How to Outsource: The REAL trick to making major cash with apps

Use these outsourcing secrets to make much more with far less effort.

When it comes right down to it, you can’t know everything.  By extension, that also means that you can’t do everything either.

I would say this is true for nearly everything in your life, but it’s especially true for your business, even if it’s very small.

Let me give you a good example.  I’m basically what’s known in the corporate world as a “marketroid.”  That means I’m a marketer and I can help to sell nearly everything.

My expertise is not in technology though I’ve sold high tech items.  Despite that, in the last 9 months some software companies that I started have made nearly 1.5 million and over the next three months I should add another million to that figure.

So how is it that a guy that doesn’t know bupcus about software development can make 2.5 million in his first year developing software?

The answer to that question is simple, I found good software developers and project managers and I outsourced to them.

That means my entire role in my company is limited to being nothing more than the “idea” guy who comes up with the projects that my folks will turn into reality.

Let me assure you however that there is a right way and a wrong way to go about this whole outsourcing thing.

Big Mistake #1

What ever you do, don’t hire a “company”.  On the surface it seems like outsourcing to a firm would be a good idea.  After all, they’ll have project managers, quality control, and so on, already on staff to help make sure what ever you’re hiring them for is done correctly.

The problem is that I have found the above to not actually be true.  A software development company will almost always take much longer and cost you much more, while blaming lousy output on you.

Big Mistake #2

Being cheap. I’ve seen this over and over again already.  Someone finds a great programmer that they like and for what ever the reason is willing to work for peanuts.  After 3 to 6 months however, the guy finds the programmer has tons of other work from other people and doesn’t have the time anymore so the guy now has to find some new programmer.

Big Mistake #3

Hiring locally. This is the age of the internet.  At this point, with skype, Google+ Hangouts, and GoToMeeting, there is literally nothing that requires someone to be in the same country you’re in, let alone the same office building.

Outsourcing The Right Way For Maximum Cash In Your Pocket

The first thing that you want to do is hire your virtual assistant, as well as your first programmer and graphic artist.  For all three of these I will nearly always start looking in the Phillipines.

As a nation these folks tend to be insanely overeducated and underemployed at the same time the cost of living is so low that you can find some great talent for ten bucks a day. Further, I’ve found people from this country to be extremely honest and hard working.

The idea here is to hire the minimum amount you need to get your project rolling.

Important Tip

Just because I’ve found most people to be honest and hardworking doesn’t mean they all are.  Worse, desperation can drive people to make promises to get a job they can’t actually do.  So before hiring anyone make them show you examples of their past work.  You want to know that the person you are hiring has actually done the things you need.

Hire A Project Manager As Soon As Possible

And you want someone with actual PMI certifications … ideally RAD certifications (RAD stands for Rapid Application Development).

This person is literally worth their weight in gold and you should pay them commensurately.  Your Project Manager will take your ideas, feed them to your development folks, and make sure the job gets done leaving your day free.

Increase Your Teams Pay As Often As Possible

I’ve got six businesses doing different things (three of which are mobile app development companies).  In the years that I’ve been doing business not a single person has ever left to go work somewhere else unless I fired them.  The reason is simple: While starting pay for me is often less than average, I give pay increases often.  Before long the person is making two or three times what they could anywhere else.

Important Insider Secret

After a project is completed, and assuming the project is making money, I’ll send my subcontractors on a trip that I pay for … and I’ll pay them while they are on the trip.  In other words, even though I don’t have many actual “employees” and nearly everyone is subcontracted, I still try to give some of the benefits as if they are.  I want my subcontractors to have PAID time off.

If a contract is successful, I don’t want to just give them some kind of cash bonus and ask them to move on to the next project.

Letting your subcontractors have time off is important.  Very often, if you don’t pay to have them go, they won’t and they’ll burn out.

Here’s the thing, finding people to outsource to is actually fairly simple. You can go onto the Phillipines section of craigslist and find all kinds of people who can do what ever job you need.

Make sure that you hire individual people and not companies, make sure they show you work they’ve done in the past that is like what you want done, and pay them well. Now like I said, often I start with slightly lower than average pay, but I’ll move folks up and pay them more as soon as they’ve proven themselves with me.

My app development businesses, like I said earlier, are going to make me more than 2 million into my own pocket after all costs … at the same time I spend only about an hour a day.

My project manager and virtual assistants are HUGE reasons for that so you especially want to make sure you pay them well.

However, having to hire new people is a pain in the rear.  So pay your programmers and graphic artists well also.

Treat them well and they’ll treat you well.  That can allow you to make a ton of money with almost zero effort.

At this point, and I’m not kidding here, there are times when I give new app ideas to my project manager in the form of hand drawn scratches on a pocket notepad that I take pictures of and email to her.  She handles the rest of it from there and only a couple of times a week does she need to ask me questions.

That means I can come up with new ideas from anywhere in the world and enjoy my life.

And The Cost To Start This Is Peanuts!!!

No joke, you could hire an iOS developer and a graphic artist for a measly 100 bucks a week for the both of them.  For only 300 you could have a simple app developed and available in the iTunes App Store.

Now just make sure that your apps are set up to make as much money as possible (I explain how to do that in this post here) and you’re mostly golden.  As the app makes money, be sure to increase the pay of your developers for the next app that they create.

If you’ve got a job then you should be able to find 300 bucks from somewhere. A friend of mine got rid of his home phone line and his cable TV for three months AND during that time he didn’t go out at all.

For three months the money he saved went to his programmer and his graphic artist to get 4 apps created.

He’s now doing half a million a month.

He pays his programmers, graphic artists, and project managers (all from the Phillipines) only 3 grand a month each with is a GREAT many times more than they would be making anywhere else.

That means his profit margins are crazy high … and he only needed to buckle down and save money for just three months.

You can do it.

If you like, I’ll even help you get this set up for your business.  Just shoot me an email (check out the Contact tab at the top of the page) and we’ll talk.

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