Outsorcing Webinar With Scott Bywaters And David Jenyns

by David Jenyns on July 7, 2014

Hit Play Or Download MP3 (Above)…Scott- Dave

Name: Scott Bywater and David Jenyns

Industry: Internet Marketing

Website: www.scottbywater.com



Scott: David has had an impressive entrepreneurial journey and it began back in his early twenties when he sold Australia’s most loved sporting ground the Melbourne Cricket Ground. If you look up owntheg.com, you’ll find out a little bit more about that.

Since then his business experience spans from developing and franchising retail stores, building multimillion dollar portfolios of over five hundred domains and websites to founding Melbourne SEO Services and Melbourne Video Productions which together help businesses grow through innovative online marketing systems.

He is recognized as a high achieving entrepreneur and online marketer and has been a keynote speaker at countless conferences and seminars and featured in dozens of publications. You might have heard of a few of them, including Australian Financial Review and Smart Investor as well as other media such as Nova radio and Channel Nine’s Today show.

David currently has a team in the Philippines. How many is it again David, the number of people you’ve got?

David: We’ve got seven in the Philippines and about another six here in Australia. I try to go close to fifty/fifty.

Scott: Fantastic. What this has allowed him to do is expand his business and take it to a whole new level. Today here is what he’s going to be sharing. He’s going to be looking at why outsourcing is a solution to most of your business problems and troubles and how to use a concept called geo arbitrage to grow your business like never before.

He’s going to talk us through a simple way to use outsourcing to improve your website conversions and attract more online customers and how to use the George Foreman method to attract A players  to your business. So rather than getting B players and C players, you’re getting the cream of the crop team members, how to get the most out of your team with these effective techniques and some cutting edge tools to train, communicate and manage your virtual teams.

He’s going to show you how to get it started right away. That’s enough from me, I’ll hand the ball over to David Jenyns.

David: Fantastic, thanks for the intro Scott. I think we’ve got a lot to cover in this call, so let’s just dive straight into it. I think outsourcing I feel is one of the biggest leverage points within your business or any business for that matter. There are a few key areas and it really depends on where you’re at in your entrepreneurial journey and the size of your business as to how you’ll utilize outsourcing.

The fact is, building a business is difficult. Oftentimes, especially when you’re a small business, there is a very small margin for error. You don’t have much wiggle room and oftentimes you’re the biggest leverage point within the business.

What outsourcing allows us to do is hire great quality talent and staff over in other economies and countries around the world and add them into our team. You don’t necessarily have to pay let’s say the highest wage here in Australia.

As a business owner, as I said, it’s hard to grow a business, especially in those early days. Australia has one of the highest wages in the world as far as minimum wage and things like that. The cost of living is also very high and that is why there is that higher price. But it makes it difficult to expand and grow your business. Obviously when you’re growing a business and you’re building your team, you want to make sure that if you’re spending $20 an hour for a team member, they need to be bringing in at least $40 just to cover their own wage plus have a little bit of profit on top.

What outsourcing allows us to do is answer and solve quite a few problems that have been identified by you guys. Quite a lot of you filled out a questionnaire that Scott sent out just prior, talking about what are some of the biggest reasons for joining the call and what are some of the hurdles you’re having in growing your business and achieving your goals over the next ninety days.

The recurring themes were having enough time in the day to get things done, having enough money, because you might know what needs to be done but you can’t actually get around to executing it. Some people also cited creating systems and documentation and also technical hurdles as well when it comes to setting up websites and getting things like Hostgator and WordPress and things like those up and running.

I really feel like outsourcing helps to answer and solve a lot of these big issues that businesses have.

Scott: I think it’s an important thing because I got a few emails within the campaign. One of the emails I touched on today someone had a go at me for not being a patriot and all this sort of thing. So I think it’s a really important thing to see as well is that what it opens up is really a lot of opportunity which allows you to reinvest back into the country.

In terms of opportunity today, things like content marketing and social media marketing and all of these sorts of things are very difficult to make profitable if you’re trying to wear all the hats. You might not take the opportunity to do it if you need to hire someone at $30 – $35 an hour but you may if it’s at a lower investment which allows your business to get to the next level. I just thought I’d throw that in.

David: Yes. You hit on a real key point there and something that is a recurring theme where people talk about outsourcing as if you’re taking advantage of a situation. I think they might have a picture in their head of a sweat shop or something like that over in some of these other countries and also potentially paying people less than what you might pay locally. They think you’re potentially moving out work, ‘stealing Australian jobs’ by moving offshore.

But actually if you’re a small business owner, if you run a business and you realize how fine a margin you actually work on, outsourcing does the opposite. It helps you to grow your business and employ more locally. I mentioned right at the start, we run at about fifty/fifty. About fifty percent of my staff is located here in Australia, particularly Melbourne and then fifty percent offshore, some in the Philippines and some dotted around other parts of the world.

The ability to grow the team locally has actually been fuelled by the fact that we’re able to get other great quality team members to join our team and help grow the business and give us that extra margin for error. So by growing your business in this way, it actually makes it possible to employ more people locally.

It’s about making sure when you do hire these team members offshore, obviously the cost of living in some of these other countries is a lot less, so you can still pay them incredibly well if they were to compare it to getting a job locally in their country, you can pay them at or above market rate. It still ends up being a significant saving when compared to what you might pay if you were to employ someone locally to do those tasks.

Also, like you talked about Scott, making certain jobs work where previously they might not have been able to work. A great example of that, some people mentioned, they were talking about generating leads. Going out and looking for lead opportunities, so if you’re selling a particular product or service, you have identified who the perfect target market might be for you and actually getting someone else to go out there on the web, crawl for websites and businesses that meet that criteria and maybe even do some initial outreach and then pass the warm leads back to you.

That might be something that could be quite costly to try and do locally, but you can actually use that type of resource to help support your sales staff so they’re working more effectively, they’re working on the highest value tasks that you want to perhaps have closest to your business and have you overseeing. So it really opens up a whole lot of opportunities.

We’ve been outsourcing now for well over seven years. We’ve built up a couple of successful companies. Melbourne SEO Services and Melbourne Video Productions are the most recent two. I’m a bit of a serial entrepreneur and have done a lot of things. If you want to find out more about what we do, the only reason I mention that is so you can feel confident that we’re walking the walk here. This is what we’re doing in our business and I’m effectively going to share with you the strategies that we use.

But you can do your research on us so you can feel more confident that the information I’m sharing with you is going to be top notch here.

The plan for this call here I want to help you identify where you are, that is really key. That way you can think about how you can move to that next stage. It’s really important, because outsourcing, at different levels of the growth within a business can solve different problems. So step one is to figure out where you are, then you can get an idea of where you want to go and then you can start to look for some solutions to solve those problems.

We’ll talk about how you can get started with outsourcing and which parts of your business you should be looking to outsource first. We’ll talk about how to find the best quality players at the best quality price, so those A players. We’ll have a look at managing the team, so once you do have some team members on board what you should be doing and what you shouldn’t be doing and how to get the most and the best out of your team. Also then toward the end, we’ll talk about documenting your systems and processes so you can start to scale your business.

I had quite a few clients and people I’ve been working with, coaching them through what we’ve been doing with our outsourcing. To help them understand, I’ve created a model that I like to use for thinking about the growth as an entrepreneur. I see there are four stages to entrepreneurship. There is the start-up entrepreneur, the proven entrepreneur, the systematic entrepreneur and the complete entrepreneur.

