Outsourcing For Growth

July 6th, 2010

One of the methods I see getting talked about fairly often on webmaster and web business forums is outsourcing. Usually the discussion revolves around hiring freelancers–often from India or the Philippines because they typically work for lower rates than U.S. freelancers will–to do programming or writing work.

In fact, there are even a few “products” being promoted out there which encourage you to use freelance workers as “cheap labor” for coding work and article writing, link building, ghost blogging and etc.

Personally I’ve never been a fan of that approach. I’m not in this for fast money, I’ve spent years building an actual business for myself, so I never want the word “cheap” associated with my business in any way.

However, I am a fan of outsourcing for different reasons, and I think this is one of the ways in which the Internet has really opened doors for entrepreneurs, making it possible to find quality help on a contract basis to accomplish anything that you yourself can’t do, or don’t enjoy doing to the point that you can hurt your business by forcing yourself to do it.

For example, I have always despised contact selling. Nothing makes me fret and yawn more than knowing that I’ve got a sales meeting on my schedule. This isn’t something I deal with at this point anymore, but a decade ago when I launched my business and our primary function was selling web services to local small businesses, that was a real problem for me. I had qualified people for the tech work, but I didn’t have anyone helping me with sales in those early days, and it was a serious obstacle that actually slowed our growth early on.

Eventually we reached a point where I could bring in some sales help, and the difference that they made for me was astronomical. I realized almost immediately that I had wasted a lot of time standing in my own way of success by trying to do it myself up until that point.

If I were starting out today with my same distaste for selling, I wouldn’t even think about trying to do it myself. I’d contract with a company like Cydcor and get professional sales help out there turning my leads into revenue.

I wouldn’t even look at freelance boards or sites for sales help. Think about this, in marketing we spend a lot of resources on lead generation. Nearly all of our online marketing efforts are (or should be) aimed at building leads, and the reason is because all revenue comes from those leads. In other words, since revenue is dependent on converting those leads we work so hard to get into sales, this isn’t where I’d fool around or ‘test’ the capabilities of a freelancer. I’d go straight to a company like Cydcor and outsource with professional sales people to handle my face to face and other contact selling, especially for B2B offerings.

There are others out there too, I only mention Cydcor here because they’re the company that I know by reputation and their size in North America with hundreds of offices and thousands of sales professionals across the U.S. and Canada, that’s the kind of coverage I’d want.

Think of the advantage that gives you just starting out, even if you’re good at selling your own business service or products, can you get that kind of instant reach with face to face contact on your own?

It’s easy to overlook the value of the people who do the selling. That’s not just the sales associates, but also the communications people (writers) who create, shape and broadcast your message. I did it myself in those early days, and I talk to others all the time, people from large corporations to garage start ups, who think their greatest assets are their R&D, or production, or who believe that by just having a great product or service they’ll be successful.

It just isn’t so. I don’t care how good your research and development is, or how good your product/service might be, if nobody is buying it you’re still in the red.

At the end of the day, no matter what you do or offer, your business success is going to be measured by a financial barometer. That means you’ve got to generate leads, and then you’ve got to convert those leads into sales.

I think we’ve all heard the 80/20 rule before. When I started out I followed it, but I got it backwards. I put 80% into the service and 20% into selling it, because I didn’t enjoy sales and there wasn’t the easy access to outsourcing back then that there is today. 5 years into it I realized that I was 5 years behind where I could have been as a result.

I’m not advocating skimping on your product or service, but rather seeing the big picture. That by applying the 80/20 rule in the opposite direction I could have grown my business much faster, which would have made more resources available for developing and improving our products and services, which would have made converting even more leads into sales a lot easier.

The bottom line is outsourcing is a great tool that’s widely accessible for any size business today. Not because it’s a path to “cheap” labor, that’s a crazy way to build the foundation of your business; but because almost no business–small or large–has all of the skills or resources necessary in-house to do everything they’re going to need to in order to succeed. By contracting with professionals though, you can overcome any shortfall and give your business the opportunity to reach it’s fullest potential a lot quicker and easier.

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What’s Your Plan?

July 1st, 2010

I’ve been running this blog for years now, trying to share some of my best and most candid experiences and insights on web based business practices, and I’ve realized that the #1 question I get asked by people online and offline has never changed: “How do people really make money online”

What’s really interesting to me is that I usually respond to that type of question by asking a question in return, which is “What is your end goal?”

The replies I get are fairly standard, people want to either supplement or replace their current income, and in some cases people have no current income at all and are hoping to carve their own path online rather than seek unsatisfying employment elsewhere.

The point to this is that not once in all the years that I’ve been doing this has a single person responded with what should be the answer to my question, which would be “I want to build a business”.

I’m not passing judgement on anyone’s motivations here, what I think happens is people get very caught-up in the moment and don’t look far enough into the future or at the bigger picture.

This bothers me because it makes it easier for folks to fail.

