When I started out blogging, I was taking care of everything myself. I was writing 2-3 posts a week, submitting to carnivals, writing up weekend editions, guest posts, hosting carnivals, etc…. I was working a full-time job, and I had school on the side for at least half of the time, so the bit of time I had left was split in many different ways.
There’ve been a few points when I nearly approached burnout in my short blogging career. I remember seeing the visitor count and subscriber count stay stagnant, day after day, and I remember being stuck at PR 0 for the longest time when Google wasn’t making updates! It was a little frustrating to see, and I wondered why I was spending so much time on something that didn’t seem to be going anywhere.
One of the reasons I was approaching burnout is because I simply had too many tasks on my plate. There are parts of blogging that I really enjoy, such as writing and interacting with the readers, but I’ll be honest with you: I’d rather listen to screeching nails on a blackboard than submit my posts to a bunch of carnivals, week after week after week. I simply find it a chore, and it’s when you don’t enjoy something that you are at risk of burnout.
When does DIY work?
I know some people that say “Why would I pay if I can do it myself?”, and sometimes I think that these people have a good point. There are some things that are enjoyable to do yourself, and other times, the cost of outsourcing is not worth the benefits gained. Take for example financial advisors: if you go with them, then you have to think less about investing, but the downside is that you will get eaten alive by fees and charges. Your financial advisor will be driving a Mercedes at your expense. Investing in index funds is easy and will save you hundreds of thousands of dollars in fees over your lifetime.
Aside from special cases like this, however, “Why should I pay if I can do it myself?” doesn’t always make sense, because this mindset doesn’t look at the biggest cost of all: our time.
Trade is positive sum
Along with the “Why would I pay?” mindset, there is an associated mindset that one man’s gain is another’s loss. If you trade with others for stuff, you are simply giving up wealth that you could have obtained for yourself, instead. But… is this always true?
I will show that it isn’t. Trade is actually positive sum. One man’s gain is another man’s gain. We are all better off through voluntary, mutually beneficial trade. If this wasn’t true, then humans wouldn’t be the social creatures that we are. We would be in a war of all against all, because every man (or woman’s) gain would be another’s loss. The only way to get ahead in such a world would be to screw over and destroy others. This would be a world full of savages, and civilization wouldn’t be possible.
Imagine that a couple of lost pirates, Jack and Gibbs, get stranded on an island. There’s not much to eat on the island; only some coconuts and wild boars. Jack is great at climbing palm trees and knocking down coconuts, but he wears a silly costume all of the time and can’t run very fast, so he has trouble catching a wild boar. Here’s what he can manage to gather in a day, if he spends his entire time either gathering coconuts or hunting wild boars:
40 coconuts | 0 wild boars |
20 coconuts | 1 wild boar |
0 coconuts | 2 wild boars |
Gibbs on the other hand, is big and strong, and can tackle down the wild boars with ease. However, he can’t climb a tree to save his life, and the only way he can knock down a coconut is by throwing rocks at it until it falls. Here’s what his possibilities look like:
5 coconuts | 0 wild boars |
4 coconuts | 1 wild boar |
3 coconuts | 2 wild boars |
2 coconuts | 3 wild boars |
1 coconut | 4 wild boars |
0 coconuts | 5 wild boars |
These pirates won’t survive on just coconuts alone, or wild boars alone. If Jack and Gibbs decide to go at it separately, they would need to gather both. So, Jack might gather 20 coconuts and hunt 1 wild boar, and Gibbs might gather 3 coconuts and hunt 2 wild boars.
Jack | 20 coconuts | 1 wild boar |
Gibbs | 3 coconuts | 2 wild boars |
Island total | 23 coconuts | 3 wild boars |
Now I’m going to show that with a bit of trading and specialization, total wealth can be increased. If Jack and Gibbs aren’t total morons, they’ll realize that they could be better off if they worked together. Gibbs could say to Jack “Look, I can’t climb a tree to save my life, and you’re just not good at hunting boars. How about you take care of the coconuts, and I’ll take care of the boars?”. If they did this, they would be much better off:
Jack | 40 coconuts | 0 wild boars |
Gibbs | 0 coconuts | 5 wild boars |
Island total | 40 coconuts | 5 wild boars |
So, these two lost pirates have gone from 23 coconuts and 3 wild boars to 40 coconuts and 5 wild boars, in the same amount of time!