What I want you to do as I go through these stages is just identify where you think you are. That way, once you know where you are, I can then help to give you the tools. I use this as a way to help move you through to that next level. There is no right or wrong, it’s just a matter of identifying where you are and that will solve the question of what you need to do next  to help you move through.

The start-up entrepreneur, they’re usually the entrepreneur who has lots of ideas and energy, typically with very little focus though. They might be trying fifty different projects at any one point in time. If you imagine the metaphor of digging holes in a garden, it’s like they’ve got hundreds of these half dug holes all across this open field or open garden. They’ve never really gone deep on any one opportunity. They’re already jumping from one opportunity to the next. They’re opportunity seekers.

They’re really trying to figure out what it is that they’re doing. They’re often trying to chase some work and when they do get some job or project, they’ll do a little bit of that before they then jump again to chasing more work to go to the next thing. It’s really about chasing the work here.

In that case, the biggest leverage point, if you’re at that stage in business, is yourself. You’re the nucleus of what you’re actually getting done. Now how outsourcing can help you at that particular level, oftentimes it’s not about going out and hiring three or five or ten or twenty different virtual assistants, really you just want to get one team member who might help you out with some busy work. It’s to get some things off your plate to give you a bit of extra breathing room and give you some space.

Level two, you’re moving into the proven entrepreneur. Typically, this is someone who has now identified one or two of those opportunities as the best opportunities for them that they really want to make work. What they do at this point in time, they’re trying to get some clients, some consistent clients to flow through the business. They should be really focussing on making sure their numbers and everything stack up at this point in time. It’s effectively proving the system.

You’re still as the entrepreneur at this stage doing all facets of the business. You’re looking at marketing and fulfilment and customer support. You’re doing everything and effectively what you’re doing is you’re swapping time for dollars. This is at level two, you’re proving your concept works.

The way to quickly move through this, or help you move to the next stage with outsourcing is to potentially hire a couple of team members at this point in time where they can help you document some of the core mechanics of what it is that you’re doing to run your business. The actual work you’re doing, how can you document some of those procedures and even some of the work like sending out accounts or customer service, things that aren’t so dependent on you, that’s what you would look to an outsourcer to do at this stage.

Then you move into the systematic entrepreneur. This is the person who has a good lead flow, maybe they’ve already created a bit of a funnel, they know what it is that they’re selling, they’ve got a clear offer they’re taking to market. At this point they might have a few team members supporting them.

But it might be that they spend all their time keeping their team members busy. Once you get around the seven team member mark, oftentimes you’ll delegate a whole lot of work to one assistant, then you’ll go to the next assistant and you’ll delegate a whole bunch of new work. Then you go to the next assistant and you’ll delegate some more work. You keep going through all of your assistants. By the time you get to the last assistant, then you have to go back to the first assistant because they’ve finished the work you’ve delegated to them.

It really means you never have any opportunity for yourself to actually work on the business rather than in the business. That’s ultimately where we want to get to.  You’re just spinning plates or trying to put out fires. So what you’re looking at doing at this stage of the systematic entrepreneur is really about systemizing your business, trying to duplicate your efforts and start to automate things a little bit more. Having a good sized team at this point is key. You might get one of those team members who is really focused on documentation.

The final stage, it’s probably a little bit outside the scope of what we’ll talk about here but this is where the complete entrepreneur really sees businesses as a collection of systems and processes. They look to improve those business systems and processes and you start to get team members who become responsible for whole chunks of your business. You might have a team member who just manages all of your accounts or have a team member who just manages all your marketing or your HR, all those sorts of things.

If you think about that progression, are you a start-up entrepreneur with lots of ideas, are you a proven entrepreneur who knows what it is that they’re selling but still doing a lot of it? Are you a systematic entrepreneur where you’re getting lots of leads but you’re still doing a lot of the work and keeping the team busy but you haven’t quite systemized everything? The complete entrepreneur is once you start to buy and build and sell businesses.

Once you identify where you are, this can help answer the question what do you need to do to move through to the next stage?

Scott: I love that graph because sometimes we don’t really think where are we in the business landscape?

David: I think oftentimes people for example hear the idea of outsourcing and they get excited about this idea of getting team members at a great price. But unless you apply outsourcing in the right way, to the level you’re at, you might say, oh, this outsourcing thing doesn’t work. Often times it can just be because your application of those ideas isn’t the best. Thinking about where you are will help you.

From having a look at the people who filled out that questionnaire, one thing became clear. The biggest area it seemed to be was people moving from stage two to stage three. There were still some people at stage one just trying to formalize their idea.

But most of the time it was people at stage two who knew what it was they were selling, they had an idea of what needs to done. They’re doing everything themselves at this point in time and they’re trying to bridge through to stage three. This includes getting some team members on board.

When you’re at that stage, typically speaking the last thing that you need is a good idea. Another good idea is not what you need. You need help with execution. This a little graphic I’ve got to help explain that. If you imagine you in the middle and you imagine all of these ideas that you’ve got coming at you from the left hand side. The green arrow is your actual implementation. You can only be implementing a handful of things at any one point in time, but you’ve got all of these ideas coming at you. So everything starts to bottle neck at you.

That is the realization that I think a lot of people are at when they start to think about outsourcing and how they might build a virtual team. It’s this idea that at the centre of it is you, you’re the bottle neck. You know what needs to be done and you’re doing some of these tasks but there is never enough time in the day to deliver a great product or service through to your clients and then still have time to outreach for new clients and continue to service old clients and send them invoices and follow up and all those sorts of things.

If you look at all successful businesses, there is the common element of building a team. All successful businesses have a team around them. You look at Steve Jobs, Bill Gates, they all have great people around them who enable them to build these businesses. Once you say in your mind, it’s obvious, I need to build a team, that’s when outsourcing starts to bubble up.

Now you might have already tried a bit of outsourcing or you might not. Some people have dabbled in it but I think sometimes when people try a little bit of outsourcing and if they apply the strategies not quite right or they don’t go at it with the right game plan, they can throw the baby out with the bathwater and say, hey, this whole outsourcing thing doesn’t work.

So what I want you to do if you have tried some outsourcing, or what you think is outsourcing, I just want you to suspend your understanding of what you think it is just for a moment and some of the preconceptions you might have. Just indulge me by having a look at the way that we do that and the way we try outsourcing. There is a little joke there, if at first you don’t succeed, skydiving isn’t for you.

The distinction I want to make right up front and this can cause an aha moment for some people, is the difference between outsourcing and out tasking. Out tasking is oftentimes what a lot of people have tried when perhaps they go to something like oDesk or Freelancer. They have this idea that oh, I need to get this task done, whether it’s setting up an autoresponder, getting someone to help you with WordPress, getting an article written, you have this one-off task. You go to somewhere like oDesk and find someone to complete that task. Now that is out tasking, it is these one-off jobs.

When you compare that to outsourcing, outsourcing is about building a relationship with someone who you will work with over an extended period of time. So rather than a one-off task, they might actually look after a specific function within your business. They might be your accounts person or they might be your customer support person.

Really, where the rubber hits the road, when it comes to building a virtual team, is when you work with someone long enough, that they understand what it is you’re trying to do and you get some processes and procedures in place that they can consistently do on a regular basis to get you a consistent outcome.

Scott: I tend to agree with that. I think what happens when you out task, at least in my experience, you get one person to do the job and they’re not available the next time. If you place a value on your time, you’re consistently training people, rather than actually getting leverage. It’s nothing like having someone there and you can say, hey, can you do this, can you do that and they just know what to do and just go away and do that. I think that is where the real opportunity is.

