$2000 a month to outsource anything

by ckbank
33 replies
This is a hypothetical number, but if you really could spend this much on outsourcing every single month, what would you do and how much would YOU really need for outsourcing on a monthly basis to create passive income for yourself?
#month #outsource
  • Profile picture of the author jamesrich1
    What is your business model? We have no details to properly give you a answer to your question without knowing this.
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    • Profile picture of the author ckbank
      Originally Posted by jamesrich1 View Post

      What is your business model? We have no details to properly give you a answer to your question without knowing this.
      Well, I would love to create training manuals and informational products with using video as the medium. Then my plan is to do inside sales and media buys. Any suggestions? Is it possible to create good video based products with low production values?
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      • Profile picture of the author jamesrich1
        Originally Posted by ckbank View Post

        Well, I would love to create training manuals and informational products with using video as the medium. Then my plan is to do inside sales and media buys. Any suggestions? Is it possible to create good video based products with low production values?
        I'll put it like this the formula is simple.

        Traffic + Conversions (Build a List) = Sales.

        Most people cannot sell. If you can sell really well through video and get targeted traffic you will make money. Again most people try to sell but don't get the conversions that make them any real money. I am pretty good at selling but I would rather use a person who is much better with a ton of more crediblity so I use a system that pays 50 times earning potential per person any Clickbank product does with a higher payout. At the end of the day my mentor suggest you use a system where there is a better salesman until you can match or surpass the conversions.
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        • Profile picture of the author ckbank
          Originally Posted by jamesrich1 View Post

          I'll put it like this the formula is simple.

          Traffic + Conversions (Build a List) = Sales.

          Most people cannot sell. If you can sell really well through video and get targeted traffic you will make money. Again most people try to sell but don't get the conversions that make them any real money. I am pretty good at selling but I would rather use a person who is much better with a ton of more crediblity so I use a system that pays 50 times earning potential per person any Clickbank product does with a higher payout. At the end of the day my mentor suggest you use a system where there is a better salesman until you can match or surpass the conversions.
          I agree and maybe I am in the wrong forum to ask this question, but I am thinking something more along the lines of becoming an actual company that can expand from year to year. I'd like to have a brick and mortar business with it's own salespeople, eventually. I just don't know how to take that first step or what type of physical product to create.
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          • Profile picture of the author Jill Carpenter
            Originally Posted by ckbank View Post

            I agree and maybe I am in the wrong forum to ask this question, but I am thinking something more along the lines of becoming an actual company that can expand from year to year. I'd like to have a brick and mortar business with it's own salespeople, eventually. I just don't know how to take that first step or what type of physical product to create.
            Aren't companies that provide digital products not actual companies that look to expand from year to year?

            Don't affiliates compare to sales people?

            :confused:

            Couldn't you create a digital product that is provided via hard copy like a CD or print on demand book/manual?
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            • Profile picture of the author ckbank
              Originally Posted by Jill Carpenter View Post

              Aren't companies that provide digital products not actual companies that look to expand from year to year?

              Don't affiliates compare to sales people?

              :confused:

              Couldn't you create a digital product that is provided via hard copy like a CD or print on demand book/manual?
              Uh, oh. I knew SOMEBODY was gonna ask this exact question. They absolutely are, but I just don't know how to scale up by having affiliates. My experience is more in offline sales. So, it's just a preference for me.
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          • Profile picture of the author Alexa Smith
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            I spend so little on my business each month that $2,000 for outsourcing seems on the one hand like a fortune.

            On the other hand, if I look at what I could realistically buy regularly for that sort of amount, it doesn't seem like enough! From my perspective, it would perhaps be only the article-writing that I might justifiably outsource for that kind of amount, but I do all that myself: it was how I built the business and I wouldn't want to outsource it. I imagine that if I found an equivalent writer, I'd be looking at perhaps about 10 articles per month for that kind of money, which would in a sense give me something like 10 "half-days off" per month (that being the amount of time I spend on about 10 of my 25-ish articles per month).

            I suppose the other possibility for me would be to spend that on employing a PPC advertising copywriter/consultant and the cost of the ads, and trying something like AdWords as an additional traffic source, but I'd have to do a lot of research before outsourcing that.

