"It's a problem of scale"

2 replies
It's been a while since I've wrote a post, perhaps on this lazy sunday would be a good day.

Once you've made your first dollar (or first sale) online, you find that making money is pretty easy, actually. (At least, this was my experience)

Now, there is a difference between "making some money" and "making life changing amounts of money".

One is actually pretty easy, the other is a VASTLY different story.

The problem most people face deals with scale. Meaning, they can make a little bit of money but they can't scale it up and make a LOT more.

This has to do with an inability to automate effectively. (I'm not talking about bots that spam either, I'm talking about effective automation, involving outsourcing, software, and systems all working together, that doesn't violate TOS and makes people happy to be a part of it)

If you want to automate effectively, you need to consider these things.

1. Your business plan/model needs to be capable of supporting automation. Basically, it needs to be profitable enough to support investment into a system that runs it on autopilot.

Just a quick and dirty example - if your earnings are too low, say 5 bucks an hour or less, then you probably can't afford to automate it - you would need to increase the profit the system makes without increasing the time it takes to make that money.

Note that this is overly simplistic, as there are a LOT of variables involved. My point being that if business plan isn't profitable enough, you need to work on getting it more profitable. How you would do that is a HUGE topic, perhaps reserved for another day.


2. You need to have systems setup that are repeatable (same steps over and over again), dependable (the steps always give similar results), and effective (the results end with profit, saved time, etc.)

All three of these things are important. Each system in your business needs to be able to be repeated, and every repeat gives dependable and effective results.


For example - develop a system that almost always finds profitable niches before you even begin writing ebooks, setting up sites, or whatever it is you do. And no matter what, when you "run that system", it works.

Now, once you have these things, you can easily scale it.

Take my research example - once you have the 5 steps (or whatever) that always give you potentially profitable niche results, you record these steps as training material and hire someone to do the research for you.

You then work in the costs of research into your budget for your campaign.

(So, for example, say you hire a researcher at 4 dollars an hour on odesk. It takes them 15 minutes using your system to find a niche - that comes out to 1 dollar of expense in your budget. You would also have things like content creation, site set up, adverting and traffic, etc. etc.)

This is getting rather long, and I have a LOT more to share - if you guys are interested. If so, let me know and I'll keep on going. You can also ask questions and I'll help with some answers, if possible.

Rob
#it a problem of scale
  • Profile picture of the author SamSebastian
    Great post mate, definately keen to hear more.

    How important is / how do you maintain a level of quality through the system after it gets to a large enough scale?
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    • Profile picture of the author Rob Howard
      Originally Posted by SamSebastian View Post

      Great post mate, definately keen to hear more.

      How important is / how do you maintain a level of quality through the system after it gets to a large enough scale?
      Well, just like any other system in your business, your hiring system should take that into account.

      If you want quality, quality is an investment. That means that, again, your business model MUST support quality.

      This means not being afraid to charge what it is worth (if you are doing your own products at least).

      Anyway - my hiring system is VERY rigorous.

      1. VERY long ad at odesk, elance, etc. I tell them exactly what I'm looking for, what the pay is, time frame, what they will be doing, job requirements, etc.

      I also require them to respond back by answering questions. This weeds out automated submissions and people who don't answer properly get tossed.

      I've found that by doing this, I cut down to maybe 20 applicants per job posting, instead of 100's.

      Then I end up chucking 8 to 10 of them right off the bat.

      2. Those that remain, I contact and get examples of previous work. I tell them they have 3 days to get it to me.

      Those that don't, get canned. That's another 3 or 4.

      3. Then it's interview time. I tell them the times I'm available, in MY time zone, and they have to work out the difference.

      Once they agree to a time, they have to show up. 5 Minutes + late, SEE YA.

      4. During the interview I ask pointed questions, make sure they are qualified.

      Then, out of those that remain, I'll hire one and have 30 days of probation. Screw up - your done.


      Those process is lengthy - but it almost ALWAYS gets me exactly what I'm looking for.

      I've found that most people that fail to get quality do so because they don't work quality into their systems.

      Quality takes time, energy and focus. If you make it difficult to get a job with you, and easy to fire - you'll find people who DO deliver the goods - and at an affordable price. Sure, it may take some time ( a few weeks to a month) but once you found them, you've found them.

      After that - of course - TRAINING is of the up most importance. You must be clear on what you WANT and EXPECT. And have the training material to be able to describe it accurately.

      Rob
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