is better for someone who has never outsourced anything before to get their toes wet first before hiring a full-time VA.

    For those interested, I would suggest checking out such sites as Elance and oDesk to hire someone for a little, non-complicated job. Doing this will give you a good idea of what to expect when hiring a VA without spending a lot of money. Plus, if you feel the VA or person you hired did a great job and followed your instructions, then there’s no reason why you couldn’t just hire that person again for other similar jobs.

    Yaro is right in that if you want to take your blogging empire to the next level, then you will need help in doing it- and that is where outsourcing comes in. But take it out for a test drive first before committing to it completely.

    Great post, Yaro. Cheers!

    Wesley Craig Green

    • Great advice here. When I did my first outsourcing, I had heard all the warnings about being completely, idiot-proof clear on the instructions and exactly what I wanted. I thought I had every base covered.

      I didn’t.

      The quality of the work was fine, I just assumed one point, and he didn’t get it, and the resulting work was unusable for my purpose. Luckily I didn’t have much tied up in it, it was just a test project and a valuable lesson.

  • I have watched the video one and it is very impressive. I am looking forward to video two.

    The main reason why I did not outsource is mainly because I am a control freak. I always think that there is no one that can do it better than me which is wrong. When I first started, I learn how to create my own minisite, header, ecover graphic, html and almost everything. It was so tough and all the design that I do is substandard.

    I decided to hire a web designer to do a minisite for me and it was then that I realize that certain task has to be done by the professional.

    • That’s great that the designer worked out well for you. That’s definitely a turning point, when you realize that you can take one of the hundreds of tasks you’re faced with, and find there are people who do that for a living, and are better at it than you can ever hope to be.

      The other point is when you just get so busy it’s not a matter of having it done to the standard you would do it, some things just aren’t gonna get done at all if you don’t hire them out. You can’t be everywhere and do everything, and you need people taking care of things that would fall through the cracks.

  • Yaro, good luck with the changes afoot. Hopefully you will still have time for the things you love doing most!

  • I think that there is a time an place for outsourcing, but NEVER for all of your business. You still need to be in control of the core (your marketing and product creation). Business owners that outsource their business to the bone end up building a business that looks outsourced.

    I think that outsourcing is great for doing the mundane tasks that anyone can do, but you have to be really careful of how much control of your business that you hand over to someone else that you have never met.

    Make sure that you never completely hand over the keys and you will be ok. Also, don’t be afraid to quickly fire people that don’t live up to their promises. There will be 1,000 more people in line behind them to take their place.

    -Joshua Black
    The Underdog Millionaire

  • Interesting post about outsourcing. It does make sense that a 1 time freelance employee is usually not going to be as motivated or passionate as someone working full time. This is why I often stick with the same freelance writers for months at a time. That way we build a relationship and they try harder to please me. I’d love to be at the stage of being able to hire someone fulltime. I’d have an endless list of tasks for him to take care of. The trick is knowing which tasks are most worthwhile and most profitable.

  • Outsourcing can be a great thing when done right. There are certain things I’d like to have someone else do for me but I could probably just crank it out real quick and save myself some money.

  • My first thought when you me mentioned $300 – $500 per month for a full time outsourcer was “no way…you would not get quality work”. I think that rings true here in the U.S.A, but it sounds like that is a good rate for an outsourcer in India and other countries.

    As with a non-internet based business, hiring the right people is paramount to your success. Outsourcing your simple projects – on a sporadic basis – doesn’t always result in that comfortable and reliable feeling. I can see the point in having full-timers: you build a relationship that benefits both parties.

    • Just to give you a general idea of wages in the East.

      In Taiwan, an electronic engineer with a masters degree can get $800 – $900 as a starting wage. So they had to go to University for five or six years before working. Minimum wage is around $600 per month.

      South East asian workers (Phillipines, Thailand, Vietnam, etc) who do manual labor in Taiwan get around $500 – $600 per month. This figure was from a Thai guy I met, who said that back in Thailand he could only make $100 doing unskilled labor.

      So the $300 or more per month for outsourced work will be able to feed a whole family.

      • This is a win-win situation, putting others in a position to generate income, and you save time and get the job done!

      • Ron

        This is somewhat right. A good analogy of figures of our income here.

  • Quick tip on outsourcing : There are two ways to outsource, outsource what you know how to do and outsource what you don’t.

    When you outsource what you do not know how to do you are at the mercy of those you hire.

    If you outsource what you know by creating a system that controls the process, then you are in control of the outsource.