            Outsourcing in that price-range has a skill-set all of its own. It's far from the "easy alternative to doing something yourself" that some perhaps imagine.
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            • Profile picture of the author johndetlefs
              Originally Posted by Alexa Smith View Post

              Outsourcing in that price-range has a skill-set all of its own. It's far from the "easy alternative to doing something yourself" that some perhaps imagine.
              Couldn't agree more... in fact I know of a couple of outsourcing firms in the Philippines that actually won't deal with 'newbie' VA employers because they know that it's a recipe for pain... both for the poor VA that is subjected to their lack of knowledge on how to manage them, and to the poor guy who is paying but doesn't really know how to utilise his VA to make money!
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  • Profile picture of the author Hilal
    Hi

    If you are starting from the point zero, the first this you need to do is to create your own business. So, spend in it.

    Then spend more in driving traffic to your business.

    Build a high responsive list, and promote to them.

    I hope this will help.
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  • Profile picture of the author Confined To Life
    I'd spend half of it on PPC and the other half on people to write for my blog/email campaign. I might have enough for someone to manage the business for me.
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  • Profile picture of the author mialove
    This is what i am planing to do.
    At this moment i am looking for people to work for me, and the same time, i am working on the plan.
    The problem is, i feel like i am falling on the "shiny thing" syndrome, because every time i change my plan and want to try so many things at once, instead of focus on one thing.
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  • Profile picture of the author Tyler S
    This is right on track for being able to maintain your own business.
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  • Profile picture of the author himanuzo
    The $2000/mo can be used to hire link builders and content writers for building few blogs and promoting affiliate products through the blogs.
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    • Profile picture of the author tantivy
      That money can go a long way:

      Here's a quick, generalized way on how you can do your outsourcing for $2K:

      Product creation (ebook outsource at Elance): $500
      Article marketing and submission: $500-750
      Linkwheel (outsource at odesk): $500

      So basically you still have $250 - this goes to the creation of your site using WP and graphics.
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  • $2000/m would be a nice number for trying some SEM stratigies which are more fruitful than other marketing methods.
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  • Profile picture of the author TryBPO
    Hey OP,

    I'm not sure whether I just didn't fully understand what you're asking or not, but it seems to me you're going about this entirely the wrong way.

    I actually own an outsourcing company and live here in the Philippines. As "johndetlefs" mentioned...we don't typically take on IM clients for the reason he posted.

    The truth is, you have to build out a profitable process FIRST before you even consider outsourcing. Not idea stage...not proof of concept...an actual, working, profitable, documented process. Only then should you consider scaling it and replacing yourself through outsourcing.
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  • Profile picture of the author khaiez
    if I got $2k in my hands right now,and plan to outsource to increase income and to create passive income (hopefully),I would purchase website at Flippa and resell it again.

    Or,I just create squeeze page and find the cheapest cost to built a list
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  • Profile picture of the author YasirYar
    I can use that good amount of money to generate me more $$$. I can hire a team of people who can do design/programming, content, marketing, and other admin tasks for me. You can build a brick and mortar business with that amount if you have the right team of people and the expertise to get that money rolling and offer you a great ROI.
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  • Profile picture of the author heavens9002
    With this much money you can do lots and great stuff... OR start saving this money and then invest it in a bank

    my two cents!
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  • Profile picture of the author techbul
    2k/mo is a reasonable amount of money to outsource a website. That is, buying articles, SEO services, products and custom design and maintenance.
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  • Profile picture of the author adspace
    My opinion is that u make your own business......
    where u have such a good knowledge ....
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  • Profile picture of the author mialove
    The truth is, you have to build out a profitable process FIRST before you even consider outsourcing. Not idea stage...not proof of concept...an actual, working, profitable, documented process. Only then should you consider scaling it and replacing yourself through outsourcing.
    I understand your logic, but take a look on it from another direction.
    I will take my self as example.
    My English is not good, and it's not possible to open a busyness when i can't even wright a single article.
    For me, outsourcing in the beginning stage is a must. Yes, i realize that at first i may lose money, but i don't see any other way to go.
    Some one else don't have the time and other reasons...
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    • Profile picture of the author TryBPO
      Originally Posted by mialove View Post

