Alright, today we're talking about outsourcing. We're talking about
advantages and disadvantages. Because there is both. Are both or is both?
because there are both? There are both got to make sure your verbs agree. Coming
up. Hey everybody, we're talking about the advantages and or disadvantages... Actually,
we're talking about "and?" Yes "and." There's both? Advantages and
disadvantages of outsourcing your work. Specifically for YouTube. And we are not
going to talk about outsourcing, like you know, making shoes. Yeah, we're talking
about outsourcing for small businesses. Oh, so we are... So, we even Solopreneurs. Oh
really? Yeah. Oh, good. Well, this would anyone could watch this. Not just
YouTube people. Oh yeah. Because I'm a big fan of outsourcing. Yeah, obviously. Let's talk
about the advantages first. Okay, sounds good.
Then I'll share some experiences I've had, bad experiences. So, the good news
and then the bad news. Yeah. And then we'll sum up with the good finishes. The
positives and then the negatives. And then a positive. And then finish with the positive.
Okay. So, here's the huge one, you outsource because of the cost. That is
huge. I outsource to the Philippines. We're going to make another video on
"Why the Philippines, compared to like China or India or anywhere?" But in the
Philippines, cost of living is so low there that you can hire a really skilled
highly educated trustworthy person for 400 bucks a month full-time. It's amazing.
And it's like a dream job for them. Yeah. A great opportunity. So, I've got a whole
team of people in the Philippines and if I think about hiring somebody new and
the skill sets that I need, if I then think about I'd have to hire... What it
would happen... What it would take to hire somebody here, locally to me? And just
like, that much money? I'd have to pay that, you know? Whether it's 4 grand,
5 grand, 6 grand a month to find somebody of that skill set. Right. And to
think that I can get the same caliber of person for 4 or 5 or 6 hundred
dollars per month. That's amazing. So, yeah. Just think what you could do.
There's a lot of... Because I've made lots of videos on this topic in the past and
there's a lot of negative feedback especially around... Well it's not
very patriotic to outsource because you want to watch like Shark Tank and like,
"Well, our product is made in the USA." Right, yeah.
Well, and we can have a big discussion and maybe a debate on that. But in the
world of small business, I believe because I've seen the fruits of it. That
is it is such a blessing for our country that we have the opportunity to
outsource to other countries that have such a low cost of living. It provides
huge benefits. I mean, one thing that I'll just mention real quick. It really
increases our standard of living. I mean, look at this. If this were made in
America, if this were manufactured in America, it would... I mean, these are
expensive things too because there's a lot packed into this. But nobody would be
able to afford it. Yeah. The company is headquartered in America but it's not
manufactured... This, the all the pieces inside are not manufactured here. And the
only reason that this is possible is because of outsourcing. Yeah. And so,
outsourcing... What went into in fact, could I cut you off very quickly. I mean, as you
mentioned from a small business perspective. If you weren't able to
outsource what you do for such an affordable rate to the people of the
Philippines, meanwhile blessing their lives, you wouldn't be able to have your
small business. You could not afford to do it. So, you have a small business that
has an impact locally here. It's not as huge of a financial impact or an
economic impact as the larger organization set, who do have the
resources if they choose to in many cases to manufacture in America. But
single guys, solo proprietor, you know, if you can't do that then you don't
have the business. So, that's the choice. Does the guy get to have his business
and thus put money into the economy or do we get upset at him because he's
outsourcing to people in another country? Really pennies on a dollar compared to
what larger... My company is a clear example. My company would not
exist without outsourcing. Exactly. That's exactly what I meant. You personally would not be doing this. I mean, going
back to my former service when I offered website design. All of our
customers were in the United States. There was a
maybe a couple one in Australia, maybe one in one or two in England and a
few in Canada. But think about all the the help that we did to mostly American
companies, helping them with their website. That we charged them such a
significantly less lower price. Obviously because our costs were a lot lower. And
yet, we charged a lot lower price and we were very profitable. It makes sense. And
so, same thing nowadays. I mean, I help people with daily YouTube channels. And
so, imagine as a YouTuber, you hiring, you know, somebody to do your
editing, your text effects, somebody to manage your topics and you're the launch
of YouTube with all your keyword research and the designing the
thumbnails. You know, it can it can easily fit for a daily channel that can easily
take 3 or more. A team of 3 or more people and because my outsource,
the costs are obviously drastically lower and that's why people can hire me
to film 30 videos every single month. I love that. Yeah, okay. Let's
move on to another benefit. This is really cool. Especially when the country,
the outsourcing tool is literally on the other side of the planet. Because I can
go through my workday. If I work, you know, a traditional, you know, 8:00 to 5:00 type
day. I finished my work, I have a list of tasks that I'm thinking I would like my
team to do. Right when I'm ending my work shift, 5:00 a.m. for me is like 7 or 8
a.m., depending on daylight savings. 8 a.m. in the morning for them. So, I
finished my day, I give them a list of tasks and by the time I begin my work,
you know, the next day, all those tasks are already done. Yeah. That's so cool.