What if one person is better than another person in every possible way. Can they still benefit from trade? Yes. Let’s say Jack learns how to set up traps so that he doesn’t have to run after the boars, and he becomes a better climber so he can knock down more coconuts. This is what he is now capable of:
80 coconuts | 0 wild boars |
60 coconuts | 2 wild boars |
40 coconuts | 4 wild boars |
20 coconuts | 6 wild boars |
0 coconuts | 8 wild boars |
He’s now better than Gibbs in every way. Whether he grabs coconuts or hunts boars, he’s better. If they go it alone, here’s what they can accomplish:
Jack | 40 coconuts | 4 wild boars |
Gibbs | 3 coconuts | 2 wild boars |
Island total | 43 coconuts | 6 wild boars |
But, they will still be better off if they specialize and trade:
Jack | 60 coconuts | 2 wild boars |
Gibbs | 0 coconuts | 5 wild boars |
Island total | 60 coconuts | 7 wild boars |
Time is limited, and Jack is still better off if he focuses on what he’s best at, even if he’s better than Gibbs at everything. What if Jack is super cheap? Even if he only gives Gibbs 3 coconuts for 3 wild boars, Gibbs would still not be worse off for the trade.
What this means as a blogger
I was getting burned out earlier because I was trying to focus on too much, including things I didn’t enjoy as much. I’ve since learned that it can be better to outsource some of these things, like advertising negotiation and carnival submissions. I need to give up something in return, but by outsourcing some advertising, I’ve gotten more total advertising dollars than I’ve ever gotten before. By outsourcing the carnival submissions, I am entered in more carnivals than I’ve ever been entered in before. It’s a win-win situation.
Each of us is different in our own unique way, with our own talents, abilities, and passions. By embracing trade, we celebrate these differences and make the best of them, and we are all better off as a result.
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Great illustration with the wild boars and coconuts! I have recently discovered outsourcing with my blog. I hate to say it, but I’m not very good at negociating. I see a dollar figure from an advertiser and my first instinct is to take it and run! But, if I do this I’m probably leaving tons of money on the table. That’s why I outsourced my advertising. Now, I’ve not only freed up my time, but I’m now making MORE money on my blog (even after the advertising fees). It’s a great lesson to learn. Thanks for the great post!
Crystal has been doing a great job with the advertising for me. The market is wide open for competition, but so far nobody has actually been able to compete! ;)
Great post, Kevin. I think as personal finance bloggers many of us have a hard time paying others for something we can do ourselves, though as your example illustrates, we may not always be good at it. It took me quite awhile to break down and outsource advertising and a writer for my dining out blog now that I can’t dine out frequently due to food intolerances. Yet my guess is that when most outsource, they reap greater rewards as your example illustrates.
I think it can be hard to pay for something when you know you can do it yourself, but eventually we get so busy that time just gets so scarce, and you have to if you want to really specialize in what you’re good at and enjoy and not burn out.
Thanks for doing a great job with the carnival submissions, I do appreciate it. :)
I agree that the illustration is great and the message is 100% true. Why do you think that our standard of living has been increasing since the middle ages? Because those who could farm would do so and use the excess crops for trading with the blacksmith who couldn’t have grown a weed to save his life. I suck at growing crops so I use my time for things I can do and use the proceeds to buy what I need.
This is a really great point. Trade and specialization are the bases of a free market and the cornerstone of civilization. That’s how we progressed from the hunter & gatherer stage. Of course, with the wealth came those who were attracted to plundering that wealth, but that’s another story. ;)
I think in such an interconnected economy like the one we have today, we are definitely better off by trading rather than plundering or being protectionist.
So far, I have been able to manage pretty much everything, but I’ve started outsourcing a few things. Carnival submissions are so easy that I don’t know if I’d let those go unless I got to having multiple blogs, where it might make sense.
Easy for you, painful for me. ;) This is a great point of how our different talents, abilities, and preferences mean that we can all be better off by swapping and trading with each other.
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Excellent post Kevin – outsourcing is a fundamental component of my “online business”. Wouldn’t be where I am today without it.
Hi Sunil,
You of course are one of the major inspirations behind the post. Thanks for sharing your insights and showing us the way. :)
Does anyone want to trade me some coconuts?
I do most of the site stuff myself – but I can see everything become overwhelming. That was sort of the point of having three writers – but considering I write 85% of the material I end up just ragging on them to write more, heh.
“Your financial advisor will be driving a Mercedes at your expense” – have you read, “Where are the Customers’ Yachts?”
Don’t quit your day job? Interesting name for a site. :)
I haven’t read that book, but it looks interesting! The phrase is actually directly from Andrew Hallam come to think of it, from his book “Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School”
Excellent illustration! I agree with you, and think that we simply can’t do it all ourselves in many cases, and can actually be measurably better off in different situations by strategically outsourcing and collaborating with others.
I’m looking to outsource a new blog-related project, in fact, so I’m a part of this mindset as well.
Interesting! Would be curious to learn more as you go ahead.
