16 Nov 10 Steps To Make Money by Outsourcing Web Sites

Outsourcing sometimes is a TABOO word in some patriotic circles, as there is an automatic association with loss of work to overseas workers.  While this can be a case, it does not have to be, and can be a profitable way to make money for you… regardless of where fullfilment occurs.

A QUICK example.

1. Client needs site and can pay up to $1000
2. Outsourced web development company does site for $500
3. You have $500 disposable cash to account for issues or additional development time.

The BEST way is to have an established rapport with dependable firms.  This MAY TAKE TIME and an effort to really build a reliable business relationship.  However, the basic steps, go like this:

1. Find 3-5 good outsourcing development groups in web design, graphics design, and copywrighting.  A lot of the times, the same group can do the web and graphics design. 
2. Check out their online work and portfolios.  This will help you to choose who you like and be able to match to the needs of the job.
3. Let the development group know that you have jobs and figure out rates for generic orders.  In other words, for a 3-5 page website, see what they will charge, how long it takes to develop, how many iterations they will give you to satisfy the client. 
4. Check out any credentials they may have to validate work.  Look for dependable and proven testimonials.  See if they have certifications or are parts of organizations like the Better Business Bureau.
5. HIRE THEM YOURSELF.  This is an important step before you put your name out for real jobs.  Ask them if you can get a reduced rate for a job in order to establish an outsourcing relationship.  Look below under TIPS and Techniques to get a super idea to do this.
6. Once you get a development group and a possible lead for a website, then create an outline of the development needs and share it with the groups.  See who offers the best rate and turn around time.  NOTE:  in some cases, the development groups may even give you a MOCKUP, or a JPEG image of a rudimentary layout.  (Show these to your clients for direction and early approval of design)
7. Select a Development group based on the matching needs of the client.
8. Project Manage the web development.  Act as the intermediary between the client and the web development group. Take constructive criticism and advised direction of the client and translate for the web designers.
9. Always act fairly for both your developer AND your client.  You must be realistic as to the number of iterations of development based on the price and promise. 
10. Complete the site once all parties are happy.  Ask for referrals from the client.

Tips & Techniques For OutSourcing and Additional Revenue!

• Test the development group first.  A great way to do this is to ask the development group to make you an OUTSOURCING website.  This lets you see their work.  They normally will also do it relatively inexpensively OR in some cases for FREE.  Again, this is helpful as it helps you to see their work and best of all, can give you a slick website to generate leads and from which to conduct your new found business.
• If you have lots of leads for web jobs:  Put a development firm on retainer.  A flat rate of $1500 a month for a pre-allocated number of development hours may be cheaper for you than on a “by the job” basis.
• Learn to Upsell:  find out the total needs of your client.  If they need business cards and logos, then that is something that the development/design group could possibly couple with the web site. 
• Couple in Consultation with Web Development:  Another upsell, is to let the client know that once a site has been developed, that there is a definite need for promotion.  Search engine optimization, pay per click campaigns and more give you room for consultation and perhaps, a monthly income residual.
• Make money from hosting:  The client will need hosting.  I like to take the headache out of my hosting situation by making my money in advance.  If you do lots of web sites by outsourcing, why should you want to trust that this client will be yours for months or years?  Become an affiliate of HostGator.com or another reliable hosting company.  Make your money UPFRONT from the hosting, as many of these companies pay well for the affiliate referral.  Hostgator pays between $50 and $125 currently to affiliates!
• Use an Escrow Service:  An escrow service, when used properly, allows the web development firm to know that the money for the service is safe and ready once the job is complete.  Once they deliver the product appropriately, then you release payment from the escrow service.  This protects you AND the service provider.  But don’t be surprised if they watermark their work until the finished product is delivered.  If you are REALLY frugal, ask the web development company to split the costs with you. 
• Use a Freelancer Service to find web development firms.  Services like GetAFreelancer.com have a very high number of firms bidding on jobs.  Go there, pay the $5 needed to post a job.  Then post a job… like a 5 page website.  See how many firms write you to bid on the job.  I have posted many jobs like this to develop relationships and it was at LEAST 10-15 bids per job!  Check out portfolios and work from there.
• Resell the Domain names:  The customers will need Domain names.  Use your affiliate ID for a  registrar!

My advice is of course, is that you are qualified to scope these jobs and manage the design/development projects.  You should Plan to be competent! 

Good luck and if the role fits, good luck on outsourcing!