Around the clock. To know that I'm sleeping and my team is working away.
Yeah. So, yeah. And they're not working graveyard shifts. Yeah. I let them control
their hours. Which is also nice.
So, another great advantage is I love the
fact that this is helping people in a third world country. Because there's
A lot of charities and, you know, I sometimes I felt guilty for certain
charities that I haven't contributed in or humanitarian things that it's like,
"Now, maybe I should contribute to that and then I'm... But then I was reminded
like, because you know I... I produced faith and things through my church and whatnot.
But it's it's pretty distant. It's kind of like donating some funds here.
And then I thought and I'm feeling emotional about this.
I provide full-time employment for 9 young people in the Philippines. And I'm
like, "That's pretty cool." Yeah. Not too many people can say that.
Indeed. And so, it's it was shocking to me at first. I've been outsourcing for eight
and a half years. In the beginning, even for the first couple of years, it was
shocking to me when they would, you know, share their thinks and their gratitude
with me and it's... Because I I feel like, "Man, I paying you 400, I'm paying you 500 bucks a
month for full-time work." And you know, and
obviously, I'm charging, you know, for a website I would charge two thousand
dollars. And so I would feel a great sense of appreciation for them.
Just like, "I'm so grateful for what you do and then I'm able to to do it for
such a low cost." But to have them turn around and just say... For example,
this is a woman that no longer works for me. She's now a full-time mom. She started
working for me before she was a mother and she... And I paid her about 400 a
month. And she emailed me one time saying, you know, she'd been working for me for
about a year and she said, "Thank you so much for allowing me to work with you
for the past year, we were able to buy a new house that's up on a hill. So, when we
have the flooding, we don't have to worry about water getting in our home anymore." And I
you know, it just you know, sorry. It just it really hit me like, what a great
service that this is. You know, and I again, I feel like it's such a great
blessing to me and to entrepreneurs that they're in United States that
can use this. I mean, it's real humbling to know that it is a great great help to
them. Outsourcing really raised has raised the
standard of living. The cost of the things that we buy. The cars that we
drive, all the appliances, the furniture, the clothing that we wear. I can go and
spend $100 on a shirt but if I if I want to buy that same shirt for ten bucks, I
can because of outsourcing. You know, I can go to the... Now, I'm wearing my, of
course, I'm wearing my "Be the Hero shirt." Of course you are. But I can go to... I
like to wear Under Armour. So, I can go to the Under Armour store and find a shirt
for for 10 or 20 bucks and that wouldn't be, you wouldn't be able to buy shirts of
that quality, for that low of a cost without outsourced. Yeah. That's true. We
all benefit. No question about it. Obviously, it's a big help to my business.
Why am I making this video? Because I recommend that you outsource. Just think
about the huge impact that would make. What would you do if you had somebody
working for you, eight hours a day. And you could do a lot. And you didn't have
to pay them 5 grand a month. You could pay them 500 a month.
