How Outsourcing Created $75,000 Before Taxes

Hey Warriors,

A quick post on how if you outsource right, you can have a very valuable asset. This post will discuss how outsourcing generated $75,000 by outsourcing application development.

To start, we begin with the product.

Many marketers believe a product has to be an information product, there are ton of markets out there that contain opportunities to sell a digital style product. This can be software, an asset, a number, etc. There are tons of digital products to be involved with besides information products.

In this case, the product was software. Not desktop software, not a web application, while those two can be good investments, in this case we developed mobile technology.

Our niche contains a need. This need is faster communication from the consumer to the merchant. We provide this with a mobile application in which the consumer can instantly receive all the information they need.

I'm vague because it is a rather untouched idea, and let's face it, there's people here with money.

+++++++++++++++++++++++++++

Sooooo.
We found the Need.

We place an ad on:
Outsource to freelancers, professionals, experts, and consultants - Get work done on Elance.
Guru.com ? Find Freelancers for Hire. Get Your Project Done.

While these two sites proceeded to give us 100+ different prices and different companies, we actually found our developer off a forum. My virtual assistant actually found him, asking for mobile development work to build a portfolio.

BUYING ANY SERVICE REQUIRES DUE DILIGENCE.

However, in my experience, when you find a developer, designer, or any type of service provider that is looking to build his or her portfolio you will be satisfied with your purchase. The service provider is very interested in receiving referral business and more of yours.


+++++++++++++++++++

My service provider quoted me $650 to develop my mobile application.

The key was creating something simple that works, no crazy ass buttons that no one is ever going to do. In this niche, a straight forward product is needed, because when a consumer is dealing with THEIR money, THEIR decision, they want things done fast. Not long dragged out options.

We decided on a 33/33/33 split.

We developed a real contract. Yes, even for $650.

A contract does not have to be written by a lawyer. Just get a piece of paper that list the delivery that is expected by both parties and have it signed by both parties.

+++++++++++++++++++++++++++++++++++++++

In three weeks I have my product.

It was not the prettiest creation ever, however it did work, and worked fast. The developer did what I wanted, simple and stupid.

The difference here was the developer was not a graphic artist, and did not utilize good imaging and icons within the mobile application.

In response I asked him to tell me what size images he needs, and the specifications for them to work with the application.

I then outsourced graphic work for this project. This cost me $150.

Even though only 4 images were to be made. Presentation is important in a digital product since your losing the tangibility. So I hired a mid ranged graphic designer.

++++++++++++++++++++++++++++++++++

Product Looks Great and I'm ready to market.

++++++++++++++++++++++++++++++++++

I have a product that I can introduce now to my consumer.

My consumers are small business owners. The technology helps increase sales and revenue within their business. This technology is in the form of a mobile application that the small business owners would give to their consumers for free.

With small business owners + a new emerging product, I'm not trying to find keywords and do SEO, article writing, and all this Internet Marketing stuff.

What I do is BUY a LIST.

But... before I buy a list I do research. I find out all the demographics for the exact market and get down to the deep core of who I'm trying to sell to.

I know how much money their business earns.
I know how much ROI my technology will create for their business.

You don't need any lonnnnnnng sales letters. The quality of the product is enough. Knowing the above is enough.

With all the research I specify a list using a list broker such as salesgenie

Talk to an agent. Drop their price by 'winging a deal' you can get it down to a salesgenie lite package.

I use the list.

+++++++++++++++++++++++++

I also develop a list of consultants, that consult in the niche. These consultants have lists of their own and I present them with a Joint Venture package on the digital software.

I find these consultants in the yellow pages.

+++++++++++++++++++++++++

The mobile technology costs $1,000.

We've been selling for about three months now and have sold 75 copies of the software. Earning about $75,000 before taxes and fees.

+++++++++++++++++++++++++

We sell the software by initially offering a no-hassle trial. For software costing around $1,000, you are not going to make some 'continuity system'. We also create a small focus group for them. We find a few dedicated consumers and have them test out the software for testimonials to use to market to the small business.

Think about it, if you get the small business's consumer on the ball before even selling to the business your sale rate's to that business are going to increase.

With 5-6 reviews of the software + trial + warranty is what we pitched.

In return we are seeing around 8% of our attempts at a sale a success.

++++++++++++++++++++++++++++++++++++++++

This post was more to show you a different way of taking the knowledge you learn in Internet Marketing and to apply it to different niches and markets.

You may realize that if you actually own a high valued product, that deserves to be priced at that value, not just because you picked a number out of thin air, it deserves to be that price because of the ROI the business will earn. You may have some amazing earnings.

If you have any specific questions you want answered shoot me a PM.