David: It’s once you’ve worked with someone over that period of time. You’re never going to find someone that will get it out of the gate and just understand you and your business inside and out and be able to replicate you. It’s very rare if not impossible to find someone like that. But, over time as you work with someone, and you set out a standard operating procedure on how certain tasks are done, then you can start to work in that capacity. So finding the right people and getting them to join you is important.

How do you actually go about doing this? This is the right thinking about how to approach outsourcing. You want to think about what are the core functions going on within your business? You should list them out – whether it’s customer support or invoicing, just map out the whole experience that a customer has when they come to you.

If it’s lead prospecting, think about how do you actually find the customer, what does that process look like? Once they join you, what is the sales process like? How do you then onboard the client once they say, yes, I’m ready to go? How do you work through delivering the product and service? What do you do at the conclusion and what do you do for a follow up and how do you continue to maintain contact with them?

Actually list that whole process out so you can get a list of what the core functions are that are happening, that are going on in your business. This is really key, because sometimes people hear this idea of outsourcing and finding a VA to work for you for $5 an hour and they just find things for them to do, tasks. They just try to make a big long list of random things that they just heard might be a good idea.

The best place to start is start outsourcing and documenting the processes that you’re already doing within your business. So from day one, this assistant is adding value. They’re not just doing these additional busy tasks; that’s really key. So list that out and then start to document those processes. Now that can sometimes be a hurdle for some business owners. They sit down and say, I don’t have enough time to scratch myself, let alone making documentation and procedures to teach a team member how to do it.

The easiest way to do that is to start video recording yourself doing the task. The next time you do the task, hop on some screen capture software. If you’re on a Mac, use ScreenFlow, if you’re on a PC you can use Camtasia. Or if it’s in a real bricks and mortar business, get out a Handycam and start recording yourself doing some of these tasks. That way you start to document what it is that you’re doing.

This is the first step to allowing you to start to work on your business rather than in it. You’re creating processes that at a later stage, someone can step in and start to take off your plate.

Where do you actually start? Once you’ve got a list of what these tasks look like, or this process, it’s also a good idea to document where your day goes. Have a think about what you do over the course of a week and maybe do some time tracking. There are a few tools like Time Doctor and things like that which will enable you to see where your time is being spent.

Now you will have a list of here are the core functions, here’s what I’m working on. Try to eliminate any tasks that you probably shouldn’t be doing anyway. Then start to think about the tasks that could be easily done by someone.

Oftentimes this means if you’re doing, let’s say a service and you’re a lawyer or maybe you’re a plumber or an accountant, you actually going and doing your particular craft might not be the best thing to start outsourcing. Start to look at the jobs around whatever those centre bits are. They are still important components, whether it’s, like I said, invoicing a client or perhaps emailing them to welcome them aboard and setting them up with log ins or even just mailing them afterwards.

Think about what it is that you’re doing and then those are the first tasks you probably want to start thinking about hiring someone to do. Then you can have a look at the most time consuming, most stressful and then most important. I know a lot of people listening are just getting started with outsourcing, so the best place to start is probably with those tasks that it’s obvious you’re not adding any significant value to, as in it’s not anything unique to you. I think that’s the best place to start.

Then we can start to identify successfully upfront what it is we’re looking to get outsourcing for and what types of jobs we have and that can then help us identify the talent. We touched on it earlier, this idea of geo arbitrage. It’s not about hiring really cheap labour in emerging economies, it’s about finding the best person to do the job at the best possible rate. They might be in the US, they might be in Malaysia. You might go to the Ukraine if you’ve got a coding problem or something that needs to be done. It might be the Philippines if you want to try to get some customer support done or some graphics done, things like that. So it’s identifying where can I get great talent in the most competitive economies?

When you think about it, like I said, the cost of living here in Australia is very high. Obviously that means our minimum wage is very high. But you go to some of the emerging economies where the cost of living is a lot lower and obviously, for them to still get paid really well, it is going to be a lot less, just by the fact of them having a lower cost of living. That’s where the geo arbitrage comes in. It’s an arbitrage opportunity because of geographic region.

What we’re looking to do is find these A players and this is what creates opportunities especially now. With a lot of the tools previously, what we’re about to talk about, even in the last ten years, haven’t really ever been possible. Even in the last few years with internet speeds picking up, some of the new tools coming out, managing and working virtually is now more of a possibility.

In fact, even a lot of my staff here in Melbourne, about fifty per cent of them spend most of the time at home anyway. I let them work at home, it’s more efficient. People get to work within their own times and what works for them. It’s more flexible, it works for all parties. That’s one of the reasons again building up a virtual team, no matter where they’re located, is becoming such a great opportunity.

Then it just becomes about how do we find A players? I think people recognize why it’s so important to get the best of the best. B players will drag down your A players, so you want to make sure you’ve got the best quality people. There’s a guy who’s written a book called Topgrading which is worth reading. It is all about hiring and recruiting staff.

He calculates that a miss hire will cost you six times the salary of the staff member because of additional training, because you didn’t get the right person, because of the opportunity cost of missing out on getting the right person. There are all these reasons why it’s a good idea to have a great recruiting process. Hire slowly and then fire quickly. So if you find out someone is not the right person, it’s better to cut them loose quickly so you can make sure you find the right person.

How do we actually find these people? The actually recruiting process should be similar to what you do in the real world business. There are recruiting companies out there, here in Australia, that will help you find staff, recruiting agencies. They’ll list a job on seek.com.au and they’ll do their pre screening and questionnaires and get people to do trial tasks and all this sort of thing. You want to be doing that same process regardless of whether you’re dealing with a team member overseas or whether you are working with someone who will work locally and will be coming into your office.

Getting that hiring process right is important. I’ll walk you through ours and then you can take that and model and use it for yourself. Where do you find these staff?

If you’re looking for virtual staff to start with, if you’re just getting started, get over to somewhere like oDesk and you can target specific geographic regions. Depending on what you’re looking for, if you’re looking for coding, eastern Europe is great at the moment. If you’re looking for admin type roles, customer support, those types of things, the Philippines is good. I’ve had some good success for technical work in south east Asia, Kuala Lumpur and Singapore and places like that. You can get an idea of which areas have good talent.

What I’d do is you can head over to Freelancer or oDesk and you’ll have a specific task or project in mind. We’ve listed out some different tasks that we would like this assistant to be able to complete. Just start off with a small piece, find a small task that you can trial.

Perhaps assign it out to two or three assistants. Just get into the swing of assigning out work which is out tasking but with a view to identifying great candidates. Who responds to you quickly, who doesn’t need to ask too many questions, they just get it? Who has the right personality, who is keen to learn? Identify that talent. If you can spot that talent, then you might be able to migrate them into a full time team member. That’s a good way to hire someone.

Another way to do it, and I’ll give you three separate ways, one is called seat leasing or staff leasing. I’ll give you an example of company called MicroSourcing. What it is that they do, they’re almost like a recruitment agency based over in the Philippines. A recurring theme once you start hiring team members in the Philippines is oftentimes, the internet is going up and down, or perhaps there are electricity issues and things like that. So you might look at a solution where they provide stable internet and work space, almost like co working spaces that are starting to bubble up here in Australia and also around the world as well.

They’ve got co working spaces effectively over in the Philippines as well. It can be a great way to find staff and then give them a permanent place they can go with reliable internet.

The final one is what we call the George Foreman method which I’ll take you through in a moment. That’s about recruiting a staff member just like you would locally, where you literally run an ad on JobStreet which is the equivalent of seek.com.au here in Australia. You take them through the process to identify them and then you offer them a full or part time position at the end of it.

