As outsourcing sites spread, today's business owners have more options for hiring out tasks that detract from generating income and having a balanced life.
Todd Paton has a booming Miami business getting customers noticed on the Web. One tool he uses is generating online press releases to build brand awareness and create links that will send traffic to a customer’s website. But Paton, owner of Paton Internet Marketing, acknowledges that writing the releases is not his strong suit. Rather than spend his time doing it, he hires out the task.
“You have to value your time so you know what is or is not a good use of it,” Paton says.
As outsourcing sites spread, today’s business owners have more options for hiring out tasks that detract from generating income and having a balanced life. For some small firms, outsourcing has had a compelling impact on their growth, productivity and bottom lines.
An important first step in outsourcing is figuring out what doesn’t make sense for you to do personally. Paton suggests dividing your income by the hours worked and coming up with an estimate of your time value. Then, factor in the time it would take you to become an expert at a specific function and complete it. “Often you find you are spending time on something you could have done by an expert for a lot less than your time is worth,” he says.
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How much you can you expect to pay a contractor depends on the type of work you’re buying, the skill level and location of your provider, and your own preferences. For example, Paton goes to eLance to find U.S.-based freelancers, and pays about $30 a press release. Rather than spend half a day on the task, hiring it out is worth the expense.
Elance and oDesk (which merged in 2013) are two of the most popular marketplaces for employers to connect with talent on an as-needed basis. They are joined by an ongoing rollout of sites that give business owners access to a global pool of human capital such as virtual executive assistants, marketing directors, graphic designers, transcriptionists, paralegals, Web designers, human resources consultants, bookkeepers, public relations directors and information technology specialists.
Lesley Pyle founded HireMyMom.com seven years ago to allow owners in need of outside expertise to tap mom professionals. She finds small-business owners increasingly coming to her site to hire skilled, work-at-home moms to build or design websites, create social media followings and manage email marketing campaigns. For many entrepreneurs, the new demands of technology are the most natural tasks to outsource, Pyle finds.
“There are constantly new and better ways to do things online. Unless you enjoy that or have time for that, it’s an easy one to put on your delegation list,” Pyle says.
Mande White-Pearl, a South Florida marketing strategist for female entrepreneurs, says that even when a business owner outsources, she needs to understand the specific outcome she wants from whomever she hires. White says she has used more than 20 virtual workers to complete tasks like data entry, graphic design or project management while she concentrates on bringing in business and spending time with her new husband.
The first year she began using contractors to help carry her workload, White-Pearl says, she doubled her company’s revenue.
White locates her freelancers on oDesk and has paid $5 to $50 an hour, depending on the task. She typically gives out small projects to new hires, testing them before doling out ongoing tasks. “Over time, I have gotten much better about being clear on what exactly it is I need people to do. If I have had a bad experience, it has been because I had not properly communicated what I needed, wanted or expected.”
How it works
To ensure quality from freelancers, sites such as Elance, oDesk and Freelancer.com allow the hiring party to see how previous clients rated prospective vendors’ work, as well as detailed profiles of the vendors and what they charge. There is no charge for freelancers to post profiles on the sites and to apply for jobs.
The sites make money by charging the employer a fee that equals a share of the total amount they paid the freelancer. Expect to pay U.S.-based contractors higher fees, but remember, with offshore providers there may be a language barrier. Fees are paid per hour or per project.
For more-creative tasks, business owners are finding talent on Fiverr.com, which introduced a mobile app in December. While the site is now far from the original everything-for-$5 concept, the costs of specific jobs are straightforward. White-Pearl says she has used Fiverr to find individuals to do video editing, logo design, animation and proofreading, and she has spent from $5 to $40 to get the job done.
With the increase in demand, a variety of models for online hiring are gaining popularity. Sites like OnForce and FieldNation have created networks of independent workers in the same specialty who can be hired per gig and dispatched to a job site as opposed to working remotely. In spring 2013, OnForce introduced a mobile app to help pair the buyer with the freelancer who might already be out on a job nearby.
Kevin Michael, managing partner of Invizio in Coral Gables, runs a business that provides IT support to local companies. However, Michael says he recently became a vendor on OnForce, a network of independent IT professionals looking for gigs in their area. “We see it as a way to get our foot in the door.”
While on OnForce he’s the independent contractor, Michael says that as a business owner, he, too, has at times been the outsourcer. He has used hiring sites to tap professionals to create logo designs or marketing materials. “If you are a small business and trying to grow, adding headcount isn’t what you want,” he says. “It is much better to find someone with expertise who is affordable. Now you have more time in your day, and you’re still getting what you need done.”