Slashing The Cost Of Outsourcing
It’s something of a myth that outsourcing is always a cost-effective way of doing business. The reality is that it’s all too easy to overspend on services that you don’t need, or that you could get done in house at a fraction of the cost. That said, outsourcing is an increasingly important part of running a modern business, and the good news is that with a little thought it is possible to save some money. Here are a few things you need to do if you want to outsource at the lowest cost possible.
Understand your weaknesses
First thing’s first – why do you need to outsource? If it’s to help you with things you can already do and are good at, it’s inadvisable. Outsourcing should be focussed purely on getting help on the parts of your business that you are weak on, or that have a definite business need.
Understand the value
Too many business owners outsource without understanding how much value it will bring. For example, let’s say you hire a copywriter to help you create a landing page and sales letter. There is no point spending £3-5,000 on a professional sales letter writer if your campaign is only going to make you a grand or so. On the other hand, let’s say you want to hire a virtual assistant and pay them £15 an hour to do basic tasks. If you can use that free time to earn your company £50-60 per hour, it’s worth doing.
Use freelancers, not agencies
Let’s assume you need some help with your SEO. There are a few options available to you, from solo consultants to full-scale marketing agencies. An SEO freelancer, in the main, will often have fewer overheads than a full-scale company, so will be able to offer you a better price. They will also give you the particular service that you need, without trying to palm off a load of other marketing products and services that you aren’t ready for.
Offer smaller payments plus royalties
You can’t expect an outsourced partner to work for nothing, but you can get a discount by offering them royalties on sales. Let’s use the sales letter copywriter as an example, again. If they have faith in their abilities – and you are prepared to hand over full control of the campaign – they may be tempted by the lure of royalties. The copywriter effectively gets to put their money where their mouth is, and you save on the upfront payment and still benefit from all the sales.
Offer to trade services
Bartering goes on in business a lot more than you might think. And it can be incredibly useful if you want to save money on outsourcing. Perhaps you could approach a web designer to tweak your website while offering them a similar value service. Just make sure that you always deliver your end of the bargain, and you should find the bartering route is an excellent one to traverse. And who knows, it might even lead to you developing a potential business partnership in the future!