This method that I’m about to take you through is a method that we taught at our Outsource Profit Machine workshop. It was a one day workshop. If you note, there are some pretty good names in the audience. There are people from Market Samurai, which is a really well known keyword research tool. There was Tim Reid who was from Small Business Big Marketing podcast, Mike Rhodes who runs a really well known Pay Per Click company. They all came to listen to myself and Pete Williams talk about outsourcing and we shared this method. We really blew them away and had such a big impact on so many people’s businesses.

One of the key things that we taught was the George Foreman method. I call it the George Foreman method because we’re giving our applicants a grilling. That’s ultimately what we’re doing. We’re wanting to put as many people through the wringer to identify the gold and have them float out the top and then hopefully join our team afterwards.

This is the way that it works. What I want you to get from this is I want you to get the methodology and the thinking behind it. I just want you to get the process. Now you can tweak it and change it to suit your own circumstances. It’s all about filtering. This is how we find good quality team members.

Firstly, you need to think about who it is you’re looking for. That has to do with that exercise I talked about earlier, listing out your core business functions and what you’d like to have done. Then identify some of the tasks that could be done by one person. Try not to look for a super VA. If you’re expecting to find somebody who can write good sales copy, who can do accounting, who knows PHP and WordPress and also does video editing and graphics on the side, that person doesn’t exist. You’re looking for a mythical person.

So where you can, try to lump together some skills so you can get clear what type of person you’re looking for. Then obviously you write an ad, not too dissimilar to if you were recruiting locally. You want to write the ad in terms of something that would really interest the person you are trying to attract.

So if you were looking for a video person, let’s say, in your job ad you should talk about something like: Are you a video rock star who is looking to get their videos seen by a worldwide audience and work on some really innovative cutting edge projects? That really speaks to the person and Scott can probably speak more authoritatively on this than I can but effectively it is copywriting for your job ads. So you’re really writing a job ad that hooks the right person.

Then you take that ad and you advertise it. Like I said, you could list it on JobStreet, that’s a great place to start. What we do, in the job application, I point people straight to a questionnaire, a survey. So they read the job ad, they go to a questionnaire, that usually takes about twenty minutes where they have to answer a whole series of questions. I do that even before they send their CV in or anything. I want to make sure, if they’re not going to take the time to fill out the questionnaire, then they’re probably not the right team member for me. I’m looking for the best of the best.

Then once those applications come through, we do a bit of filtering and we give them a simple task. So thinking about what that particular position entails and what is involved, I’ll give them a little trial task. If it was a video job like I was saying, I might ask them to edit a video and send that into us, again just as a way to further filter. Then we get them to send in their resume and a cover letter. We do some final screening there and then the final process is a Topgrading type interview. That was the book that I mentioned by Brad Smart that is worth having a look at.

If you imagine it like a funnel, it’s really what we’re doing. We’re creating a funnel. We’re putting as many candidates as possible into the top of that funnel. Each stage of the process, the whole point of it is to try and filter those candidates down further and further until the point at which we find a star candidate.

I’ll give you a real world example. This is how we hired Manuel. He’s one of our team members who has been with me for a couple of years now. We recruited him, he’s based over in Manila in the Philippines. I placed an ad on jobstreet.com and got 121 resumes. We tweaked our model slightly because Manuel has been with us for quite some time. We used to ask for the resumes first but now we’ve pushed the questionnaire up because we’ve found that’s a more effective way. We don’t have to then filter through all of the different resumes. That’s why it’s slightly out of order there.

We had 121 resumes, we pre screened them, and sent the questionnaire out to fourteen people. Of those fourteen, eleven people returned them. We sent out five trial tasks, we interviewed three people and then MJ joined our team. That’s going back a couple of years or a few years now. That’s the process of finding good people. This is one of the reasons people get stuck or go wrong when they say, I can’t find any good outsourcers to work with. Oftentimes it has to do with your filtering process.

That’s another reason if you do go down the oDesk route like I suggested, and maybe you do a few little trial tasks, test some different people out, look at the feedback. I always find it’s always better to go with people with great quality feedback because it cuts out the people who haven’t been able to perform in the past.

I might just check in with you Scott and see if all this is making sense or if you’ve got any questions.

Scott: There a couple of questions that have come through. John is asking what do you pay someone like MJ, a starting wage?

David: Typically my staff, I start all them around the $5 aus an hour but it really does depend on the team member and goes up. Usually, a great way if you’re not sure is to ask the team member if it’s your first time venturing into a particular country and you’re not sure. Ask them what they were paid on their last job. That will give you some indication. I even have it in the questionnaire that gets sent out. I send a wage expectation. But it varies because then people over in Kuala Lumpur might be closer to $10 an hour or you hire people in the States and you can get them for $15 – $20 an hour.

There is no real set pricing guide but the way that I like to do it is I’ll ask the team member, what would be a fair wage in your country? Then typically I’ll pay for this particular task and then I’ll pay a little bit more than that. People who sometimes talk about this idea of finding people for $2 an hour and $3 an hour, it is a little bit of a case of you get what you pay for. If you go that low and you try and get away with scrimping on even just a few dollars an hour, you get someone who is always looking for the next opportunity. If you pay just a little bit more than market rate, especially if you’ve found a good team member, then it makes sense.

That’s probably a good starting point or a good guide and perhaps I can put something together particularly for the Philippines if you guys are looking for something. I can do maybe some pricing guides for you and send it through to Scott to send out which might be able to help with different jobs. MJ has come on as a general VA type role. Over time he has developed more specifically into the SEO role. Obviously for more specialized skills you end up paying a little bit more. But it is still pennies in the dollar compared to what you might get locally.

Scott: If you’ve got a pricing guide, I’ve had a couple of people who say that would be great. We’ve had quite a few people enquire about that.

The other question I’ve had come through is about incentives. Do you offer incentives to your staff and if so, what incentives do you offer?

David: There are a couple of things we do. Firstly, when someone starts with me, usually I’ll put them on a training wage for the first three months. That might be somewhere around a 10% discount or even a little bit more based on whatever their base rate is going to be. Typically at the start for the first three months we’re just figuring out if we both like working together. You invest more time into training them as well. They’re watching videos and training and things like that. That’s usually one thing that I do at the start.

Additional incentives, we have a thing called our MVP award. Once a month when we have our team meeting, we have them weekly but we have our monthly team meeting where I’ll announce the MVP which is the Most Valued Player for the month. They get a little bonus and it’s usually for someone who demonstrates or exhibits our company values. They just get $50 extra that we throw into their pay and they also get some recognition as well.

Then you can also do some other things like yearly reviews and things like that. It depends on what role they’re coming on at as well. Something else we’re having a look at is sales roles. That said though, that’s more for recruiting locally. Most of the sales positions are Australian based. But we also have incentives for those based on what is sold.

Scott: Yes, absolutely. So a couple of other questions I’ve got are ramifications with the tax department when hiring overseas.

David: I can give a little bit of insight. Obviously I’m not an accountant, so you’d want to chat with someone and obtain the best advice for your situation. That said though, the team members when you’re hiring offshore, there are a few pros. Most of the staff who are hired overseas we get them on as a contractor. So they’re not actually a set staff member. That obviously makes it a little bit more favourable as well with regards to things like super and all those sorts of things. Effectively you’re hiring them as independent contractors.

There are some other things to think about when hiring, particularly in the Philippines. They have a thing they call the 13th month. This usually happens around Christmas time where if someone has been working with you for a full twelve months, you actually pay them an additional month’s salary in December. That’s because they’re not getting holiday and sick pay and all that type of thing, it’s just a cultural thing. That’s how they get compensated there. They get an additional month’s worth of salary just in the month of December.

