Earning Revenue from Outsourcing Work -- Is it Possible?

14 replies
I am looking to assemble a team of designers for a variety of graphic design and web design work. With access to thousands of people on a daily basis through my YouTube videos and websites, I have great confidence in grabbing some attention -- in other words, forming new customers.

I realize sites like Elance and DesignCrowd exist, but they feel too saturated and difficult to navigate. My goal is to make a website that is focused around a max of five designers, each with his/her own set of skills. Any projects that come my way and are handed off to a designer on my team, I take 20% of the earnings. Does that sound fair?

I'm currently researching percentage rates, but I wanted to crowdsource on here a bit. Are there any other designers doing something similar? I feel this is a great way of introducing work to designers who are looking, as well as creating an extra income for myself. Advice is welcome!
#earning #outsourcing #revenue #work
  • Profile picture of the author writeaway
    There will always be a huge demand for QUALITY design work
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  • Profile picture of the author MartinPlatt
    Always going to be a demand for this sort of work, high quality stuff, for a good price, and in a timely fashion.
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  • Profile picture of the author daviddifranco
    Thanks for the replies! I already have a few designers interested, so this could definitely work. I'm just still deciding on how to implement everything, including pricing.
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  • Profile picture of the author Stuart Walker
    If you've got customers or can get them it will work but if you don't you'll end up with a team of people you don't have any work for.
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  • Profile picture of the author JasonBennet
    There is definitely a market for high quality design at a reasonable price. From what I see, you are like the middleman who get customers for the free lancers and you make a cut out of the sales. I do know of people who are active in networking and they simply make money by referring customers to each other.
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  • What you can do, on top of your plans, is to contact companies in your area with the following:


    • Recently Launched Products - Digital product developers like software companies would be better, among other businesses that sell products where sales and delivery orders are processed online; and


    • Affiliate Programs (for those newly launched products) - Digital product developers and businesses that sell products where sales and delivery orders are processed online would need a lot of affiliates, who in turn need websites and online marketing materials to promote those affiliate products. Why?


    These companies and businesses could be initially interested in acquiring your services to lure more affiliates, i.e.


    They could offer website themes/templates, marketing materials like banners, squeeze/sales page templates, ebook cover templates and so on. And:


    Once they have more than enough affiliates, they could be interested in continuing to sell your services to their affiliates, at marked up prices.
    This would help their affiliates with their online affiliate marketing campaigns, while earning income for those companies and businesses in the process. Plus:


    They could be interested in again acquiring your services to lure another batch of people to sign up as their affiliates.
    More affiliates for them could result to more business for you. This is on top of more potential sales and wider market exposure for them,
    particularly for their brand and products...


    In my experience, what I mentioned above is best done with an inhouse team of employees working in an office with constantly tested and improved backend processes and systems.
    This is from comparing (for the past 6 years) the performance of our inhouse employees against our independent homebased subcontractors (not the employees of our subcontractor partners, since their employees work at their own offices). However:


    I'm not saying doing this with a team of freelancers who are 100% working remotely wouldn't work,
    because the performance of our independent subcontractors may not be as good as our inhouse employees,
    though I'm confident homebased service providers can handle per project work better than regular daily work,
    most likely as good as how inhouse employees handle daily work, so:


    I believe you could test this out initially with a few homebased freelance subcontractors.
    Just grow your team when needed...
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  • Profile picture of the author opalfx
    i do this. it's called arbitrage i think. i find clients on the web and then outsource it but my split is atleast 50% of the budget. recently i did this. i sold a mobile site for $257, paid the contractor $70. 20% isnt enough profit for me as i am the one that is still project manager and i have to allot for the cost of my time to find the lead.
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    • Profile picture of the author daviddifranco
      Originally Posted by opalfx View Post

      i do this. it's called arbitrage i think. i find clients on the web and then outsource it but my split is atleast 50% of the budget. recently i did this. i sold a mobile site for $257, paid the contractor $70. 20% isnt enough profit for me as i am the one that is still project manager and i have to allot for the cost of my time to find the lead.
      I feel like 50% is very high, especially considering I am simply handing off the projects to other designers. Has this percentage worked for all clients or just the one you mentioned?

      I figured 20% is a good starting point. If I sell a project that is worth $1000, then I still make $200. However, I'm open to suggestions if you have any!

      Thanks.
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    • Profile picture of the author aharrold
      Originally Posted by opalfx View Post

      i do this. it's called arbitrage i think. i find clients on the web and then outsource it but my split is atleast 50% of the budget. recently i did this. i sold a mobile site for $257, paid the contractor $70. 20% isnt enough profit for me as i am the one that is still project manager and i have to allot for the cost of my time to find the lead.
      I really don't think this is arbitrage, you are putting in work and managing employees. If someone starts a bakery and hires bakers to bake cakes while they run the business (paying the bakers minimum wage) are they committing arbitrage? You are forming a company and paying employees, it's called starting a business!
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      • Profile picture of the author AlexGeorge
        As well as offering design services you can also do SEO. I'm thinking of doing the same kind of thing. I want to resell web design / seo services to local clients.
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  • Profile picture of the author johnben1444
    99designs just in case you are going to be worried about competitors..
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    • Profile picture of the author MarketMaster13
      Yes,its a nice strategy for both you and the designer.
      Quality designs and timely delivery should be you key priority.
      This way, you will be in for success.
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  • Profile picture of the author Lokahi
    Just be sure your team is paid very well. No one wants to work for $5.00 or minimum wage when their talent and skill is worth more. No matter what you charge your clients, ensure the artist is taking home the winning share.
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  • Profile picture of the author AffiliateWaves
    Your work model is super and many people are already using it .They grab project and outsource to design team and pay them according to their mutual agreement.Here is one major issue

    Do you want your designer team to be fixed or you will select random team from outsourcing websites.Fixed team will be reliable but will need consistent work .


    Recently i was contacted by a local web development company for bringing project for them and they will pay 15 percent of project amount .

    My view is that i should get a fixed amount along with percentage ,the reason is straightforward i have to give my time and resources to get project ,supervise them until completion ,and dealing with client.

    How many of you support my idea of fixed pay.
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