Outsourcing Cost vs Quality

Outsourcing CostThe ability to control your outsourcing cost is one of the keys to maintaining a successful business.

One thing to keep in mind when you outsource to a contractor versus hiring an employee is that you cannot pay them whatever the minimum wage is. They must pay their own self-employment tax, expenses, and so forth. It’s very important to understand this before embarking on outsourcing.

Unskilled Labor

Might be that some of the things you need done can be handled by unskilled labor. That means that pretty much anyone can do it. Tasks such as cutting and pasting content, some forms of data entry, uploading blog posts to WordPress, or uploading and scheduling posts on Facebook. These things do not take much skill so you can safely pay less which will help control your outsourcing cost.

It’s okay to pay a lower fee to someone who is not highly skilled but if you want quality work too, pay a fair wage because they’ll be a lot more interested in learning and growing. Plus, they’ll stick with you longer which means they’ll learn more and be more useful to your business as you grow.

Skilled Labor

Once someone is well trained, they become more skilled and will demand a higher wage if they go elsewhere. You’re better off paying them more so that they stick around. Some examples of skilled labor are updating WordPress, adding pages to WordPress, using specialized software like AWeber.com, ClickFunnels.com, and so forth.

If you want someone to perform tasks on specialized software, consider them skilled labor. If they understand how to use the software, then you’ll want to pay them slightly more than you pay someone who isn’t skilled yet. Again, you’ll want to avoid paying the minimum going rate that is paid by employers because that doesn’t include them paying their own self-employment taxes and so forth.

Expert Labor

This is the type of person you outsource to who you do not need to train at all. For example, if you hire a content writer. In most cases, you’ll only give them the titles or subject matter, and they’ll do the work according to your specifications. The same can be said if you hire a web designer or an expert on any topic. They’ll do the work according to their own schedule and only work on deadlines and be concerned with deliverables.

When you understand that paying a little more will get you higher-quality work and people who want to stick by you, all the work you hire out will be higher quality. But, you don’t have to pay premium fees for unskilled labor, just a fair fee depending upon whether they’re employees or contractors.

You can often find the going rate for work by joining groups for each type of contractor you want to work with. Some industry publications also list average fees expected in the industry. Controlling your outsourcing cost when dealing with unskilled and skilled level labor will give you the ability to hire those experts when you business really needs them.


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