Scott: That’s great. Another question is, I’m looking for someone to work on my website and social media and build new websites, as well as create SEO systems to take the website to the top page. Which country can I find a good person for a job such as this?

David: That could be really well suited to the Philippines. I’ll even take you through some ways that you can follow. When you hire, it’s great to hire someone who comes with some pre skills. That’s great, but if you can hire the right characteristics: someone who wants to learn and who is enthusiastic, it’s much easier financially to reinvest in team members in their training when you’re spending $5 an hour than it is if you’re recruiting someone locally.

If you’re recruiting someone locally, sometimes it’s hard to say, ok, sit down and do a day’s worth of training at $20 an hour or $25 an hour or something like that. That very quickly adds up and it’s hard to invest that into the team member, especially if you’re a small business just getting up and running.

If you’re employing in the Philippines, part of our culture is to have an hour each day built into the work day to continually up-skill and go through different courses. So we purchase different products and then I will get my team to consume them, learn new strategies and skills, document what it is they learn from that and then implement it. So reinvesting into your staff is great as well.

The person who identified, here are the things that I want someone to be able to do from an SEO point of view, you could go ahead and buy an SEO course, like The SEO Method or get them to read through moz.com and get them to follow best practice guides, create the documentations, the systems, the processes that you’ll end up applying within your business.

Scott: That’s great and another question, what are some of the questions you ask in your questionnaire?

David: I’ve got quite a few that we list. I’ve actually got a way that you guys can get the actual documentation for the questionnaire and also the job ads and things like that which I will mention right at the end. That said though, some of the things off the top of my head, I’ll ask them that wage expectation that I mentioned before. I’ll tailor the questions based on the role that they’re applying for.

I’ll ask them questions like how often do you use the internet as well. Because we’re working virtually I want to make sure that they’re really comfortable. I’ll ask them what tools they’re comfortable with. Let’s say it was for a writing position, I’ll ask them for examples of work that they’ve done. We tailor it slightly, but I’ll give you guys an opportunity to grab that documentation at the end.

Scott: That’s great. We’re getting a flurry of questions but I might just let you continue and we’ll come back and answer the other ones at the end.

David: Ok. Once you’ve found your team member, the next thing that you need to do is introduce them to your business or welcome them to the family. To do that, I’ll usually start off with a call. I’ll go through some of the documentation which we send out to them that welcomes them. We set them up with a real company email address. I want them to know that they’re part of the team. That’s really important. We add them to the website, put their profile on the website.

In a virtual space people often feel disconnected. What I’m looking to do is make them understand or know that they’re a valued part of the team, just as though they were employed locally. When you’re working virtually you have to try and constantly work on things to make sure that people feel involved.

That’s when I start to explain some of our management techniques as well. We call them EODs and SODs. EODs are just End of Day emails and SODs are just Start of Day calls which I’ll go through. That’s one of the first things I’ll do when they join us.

Basically an EOD, and End of Day email helps you to get some visibility on what your team member is working on during the day. Some people, especially when you’re first getting started, have trouble letting go or believing that they can have someone else work on their business who isn’t in the same room sitting next to them where they can look over their shoulder and see what they’re doing. There is an element of trust and there are good people out there just like you who want to work with a company on good tasks. Not everyone is out there trying to take advantage of you.

This is a good way though to get some visibility on what they’re doing. Obviously you’ll outline what tasks need to be done. For an EOD, at the end of each shift, I tell them I want you to send me an email saying what you worked on for the day, how long it took, any issues that you came across or that you encountered and then if there is anything that you need me or your supervisor to do to help you tomorrow to continue with your work. They need to do it at the end of every shift.

If they can’t send through an EOD early on, that for me is a warning sign. It is a really basic task. It’s just consistently letting me know what’s going on for visibility and for coaching purposes. So that is a great way to help manage the staff.

I also do a thing called SODs which is just Start of Days. We have shrunk this dramatically. It used to be thirty minutes every day, but now there are usually two calls at least every week where they’ll get some supervision from the team leader and the EODs and also checking in on Skype during the day. We have a group chat where all of the team is joined into a group conversation. When people log on for the day they say, hey how’s it going, just to let the team know that yes, I’m here and I’m ready for work. It helps them to feel connected and part of the team.

These Start of Day calls when they do happen which is usually on the Monday and the Friday, plan out what they’re going to work on for the week. The team leader will review the End of Day emails. They’ll also do a little bit of quality control and answer any questions that they’ve got and help them plan out what their week is going to look like and what they’re actually working on to make sure that they remain focussed. You might do that a bit more heavily at the start but over time and you start to build up trust with your team members, you can let go a little bit more.

The main tools that we use to achieve this, you can have a look at something like Asana or Basecamp. They’re good project management tools. It’s just a centralized place that you can use for communication, rather than just doing email. With email it is too easy for things to get lost and there is no clear central meeting place. So I would highly recommend some form of project management software. We used to use Basecamp, we moved to Asana. There are other ones like Podio, there are plenty to choose from. There is no right or wrong, it’s just having something.

I would also have a look at obviously Skype, which is very useful. Google Apps is a great way for sharing docs, the same with Dropbox. Then there is also Jing which allows for screen recording. Screen recording software, I mentioned Camtasia or ScreenFlow earlier. Jing is made by the same people who make Camtasia. That’s a great way to deliver job instructions to team members. Then there is also just voice recording on your iPhone or whatever mobile device you’ve got. That’s a great way to help deliver tasks.

Some of the common mistakes you’ll see people make have to do with expecting too much from a VA, not taking the time upfront to hire A players. Not trusting your team is another mistake. Once you get into EODs and getting them sending you regular updates, there is no need to install screen capture software that takes snapshots of their computer every three minutes to make sure that they don’t jump over to facebook.

You use a good recruiting process upfront to make sure that you’re finding good team members and then you set some boundaries and some clear lines on what is acceptable and not. That is a much better way to go than setting up some screen capture software.

Giving clear instructions is another must and that is one of the reasons I recommend video screen capture software. It’s one of the best ways to deliver very clear instructions that don’t get lost in translation.

Just think about your virtual team the same way that you would think about your real world team members. Sure there are some differences because you’re obviously working virtually and there are different tools. But you need to be recruiting them the same way, you should be chatting with them the same way, you should be setting targets the same way. The way that you manage in the real world live, when someone is sitting right next to you should be no different from when they’re virtual. That in itself will set you on the right path.

There are few little secrets just in the tail end that I want to leave with you. This is really the secret sauce for our business and how we’ve been able to scale the business. It has to do with documenting the standard operating procedures that I talked about. It’s these predefined repeatable processes that produce these consistent outcomes. Just like McDonald’s have.

You can drive past a street corner one weekend and it’s an empty lot. You go back a week or two later and there is a McDonald’s there. How does that happen? They have a very detailed process manual on how to open a store. Once the store is opened, they have a very detailed process manual that details every facet of the business on how to flip the burgers and how to make sure you cook the fries the right length and make sure the thick shakes always taste the same.

This standard operating procedure is what is at the heart of their business. When you build a virtual team, the biggest concern that people have, if they’re not hiring the right people, the quality of the work will drop. That’s why you want to make sure if you document your processes and you’ve got clear instructions for your team members, you’ll make sure that your outcomes are still delivered to a very high standard.

Come to your business thinking about your business with a systems mindset. You want to think about building your entire business. I will jump to the next slide here because I want to show you, this is a way that we document our standard operating procedures. At the moment we’re just using Dropbox. We’re working on something else at the moment that we might move out of but Dropbox just enables us to share files.

