Pros And Cons Of Outsourcing
First off I’d like to thank Alex and all of you for the open arms introduction. It’s great to be back, even so I was hoping to sneak in the back door and quietly doing my thing. 
Oh well, such is the life of a popular copywriter, lol (now I feel like celebrity).
Kidding aside, it’s really nice and refreshing to wear my blogging “shoes” once again since it’s been a while for me.
But before I bore you to death with my story, I’d like to touch on a subject that is probably near and dear to many self-employed entrepreneurs – namely outsourcing, and the pros and cons of doing so.
The two-sided coin
To outsource or not to outsource is a question you will probably ask yourself at some stage in your business life. If you haven’t already done so that is. Most of us find it very hard to let go of some aspects of business and put them into the hands of a stranger. I can’t blame you for feeling that way if you do.
I felt the same way when I first got my head around the concept of outsourcing. I had arrived at a crucial business road junction; it was either mental and physical burnout (again); or trusting some aspects of my business into the hands of other writers and expanding my business, despite all the risks.
I choose option number two and I tell you why in a minute…
When first considering outsourcing, most people think about letting go of control and how this can affect the quality of work. It’s the classic example of thinking that the “other” person can’t do as good a job. I also call it the perfectionist’s syndrome and used to suffer from it myself. So we tend to freak out, thinking there is no way we can afford to lower out standards to work with others while being paid a fraction of the profits. But this isn’t so. Who says your standards have to lower? After all, you will still be the one in the driving seat.
No machine is perfect, not even humans
If you are good at something, it is hard to let go of the reigns and give another person control. Fact is, that despite the quality of work you might provide, you can only manage what is physically possible within any given day.
- If you are sick, nothing gets done
- If you are on vacations, nothing gets done
- If you are burned out, guess what? Nothing gets done…
Therefore at some point in time you will have to face the simple truth; to outsource and grow, or to keep on pushing your limits. The truth of the matter is, outsourcing is the ONLY way to grow your business to the next level. If you don’t believe me, I encourage you to read the book: “The e-Myth Revisited” by Michael E.Gerber. This book is a true eye-opener.
Unless you can increase your income with the help of software and machines you will always depend on the input of manpower. Since you can only physically work so many hours a day you are severely limited by time and your own inability to duplicate your efforts, unless you hire others to do it for you.
Cons of outsourcing
On the downside it will take a lot of your time to train your team to do what you want them to do. The more time you are prepared to invest into the training and setting up of systems that can be semi-automated, the easier this whole outsourcing thing will become over time.
Be prepared to spend some of your valuable time answering team questions. I strongly advise you to document them for template creation so that you don’t have to do the same things twice. The next time one of your team members asks you the same question again you simply hand them a template. Problem fixed. Time saved.
The hardest part will be to let go of some aspects of your business. You have to learn to trust others to do as good a job as you – if not better, and that’s perfectly fine. At this stage I’m not ready to give up the managerial control of my business, but this could possibly change in the future – especially if I want to live the 4-hour work week.
Outsourcing equals profits
What many entrepreneurs fail to see is the fact that outsourcing will increase your profits, provided you keep a portion of the income for yourself. It is a conscious decision to re-invest your income into your business for future growth, and if you do it right, you will earn money while you sleep.
How much money should you keep?
This is a good question. From personal experience there is no right or wrong in the amount of money you should pay your outsourced team for the work they do as long as they are paid fairly, and according to their experience/abilities.
My advice is to aim for at least 30% profits. This means if the client pays you $100 for project you should be paid $30 minimum. This is your payment for the time you spent marketing your business, branding, communicating and advertising. In short, this is your income for lead generation.
The best way to get a feel for the right profit margins is to just do it. With time you will get a feeling for the market and be able to gauge the pay vs profit split instantly.
Where to outsource?
One of the biggest questions people have in relation to outsourcing is where to find good people. My answer is, it depends on your niche. As a copywriter I have certain standards to uphold, and therefore all of the writers on my team are English-speaking natives. In this line of business it’s a matter of quality control. I have to be 100% certain my writers can handle content creation using proper grammar and spelling.
For web design work and my own niche sites I employ two staff from the Philippines who are both awesome and hardworking. I found them on www.onlinejobs.ph (just in case you wonder).
