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Building a service company with freelancers as your employees



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Building a service company with freelancers as your employees

When you start getting too successful selling your own services, you might want to think about outsourcing some of the work to a credible freelancer, or even a few freelancers who can get the job done.  Building a company that relies solely on freelance work isn't unheard of, but you probably don't know you're actually working with one unless you ask where they are located and how many people work for the company.  Usually, the person responding will say they are from a specific country and they have XX people working for them, but they won't go into detail about where all of the employees are from.  You can ask them if they use freelancers, and if they say anything other than "No, we do not use freelancers" you're probably working with a middleman who is running everything Building a service company with freelancers as your employees  Now, this isn't a bad thing because you're paying a guy, who has already weeded out all the bad freelancers and found the best ones for the job, and you're just paying a few extra bucks for convenience Building a service company with freelancers as your employees

Again, you probably will never know if a company has it's entire workforce consisting of freelancers, even if you ask lol.  This is why it's such a great business model, you can hire 10 people from the Philippines to do work for you and it would be the same monthly cost as if you were to hire 1 freelancer from the US Building a service company with freelancers as your employees  Outsourcing work has been going on for the longest time, and is done with every single company out there, even if they don't want to admit it!

In this discussion, I'll be going over how you can build an entire company while using freelancers as your employees and profiting along the way Building a service company with freelancers as your employees


Finding your freelancers
When you're trying to find the right freelancers to do the majority of work for your new company, you'll first need to figure out what type of services you need to be done.  If you're running an SEO or web design company, you're already in the right spot, all you need to do is find the right freelancers here and figure out if they can do what you need them to.  You can filter out new sellers as well as sellers who aren't the desired user level for your preference.  You'll usually be able to find what you need, and how much they sell the service for, so you'll get a good idea of what you can price your own service at and how much you'll profit from each sale Building a service company with freelancers as your employees

If you're doing any other type of job that freelancers could do for you, a website like UpWork could be something for you.  You can list what you need, or contact freelancers directly to see if they'd be interested in doing the work.  You can post a job, then invite people to bid, and pick the person that fits the job you need to be done.  You'll then pay them through that platform, just like how SEOLads works, and you can keep all your conversations through the PMs there.

Being the best middleman
Since you're not doing any of the work yourself, you will technically be the middle man and this means you have less work to do, so now you can invest your time in building relationships with all of your customers.  If you're getting a sale, sending the work to a freelancer, then sending the client a report when the work is done, you won't be in business for long because you're not talking with the client at all between the time of purchase to the time you send the reports.

If you want to be successful as the middleman, you need to talk with the customers while the work is being done.  Ask them what their plans are for the next few years and where they want to be with their website or business, this will help you get to know the client and they will likely keep coming back to you for more work.  Another thing you can do is send them updates while the work is being done, but this requires your freelancers to let you know what's going on along the way, which doesn't happen too often but you can bullsh*t your way through the updates lol Building a service company with freelancers as your employees

Answering all the emails and tickets yourself
Since you're not doing the work yourself, you will need to be your main support system employee and answer everything that comes in through your emails and any tickets that come in through a support system you have set up.  You know what to do with your business, you know how to answer all the questions, and your customers want to see the CEO responding to them Building a service company with freelancers as your employees  If you can do this, you will boost your client's satisfaction rates and they will likely come back multiple times as long as the work is top notch.

Sending out reports
When it comes to sending out any sort of reports, you will need to do this on your own and keep everything recorded.  In the past, I would forget to record when I sent out reports to clients, and they would eventually complain about not getting something and I quickly realized that I forgot to send out their report.  This is a pretty common mistake if you're getting a lot of orders, so be sure to have some sort of organization system that you can monitor yourself, and you shouldn't have too many problems.

If you get profitable enough, you can hire a virtual assistant to send out all of the reports for you, keeping you more hands-off which means you can get more customers in and answer more emails and tickets Building a service company with freelancers as your employees

Getting invoices paid
If you're working with invoices, because your services are more expensive than what someone wants to use a "Buy Now" button for, you'll need to work on your own invoices and keep them tracked.  You probably wouldn't want a freelancer handling this because they usually would need access to your banking or PayPal information, so you'll need to figure out how to send these out yourself. 