You’ll see here we’ve broken the business up into different categories like head office, internal procedures, marketing, and sales and orders. Now I’ve navigated underneath the accounts there so you can see some of the categories under head office. Then we go down to invoices and then we go all the way down to specific tasks. Each one of those directories contains a system for how to do that particular task.

I’ll give you an example. Under invoices there will be a standard operating procedure on how to issue an invoice inside eWAY. That way, it’s very easy for me to plug a team member in. This is what a standard operating procedure looks like. It’s just got a title, an overview of what the task is, a supporting video if there is one. Oftentimes I mentioned the way I first create or document my processes is with a video. Then you can actually hand those videos to a team member and then say, hey, create the documentation around this.

It’s funny as it sounds, this is our procedure for creating procedures. It’s our system for systems. It says here, the person who undertakes the task, creates the system or procedure. They document the system’s steps, bullet pointing out what needs to be done. The document is created as it is performed or shortly after. This document is left to sit at least once and then reviewed on the next iteration. Once the system’s creator is happy, it’s reviewed by the supervisor, discussed with the team, tweaked, etc, all the way down to the last task in this particular procedure which is to teach another team member how to do the same task.

For some people, depending on what stage in your entrepreneurial journey you are, this is a huge aha moment. This is the bit where you say, I don’t need to create all of these systems. People say, yes, systems, I’ve heard about that. Everybody talks about systems. In The E-Myth, Michael Gerber has been talking about this for ages and they think, I don’t have time to do that. With a system for systems, this enables you to get another team member to document processes and procedures for you.

I’ve got a little system here called a System for Systems. If you go to systemforsytems.com, you’ll be able to download my system for systems to share with your team.

Just moving through, the final tip that I’ve got here, once you get this idea of standard operating procedures, you go out there and purchase courses for your team members to learn new strategies and techniques. Get them to document the processes and then start to implement them in your business. I think there were quite a lot of notes from people saying that they wanted more leads. Ok, go out and buy a course on generating more leads.

People talk about, I need better conversion rate for the website. That was one of the things that I was going to teach you. How can you get a VA to help improve your conversion rate on your website? Send them over to a website like Conversion Rate Experts or buy them a Kindle book or buy them a course that is all about conversion optimization. Get them to bullet point and dot point everything that they learn from it and then apply that straight to your website.

Now you’ve got a process and procedure in future for the way that you do your conversion optimization. You’ve also improved your website and you’ve got a team member who is now skilled up to do that particular task.

There are a few courses. The ones that I’ve just taken here are ones that we have, things like outsourcing, and video and small business, SEO, those types of things. That is the best way to get work done within your business at a great rate. You don’t necessarily need to hire a conversion rate expert who might be $200. You can skill up a team member to do that. So you don’t have to be the one creating all these processes and procedures.

I suppose in the tail end, to wrap all this up, the four stages or the four steps that we’ve gone through here is step one, think about where you are now. Get clear on what it is that you need help with. Think about where you are in those four stages of entrepreneurship. So you know, I’m still in stage one, really I should just hire one VA who can help me out with the busy work. Or, I’m into stage three here, I need a team member who is specifically creating standard operating procedures for me.

There is a video I did, a presentation, it’s on my YouTube channel, to which I’ll give you a link at the end. It’s called Perhaps the Best Entrepreneurial Advice You’ll Get. I go through the four stages of entrepreneurship in great detail. You might find that helpful.

Then once you get clear on what you need, you hire you’re A players. You onboard the team member and get them managed using SODs and then you start to document your core procedures. That’s pretty much how you build a successful business.

Have some realistic expectations. Outsourcing is not going to work the first time around. You are going to make mistakes, you are going to lose money. You are going to have someone who takes advantage of you or rips you off or whatever. This is just part of business. But the fact is, you are the bottle neck in your business. You can’t do everything, you need to build a team. Outsourcing is a good solution. If you take a lot of the strategies I’ve talked about, then it will limit the number of mistakes that you do make and might potentially save you a whole boatload of cash. But there are still going to be mistakes.

You’re not going to find a perfect VA who can replicate you for $3 an hour and they instantly move into your business and just get it. So have some realistic expectations.

If you’re looking to find out more or learn more about this, I just went top level and perhaps that might have even uncovered and got you started asking some new questions: things like how much do I pay them or how do I actually pay them? What software can you use to improve efficiency or what are some ways to be training your staff? I may have opened up a can of worms. Or the documentation I talked about, for what do our job ads look like, what is the trial questionnaire?

We actually put together a one day course that we ran. I pretty much detail exactly what we’re doing to build a virtual team and all of those short cuts that can potentially save you thousands of dollars in time and money. I’ve put it all together in this one course for you.

We’ve put together a special offer for Scott’s group which you can find at melbourneseoservices.com/scott. You will need to enter in, to get the special. The price of the course is $495 but there is a special where if you use the coupon and you enter it in when you checkout, just enter Scott. That will discount the price and drop it by $100. That’s only going to remain active for maybe three or four days. Then that will end up expiring. So if you’re listening to this webinar or you’re listening to this call now, just make note of that and it will adjust the price for you.

That’s probably going to be the best way for you to learn how to build a virtual team. I might finish up. Scott if you’ve got any questions or anything that you would like me to add.

Scott: Yes, I’ll get stuck into some of those questions. I think we’ll hold that open til around five or six o’clock or something on Friday, that offer.

Tell me, David, is it possible to throw in, as well as the discount just maybe an extra product that our listeners can use to train their staff up straight away on search engine optimization or something where they’ll be able to get some instant value, or some extra value?

David: Yes, as I mentioned, we’ve got some different courses. I’m happy to do it because I think it will be leading by example when you get your first team member. I think one of the biggest questions that came through with people filling out the form is about getting leads and more leads, more traffic.

I have a course called The SEO Method 3. That course pretty much details the process that we use at Melbourne SEO Services to get our clients high rankings and lots of traffic. It is a step by step process. So someone could effectively get The Outsource Profit Machine. I’ll be happy to bundle in The SEO Method 3. Then they could give that SEO Method 3 to their VA and say, hey, watch this, use this as training and then start to apply it on the business.

I’ll probably have to process that manually. The way I’ll be able to do it, I’ll get one of my team to do it. If someone does order, and they order within that window that you talked about, you visit melbourneseoservices/scott. Make sure you use the coupon code ‘Scott’. You have to use that because that will flag for me that you’re getting the discount plus you’ll also get a copy of The SEO Method 3.

The SEO Method 3 is actually a $395 course on its own. So effectively you’re getting a discount and a two for one. I probably can’t do any better than that but I’m sure that will definitely add a lot of value to the people buying the course.

Scott: Yes, that’s incredible. It’s great value. I’ve just hired an SEO person myself and I’m going to be putting them through that program. It’s a great deal you’ve put together so thanks for that David very much. I appreciate it.

I’ve got a couple of other questions that have come through. If there are any more, this is your chance to send them through. I’ve got one, how do you structure the work given to a person overseas and how do you control and monitor the work? I think we’ve pretty much answered that probably after this question came through. Is there anything you’d like to expand on there David?

David: Delivering the job task through video I find is most effective and sometimes also audio. Trying to help a team member understand the context is important. If you’re getting a team member for a long period of time, if they can understand the context, it helps them understand what it is you’re trying to achieve. It helps them answer their own questions.

What I mean there is let’s say you’re wanting someone to write title tags and descriptions. It’s a good idea to have them go through a course like The SEO Method or have a basic understanding of SEO so then they understand where this fits into the overall picture. They understand why it is that they’re doing it. I think that is another important key to making sure the team member really does well for you.