    So which situation do you want to be in?

  • Great post….I always try to do too much myself and know it can hold me back.
    Thank You.

  • Yaro: Don’t you think you can outsource from a local college? These students I’ve found are more than willing to work. Many times they get credit from there profs!
    I also use IT people where I work.
    Thanks
    Mark

  • Yaro,
    Great info,
    At my age, it’s tough trying to learn new things, work full time and spend time with the family. At first, I was reluctant to part with my hard-earned money, but I’ve come to the realization: That I can’t do it alone.
    So, I’m ready to draw up a plan, contact someone at Elance or Odesk and get this blog thing really rolling.
    Thanks, Yaro!
    JGib!

  • How I wish people would provide transcripts. They are easier to scan and get the information from and use a fraction of the bandwidth (in Australia, where I’m from, most internet accounts are limited).

    He took the whole video to say that he thought outsourcing was the way to go. The content could be put in a reasonably brief post. I don’t mean that this isn’t worth saying – only that my time and internet account are precious. It is mostly a teaser for the rest of the series (which may or may not have more content than this).

    • I agree! He waffled on ;)

      I mean seriously, this sort of video about outsourcing has been done time and time again. I don’t understand why everyone is raving about it? It’s like those, “lets tease you and pull you in, and not say anything really” and presto your in my email list.

      This is what happens> You go to a site, pay someone who has set-up an outsourcing job site in the phillipines, you pay them a finders fee and there you go.

      Or you could figure it out yourself and then setup your own outsourcing site and do an info video about it.

  • Hi Tom, I think the outsourcing stuff means that many more will need to be employed in the parts of industries that can’t be outsourced – hands on like massage, growing stuff for local consumption and so on. Info businesses are always going to be vulnerable to worldwide competition (from countries with high English literacy).

  • For me, like many others here, the jury is still out on outsourcing. Everyone says it’s the way to go, but my experiences with it haven’t been good. I know I NEED to outsource, but my outsourcing attemps so far have NOT saved me time. They’ve just cost me money. Perhaps I’m doing it wrong.

    I haven’t watched the video either, exactly for the reasons Evan says above. I just don’t have time to watch all this stuff. I bet the video is 30-40 mins long, why would I want to spend all that time watching what is really just a very long advert?

    My, I’m grumpy today!

  • Hi Yaro,
    Thanks for this debate here about outsourcing…

    Last week I met a group of people online, some who outsourced.

    What was interesting to me, was the cost of this staff.

    One guy has a full time…40 real hours, not 30, 35 or so, but 40 full hours, for $200 a month!

    That got me thinking…
    At Xmas, I went to E-lance for a quote for a squeeze page… I received 12 replies from $60 to $300!

    I chose $125 and proceeded from there.

    The thing is, it probably took them a few hours at the most…less if I’d have known what I really wanted first off!

    There in lies the challenge.

    So, if I want to grow a business, I need to learn how to outsource,

    If I want to create myself a job, I just keep doing it all myself.

    I was a freedom fighter from the past & ran campaigns like Dick Smith,
    Save Australia, keep the jobs here for our kids, etc etc.

    Then I realized how technology was changing the game & thought I’d better change or be left behind.
    Being noble, loyal, altruistic, kind and idealised, didn’t keep my job in this changing economy, so how on earth could a mindset like that help my kids?

    In closing, I wish to thank your contributors for some of the comments here.

    I have to learn how to be a project manager like John Reese if I want freedom, sustainable, long term income from a business & it’s something that is not natural, otherwise I’d be doing it!

    Kindest,
    Poppie

  • I am SOOOO excited about this new series on outsourcing. I am a stay-at-home mom of four children and it is challenging to find the time to get my blog to the next level. The first video demonstrated that there is still hope for us to get as much accomplished as those who are able to blog full-time. Would’ve never thought of or known how to implement this on my own.

  • I think John should consider “outsourcing” his video presentation to Frank. ;-)

  • @Jesse agreed a lot with your number 2. This is how poeple create wealth.

    For the whole outsource to third world country, I think it’s true that sometimes you really get what you pay for, cheap work. But in a global world, I think more and more people are going to be contractor of someone else and sub contract work to others…

  • Your MessageL Thanks for the prod Yaro. My question is, is there a method to use to assure we’ll get a competent outsource worker without doing the expensive “trial and error” routine?

