The Real Cost of Outsourcing

money The Real Cost of Outsourcing

I get asked this question time and time again…

If you’re just starting out and you’re on a tight budget I won’t deny that it can be hard (but it’s money well spent). Once you’re in a positive cash flow (after your own income) you should consider putting 25-35% of your costs into hiring outsourced workers.

As a rule of thumb 75% of your workers should be revenue generating at a rate of around 1.5 times what they cost you to hire.

Less than 25% of your staff should be working on tasks that come before profits are made to help you scale up your business. Remember that outsourcing is about 2 things… 1. helping you grow your business (and profits) and 2. buying you back more time to spend on the things you really enjoy.

About Brian Terry

Life’s too short to think small. Think big and ignore anyone else who says it can't be done. Anything is possible and Outsourcing gives you the best possible chance of success.

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Comments
Sarah Green says:

What you’re saying here is very interesting, I had not given much thought to how the work is divided up amongst outsourced workers before. I can see how this makes a lot of sense.