Yeah. That is, that's the... Imagination runs wild. The things that we could do with
the time and their resources. And putting, you know, a lot of people like to get
into business to put their own energy, into it their own mental that I want to
be the leader and the visionary. But especially in a small business setting,
you end up wearing a million different hats. And to be able to outsource some of
those hats at a very affordable price is exciting. No question about it. That's the
difference of being self-employed versus actually being a business owner. Where
you get to grow and create systems that then instead of trading,
your time for dollars, you're actually creating a business that runs independent
of you in... Anyway. We promised some cons... Yeah, we're going to talk about some
disadvantages. And you know, I've been doing it for 8 and a half years. So,
these are from my real experience. And one is that, "I'm not there to look
over the shoulders of my team." And my team, I'm talking to the camera right now
because they're the ones that edit this video. I have a lot of trust in my team.
Clearly. And I'm going to share a couple stories when it's kind of backfired. So,
it's listed under the the disadvantages section here. But I'm not there. You know,
to look over the shoulders on my team or to supervise them. And when they say
they work 8 hours, I just choose to trust. I expect to see results and stuff
like that. Right. But of course get the job done. Yeah. I mean, and so, that would apply
to remote worker of any sort i guess. Sure. Yeah. I've also found that through
outsourcing to a foreign country, there's a little bit more a hand-holding that's
required. This could be a good or a bad thing. I mean, if I create a
system and I hire somebody to then, follow the steps of that system whether
it's to design, you know, a video logo, video intro
in a certain way. When they created it first time, it won't be what I am hoping
for. But I can then go back in and say, "Okay, well here's what you did right,
here's some things that I need corrected." And they'll go through and they'll make
some improvements. But it still won't be exactly the way that I want. But over
time they'll get what I want. And so then, when I had them another
project, I might have to give them feedback once or twice. And then it's all...
Over time they learn and so... There is time required to train. And I
called it hand-holding. Maybe that's... I don't mean that in any derogatory way
but it just takes time. You know, I'm going to talk about one more advantage. The
time that you put into people in the Philippines especially, is well worth it.
Because they're very loyal and they're not going to become your competitors. I
was really worried about that at the beginning. If I share all my secrets,
what stops them from leaving and going starting their own company? Becoming
my competition. Yeah. It just doesn't happen. We'll talk more about that
in another episode. But it does take time but it's worth it. You put the
time into training somebody. And now, it's it's really... I've replicated myself
because I trained them to do things exactly the way I've done it. And I've
replicated myself and I can do it again and again. We were talking about
disadvantages, not advantages. Well, you jumped on to the advantage list. Alright,
so here's a disadvantage. I have found that some people are flaky. And this is
just a practice. I've found that if I hire two people that will typically
end up being one good person because one person will just flake and disappear. So,
it disadvantages. Sometimes people are going to be flaky. You know, there's
things that you can't... But that's also disadvantage in a face-to-face setting.
You know, if you're working with them locally, you'd still also end up with a
flaky here and there. It just may take you longer to weed out the flakes, if they're
9,000 miles away. Yeah, definitely. I mean, because you don't get to meet them
in person and and we're going to make another video on how to find
somebody and how to hire them, how to get them started. I have some great tips on
that that I've learned over the years. But it's different. It's different than
meeting somebody in Person and getting to to shake their hand and
whatnot. Now, I'm going to tell you the story. So, Scott asked me about my first
experience outsourcing. Tell us about your first outsourcing experience. I'm going to need some
water for this one. Oh, boy. He's going to get all moistened up here. So, this is going back
almost 9 years ago. I had already listened... You mean at the start of this episode?
No, I'm saying it feels like it's been nine years since we began. No, you're fine. Keep
going. So, almost 9 years ago. Cue the music. I had learned about outsourcing
from an audio download that I had. And I got so excited about because I've
learned about outsourcing in the book "The 4-hour Workweek" by Tim Ferriss. That
you're listening to? Well of course I listen to that one. When I listen to that one
multiple times. But the outsourcing thing seemed really foreign to me. And I've
used that line before and realized that that's kind of a... Of course it's outsourcing
is form. No pun intended. Yeah, unintended pun there. Now, outsourcing was just it seemed too
big of a step from what I learned from 4-hour Workweek. But then a friend of
mine John, he's a friend of mine now. I listened to this audio and within 36
hours I had hired my first person. Wow. Because it just like I had a paradigm
shift about if I can actually do this. And I didn't realize that you could hire
somebody for 400 bucks a month. So, I hired my first person. This is what... I was
still an employee back then. I was an employee doing telemarketing sells but I
also wrote articles for them as an independent contractor. So, they did
article marketing back there, back then. They would give me topics and
tell me to write an article of a certain length of words. And depending on the
length, they would pay me $10 to $12 per article. So then, I learned
about outsourcing right after starting this article writing thing. And I
decided to hire a writer. A ghostwriter. Yeah, in the Philippines.
