Is $800 a Month Too Much To Pay For An Outsourcer?

13 replies
I recently brought on a full-time filipino web designer. I say web designer, but he mostly adjusts themes and works with graphics.

He doesn't do full custom design sites, he modifies existing themes etc.

I brought him on at $200 per week, but looking at onlinejobs.ph, the average seems to actually be around $350-$400 a month.

What do those of you who hire help similar to my guy think of these numbers?
#$800 #month #outsourcer #pay
  • Profile picture of the author P1
    If you have get a lot of work weekly and profit I think it's good.

    If you're not getting a lot of work weekly won't you be paying him for nothing?
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  • Profile picture of the author jasontim86
    No offence to brothers sisters from phillipines yo. But I usually take them at $400-$600. $800 is a lil on the high end.
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  • Profile picture of the author GobBluthJD
    Yea, way too high in my experience. I mean, unless he's the ultimate best worker you've ever encountered in life, I'd say you're paying him above his range.
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  • Profile picture of the author HAdrian1239
    If you're getting enough work for him to be profitable, great. If he does a great job, and follows your instructions, excellent. Pay him what he's worth, and bonus him too to keep him loyal.

    That said, I've had more problems than not with Filipino outsourcing. Most of them are incredibly sweet/nice... but I have found that especially after a while their work ethic is questionable, meaning they do the bare minimum needed, or will sometimes lie to save face... and also they will proceed with tasks they claim to understand while not actually understanding... because they don't want to be rude/annoying. It's a cultural thing.

    I'm not saying don't use them. As with anything else, you get lucky and find good people anywhere... I'm just saying... keep that in mind, and be prepared to have to replace him.
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    • Profile picture of the author George Pitts
      I totally agree with the statement below. I have done both paying higher dividends and having someone not paying what they are worth


      Originally Posted by HAdrian1239 View Post

      If you're getting enough work for him to be profitable, great. If he does a great job, and follows your instructions, excellent. Pay him what he's worth, and bonus him too to keep him loyal.

      That said, I've had more problems than not with Filipino outsourcing. Most of them are incredibly sweet/nice... but I have found that especially after a while their work ethic is questionable, meaning they do the bare minimum needed, or will sometimes lie to save face... and also they will proceed with tasks they claim to understand while not actually understanding... because they don't want to be rude/annoying. It's a cultural thing.

      I'm not saying don't use them. As with anything else, you get lucky and find good people anywhere... I'm just saying... keep that in mind, and be prepared to have to replace him.
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  • Profile picture of the author payoman
    Appreciate the responses.

    I have considered reducing his wages, but unless I really cut them down, say by half, the savings wouldn't justify the harsh reality.

    The only option would be to find someone else, but I wouldn't really want to. This basically just forces me to find more clients to make up the costs. So perhaps its a good thing, keeps me motivated >_>
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  • Profile picture of the author kcom
    How many websites can he do in a month? A week? If he can do 2 a week that's 8 sites a month, $100 per site. If your charging $750-1000, that isn't bad, at all. Especially, if he has already proven his worth. Don't be too quick to drop an outsourcer if they do good work. Are you paying him too much? possibly. But if you drop him and get a cheaper one whose works sucks, that will cost you more in the long run.
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  • Profile picture of the author Chris Rivers
    Hey Payoman,

    I'll share with you the way I've evolved to look at higher-than-market value outsourcers.

    For me it comes down to one central question...

    "Are the tasks they're doing directly generating income or are they playing a supporting role in my business?"

    I've hired a ton of outsourcers over the years and the mistake I've made up until recently was that I paid too much for support role employees.

    Why in the world would I pay almost $10,000 a year to a contractor who doesn't directly contribute to my bottom line in a measurable way?

    Forget about finding work for them to do!

    If you're paying those type of rates, you should have a blueprint for them to follow that generates at least two to three times what you're paying that contractor each and every month like clockwork.

    Otherwise, it will not last because one day you'll wake up and realize you're eating into your profits by trying to find work for this employee and it's not even improving your bottom line.

    Now, without knowing how this outsourcer impacts your cash flow, I can just guess and speculate that he's probably just a support role employee.

    Especially, if you're saying that he only modifies existing theme's.

    And unless you're running a wordpress theme optimization service (just made that up) or a graphic design firm, you can get that type of person on odesk or other sites on a as-needed basis for a heck of alot less than $200 a week.

    At least that's been my experience.

    Hope that helps,

    Chris
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    • Profile picture of the author Irish Intuition
      I'm not sure I get $800 per month. How much work is that on average?

      Is this some sorta buffet pricing I don't know about? Pay x and eat all
      you want?

      Considering where he is from (respectively), the price seems high dependent
      on what he is doing and your ROI.
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  • Profile picture of the author 2Intense
    Seems a lot to me, the best answer is "it depends" I guess.
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    • Profile picture of the author nathanjacobs
      You can hire them for $400/mo off craigslist but they aren't being managed in any way.

      You can hire them for 800-1k/mo from outsourcing companies where they come into an office, have a manager, etc and are watched.

      One way I use is this. Put an applicaiton up in the Manila Craigslist at $400/mo, get tons of apps, choose the best 4 and hire them for 1 week. Pound them with work, and the best out of the 4 gets the job. But instead of $400. pay them a little more as a bonus for being the best out of the 4.

      If you luck up and get 2 great ones, then you have 2 workers at the exact same price you are paying the one you have now. Double or more the work capacity too!
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  • Profile picture of the author bryson
    That is a fat stack of cash you are paying for what you are getting in return. I suggest posting a job on odesk or others. Explain in detail the job and ask for bids. The middle of the road should be your target.
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  • Profile picture of the author rain21
    depends on how much work you have him to do. If have lot of , I think $800 a month is ok.
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