      I understand your logic, but take a look on it from another direction.
      I will take my self as example.
      My English is not good, and it's not possible to open a busyness when i can't even wright a single article.
      For me, outsourcing in the beginning stage is a must. Yes, i realize that at first i may lose money, but i don't see any other way to go.
      Some one else don't have the time and other reasons...
      Hey Mia,

      You're pre-supposing that the only way to get started making money is to write articles online and in English. I don't think that's true.

      The English speaking market is great (and there's a ton of money in it) but it's not even close to being the only market you can get into. In fact, I would argue that non-English markets might even be better with less competition. Take some of the principles learned and apply them on a larger scale in a smaller niche language. (There are exceptions to this, of course. If you live in a significantly undeveloped country you might find things difficult. I wouldn't go about creating AdSense sites for the Philippines, for example)

      If you don't speak English well...how could you possibly know whether you're outsourcing to people who do? How will you know the content is compelling and useful for your site? It's not just that you might lose money at first...it's that you might not ever make money, because you don't know the process well enough to improve on it as you go along.
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  • Profile picture of the author Henry White
    Originally Posted by ckbank View Post

    This is a hypothetical number, but if you really could spend this much on outsourcing every single month, what would you do and how much would YOU really need for outsourcing on a monthly basis to create passive income for yourself?
    'Outsourcing everything' is probably every newbie's dream, but it's a mirage - something you will have to work up to over time.

    I did everything myself, including creating the products and copywriting, and managed to net US$10K/month in less than 2 years on 18-20 hours a week.

    Things can go very quickly for your startup if you bring the right knowledge and skills that you can leverage. It's going to be much, much more difficult in some niches for a recent high school grad who's real world life experience amounts to flipping burgers at Mickey D's and hanging out at the mall.

    Depending on your niche and your business model, you've got learning curves to contend with. Whether you actually do the work yourself or outsource it, you've got to know and understand how to get the right work done. (As a cautionary tale, you'll read here daily about those still struggle after years of getting the work done right - a huge distinction that completely escapes most business people.)

    Originally Posted by ckbank View Post

    Well, I would love to create training manuals and informational products with using video as the medium. Then my plan is to do inside sales and media buys. Any suggestions? Is it possible to create good video based products with low production values?
    hmmm... I'll assume you meant "production costs."

    How does this grab you: create teaching webinars/videos and repurpose the same content as audio, transcripts as PDF (e-books), each as "new" products? Then, with minimal time/effort you can break each of those down further in a series of blog posts, posts to your list, with the videos cut and edited on YouTube, etc. Can you see the potential when you've done your research and get into the right niche for this? (And, 'No, Virginia, it's not just for MMO!')

    The last thing you ever want to do is make your success/failure dependent entirely on others. Google comes immediately to mind because so many newbies are strapped for cash they naturally zoom in on anything "free" and "easy." Unfortunately, SEO is neither "free" nor "easy" nor does it "scale" - but they won't find that out until it's too late.

    Setting up an LLC will probably cost US$500-600 with the formation, licenses and fees; and you'll have to renew those licenses and fees at city and county levels, so that's another 150--200 every year. But I think it's well worth it because of the financial and legal protections it provides if you're serious about building a business that will be growing and expanding for years and decades to come. There's a little absolute certainty about how taxes and deductions will change over the years, but I'm confident that you'll be able to build your net worth quicker this way. (For example, from my perspective the tax code is generally fair/generous about legitimate business expenses and deductions. That's bound to change, but no one knows 'how' or 'when.')

    That said, there are undoubtedly a hundred times as many newbies who aren't the least bit interested in empire building and only want to supplement their income - and add a measure of financial security with all the gloom-and-doom about the economy, deficits, debt, and unsustainable entitlements. That's fine! I think a lot of them are going to be pleasantly "shocked" while they watch their incomes from Internet marketing gradually replace and surpass their 9-5 gigs over the next decade!