And so, I give her the topic, she would write the article,
I would proofread it, correct a little bit and then I'd sent it off, I'd get
paid 10 or 12 bucks and I'd pay her a couple bucks.
And it kept going for a while. And over time she got better and better. So,
this was a... This is a pretty awesome, pretty awesome setup. I was pretty proud
of myself. Yeah, I'm outsourcing and... Okay, well
fast-forward a few months and I hadn't been keeping tabs on things, I had been
really taking care of quality control. As you say. And I just decided to check. So, I
grabbed an article, something must have triggered it. Like, I read something like,
"That's really good." It was that... You know. So, I copied... Too the good for
the ghostwriter. I copied the paragraph and pasted it into a tool that I think
it was grammarly that I used in it. It basically said, "This sentence was pulled
from here, this was pulled from here." And I was like, "Oh, this whole
thing that she had written was just plagiarized content pieced together from
other sources." Without attributions at all. Oh, no. It was like, here's the article. And
so, I had then... I had submitted, I went back in the history and found that there
were 50 articles that I had submitted to my company that I'd already been paid
for that were plagiarized. Wow. So, I fired her. I probably could have
gone to her and talked to her and said, "Did you know?" But I think she
knew. And they didn't fire you? Well, as soon as I knew, I'm like, you
know what? I'm going to get in big trouble if they catch this. Right. So, I went in
that very next morning and I went. And I went to the CEO of the company and sat
down and I said, "I have something I need to share with you." He thought it was
hilarious. He wasn't mad at all. He just thought it was funny. But he wasn't my
supervisor over that position. So, he said, "You got to talk to this
guy." It was a punk kid. Much younger than me and liked having his position of
authority and he did not like it. And so, I was allowed to rewrite the 50 articles
myself that I'd already been paid for. But I was not allowed to
be an article writer anymore. Wow, that's quite the restitution there.
So, is that a... That's a disadvantage of outsourcing. Well, part of it is a
learning experience. Because man, after that happened, what did what do you think
I did? Within a couple months I had 10 employees. I had caught the bug. Wouldn't think
you'd have done that. Oh, I caught the bug of outsourcing.
So, I realized what I could do. I just blamed myself for that problem happening.
Because I realized, "Man, this thing can really work." You know, I mean, yeah. It
had a bad ending in that specific story. But just seeing what was possible, I'm
like, "Okay, that was my first try." Do these people pay taxes? Are you responsible for
any of that? You I don't have to worry about that unless they're US citizens,
then you have to worry about taxes and insurance. But when they're in another
country like that, it's just like you're paying an independent contractor. So, I
call them employees but technically they're not employees. They're like 10-99 type
of people or what I hear. That's an advantage. That is an advantage. Huge
advantage. Yeah. Alright. So, I've got one more story and this one's a recent one.
And it's a doozy. It's a doozy.
So, I've been outsourcing for 8 and a half years and I really only
have these two stories to share of bad experience. Oh, oh! And I'm not hesitant to
share this because I had... Why do I hide it? But this was kind of a doozy. So,
I won't mention names. But I hired a guy last November as a video editor and he's
very skilled. He's very skilled. He could do everything I wanted. Even using
Adobe After Effects. And he worked for me for a couple months. But some of the
communications that we had, I was suspicious of. I had some suspicions but
I was getting work. You know, I had suspicions and the hours that he was
reporting. I had suspicions in. I wanted a certain output and here. The report that
his computer couldn't handle it and certain things. But you know, I had
experience already. And I knew what should have been possible but... Then, it
came to a point where I needed to hire a second person in that same position. And
he recommended that I hire his brother. Hmm. And I cut corners in my hiring
process. I wasn't as thorough and hiring the brother. I just kind of trusted. If
you're going to like this story. So, now I've got his brother and him working for me
doing that same position. And I started to have more suspicions but I'm a
trusting guy. I mean, I've had such a great experience for 8 years. And in
fact, one of the editors on this video has worked with me that entire time. He
started with me on my web design team. I love my team and I trust them and
they deserve that trust. But in this case, I started to have some suspicions and I
just started thinking about him more and more often. And and then one of my other
team members came to me and said, "Nate, I think..." And I'll just say the second guy,
the brother, "I think the brother is a dummy." And as soon as I heard that, I'm
like, "Yeah, that's what I've been. That's what my guess was to. Meaning, that... And so,
we decided, you know what, we better... Not a real person?