If you're using PayPal, sending invoices isn't difficult at all and you can actually send out test invoices to see what they will look like.  You can add your own logos, pricing, tax, shipping, service titles, etc. and everything will show up on the invoice that needs to be paid.  You'll need to monitor what invoices are paid and which are outstanding so you don't start work that hasn't been paid for.  Remember, you're basically the middle man and every time someone pays you means your profits are less than the actual payment.  If you start to do the work prior to the payment clearing, you could lose a lot of money if the client decides to not pay you for the work that was agreed upon.  So, instead of taking chances on your unpaid invoices, wait for them to be paid and play it safe Building a service company with freelancers as your employees


In conclusion
Running a successful business by utilizing a team of freelancers has been done thousands of times, I've actually done it myself a few times and sold the websites for even more profit Building a service company with freelancers as your employees  You have to find the right freelancers for the job by filtering out the ones that can't really do the work and the ones who are charging too much for something that should cost a few dollars.  You'll need to be on top of your support system, answering tickets and emails as they come in if you want to be the best at your job.  Running a business like this doesn't mean you get to slack off, you actually have to manage all your orders as well as your freelancers, and make sure all the work is getting done and on time.  You can do this if you want, just know that it will take time and effort to get the clients in, and even more time managing everything.


Remember to follow me!
https://www.SEOLads.com/user/TommyCarey


Thanks!

Tommy Carey

Comments

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stbrians

Better done by experts. They will do it better and the chunk of the job. That is bing smart and successful.

Yet you need he right people for the job. Finding them is the problem. Most of them overpromise and underdeliver.



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jayjaydimson

Yes, I agree with you, the people who are fit on the job or business that you are offering is the hard part of searching.



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esteban123

Yes I do agree that it is very hard to find some best freelancer that would fit for the team that we are looking for. There maybe a lot of interested to join or apply but then we are not sure they will fit or qualify for the requirements that we are looking for. I think it is one of the common problems that some company is experiencing.



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stbrians

Some freelancers promise honey and deliver lemon. You cannot make lemonade because you do not know how. It becomes problematic to you who hired the freelancers. What you can only do is to give a negative review and leave it at that.



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Martinsx1

Exactly! There are so many poor freelance writers in the online business today. So, I'm of the opinion that extreme care should be taken before contacting and contracting any freelance writer to do any job for your service company.

The poor ones would end up causing serious damage to your business.



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mitan143

Yes, that happens often times whenever a client is looking for the right person for the job. But I guess that's why there are some websites where they can rely on to easily choose someone who is absolutely qualified for their needs. Also, in that way the freelancers who are not qualified to be listed in the website will have themselves get improve to be able to be qualified next time.



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Alymae

You do have a point there. The problem is finding those people that are qualified for the job and responsible enough to finish the jib to the end. But it is also very smart to use freelancers to do the job as there are people who are really competent and very experienced.



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amelia88

I think hiring out to freelancers is fantastic from a business perspective when you can find the right fit. It's easy to then delegate the work which can free up so much time. I think like you said, more time can be directed towards building relationships, which is so important for any business.



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Youngshark

I have always though about working with VAs especially when my website kicks off who can manage my social media and emails when I am doing the rests of the stuff for the business.



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vhinz

Hiring VA's will free up your time in Managing schedules, replying to emails, answering phone calls and other stuff. When you are dealing with many clients every day, having a VA is really a big help.



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Youngshark

yaeeh this is what I am hoping as well. It can really be great if an entrepreneur can focus on the key things in their business and not the minor issues that are not a must do but merely waste time.



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Martinsx1

When the job is too much to be carried out effectively and efficiently by you alone, it's very important to hire freelance writers to do the work for you.

There are so many experts freelance writers who can do excellent job in their various area of expertise. Just hire the best man for the job and get it done with ease.



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stbrians

Freelancers can ease your work if you get the right people for the right job. You can get the best services, create relationship and grow a power charged website.



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luv2xacosta

Hiring freelancers can also help their financial status. It even help them to enhance their skills even more which is good.



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Youngshark

Yeeah it is an opportunity to help others which is always great to advance in this world as one good deed goes a very long way in making the world an even better place to be. VAs are always the most practical freelancers for a business although others like writers do apply.



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Corzhens

I think there are so many good freelancers around. We just have to know them better and I’d say the forum is one good place to find a good freelancer for you can at least see his posts that will reflect on his capability in writing and also in his knowledge. But to build a company or even a team of freelancers is not an easy project. We know that freelancers have their own idiosyncrasy that may be out of standard and will not be a good team player.



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cmoneyspinner

This article is loaded with wisdom likely from your own experience and much needed practical advice. I'll bet somebody was out there wondering: 'How will get all this work done?' The thought never occurred to them to use freelancers until they read this discussion. If I had never joined sites like SEOLads there are so many things I would have thought I had to do on my own. But there is a lot of freelance help available.



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ajahcuizon

I agree. I have learned a lot of things from the discussions here. I learned from their experiences and tips in order to build a sucessful business. I appreciate their threads as they would want to share their way of success with us.