What I mean by this is that it’s easy to make money. It’s stupidly easy to make money online. Spend 10 minutes writing about your cat, post it to a blog and throw some Google AdSense ads on the page and eventually you’ll earn some money from it. Sign up with Fiverr.com and offer to make 30 second video testimonials for others and watch the orders (with their $5 paychecks) roll in. Making money is that easy.

But that isn’t really sustainable and it certainly isn’t a foundation for something that you can scale up to a full-time living from, let alone grow into a business that not only lets you live the life you want but that might also employ others at some point.

To me, anyone starting out should be more focused on making a reputation for themselves and building relationships with clients than they are on making money. If you offer and deliver a solid product or service, and gain a reputation as ‘friendly, polite, and professional’ in your market, the money will follow and will be much better over the long haul.

In contrast, if your initial focus is on money and profits over reputation and relationships, then you’re probably in for a short ride.

This is true regardless of whether you’re starting an Internet Marketing business or a Mom-N-Pop’s Greasy Spoon. By establishing a good reputation and building relationships with the people you interact with, you’re flipping the startup scales. By that I mean it’s typically hard for a startup to succeed, but once you build the right foundation, it becomes harder for your venture to fail.

Look at some of the top names in the Internet Marketing field as examples. These folks all have one thing in common, they’ve built reputations for themselves as authorities on their topics and they’ve developed relationships with their peers.

And the payoff for doing it is that when they launch a new product what happens? The people who follow them for their reputation want the new product and the people with whom they have relationships help promote the new product to their own reputation followers as well.

Compare that to Johnny Doe who has no reputation in the field and hasn’t bothered to develop any relationships with peers yet–what happens when he releases some product? Even if it’s the best product ever, is he going to have much success with it? It’s almost a guarantee that he won’t because he’s got no reputation to sell from and no relationships with others to help him promote it with.

What about the “Build a better mousetrap” theory?

As Johnny Doe in my example above found with his “greatest product ever” that failed experience, if you just build a better mousetrap then you’re going to just make a little money with it, and you can do that by blogging about cats so what’s the point?

However, if you become known (reputation) as the source for better mousetraps, and people want to do business with you (relationships), then you will have positioned yourself to tip the startup scales from “it’s hard to succeed” to “it’s harder to fail”–and you will have created something that is likely to grow to whatever you want or need it to for the long haul.

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Safer Shopping

June 28th, 2010

I’m a big fan of online shopping, and not just because I make my living with online selling :-) But as a busy person I’ve always found the convenience and time savings of being able to get what I want or need without having to make trips to the mall well worth the extra few dollars I might spend in shipping, and often even with shipping I’ve found that I’m still saving money buying online rather than from a local retail store.

Unfortunately, there are risks with shopping online and sending your personal and credit card details out over the web. Thankfully those risks are small, and there are ways to minimize the risk of being a victim even further with just a little due diligence.

When online shopping, or even to protect your information and keystroke inputs with non-shopping activities on your computer, a good idea is to make sure you’re running a strong Firewall, AntiVirus and SpyWare software. For additional security when browsing on the web, keep your browser’s security settings as high as possible without blocking sites or media that you need to access. Another good option to consider is KeyScrambler by QFX Software, it isn’t free but it’s affordable and encrypts your keystrokes so that any keystroke logging program that might infect your machine won’t get any useful data.

Specifically for shopping, I’m also a big fan of prepaid credit cards. Most are available without any activation fees now, and can be reloaded as needed, some even instantly when you’re ready to make a purchase, allowing you to control how much money is on the account, so even if someone gained access to your card or details they couldn’t hit you for more than you’ve placed on the card.

Credit cards offer protection from unauthorized use that limits your liability, but there are a lot of people out there using debit cards online and as credit cards at malls, and that can become a real hassle if someone gets access to your card details. Again, you usually have some protection and recourse if it happens that limits your liability, but it can take a long time to get your funds returned and in the mean while your bank account can be empty, which stinks when the bills are stacking up.

I’ve been through this after having a debit card stolen. The scumbags took over $1,600.00 out of my account by making tons of online purchases before I noticed the activity and realized the card had been stolen.

I eventually got most of my money back, though it cost me a small fortune in filing and notary fees and there was a $50 liability for unauthorized accesses, but it took several months before the money was back in my hands. Fortunately, I have multiple bank accounts because of my business and so I wasn’t left penniless after the theft, but most people only have their checking account, or possibly a checking and a savings account with the bulk of their funds typically sitting in their checking, so if someone gets that card it’s a real hardship for a while.

Which is why I’m such a fan of the prepaid cards, since with them you still have protections for unauthorized uses, but you also get to control how much of your money someone could access if they got your information, which is a lot better than watching those Zeros in your bank account day after day while waiting for any reimbursements that you may have coming after a theft.

Anyway, I felt like posting this since I’ve had some experience with it, and hopefully some of the tools and ideas I’ve mentioned will help you to avoid being a victim in the future.

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Blogging For A Living?

