Suite J - This Is Where Jay Lives

Website Flipping: Outsourcing 101

Fri, Oct 10, 2008

3 Comments

If you want to make money flipping websites on a consistent basis, you will eventually come to a point where you are feeling burnt out if you’re focusing on just creating and selling brand new websites by doing all the work yourself. If you’re just looking to sell a site here and there to make a few extra bucks, you won’t have a problem. However, if you want to sell volume to make bigger, more consistent money, you will need to outsource some of that work.

But doesn’t that outsourcing money cut into my profit?

Yes it does! For one site. The idea is to sell more sites in the same amount of time. Even if your profit margin is less per site, your actual total profit is more. Here’s a basic example:

  • You typically sell one site with 10 articles for $200 that takes you 10 hours to build.
    5 of those hours are writing articles. 5 hours doing everything else.
  • You decide to outsource by hiring a writer that writes 10 articles for $50.
    With your extra 5 hours (that you used to spend on writing articles), you can build a second site.
  • Now, within 10 hours, you built 2 sites instead of 1 and sold for $400 ($200 each).
  • Subtract the $100 you spent on articles ($50 per site)
    Your profit is less per site, but total profit in the same amount of time is more.
    In the 10 hours, your profit was $300 instead of $200.

Obviously, there’s variables to consider, and you’ll want to calculate your net profits with all the costs and expenses added in, but that is the basic idea of selling volume and using outsourcing to help make you more money.

Where Do I Find Talented Freelancers For Outsourcing?

I’m only going to list a few well-known ones that I’ve either had experience with myself or have had solid recommendations for, but these are definitely enough to get you started.

Digital Point Forums
ScriptLance
eLance
GetAFreelancer
oDesk (I haven’t used, but John Cow just posted a review, and I’m planning on testing it out).

One important tip I have for you is to put your new freelancers on a trial. Let’s say you want to outsource 30 articles, but you don’t know any reputable writers.  Hire 6 different writers to do 5 each for you. Choose the best ones for your next project. Do the same thing again for your next batch until you have a few solid, reliable writers that you can count on.

The unfortunate part of outsourcing is that there is a high percentage of a chance that you will run into a few freelancers that don’t produce the quality you expected (unless you already have reputable sources). The good part is, it doesn’t take that long to weed them out and if you treat the good ones well,  it’ll be easy to build solid relationships that will last.

Don’t Forget! Subscribe to the rss feed or via email so you can stay up to date on Flippin’ Fridays!

Cheers!

Jay

    Starting from square one and documenting the journey to success is nothing new on the web. Do a quick Google search for "make money online" and you'll be overwhelmed with a vast library of people following the supposed path to riches. Even though I've been making a full-time living online since the year 2000, I cannot offer you such a narrative. Why?...(read more)
    I might add a little contact form in this area, but for now the best way to contact me is simple by sending an email to [ jay @ suitej dot com ].
  • Ben - frogstr.com It’s good, but I guess you need to be an experienced site flipper. By that I mean...
  • Fourth Floor Marketing Well this is my first time happening upon this blog so it is a very new layout for...
  • Tara @ Home Business Blog Hi Jay…. I agree that outsourcing can be very beneficial. I have a few guys...
  • Adam - Creadiv A major problem a lot of people have with this is the spending. Most people are afraid to...
  • Missy I’m a hybrid control freak. You know the web 2.0 variety. Half messy, half not.
  • Adam - Creadiv Sorry Jay, but my blog is sponsored by oyster crackers and pop cans. But it isn’t all...
  • Jay @Joe: So, you move around a lot as well, do you Joooooe? So, you also have the “Fear Of...
  • WordVixen OK- so to be successful, I need 37 beers, a bottle of rum, a picture of SuiteJ’s wife and...
  • Jay @Anna: Hey! Thanks, glad you liked the article, and Joe is right. Sometimes people try to make simple...
  • Jay @Max: The “McDonald’s analogy” is getting pretty old at this point. Did you come up...