As far as quality control and things like that, once your team grows, your team leader really should be doing spot checks and things like that. It might be you initially as you’re getting your first team member and giving them feedback. But as you give them feedback, what you want to be doing is updating your standard operating procedures so that you’re building in where someone actually went wrong or got lost. You’re building it back into the system. So the system continually evolves. Hopefully the next time the assistant does it, or you get a new assistant, they’ve got much clearer instructions.

Scott: Very true. In terms of Asana, Scott says he’s heard of Asana. Is it easy to use?

David: We migrated from Basecamp because we found it easier than Basecamp and intuitive. I’ve not fully used the latest version of Basecamp. We were using the Basecamp Classic. I find it easy to use and so does my team. That comes from what we had been doing with Basecamp.

There are plenty of different project management tools. Sometimes it’s not about getting hung up on which specific tool to use. You might try a couple; like I said, check out Podio as well. Sign up to a couple. Most of them will have free trials and just have a bit of a play with them. Or if you’re not quite sure and you don’t have the time to do that, make that the first task for your VA. Say, right, I want to get a project management software. I want you to review the top ten that are out there. I want you to sign up for trials, have a play round and report back to me which one you like best.

Scott: Yes, that’s great. What are your thoughts on TeamworkPM just out of interest?

David: I’ve used it, not fully with our team but I’ve signed up and trialled it. It’s supposed to be quite good as well. I have had some clients and coaching clients who have used it as well. I think it’s a good thing. I’m pretty sure it’s open source or it used to be open source.

Scott: I don’t know. I’ve used it but I don’t use it as much as I should. It’s quite good but I haven’t explored it as much as you have.

David: Trello, that’s another one that I’ve used that is quite good. I think it’s free.

Scott: That’s great. The other question I’ve got is a list of tools we can use so that we can explore. We’ve probably covered a number of the tools that we can use. Are there any others that you can think of?

David: Yes, I’ve got a website called daveapproved.com. There are some of the different products and services that we use there. I’ll post them on there and we add and remove things as well. If we’re not happy with something or we move to something else, we’ll often update that site as well. That’s a good way to keep on top of what tools we’re using.

Obviously inside The Outsource Profit Machine we go into a lot more detail. There is actually a full session that Pete Williams ran who is a co-presenter in that course. He goes into detail as well, a full session on here are all of the different tools he’s using. That’s another place to check it out.

On the YouTube channel which I popped the link up there, youtube.com/theseomethod, I actually recommend some products and services in there as well.

Scott: That’s great. Pete goes into quite a bit of detail on that course into the tools and kits and all that sort of thing. Geoff has just asked, you don’t have the offer on the screen. So can you just quickly do a recap of the offer? We probably should have had it on the screen, but just a quick recap of the offer?

David: Yes. If you visit melbourneseoservices.com/scott, it will take you to the page that talks about The Outsource Profit Machine. We’re up to actually Outsource Profit Machine 2, so when you buy you get both versions. It’s effectively combined a two-day workshop that goes through everything that you need to know about outsourcing. It’s includes different tools and handouts and everything.

It normally sells for $395, or maybe $495 I think it is. Using the ‘Scott’ coupon when you go to the checkout page and you hit Add to Cart, the Scott coupon will actually drop the price by $100. So off the recommended retail price you’ll see it adjust on the page. You’ll get that course and Scott twisted my arm a little bit earlier and I’ve agreed to also include a copy of The SEO Method.

So on the Melbourne SEO site, if you want to find out more about what the course is about, it’s basically the entire process that we use for our SEO clients. You can find it underneath the Learn How, there’s a little drop down that is ‘SEO Training.’ That will detail the course. I’ll give you that complete course as well and that sells for $395. So effectively it’s two courses for the price of one and you’ll get $100 discount as well. So it’s The SEO Method 3 and also The Outsource Profit Machine 2 and you’ll get $100 off the price on that as well.

Scott: That’s great. So just to recap, if someone is listening to this, I know search engine optimization is a hot topic and probably holds a lot of people back from doing it just because of the big expense involved. If I was to invest in this course, go through the hiring process, let’s say the George Foreman method or one of the other methods, get the A player, because it will walk me through how to actually get the A player on board and then straight away hand them The SEO Method, would that be enough if I had the right person to get me up there for a page five ranking or page one ranking and start to get a lot more traffic for my website?

David: I think that would be an excellent start. There are probably a lot of variables like how competitive is the industry, what types of keywords you are going after, but all that is addressed in The SEO Method anyway. So we’ll go through and make sure you’re doing a good keyword selection. I think the ROI that you’ll get on the spend from buying the course and then getting a VA for your marketing dollar, you would get far greater return doing that than you would going to let’s say, a full service SEO provider.

Effectively what you’re doing is taking the methodology and then you’re getting it applied into your business at a much more cost effective rate. I suppose the short answer is, I think that would be great to start. I hesitate to say, yes, this is the holy grail and the secret and you’ll make a boatload of cash and all that sort of thing. But it will set you up for success and there’s nothing to say that you won’t get a lot of those benefits from good search engine rankings.

Scott: Yes. Just to recap, what we’re basically doing for this offer, it’s just under $400. We’re basically offering a program worth $495 plus there is a $395 course, The SEO Method. So I’m actually getting around $890 worth of value for $395, which is a saving of about $495.

I think something to consider is to get a good hire and if you’re looking at hiring someone, you’ve read the book on Topgrading and I probably haven’t read it in as much detail as you, but I’ve got it there and I skim through it and refer to the appendices when I do a hire. He talks in detail there about the cost of a bad hire. What’s the cost of a bad hire if you get it wrong and how important is it to get it right?

David: He estimates that it is about six times their salary. Because you invest time into training them, they don’t learn as quickly, they drag other team members down, there is the opportunity cost, there are so many different factors that he took in to account to realize getting the wrong person is not just the cost of their wage. It affects so many other things. That again just keeps re emphasizing the importance of hiring the right people.

I’ve just got the site up here and you might even be able to see it on the screen. I’ve gone through that ‘Scott’ link. It sells for $495, so if you hit Add to Cart, and from within this page, you just come down to the coupon code here and you type in ‘Scott’ and you hit ‘validate’. You’ll notice the price adjusted to $395, so it’s dropped by $100. That will get you The Outsource Profit Machine course. When that order comes through, and we’ll do this manually, we’ll identify those orders.

I’ve gone to the SEO Training link here which is The SEO Method. That is a $395 course as well. Again, you can read all about that. These are the strategies that we use for our clients and you’ll get a copy of that as well. That is effectively what this offer is. You’re getting two for one and $100 off.

Scott: That’s awesome. In terms of the importance of getting this process right, let’s say even if you’re only paying $500 a month, if you get the right person, I’ve experienced this personally, what a  difference it can make. It literally can be worth, if you look, at six times just the monthly salary, it can be worth $3000 to get the bad hire versus the good hire. So if you are looking to hire someone, just think about the benefits of having a step by step proven process to get the hiring process right from the very beginning and to get the right people on the bus.

I’m sure you’ve read the book Good to Great, David. The story behind Good to Great was he studied all the companies that went from reasonably small to very big within a short period of time. They were obviously companies on the stock exchange because they had to be able to actually measure them. He found one of the number one components of it was to get the right people on your bus. It was among the number one components of growth over and above anything else.

I think this is such a small investment, compared, if you look at the risk/reward, compared to the potential reward that is available to you.