Good illustation however i have some questions:
How do you trust outsourcing?Where do you find reliable source?Does it take you time to verify the work?
Members of the Yakezie network get to know each other over time. People start offering services to each other – things they are good at. As we have been interacting with and helping each other for so long there is a level of trust between many members and challengers.
Pretty much 100% through word of mouth. I heard a lot of good references from others here at the Yakezie, and then I decided to contact the people myself (in my case, Crystal from Budgeting in the Fun Stuff and Melissa from Mom’s Plans) and I’ve had no regrets since. :)
This concept of outsourcing to find reliable advertising, etc. was just brought to my attention a couple of days ago. To be honest, I’ve never considered it before… I’d be interested in knowing from others whom they’ve used and what kind of results they’ve seen. Thanks kevin for the post!
I’ve had great results with Crystal from Budgeting in the Fun Stuff, but I believe that Money Is The Root also handles advertising. Good to give all participants in the market a chance!
Great post Kevin. Outsourcing is important and mutually beneficial, just as you describe. I suppose that if you don’t have a healthy perspective though, then participating in trade could appear to be a loss. That’s why it’s good to know what areas that you can make unique meaningful contributions in and what areas could be delegated/outsourced.
Indeed I’ve started to see this recently. What often happens in free markets is that the first movers reap huge profits, and sometimes people get jealous or envious instead of competing. Sometimes, our very human emotions that served us well in the plains… can get in the way!
Fantastic analogies here Kevin. I was awful at submitting to carnivals and now our articles get entered like clock work.
Haha, that was my downfall too. I knew I had to do it, but I just never enjoyed it. Now Melissa from Mom’s Plans is doing a great job managing this for me.
Good points! I enjoy writng my posts, however I see the merit in sharing or exchanging material. It brings new readers and exposure. I already outsource the marketing of my blog.
Writing is one thing I haven’t outsourced, in fact I haven’t even accepted getting paid to write for other sites. That’s something I do enjoy, and if ever I don’t have the time or am feeling a bit burned out I’ll just take it easy for a bit.
Thanks for spelling it out for me Kevin. I feel like I have too many things to do and I really need to sit down and figure out what I can outsource. I gave up carnival submission a while ago so this might be one area that can benefit from outsourcing.
Definitely! Melissa from Mom’s Plans has been doing a great job for me with this.
Great article, Kevin! I am big believer in outsourcing and have found that some of the frustrations is not worth my time. I can easily make up the money with something else.
Yep, or even if not, smoothing out some of the creases can make the rest of your time that much more enjoyable.
I’ve been outsourcing since the beginning. Don’t regret it for a minute. Your coconuts and wild boar discussion was interesting and should help convince those who think they need to do it all.
Thanks, Dr. Dean! I imagine as a doctor your free time is only so large, so you really have to focus in on those areas where you can have the greatest personal impact.
Good illustration on the mutually beneficial power of trade. I’ve been trying out outsourcing with carnival submissions, which like you, bore me to distraction.
I get included in 3-5 carnivals each week now, which is better than the 0 from before. ;)
I love the economics 101!
Glad you appreciated the post. :) I think the official term for the theory derived from this is Ricardian trade.
I like your analogy! I haven’t submitted to carnivals like.. ever! haha.. I should probably start because my ratings are slipping thanks to school :(
I started getting someone to make a spreadsheet of links I like to include for my weekly roundup and that has shaved of at least 30 minutes of my time on a weekly basis which is nice.
Yep, go for it! School has been kicking my ass as of late, but it will be over in a couple weeks… until January! :( :P
Love the coconut and boar math, it makes me hungry! I of course am all for outsourcing, although perhaps I should consider trading some of my services instead of just paying cash….hmmmm….maybe I could do some blog design in exchange for some staff writing…..I like that idea.
You are also a big inspiration for the post, so thanks for sharing all of your insights as well! Trading services instead of cash is a good idea for cutting out middlemen like PayPal though you gotta have something that both parties are willing to trade direct for.
This was an awesome example. I have a really time letting go. I am somewhat of a control freak…. but I try. Your example was tremendous.
@Car, I like the bartering idea, although haven’t done much of it.
Go for it, you probably won’t be disappointed, and if you are, well, it’s not permanent. ;)
Classic example and spot on at the same time. If you have spent even a little time online learning about blogging then you would have sen the argument for specialization. I’m a big fan of focusing on one thing, mostly because I’m terrible at doing multiple things at a time, but using someone with the right skill set makes so much sense. Thanks for the reminder, I think I’m nearing the point where I need to start concentrating on the the things I’m good at and giving away those that I’m not!