Training, training, training
Proper training can be the make or break of your outsourcing experience. You can take a relative newcomer and turn him/her into a pro in next to no time with good training. I use templates for just about everything. I have also recently started to record my own videos. It’s fun. The great part about this is that you only have to do this once if you keep the training generic (not person specific).
I could write a book about outsourcing and how it’s changed my life for the better, seriously. In the end you have to make the decision for yourself.
Please share your outsourcing experiences and questions below in the comment section. I look forward to hear from you.
Monika
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About The Blog Author
Alex Sysoef is an IT Consultant, Internet Marketer and ProBlogger who shares his passion and knowledge of WordPress, SEO, Social Media and traffic strategies on his blog WordPress Howto Spotter. Connect on Twitter or Facebook
30 Responses to “Pros And Cons Of Outsourcing”
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I have used outsourcing a lot, and for a control freak like me it was a hard decision lol
Outsourcing makes it hard to control the quality and time line of a project, but if you can that match then outsourcing is a huge beni to your blog or biz.
.-= John Paul Aguiar´s last blog ..My Crazy Simple 7 Step Plan To Promote A New Post =-.
Pros, you have more time to focus on other things. Cons, may not be done right, and it cost money.
I think that outsourcing can really be smart, because a lot of people who go into offering such services know about a specific niche with more clarity that the average person just punching buttons. In fact it’s why they go into business. There are little things that baffle me that might just be the very forte of a free agent, specializing in the given topic. That’s when we ask ourselves if it’s worth the investment.
.-= Paul Germana´s last blog ..“Blogging And Social Networking” =-.
Monika makes some excellent points and one thing I want to personally stress out – training! Unless you have someone highly professional doing work – training is the only way to ensure work gets done right.
@John – I’m control freak and I know exactly what you mean. Its hard to let go but you have no choice if you want to grow and expand.
I would love to find a way to outsource but never really taken the plunge. As a web designer/developer, my clients expect progress updates, design tweaks and ongoing support. Can be difficult when its someone else’s work!
I commend you Garry. I sometimes think that I could do something like that, but then I realize that I’m a Jack of all trades and master of none. Of course I know how to generate traffic and create an appealing site. I can write pretty good content and get it in front of eyes, but I just don’t know if I could have the mental discipline or overall know how to outsource content, blog design or seo. Perhaps someday though…(if I’m not in debtors prison)
.-= Paul Germana´s last blog ..The Appeal Of Article Marketing =-.
Excellent article Monika; keep her around Alex.
I wasted a couple years at least and who knows how much lost revenue starting off as a newbie perfectionist.
While I still “MUST” keep some things to myself, I have slowly begun to embrace outsourcing.
KEY PERFECTIONIST TIP: Knowing ones absolute limitations is vital.
*Absolute Limitations* – Things you know beynd a shadow of a doubt, you’re not going to be able to do without years of schooling. LOL cause it sounds funny, but quite true.
I know I will most likely never do graphics/web design in any fashion; what did I do instead? Nothing. I didn’t want anyone else to either…does that make sense? No.
I’m outsourcing those now and it has helped TREMENDOUSLY.
.-= Dennis Edell´s last blog ..Theme Customization 4 – NEW Social Media Icons & RSS/Newsletter Subscription Box(s) Coming – You Need to Settle an Argument! =-.
@ Dennis: Loved the point you made about absolute limitations. I think this is an important observation because it is so easy to get burned out trying to do everything yourself.
I think most of us who do outsource run into this “perfectionist” type of mentality at first. Until we realize that others can do as good a job or close to it which is often enough.
@ Oliver: What a great idea to ask your staff to create “how to” guides. It actually makes perfect sense because they will write the guide from the eye of “the worker,” which makes it more logical for the people who follow behind.
@ all: Thanks guys for all the wonderful comments and words of encouragement. It’s great to be back.
Next time I comment it will be from the high seas on board a cruise ship. Woohoo…:)
Outsourcing can be that insurance policy you need to take that vacation, catch up on that sleep or whatever. As you’ve rightly pointed out, burnout can be your worst enemy when you’re trying to do it all yourself.
Great insights. Thanks.