David: Yes, I couldn’t agree more. That’s one of the reasons we’re so passionate about it. What we try to do is be the best example and lead by example. Everything that we do we’re applying within our business. This is the strategy and methodology that we use and that we know works. The reason I do that is one, I want to be able to stand confidently behind the product and feel confident and good to sell it. But I also know that it works and the impact it has.

I said right at the start at the webinar and someone may or may not have recognized it, but  the sub heading of that was written by design. I wanted to say that this is one of the biggest leverage points. Outsourcing and getting it right is one of the biggest, smartest things that you can do, leverage points within your business. It basically gives you a margin for error unlike you can get doing anything else.

You can try and raise your prices, you can try different marketing strategies, you can try and lower your rent, all these types of things. But typically speaking, one of the largest expenses in a business that you have most control over will be your wage. So getting the right people, getting them on board will have the biggest impact within your business. That’s why I see it as such a huge opportunity.

A lot of people don’t understand it. They’ll dabble, they’ll try a .little bit of outsourcing. For whatever reason, because they didn’t have the right methodology, it might not go as planned. Then, like I said, they throw out the baby with the bathwater. If you get it right, it will be your competitive advantage.

Over time, more and more people are starting to understand and get used to outsourcing. If you don’t start using it, sooner or later your competitor will. Once that happens, that unlocks for them a whole extra area of profit or a profit centre within their business which enables them to compete with you on a different level. Maybe they can increase the ad spend. As we’ve started to see, cost per click on AdWords start to increase because people are finding these leads are still worth that amount of money to them because they can afford to pay more. The cost of getting this work done has reduced for them.

A lot of these factors mean that we’re still in the early days but this is becoming more and more common. Some of the big companies have been doing it for a long time but now the field is getting levelled because of all of these different tools and technologies. So this is a wave you want to make sure you’re in front of because it’s still got a lot of legs and it will have such a huge impact in your business if you take this idea, recognize it and apply it in your business.

Scott: Yes, absolutely. I’ve just got another question come through. I need to get a lot of content written for my new website. Is this something that could be outsourced to the Philippines or would you need to go to America to get content writers? Where would you go to find that sort of skill set?

David: Depending on what style of writing you’re after, I do find the further away the content creation gets from the business owner, more often than not, the voice of the business is lost. What we actually do for content creation, we put out a lot of content. The way that we do it is, I’ll either record videos, I might repurpose content from a workshop or I will answer questions, frequently asked questions in audio format. I try to just be the seed of the content to try to get the concept across with as minimal work from me as possible.

I’ll just do a quick recording and then that gets passed to a team member who will transcribe it. That can get either passed to another team member or oftentimes it’s the same team member who will then turn it into a high quality article. In that way, you can get really high quality articles that you can potentially get someone offshore, maybe in the Philippines, because you’re giving them the essence of what to write in the article. That’s a great way to do it.

If you’re looking at something higher level where it is a bit more hands off, then by all means perhaps trying to hire someone in the States could be good, if you look for a skill set and try and find someone who understands your industry. Just remember though with a lot of this content marketing, this is usually the first point of contact that your lead or your potential client is going to have. So you want to make sure you’re putting your best foot forward by putting your best content out there.

We’ve created a full methodology and it’s talked about in The SEO Method 3. I’ll run a workshop, I’ll get that workshop transcribed. We then cut that transcription up into little pieces. Those videos then get uploaded to YouTube. The transcriptions get loaded with the videos to my website. We take the transcription, we turn that into high quality articles. They then get submitted out as guest posts and into article directories and things like that. Then we also take the transcription and turn it into a high quality report as well.

That whole process means we can create a boat load of content in a very short space of time. If you think about the Pareto principle, the 80:20, I’m doing 20% of the work and the team is picking up the 80%. That is a really effective way of doing content marketing. Again, that’s what we go into a lot of detail inside The SEO Method.

Scot: That’s great. So you do the audio and then you have that transcribed. From that transcription you can have someone make articles. Do you find from the transcription, let’s say someone from the Philippines doing it, there needs to be a lot of editing? Or do you find that process works fine?

David: It depends. It depends how much work you want to put into the team member, training them up and getting them to get your voice. There are some great writers over in the Philippines and I’ve got a few on staff who have got it. They’ve been working with me long enough that they get my voice. But trying to hire someone who gets it right out of the gate without any training, if you you’re looking for that, you might be better off looking at somewhere where American style or Australian style English is the first language spoken.

It just depends. It’s not as clear cut is what I’m trying to get across here. You can find them but you want to be going through that George Foreman process. You want to ask questions, what fiction books have you read recently? We’ve found a recurring theme. A lot of my best Filipino writers all are very avid readers and they watch a lot of American TV so they start to get some of the colloquial terms and slang and things like that.

Sometimes if you get someone who has just gone to university and they’re based in the Philippines, their writing can feel a bit stiff, a little bit formal. But again, that just comes through education. There is nothing to say that you don’t create a standard operating procedure or a writing set of guidelines where over time with your writer you develop do and do not rules which you can then share with future team members to try and speed up that process of getting them skilled up.

Scott: That’s great. Just a final recap of the offer. Basically what you’re looking at is we’ve got a $495 product which David slashed the price down to $395. You’re saving $100. In addition to this, we’re throwing in The SEO Method so you can get started straight away with someone on the search engine optimization side of your business. The SEO Method is valued at $395. You’re actually getting $890 worth of value for $395. That offer will be until  Friday. We’ll be closing the doors on that on Friday at 6pm.

If you’re interested in that, please jump on this offer. Thanks for joining us. Any final words David?

David: I think the best thing you can do is take action on this. Do your research on myself and feel confident that I know what it is I’m talking about. Whether or not you get this course, start building your team, your virtual team. It will be one of the smartest, most impactful things that you do in your business. Like I said, I don’t mind if you buy this course or don’t buy this course, what is key is that you need to understand outsourcing, and you have to start implementing it in your business. It is just that important.

If I look across everything that I’ve done, it’s probably been the one single thing that has had the biggest impact in the way that we do business.

Scott: Yes and what I would encourage you to do if you’re sitting on the fence is just take a moment and envision if you were sitting here three years from now, in the same position you’re in now and looking back on the past three years, what would have had to happen for you to be really happy with your progress? Then I would ask myself, well, am I going to be able to achieve that more easily and smoothly doing everything myself or am I going to be able to achieve that more easily and smoothly if I do it together with a team?

Really weigh it up and make an informed decision based on what is going to help you achieve your goals. I think that pretty much sums it up Dave.

David: Yes, that’s great. If anyone has any final questions, I’m happy for them to email through to you or to myself to reach out and I’ll do my best to help.

Scott: Yes. Where can people find you?

David: Obviously melbourneseoservices.com is a good place to start. You’ll see all of the different products and services and courses and things that we provide. We usually record them for internal training purposes but then we also offer them as stand alone products. I always engage with people on twitter, so there is my twitter handle. You can tweet me and ask any questions. At the very least I’m going to help you and point you in the right direction. If it’s something I can’t help with personally, I’ll make sure you’re at least working with someone who can help you.

Then we’ve got loads of videos over at my YouTube channel. It’s another great free place to get started as well. There are little snippets from different workshops. As I said, we’re the best example of what it is that we teach. So if you want to see what I was talking about as far

as chopping up workshops and things like that, just have a dig around the site and on the YouTube channel and you’ll see that we definitely walk the walk.

Scott: That’s great. I just want to thank you for your time today David. I know you’re a very busy person with lots of things on the go and I really appreciate you taking the time out. I  know we had to schedule it a fair bit in advance just to find a slot. So I appreciate you taking the time out to join my subscribers. I really appreciate it.

David: Pleasure.

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