I also reached that point especially during the intense weeks when school takes up nearly as much time as work. ;)
As a new blogger I have relied on my friends in the Yakezie Community for advice and support. I am finding as time goes on and my blog is maturing I want to focus my efforts and outsourcing is a great way to accomplish that, especially since I am a part-time blogger.
I have done something very similar. I have made so many great new friends on Yakezie and learned so much from different members. I have relied numerous times on others expertise and services and it has worked out great. Like SPF said, a real trust has been built.
One definitely can’t do too much themselves. If they try, they will burn out. It’s also important to quantify the returns too. How do you do so?
I can’t necessarily quantify it in dollar terms, but in the case of one I figure a small fee is great in return for some exposure in carnivals. In the other case, I think that I am getting great deals that I would not have had exposure to, otherwise. :)
Well, welcome to the Yakezie! I’ve started to see your name pop up here and there so you’re doing a great effort at engaging with the community!
Woops, this is in reply to thefrugaltoad.
Thanks for sharing Kevin. It certainly makes a lot of sense outsourcing tasks one dislikes, or those that one isn’t very good at.
What are your thought on Carnivals? B/c I was very rejected from my very first one from a tiny blogger, I’ve had a disinterest in submitting to Carnivals ever since. Perhaps that will change however as we launch the Yakezie Carnival site in 2012.
I’m really bad with Facebook too, and need to find someone passionate to run the FB site for us. I think YFSA is interested. I need to follow up!
Thx,
Sam
I have Melissa managing my carnivals now and I’m pretty happy. I never have to worry about this now, though what the overall benefits are I’m less sure. It depends on the carnival, as it’s harder to compete if you’re in there along with 60 other articles.
This is exactly what Mike and I are talking about. In fact, approaching Crystal about advertising has been one subject that keeps coming up. Right now, even with the two of us working on the blog, we are spread very thin.
Her and a few other Yakezie members handle advertising outsourcing, and I have personally have had good results with her so I would recommend getting in touch and going from there!
[…] Gain Time And Money Through Outsourcing And Trade […]
Great Post!
Of course, nothing is wrong with hiring a help once in a while. It doesn’t mean you’re lazy, it just means you can’t do it all at the same time or just wanna do something you’re passionate about.
“Just because you CAN do something, doesn’t mean you should.”
One tip though, when hiring someone, especially on outsourcing, you should consider lots of things because you might hire someone who’ll just affect your business in a bad way in the long run.
Great point. A fellow member recently ran into this when his VA got carried away with blog comments! You do need to follow up and also check if what you’re outsourcing has a visible impact on your outwards appearance.
[…] for someone else in exchange as Invest It Wisely so eloquently demonstrated in his article, “Gain Time And Money Through Outsourcing And Trade“. Everybody has some strength that can be beneficial to someone else. Mine so happens to […]
In addition to my post, I just found a blog that has got lots of tips on effective outsourcing:
http://www.timedoctor.com/biz3.0/why-100k-developers-are-dead/
I just thought you might be interested. :)
Interesting post! There’s a lot of good points in there, though I’m not sure I would totally agree that $100k developers are dead. I might be biased because I am a developer, myself. :)
The thing about software development is that there is a much greater variability in productivity than there is in other fields. It’s quite possible for one software developer to be 5 to 10 times (or even more) more productive than a fellow software developer. Productivity differences of 2-3x are not unusual at all.
I have worked with outsourced developers at two companies now, and in both cases the company got what they paid for. They may have saved some money up front, but overall going with the outsourced developers was actually more expensive because they were looking to cut corners and save on costs, without considering the quality or longevity of the product being delivered.
In the first case, I rewrote one of the modules for a total cost of $100 or so, since I was a cheap student at the time. In the second case the company is ending up having to fork out a very substantial amount of money so that our team in North America can redesign and reimplement the products that were originally outsourced to India and the Philippines.
This may seem like it goes against the spirit of my article, but it doesn’t. I believe in outsourcing in order to focus on your core business, but I believe less in outsourcing when the only reason it’s done is so that a company can cut corners and save on costs. That sort of outsourcing can come back to bite in the ass.
Still, I don’t doubt that some work can still be outsourced, especially if you pay a local dev $50k and a remote one half or less to get the same work done. Outsourcing the $80k devs and up is more difficult, though.
Great article. My friend who runs a successful site outsources a lot and has become more successful because he now has multiple sites. He recently approached me to start another one with him. The idea of outsourcing is truly a key to greater success with less chance of burnout. Thanks for the boar coconut analogy… It felt more visceral while reading.
Thanks, Jai! I see a lot of people starting multiple sites these days!
I believe outsourcing is a pain, when you dont know what the freelancers or outsourced employees are working on. Ultimately you need proof of their work and results, isn’t it? results for sure. But how many will be able to find better outsourcing partners?