Not a real person. Yeah. He just doesn't exist. Okay. So, here's the first person I hired
and here's the brother that we hired. Right. I think the brother really exists
and has a name but was not really
an employee. Yeah. Didn't really do work for me. Didn't really do a trial
assignment when I went to hire and whatnot. And so, I decided, "Well, before I
put the brakes on anything or mix things up, let's find out for sure." And so,
normally you think I'd be mad. But I felt like, "I'm a detective, I'm going to figure
this out." And I put on my detective hat and we went into the some of the
analytics of our project management tools and I found concrete. Almost like,
"How did I not see this before?" Just anyway. We found total proof and
what we found out what's happening is person a was actually only working about
80 hours a month. So, just part-time hours but he was reporting full-time hours and
he was reporting full-time hours for brother. So, I was paying four times
the work that was being done and that had been going on for a few months. So,
yeah, that can happen. Because you've never been there.
That's never happened to me before and... I mean, you've never been there to actually
go over and talk to them? And never made a boss visit of any kind
right? Correct. That just this morning I was talking to one of my team members
that she was asking me if I'd ever been to the Philippines because she's just
worked for me for a few months. And I said, "No, but I I'm hoping to go this year."
I'm really looking forward. But still overall. I mean, that's a disadvantage but
I mean, I know I don't know if we're done with the list of disadvantages but those
are some doozies. But like you're saying, in the 8 eight or 9 years, only
those two real major kind of issues. Yeah. Aside from maybe attrition here and
there or whatever. Yeah, so I want to end this video with a positive... Talk about, so,
the the team member, that's bent there was a project manager on my website team,
that's been with me for over 8 years now, such a cool example or such a
good story. He'd worked with me for several years and the there was a time
then where I needed to hire another graphic designer. He recommended his
brother and I took a look at his brother. I had his brother apply and his brother
didn't have the skills. He wasn't at the level that I needed. So, I had to pass and
I hired somebody else. 2 more years go by and I need another graphic designer.
His brother says, "You know what? I think my brother is ready now. I've been
teaching him. I've kind of been tutoring him, mentoring him. Plus he's got 2
years of school that where he's been studying graphic design. Can he
apply again?" Yeah. And I said "Absolutely." So, he applied. He had the skills. He had
exactly I was looking for. I mean, my project manager knew who, knew exactly,
you know, so he could train him perfectly. And he's been working with me for
several years now. And it's so cool. So, we'll just call him my project
manager. He's... And this is cool, too. So, he's a single guy and over the
years I've given him raises because he's been such a great, you know, he's just
been so reliable. He puts out all the fires. Company would not be the same.
Company would not be the same without you.
And so, I've paid him more and he's... I come to find out he actually paid for
his brother's college education. Which just totally touched my heart and like
made me so grateful to have him. Good thing you hired him. And the he let me know
just a week or two ago that he's engaged. He's going to get married soon. The brother? No, the
Project Manager. Yeah, yeah. Without dropping name. Phil, Lou, Ted, yeah. So, wanted to end this
video on advantages and disadvantages with definitely a positive note. Love,
love my team in the Philippines. Oh, that was a long one. A long one. And if you
watch this long. Been. I'm sure they're already a subscriber. You got no kidding
and if you're not, are you kidding me? If you have, you've made it this long,
you've subscribed a thousand times. Now if... How do I make it stop? You've already
experienced outsourcing and you've had good or bad experiences. Love to hear
from you. Share them in the comments below, it'll
be a fun conversation.
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