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  1. #1
    Tom K
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    Outsourcing for Great Profits

    Notice: This is a discussion thread for comments about the SitePoint article, Outsourcing for Great Profits.
    __________

    This article was very informative, and I think combined with another article I read (http://beta.resourcepad.com/articles/Qualities_of_Good_Service_Providers/57), the two provide a very informative outlook on the importance of outsourcing as well as what to look for and how to choose service providers.

  2. #2
    phpLD Fanatic bronze trophy dvduval's Avatar
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    I have found personally that working with talented people in general is a great thing, and when you are not limited by having to only hire locally, the possibilities are tremendously greater. I don't really even use the word "outsourcing" any more. I know where to find the right people for right job most of the time, and it is just a normal part of running an online business for me.

  3. #3
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    One must think very carefully about outsourcing... It is a very fine task... I have been there and have quite a bit of experience with this... Not for fainthearted...
    I had a good look around and unfortunately could not find anywhere any good information or experiences of others with regard to outsourcing... Tips and hints... Recommended or Black List of companies/individuals... I figure it could be a good content for a forum or even a site where visitors can share their experiences and/or recommendations... Might be something to think of in the future...

  4. #4
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    Brendon mentioned a couple ways of marking up the price for outsourcing:
    1) Fixed--A project cost $1000 to outsource and he marked it up for $5000 for a "quick" profit.
    2) Hourly--His example was $50/hr contractors and marked up to $100/hr

    What situations lead to the "fixed" mark up? And what situations lead to charging your client hourly rates? I've been seriously looking into outsourcing and I'm not sure how to quote the mark up when I'm passing it on to my clients.

    Thanks for any insight.

  5. #5
    phpLD Fanatic bronze trophy dvduval's Avatar
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    I am a fan of doing hourly with regular reports of progress, and customer payments based on hours reported in the progress report. If the customer ever wants to quit, they have option, so that is a plus for them. And if it takes longer to get done than expected, I won't get into a losing situation, so that is a plus for me.

  6. #6
    I hate Spammers mobyme's Avatar
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    Outsourcing can really benefit a company that has already built a reputation for delivering good work on time. It's no different than many "brand" products outsourcing the manufacture of their products to say China. Anybody who thinks that they are going to go from a cold start outsourcing their design and programming to parts of the world where they can get the work done cheap and make a killing is in for a rude awakening. You need to check your freelancers portfolios, references etc in exactly the same way as you would check to ensure that somebody you were going to employ in your office is everything they claim to be. There are no shortcuts and building a good team of freelancers can take years. The project managers have to be exceptional people for it to work well.
    There are three kinds of men:
    The ones that learn by reading.
    The few who learn by observation.
    The rest of us have to pee on the electric fence.

  7. #7
    phpLD Fanatic bronze trophy dvduval's Avatar
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    Well said Mobyme. Like anything else, to really excel it takes time, patience and good works.

  8. #8
    SitePoint Enthusiast Brendon S's Avatar
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    Hello

    Yes Mobyme and dvdual are on the money - it takes a fair bit of work to find someone to outsource to (and a fair bit of work to manage them effectively).

    galaxy101 - when you're starting out err on the side of caution.
    We might do a WordPress site for $3,000.

    We'll get a design done on SitePoint or via Monster template or a few other blog design places: $200
    We outsource the set up, insertion of plugins, etc for $200
    We insert the content and show the cl;ient how to use it.

    Sounds profitable enough, but I find we need to charge closer to $4,000 to be nicely profitable.

    The client is getting a great solution and it takes time to manage everything along with the client.

    BUT, once you have a good designer, a good programmer to configure the site and your systems in place then you're away - no reason why you can do 3+ per week like that a week.

    Someone mentioned 4-hour Working Week by Tim Ferris - fabulous and well worth the money. Will give you some great ideas.

    Cheers

    Brendon


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