.-= Andy´s last blog ..Four Ways You’ve Failed Your Website =-.
Thanks for the great post. When I hired my assistant, I asked her create “how to” guides on everything she did. We were honest with each other: she might up and quit at anytime for a better opportunity or to go do something else. Neither one of us wanted to leave me high and dry. All her “how to” guides or templates as you say made me feel that my investment in her had a lot higher return. Outsourcing is trick business: keep your eye on the roi and put great effort into retaining personnel and giving them tools to be productive, grow, and contribute.
I have been on both sides of outsourcing and it can be a very good thing or a total nightmare. Finding someone who is easy to communicate with, hardworking and with the same ethics as yourself is the key to a succesful relationship. Anything else will leave one or both parties unsatisfied.
I am Brazilian and I reached this blog by chance, but I was scared to see how he is quality. I wish you success and you continue with this great blog. You just won a Brazilian fan.
sorry my bad English, but like I said, I am Brazilian.
CONGRATULATIONS!
Outsourcing could be the great move for you to expand your online business if you done it correctly.
But, Sometimes, It might be turning you to become a “baby-sitter” taking care and chasing what your virtual employees are doing.
Therefore, you have to plan wisely before decide whether you should outsource & what tasks that needed to be outsourced.
A lot of the cons can be avoided, or at least minimized, if the outsourced workers, whether onshore or offshore, are viewed as part of the team as opposed to a completely separate entity.
Communicate clearly and openly and build a relationship of trust and respect. It takes time for this type of relationship, and the systems to support it, to evolve. But it can be well worth the effort.
Couldn’t agree more. As much as possible, apply the real essence of collaboration and make them goal for your business goals. One of the reason why outsourcing is not working to most people is because they are treating their outsourced employee s like robots. You will not maximize the value of the money you’re paying if you are just giving them specific tasks to do the whole day. Let them research and voice out their opinion at the same time measure their performance and give feedback. Chances are, they can suggest something that can drastically improve your company’s performance. It will be a time-consuming process but eventually it will pay off.
.-= Glenn Comanda´s last blog ..Facebook vs Google: Internet Marketing and Your Business =-.
For me outsourcing still remains a thing for those with money to throw around freely. Till date, I’m quite comfortable doing things on my own. Maybe when I start making A-List dollars and need to diversify, I’ll start considering outsourcing stuff like article writing etc.
.-= Udegbunam Chukwudi´s last blog ..StrictlyOnlineBiz’s Top Blog Posts Of The Week 10 =-.
Udegbunam – I thought the same way for a looooong time, seriously. In the process I fell way behind.
I now outsource but do heavy research for both quality work and economical pricing. Believe me, you don’t have to have A-list money.
.-= Dennis Edell´s last blog ..I Need MORE Aweber USER Affiliates! =-.
Dennis, you nailed it! And I actually think that reaching the “a-list” point will be hard if you only rely on yourself.
Nice point, I must say. Maybe I’m just too much of a control freak or I’m yet to get to the point where I can’t joggle my day job and my blogging properly. I’ll probably just have to test the waters for some first hand experience
.-= Udegbunam Chukwudi´s last blog ..Start Your Make Money Online Biz With Just $10 NOW! =-.
It all comes in right time
Sometimes outsourcing is a matter of survival, not just an option. I guess it is better to start early so if time comes – you are prepared.
I find that once we begin to invest in our blog and our business, we also begin to come across things we don’t know how to deal with. Anyone who is not outsourcing is not really getting their head above water. We have to move money to make money. We must go from being the desperate victim, to the guy who spends wisely, learning as he goes. No matter how deep the water gets, press on and make informed decisions on what you purchase and who you pay to help you.
.-= Paul Germana´s last blog ..What Can YourNetBiz Offer? =-.
I think if you are outsourcing design work often or building sites that you need to have a full time person doing it for you.
That way they are there when you need them and do not have other jobs going on.
I had some clients of mine ask for frequent changes to a project I did for them and I used an outsource person who was not on a per month payroll and when I tried to contact them, they were off doing other things. It was frustrating to say the least.
So I think you really need to think about What you are going to outsource.
Good post.
.-= Troy´s last blog ..Tony Robbins and Frank Kern & John Reese Interview =-.