Outsourcing... Any experiences?

[Dien Rice]

Originally Posted by spyglass

Well a few years ago I outsourced a website embedded with my Amazon affiliate code for DSL cameras. Fairly nice site, but it didn't make a single penny.

More recently, I outsourced the design of a logo for my LLC. I was pleased, at the time, but I now know after being exposed to higher end graphic design styles that it is only mediocre level design quality. So I will get it redone by a more skilled designer next go round. Live and learn.

Interesting you bring this question up at this time because I am just starting to build an online service that will rely heavily on outsourcing. The good part is skilled and dependable outsource workers have already been identified and all I have to do is drum up the customers. If things progresses as I expect them to, I will scale the service enough to absorb the investment of hiring a project manager who will manage the day to day operations and I will manage he or she. I give this twenty months to build up to the project manager level. Maybe sooner if I snag more recurring business clients than I anticipate getting the first twenty months.

Hi Spyglass,

I agree, that's the way to do it!

In one of the projects I'm involved with, we're planning to do that too... We're setting everything up, but the plan is, hopefully later this year, we'll hire a manager to manage it all once it's "chugging along" smoothly...!

I know a guy who started a SEO (Search Engine Optimization) business, well over 10 years ago... He set it all up as a "virtual" business, in the sense that there was no office for people to go to, everybody worked from home. He hired at least one sales person (I think he got paid salary + commission), an admin/customer relations person, and an SEO person, who did all the SEO stuff. My friend, the founder, mainly wrote the sales copy for the website, as well as setting it all up. Everybody lived in a different city (though in his business, all lived in the USA or Canada). I think it was (and is) quite a profitable operation...

The HB-type of "virtual organization" outsources too, but in a different way. He partners. So, for example, if he wants a product manufactured, he partners with a company who can do the manufacturing. The manufacturer then sends the products, as needed, in bulk directly to the customers (who, in his case, are big chain stores like Ace Hardware and Home Depot). He just sets it up and oversees it, he never touches the product.

In his case, his "toll positions" protect him from being ripped off. (The manufacturers can't manufacture their own version of his product, since they would be violating his patent protection, for example. Without "toll position" protections, they might just manufacture their own version of the product, and go into competition against him... and it would all be legal.)

Thanks for sharing Spyglass... Very illuminating, and great discussion!

Best wishes,

Dien