    Whatever you decide, my advice is to stop chasing money, and look after the best interests of your target audience. If you do that, they'll take very good care of you, too, and it's not just buying your products, but going the extra mile to thank you personally, and recommend you to their friends. You can't buy that kind of advertising or endorsement!
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    • Profile picture of the author ckbank
      Hmm. Fascinating that outsourcing eBooks and other important things can cost so little. Sort of reminds me about a quote. Nothing to fear except fear itself. I honestly think most of us can become millionaires IF we really wanted to. I think some of us don't really want that pressure or just don't believe in ourselves.
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      • Profile picture of the author writeaway
        Originally Posted by ckbank View Post

        Hmm. Fascinating that outsourcing eBooks and other important things can cost so little. Sort of reminds me about a quote. Nothing to fear except fear itself. I honestly think most of us can become millionaires IF we really wanted to. I think some of us don't really want that pressure or just don't believe in ourselves.
        I agree with you. The number one barrier to success is FEAR. Laziness, unwarranted levels of skepticism, procrastination, and hesitation all flow from fear. The first step is NOT to buy but to learn for free from all the awesome free blogs, yahoogroups, chatgroups, and other resources online. Sadly, too many people are so dismissive about the possibilities of making ETHICAL (not get rich quick schemes) that they completely stay in the sidelines or when they do decide to take action, they fall for the biggest and most recent 'get rich quick' mmo scheme and get burned. The real road to success is achieved the old fashioned way-WORK and PROVIDING VALUE. Day after day. Step after step.
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  • Profile picture of the author writeaway
    There are 2 levels of outsourcing. Level 1 is Outsourcing grunt work / detail work / repetitive work. You can find many people for this. The problem is MANAGING them. Also, you have to ensure quality is consistent and your ROI objectives are met. Or else you are just wasting money.

    Level 2 is outsourcing your WHOLE business. You are basically hiring a company to run your business. This IS available but it won't be cheap plus they'd probably need a % of your gross revenue. Moreover, there's a danger they'll steal your traffic, members, content ideas, model, or all of the above.
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  • Profile picture of the author Lightlysalted
    For me I'd spent it on content. I'd pay writers to churn out high quality content, then post on guest blogging sites. It's the best long term organic traffic you can get
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  • Profile picture of the author Lazy Larry
    Originally Posted by ckbank View Post

    This is a hypothetical number, but if you really could spend this much on outsourcing every single month, what would you do and how much would YOU really need for outsourcing on a monthly basis to create passive income for yourself?
    Unfortuntely I can relate to this type of thinking. When I first got started with IM, I thought I had more money than time. I was running a brick and mortar store and doing okay at it.
    So stupid me, I thought, "why can't I just "invest" $2000 a month in IM and build up a passive business after a year or so and have a nice little passive income stream(I think I was reading the Rich Dad, Poor Dad series at the time). I just hire someone to create this magical site that will do everything for me after I set it up and all I had to do was buy traffic for it. Lol, how nieve!!!!
    I think Joe or Justin(whichever one it was) from Adsense Flippers said it best:
    The truth is, you have to build out a profitable process FIRST before you even consider outsourcing. Not idea stage...not proof of concept...an actual, working, profitable, documented process. Only then should you consider scaling it and replacing yourself through outsourcing.
    Trust me, I sort of tried to do the same thing myself and the only thing I did was make some big Clickbank product creators some money for 4 or 5 months.(Thanks Bill McRea)

    So my suggestion to people new to IM is, pick a system or a mentor and learn the system. It's going to take some money in almost anything you do online then after you have your system down, then spend $2000 a month on VA's, writers, web designers, video editors and etc to maintain and grow that system, the only difference though, is you'll be making $7,000 a month and you'll only be spending part of you additional income.
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  • Profile picture of the author Captain Kent
    if you do it correct you can expect at least 10 times higher (but still you need to be a superb manager, have a great plan and know what you are doing) cheers!
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  • Profile picture of the author nitesh
    Traffic is important for your site before your business excel and the best and easiest way of getting traffic to your site is by buying advertising on high traffic websites. Bloggers Joy is the best example for medium businesses
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