June 13th, 2010

I haven’t posted much here recently, mainly because the majority of what I initially wanted to say with this blog I’ve already said over the last couple years. The information I share, typically because of the way I look at and approach things, tends to be evergreen (though some of the resources may change, the methods of use remain), so there doesn’t seem to be much reason to revisit a lot of my previous topics.

I suppose I could simply to add keywords and content fodder here for the search engines, but that’s not my thing. I started this little blog to share my ideas and insights on specific topics, and now that I’ve covered most of those it seems to me that it would be wasteful of my time and disrespectful of yours to just keep pumping out posts of needless or rehashed musings.

When something does interest me or I think it would be a good addition to the blog, like today’s topic, then I will gladly put it up.

Blogging For A Living?

I had a nice chat this week with an old friend, someone I went to school with many moons ago, and like many people out there he’s having a rough time making ends meet these days.

It’s not that he isn’t a good guy, a hard worker, ambitious, motivated or skilled. He’s all of those things. Unfortunately, his skills and experience are in abundance in our region, so he’s competing for limited work with a large pool of qualified applicants on a daily basis. And many of them are younger, even fresh out of school, which often means companies can hire them at a substantially lower rate when they’re willing to trade that salary savings for the experience that a more mature hire would bring to the position.

So, my friend and I were having this conversation as a lead-in to what he really wanted to ask me, which was “do you think I could turn my knowledge and experience into a full time living with a blog?”

Now, that’s a wildly loaded question with about a million variables when you really think about it. However, my answer to him was the same as it’s been to a lot of people I’ve spoken with over the years who basically asked the same question, and that’s absolutely.

That doesn’t mean that I believe anybody can start a blog and turn it into a full time living. It really doesn’t happen for most people in-fact. I just read something recently which said over 90% of bloggers make no revenue at all from their blogs, and of the bloggers who do earn revenue, over 95% of them earn less than $100 per month from their blogs.

I don’t know how accurate those numbers really are, but they seem legitimate based on my experience so I have no reason to question them.

So, based on those numbers it’s fair to say that less than one-half of a percent of the bloggers out there are earning more than $100 per month from their blogs. That raises a mighty question:

Why Would I Encourage Anyone To Try Blogging For A Living?

And the simple answer, which isn’t reflected in those numbers about blogging revenue, is that the real money for “expert bloggers”, meaning bloggers who use their personal publishings as a venue to display their authority status in a field, is in the backend.

If you have a depth of knowledge, experience, and talent in some field or on some topic, then forget the pennies that you could earn with putting AdSense or other advertising on your blog pages. That’s meaningless money that will likely cost you real money down the road.

Instead, focus on establishing yourself as the “go to” person in that field or on your topic, and soon you’re very likely to have offers for consulting gigs, permanent positions, speaking engagements, book deals and etc. coming to you.

This is what I explained to my friend in our conversation this week. While it’s true that work in his field is limited in our region right now, partly because we have 3 colleges in the region pumping out graduates in this field every semester so the local labor pool is saturated; if you look around the country and even around the globe, there’s a huge demand for people with his skills and experience.

So, instead of starting a blog and throwing advertising on it (that might annoy or scare off potential offers), I said start a blog that gives away your very best knowledge and experience.

By doing that, you will stand out as an authority voice in your field (or on your topic) online, and others in your field will find you, mention your name and blog in their circles, and if you’re really putting something of value out there it’s going to place you in the best position to receive all kinds of offers with real money attached to them.

I recounted the story of another friend of mine who is an expert mechanic on specific industrial machines. Such an expert that companies routinely would fly him around the world to repair their machines. But about 2 years ago he was injured in an accident which left him unable to physically do the work he was so good at.

Despite being financially comfortable after the accident, he is still a young man and didn’t want to stop working. So, having tons of free time on his hands he started a blog as I’ve described above where he made it clear through his postings that he was the “go to” guy when these specific machines broke down. I don’t mean he was cocky or arrogant in his writing, but rather he was thorough and insightful to the point where it was obvious that he knew these machines inside and out.

Within just a couple months of starting his blog he began getting approached with offers from companies around the world. When companies learned that they couldn’t hire him directly because of his permanent injuries, they began hiring him as a consultant that their mechanics could call for assistance. Paying him to simply be available by phone whenever they needed him.

The point is that if the need for your  knowledge and experience exists, and I honestly can’t think of a single field where it doesn’t at some level, then it is possible to turn what you know into a blog that can earn you a full time living.

You just have to see past the hype and B.S. out there that makes it seem like anyone can earn instant riches from blogging about their cat.

The reality is you have to have something of value to offer, and you have to look past the instant and easy paths of CPC (like AdSense) or direct advertising revenue. To me, advertising revenue is like Fool’s Gold for bloggers. It’s a terrible way to try to monetize blogging, especially if you have something of real value to offer a select group of people.

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My Google Reader Shares – February 27, 2010

February 27th, 2010

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