Okay, welcome back to one hour YouTube Pro. In this video, we're going to talk about automating your system. So we're going to get down to the nitty gritty of how to actually automate this whole awesome one hour YouTube system. So let's talk about your division of labor. The most important thing when outsourcing is to remember to utilize your resources properly. You never want to overpay one employee to do something that a lower paid employee can do.

Like spell the word employee on your PowerPoint presentation. If you're a video creator charges $30 an hour, don't pay them to do research that can be sourced to another employee for $10 an hour. Does it make sense? So you are going to have higher paid employees. For example, if you hire a good copywriter there Probably going to cost a good amount of money. But which don't want to do is if you've got a good copywriter, and they're charging a certain amount per hour, you don't want to have them working on some low level activity.

You want them writing copy, okay. So make sure that you have a very clear distinction of what roles each employee has and what they're to do. Essentially, you just want to make sure that you have the right person doing the right job. Now, just because a researcher only charges $10 It doesn't mean they can create a quality video. So this is the opposite here. Now, it's tempting to outsource things like your content, your final product, your sales page, your video page, make sure that these things are of the highest quality, okay?

You want good quality when it To the stuff you sell. And it's tempting to have someone that just doesn't charge that much to do this kind of stuff for you. But you don't want to do that. Because typically in this world and in this business especially, you get what you pay for. So make sure that you have the right people doing the right job. And that's all I really got to say about that.

Few different options you have when you're outsourcing, you can pay on an hourly rate to contractors on an as needed basis. Okay, so you can just pay per hour. So you they charge $10 an hour, they work 10 hours, you give them 100 bucks. Pretty simple. You can also do a fixed price, which is my personal favorite, and I'll tell you why. Because you can hire here on a project by project basis for a set fee.

This is really good. If you Know how much something should cost, you can tell the contractor, this is $100 project. And they can choose to accept the project or reject it up front. They know what you need, they know what you want. And the more clear you are on this, the better. In fact, Elance will kick your job if the deliverables aren't specific enough.

Just make sure that you know how much something should cost before you start trying to outsource it. First thing you do, if you don't know go on Google and Google, what should x job cost, okay. And you can also go into Elance and just put a budget and then people will bid on the job and then I'll give you a good idea of what people are willing to do it for. You may want to try the lowest person first the person who you know bids the lowest, but you may find that always going with the cheapest option isn't always the best. Now salaried is Typically what you would pay a more seasoned contractor that's been working with you for a while you pay a set amount of money every month in exchange for a set amount of hours. And really, you know, the whole basis of salary, typically is that you work 40 hours a week and you make a certain amount of money.

So you could divide it by the hour and say, Well, if I make, you know, $1,000 a week, divided by 40 hours, well, I guess in essence, I'm making $25 an hour. But any of you who have ever done salary work, you know the truth, you typically end up working a lot more than 40 hours a week, more like 6080 hours a week for the salary. So, salary is pretty it's pretty tempting as an employee to take, okay, it's guaranteed money every month, but it's usually to the benefit of the employer to be paying someone on a salary because you know, you can get a lot out of Okay, so let's talk about each one in detail really quickly here so hourly, it's a great option when the work is very sporadic. Okay? If you don't really have a lot of work, it can be good to do offer hourly because people will show up for that, okay?

You can scale up and down as needed without committing to a monthly expense. Now, you may not be able to find someone hourly all the time. And I'll tell you real quickly from my experience, hourly is not usually the best way to pay people. The reason is, is because as a business owner, and as an employee, I've been both. I know that the primary kind of modus operandi of a business is to make profit, which means make the most revenue and have the least expenses. Your employees are an expense On your income statement, as an employee, the goal is to make as much money as possible typically, and do the least amount of work.

So their opposite. You have opposite goals. Now when you're paying an employee hourly $20 an hour, $30 an hour $50 an hour $10 an hour doesn't really doesn't matter. Typically when someone's being paid by the hour, and this is not for everybody, you probably have great employees. And you probably are a great employee if you have a job. But a lot of employees tend to not be as motivated with the hourly and they don't produce as much.

So I don't really like hourly as much because I feel like the production cap capacity isn't as high. If people know they have to be somewhere for eight hours a day. They typically get about four hours of work done or less and about four hours of distraction and taking their time. If someone's paid to deliver a certain project, half up front and half when the project's completed, I feel like they typically get that project done a little faster so they can get on to the next project. You know what I'm saying? hourly, just kind of to me.

Screams of, let's milk this for all we can. Okay, I'm getting paid hourly. So what's the rush? Right? So, the next is fixed price and that's comparable to hourly. The benefit over hourly is that the project will rarely run over budget.

Okay, your total rates pre determined. The contractor can't milk the clock so to speak was what I was just talking about. So I feel like fixed price is the best way to go. Okay, I really like fixed price project by project. Most contractors you'll find on Elance want to go this route, you want to go this route. It's just the best way to do it.

The key is that you need to find out exactly in pre determined What you think that should cost? And you can use your bids as a way to figure that out as well. But just remember that your contractor may not be available all the time. So the only drawback to hourly and fit well, it's one of the drawbacks to hourly. One of the only drawbacks to fixed price is that if you're hiring someone on a project by project basis, they may be working on another project when you need them. And then finally got salary.

Now salary is usually best if you continuously need work done. If you are continuously putting up webpages and continuously wanting to get those webpages SEO, then obviously you'll want a web designer that knows SEO and could do on site optimization. You also need someone that's continuously backlinking continuously managing social media to getting more likes and links back to your page. Once again for SEO purposes. If you want to use do media buying if you want to buy advertising, you'll need someone continuously. That's running these campaigns.

If you're out, if you're all source employee is working for a very low rate, you can get work done for a very low cost this way. The great thing about salary is that the employee will always be available. Okay, you're paying them a salary. You know, one thing I have noticed with salaries sometimes is you sometimes do you have to stay on employees to get things done. Okay, they're getting paid. And especially if you pay them monthly, a lot of times your employees are very motivated at the beginning of the month, and not so motivated in the middle and towards the end until they need to get paid again and then they're they kind of start working again.

So you have to watch out for this and this probably isn't the way most people are going to start you're probably going to start paying hourly or paying fixed price. Just remember there are some downfalls to hourly fixed prices probably the best when you're starting out. We have very few employees on salary. So it's it's important to know that you know salaries great both But it has its downfalls. hourly has its downfalls fixed price, project by project is probably your best bet when getting started. So remember why you might not start a lot of people on salary or any at all.

Salary can be a really great way to take a contractor who's been doing work for you in projects, who isn't always available, and kind of incentivize them to come work with you, and stop taking on other projects. So you can basically have a clause in your contract that says, you know, you're going to work for me only, you're not going to work for anyone else, you're always going to be there. And kind of the trade off is they get the guaranteed amount of money every month. So salary is something to keep in mind for the future. It is a great technique to kind of get the kind of programmer or web designer or just somebody in your corner in house. We call that in house because they're not, you know, working for anyone else and it's actually pretty beneficial once you start running a larger business if you decide to go that direction, but just keep in mind, I'd start with fixed price.

And if you really want to pay people hourly, you could try it out just to see what I'm saying. But typically, if you're out for production, and you want to get really great products and you want to get really great, and you really want to get great productivity, project by project in my experience has been the best way to go about it.