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stbrians

I agree with you that SEOLads has really been of great assistance to us. Apart from information, you can get experts who can do your work and also buy and sell your services.



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Judas2018

Assembling a strong team of freelancers for your company is always a good idea, but remember at some point you're gonna have to pay to retain that talent.



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amelia88

Yes, in this day and age where freelancers have such a big pool to be able to find jobs in, you've got to treat your freelancers right. It's like any good employee you find - you've got to ensure you treat them well to retain them. Make sure that they're paid appropriately and even given other incentives if they're truly going above and beyond, otherwise it's simply too easy for them to go and find work elsewhere.



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Judas2018

Agreed @amelia88. Some companies don't understand this though. They underpay freelancers, and when they leave for greener pastures, they realize what a terrible mistake they've made. The company suffers in the end.



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amelia88

Reminds me of the saying "if you pay peanuts, you'll get monkeys".

Better to pay well and keep those great staff on board! Finding great, dedicated freelancers is like finding gold - especially if they really "click" with your business and understand the vision and direction you're going in.



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Youngshark

I always love a great relationship between customers and the people that are given the products to develop regardless of whether they are employees or freelancers. iT helps to create a strong working network and a great partnership.



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Youngshark

True, there are no free good things on this planet and if you live by this quote then you will never have trouble with anyone that is supposed to work for you. You can get the best skills and if you pay them well they will do their best.



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theresajane

Great point that you have there. I always believe that I should not always ask for free things from everyone, though one can do it with some great persuasive skills, it's never good to always do that.



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theresajane

If you think you can do it, the why not? It is such a great idea to build a service company for freelancing. But you sure must have the skills. Not anyone can do it, and you must have enough resources. Well, anyway, businesses are always hard.



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nrnlss

I agree with you, skills is the number one important thing in making it work.



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focusedwriter10

So many freelancers have tried building the business, but most of them have failed within a short time of operation because they lack the skills of the services they offer. Skills are crucial to the services offered.



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nrnlss

Aside from how this article is written in a nice way, it is also helpful and very full of wisdom.



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overcast

I think the biggest issues that many people face is that they need recurring clients. And they have to get them on consistent levels. If they can work with the new clients and get enough revenue then building the service company is a bit harder. Because you have to get regular work for the company. Otherwise paying people won't be easy and won't be in your list at all. That's what I have noticed so far.



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Judas2018

@overcast Not only can a good freelancer create returning clients - but they can also bring in new clients also. There's nothing better than when a freelancer is brought into the fold and brings with them, a bunch of new customers and a long client list.



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overcast

Yes freelancers that can bring customers from word of mouth, or through referral. It is always better to have a different approach in the conversion like that. I have found out that referral system is lot better. As it tends to keep us in the lead for the work.



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jayjaydimson

Yes, I agree with you, the referral system is better because the freelancers are doing everything just to get a lot of employees.



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overcast

Yes and the thing is that referral system goes with good clients. And that builds the business properly. I have realized that freelancers should be focusing on the better clients. That way they can secure better clients.



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burgosmichael24

That's was great! I believe a lot of minds were inspired and enlightened by your words. That is how to work smart. However, though it sounds great, we should never forget that beginning will be hard. The beginning is always been the hardest but if you make them, you're halfway there.



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focusedwriter10

The article is not only written well but attractive. Also, the most important thing about your article is that it is detailed, and any freelancer who thinks of starting such a business should use it as a reference.



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Kakashi2020

It can be done and it's being done now. But you really must spend crazy amounts of time in coordinating things, unless you are using a platform.



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Martinsx1

Seriously, no business is easy to run and conning to running an online business where there is no personal interaction with the hired freelance writer, this makes managing the business a little bit difficult.

It's only when you are fortunate to have freelance writers who are committed to helping you with all their heart that things might be a little easier for you to handle.



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HappyLady

This is a great post and then in reply I began to wax lyrical from the freelancer's point of view. My reply got so long it became a post. I just cut and pasted to do that. The article here is well written and very helpful. When all who are involved in making a business a success understand the needs, a business can do well as long as the environment is right.



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ajahcuizon

I think building a business with freelancers is a great idea. It will create such platform in which customers can easily find the service they need easily and in one place. It is true that you still need to be hands on eventhough you have freelancers working for you. You also need to to hire freelancers that could give good services.



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theresajane

I agree with you. It is like a call center company where call centers are hired and are assigned to different accounts. This is really a great idea and very helpful to both sides.