    Bert Botta

    • Bert I suggest you look into forums and job sites that have feedback/rating systems. elance and odesk might be good places to start. You can first see other people’s experiences with them before giving them a chance. Of course, start out with a smaller project first and see how they handle that.

  • Outsourcing is so hard. Contrary to the popular belief spread by john jonas and the 4 hour work week author. Its so much harder than it seems and I’ve wasted hundreds of hours and money doing this. So glad to read your article.

  • AP

    Hey Yaro,

    Good post mate, I’m with you, the more outsourcing the better. I have been telling people that have asked me about my two “new fitness membership sites” that they are pretty much done and will be up in in two weeks – that has been going on for two months!!! hhhhhmmmm
    Like you said in you post, I know when I’m working with contractors I get so much more done because I know I have to give work to my contractors so I put in more effort (Tim Ferris refers to something similar in 4HWW as “Parkinson’s Law”) .

    Quote from Four Hour Work Week pg 75 after Tim had to rush and complete a 30 page assignment in 24 hours that he had originally months to complete.

    “Parkinson’s law dictates that a task will swell in (perceived) importance and complexity in relation to the time allotted for its completion. It is the magic of the immanent deadline. If I give you 24 hours to complete a project, the time pressure forces you to FOCUS on execution, and you have no choice but to only the bare essentials. If I give you two months, God forbid, it becomes a mental monster. The end product of the shorter deadline is almost inevitably of equal or higher quality due to greater focus.”

    Outsourcing Helps You Focus

    So for me and others I believe outsourcing will help me focus on the strategy and projects more. Add to this the obvious “man power” or “leverage that outsource staff will provide.
    So instead of having a “few productive periods” when contractors are engaged why not be in a perpetual stat of thinking, creating and implementation on multiple projects?!!
    I think this is the Key to James Schamko’s success (and other Internet success stories that are making serious money on-line) . James basically manages and oversees projects that are being done by his virtual staff. “Have an idea then use people to make it a reality.” While they do that you have more ideas!

    This reply is quite long, I should have outsourced it!!! :)

    AP

    “My Name is Anthony – I must outsource permanently, My Name is Anthony – I must outsource permanently!”

  • Yes,
    Outsourcing is the best way to grow your business and enjoy your life. I have been doing it from a very long time. I am still a student which does not allow me to work full time on my online projects, so i have hired people who work for me. When you have got a team which works for you full time, you really enjoy working with them and they put their true efforts in your projects.

  • One of the best things I’ve done for my business was outsourcing. And I quickly understood that once you find someone who is doing a great job, you have to keep it. I am also planning to increase my team. I have two part time assistants at the moment, and they do what I was doing alone before.

    But was is most important is that they do other things much better than myself.

    Franck Silvestre
    the Body Guard Marketer

  • I have an online business consultancy and VA company – which is impossible to expand without outsourcing. Only 1 person can do so much, and when you have “peaked” and can’t do any more, you have to make a decision whether you want to stay static or keep growing. If the answer is keep growing, you need to find a reliable and quality way of outsourcing – I did and it’s fantastic.
    Thanks for the post Yaro.

    Michelle
    Virtual Miss Friday

  • I notice a lot of people commenting about they are not sure about outsourcing. My take is that we have to view Internet Marketing as a business. I mean, if you said to people that you were starting a business but that you never intended to hire any staff people would think well they are never going to get far or earn much.

    When we think successful companies and businesses we know they have teams of staff. Why should our business be any different?

  • Your Message Hi Yaro,
    I always look forward to receiving your emails, and reading your blogs. I just wanted you to know that when I tried to open your “MarkItUp.org” site to check it out, my Avast antivirus kicked in stating that it had detected a trojan horse called “JS:ScriptPE-inf [Trj]. I just wanted you to know so it can be made safe to open. Hopefully many others will check out this site so it can benefit from the exposure.

    Best regards, and keep up the good work.

  • Yaro
    I cannot thank you enough for hammering that into us. Honestly. I’ve hired a transcriber to do the bulk of my footage logging and transcribing, which I have tried to do in the past and it’s just freed me up to do other tasks only I can do at present. Soon, I will be able to outsource those too, once more money is rolling in.
    I’ve also hired an editor and had one researcher, but I’m about to get smarter and hire a research service through an outsourcing service in India. However, I had not thought of the Philippines. I will take that into account.
    Another country which is booming with outsourcing and call centres is El Salvador. I only just discovered two of my classmates from San Salvador German School are working for a business that Dell sold. They do business processes. It’s incredible and I’m so willing to pay for them.
    It’s a win-win situation: you get cheap labour, they get paid better wages than they would normally in their home country doing the same job. And you expand an economy in an emerging market.