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vhinz

Hiring freelancers instead of just doing the job by yourself is a smart thing to do. It's actually "working smart". It's leveraging. you'll earn from the labor of other people and not all by yourself doing the hard work. Contractors from US, Australia, Canada or other countries that have a higher exchange of money hire freelancers from countries that will cost them lesser amount to do a project. In the Philippines for example, a contractor from US can pay a freelancer for $600 for a job which could cost $3000 or more if it will be done by freelancers that are coming from the US also.



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Judas2018

You have to pick the right freelancer though. Talent and communication are both key to any good work relationship.



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mitan143

Exactly. Screening the freelancer applicants should be properly done and processed because there maybe a problem that will occur if the owner or client picked the wrong one. Even if you desperately looking for someone right for the job. He/she must be qualified in terms of skill, availability, and personality.



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superlicca

Hiring freelancers will help your business a lot. They can do some tasks that you don't want to do and just focus on growing your business. Both of you will benefit. You have a virtual assistant for your business and your business can open opportunities to the freelancers.



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theresajane

I agree with you. It is indeed advantageous in the part of the person who starts the business. Even if it's hard to monitor all o them, you can just go and hire people.



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Jeane

Finding freelancers who can create quality content can be difficult but certainly not impossible. A writer for example must be proficient in the language they intend to use for writing. So you need to have all freelancers you interview take an English test. Those who pass can then submit a writing sample.

You could go a step further and ask them to write an article - you provide the topic - and you'll easily find out who it is you should hire.



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jpk0007

I think a person who himself has a good experience in the field of freelancing can find it very easy to search the best freelancing talent online for his business. He will know the challenges and problems that are likely to occur during the work for both the Clients as well as the freelancers who are working for him. Once he is able to get the best talent working for him then he only has to concentrate on the administrative part of the projects along with the financial issues.



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superlicca

When you are just starting with your business, I think hiring freelancers should not be considered first. You need to make sure if your business really needs a freelancer. Possibly, you can do the tasks on your own without the help of freelancers. Or there may be tasks in which you will only need freelancers in the short-term.



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warrenP

IHMO its a fairy tale, or a marketing article and therefore out of a dream world.
Finding quality freelancer is next to impossible. It cost too much time finding them, so you have to groom them.

Invoice payment, if I would work after those arguments I would be starved to death.

So in short its unreal.



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Kakashi2020

It's a good idea and some people are doing it now. But it's easier said than done. A single person to manage such an enterprise won't do. You need partners to do this effectively. When it comes to freelancers that's easy, you've just created a job portal, how hard could it be to get freelancers on board?



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Judas2018

It's only hard if you refuse to negotiate a fair price. As a freelancer myself, I've been asked to do many jobs for way below market value. It's insulting.



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theresajane

I agree with you. You must have partners in this field to help you negotiate with clients and to protect the company and the employees as well.



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jayjaydimson

That's a good thing, because the freelancer can access the business that you are offering even they are in their home.



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agbuyarashel

I love those companies who still think of their employees because some of companies today only think how to make profit and grow.

A lot of people wants to earn money but not full time, some may have babies or family members that they have to take care of and dont't have much time to do fulltime work.



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jayjaydimson

Freelancers are motivated, and I think hiring freelancers as your employee will be a good idea because they can access your work even their at their home.



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Corzhens

This is a good suggestion to earn more and to have a company of your own. However I couldn’t envision myself to be handling that kind of business because I used to handle 95 people under me in my office job as a project manager. I don’t think I could handle the pressure when one freelancer under me would have a tantrum that I needed to replace him at once. I would dread that day that I would experience that kind of worker.



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gutzman

Wow this is very informative. Everything is perfect aside from looking for people who would really fit your company. It is very hard to find those people nowadays because most of them only focuses on how much they are going to earn and not on the skills they can offer your company. If you could find one, you're lucky.



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anyone01

I've the experience of hiring freelancers and assigning them work. Believe me, it's far actually difficult to talk precisely what you need to a freelancer who suits in your budget. Even though if you someway manage to provide the precise necessities, the outcome of the project might be something different from what you predicted first of all.



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jaymish2

I think that this is very doable.They are online gurus that even suggest some kind of arbitrage as a way of making money where your task is to look for clients and the freelancers you hire are tasked with carrying out tasks. I think that hiring freelancers to work in your online business can be tricky. How do you ensure that they provide the right services? After all it's your reputation on the line,so to speak.



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kaushikangara

You cannot totally rely on Freelancers. They are not available all the time and they might not be interested to work for a particulars and so they chose to become freelancers. They are open to work for anyone and if offered a better pay, you will at the risk of losing potential employees and this would create even more problems for your company.



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