  • Thanks Yaro for the fantastic post. I started my outsourcing journey in Feb and I am learning lots. Having a VA makes you much more organised and productive. I have learned that systemising everything makes it much easier. Yes there is a lot of work involved in first finding the right person and then training them but I hope that it will be worth it in the end becuase I hate doing the repetitve mundane tasks that seem to abound in IM.

  • Agree with this article that if you can afford to outsourcing and having a good team is the way to go. Easy tasks, but ones that take up a lot of the time can get in the way of working on those bigger ideas, so why not give them to someone who can do them. They earn some money and you free your time to take control and push forward, everyone’s a winner.

  • I know that I need to outsource in order to grow my business but I am just not ready to let go of the reigns. I feel like I need to be more hands on.

    I feel like I need to learn more before I outsource. But I know that in order to run a business and not let a business run me, I need to outsource.

    I guess I could start small and see how things go and then build up more as I go along.

    I guess as I right this, fear is the biggest obstacle for me right now. I guess it is the fear of the unknown more than anything else.

    So I need to quit making excuses and just do it.

  • [...] Outsourcing. John Reese, Tim Ferriss, Yaro Starak and a ton of others are really starting to push this concept. Assuming that you can find the right [...]

  • With even a basic understanding of what you are doing making a few dollars a day ( say $20 a day ) is dead easy and the start up costs are tiny ( under $25 )

    Ask yourself why would you do keyword research, write articles, build links optimize a site etc on someone elses site for $2 a hour when you could be doing it on your own sites building an assets that in a couple of months will be paying you same are these modest salaries but on a passive basis ?

    The short answer is that 99% outsourcers don’t know how it really works AND / OR they have NO self motivation.

    Be prepared to have to teach them everything from scratch – if they knew they wouldn’t be available for work and if you dont know how it works you WILL loose your money.

    Outsourcing works brilliantly when

    1, You know how to do the task perfectly and you are not expecting them to have the knowledge.

    2, You have the time to train staff how you want the job done

    3, You have the time to accept lots of “do overs”

    2 – 3 months after you start a new full time staff member you will have a valuable assest and I say this is a positive way once they understand how you make money the best ones will leave and do it for themselves.

    Asia is not that different to America ( I live in Thailand ) anyone that actually understands how this works is working on their own sites or apprenticing themselves for the day they can break out on their own, even at $300 a month they can come up with the “capital” if they want to.

  • Outsourcing has changed so much in past few years! there are so many players and competition is tough. Plus certain things no one will do like yourself, but we could always need help with and working with good people always helps both parties.

  • Nice article but the real question is on what kind of criteria can you choose the paycheck of your new staff member if he do a lot of different activities and tasks ?

    Yoann

  • The whole concept of outsourcing really is like the thing of the past. When using your laptop and getting hooked up to the internet from a cafe while you are on a journey, you could be always at home or in your office.

    A lot of websites are nowadays maintained and moderated by people who could be traveling a lot and accepting custom web projects too.

  • I have been getting John Reese emails for a number of different sources in addition to seeing posts like this one. I went to the site and watched the 3 videos after entering a bogus email address. I remember hearing that if you get one good thing out a new product then it’s worth the time. Well I did get one thing that was interesting.

  • Hey Yaro (or any other commenter),

    thx for the article and posting many different options. Got a question regarding the outsorcing courses.

    There is the course for 2k USD and then the one from Tyrone fro 800$.

    The more expensive one has no money back guarnatee and tyrone has life time money back.

    I´m curious in what the difference will be between those two. They seem to offer the same product, while the more expensive one just appears to be a tad more professional (at least the design and presentation).

    Any advice which to buy and why?

    • Hi Nate,

      I recommend you watch the free videos from both trainers and decide which style you prefer.

  • One of the quickest ways to outsource and get everything on the ball is to make your own blueprints so you can hand them off.

    I see a lot of business owners outsource tasks but continually work on them at the same time because they either didn’t clearly explain the task or are too afraid it won’t be completed.

    By showing how you’d do it, you can easily pass it on so you know it’ll be done right. Think of it as creating your own business “guides”

  • Outsourcing is the only way to scale your business. When your business grows, your work volume also increases so it make sense to outsource other professional who can complete the task more quickly and efficiently giving you more time to do what you love and enjoy doing.

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