For most people who run a web-based or even a traditional business, there comes a time when you realize you can’t do everything yourself and expect to get ahead. Staring at your growing list of tasks, you realize you need outside help, whether it’s for bookkeeping, accounting, graphic design, copywriting, promotion, web programming or any number of other tasks. So how do you go about finding the right talent at the right price?

The process of finding and working with freelancers can be frustrating and overwhelming, but it doesn’t have to be. Here is a list of best practices to outsource your projects effectively.

Define Your Goals and Objectives

The number one thing you must do before seeking outside help is clearly identify your exact needs. In my 20+ years of experience in marketing and web design, I’m constantly amazed at how many half-baked requests for work I have received and continue to receive. Approaching someone with a vague statement like “I need a logo” or “I need a web site” is a recipe for failure, pure and simple.

Before you approach anyone, sit down with a blank Microsoft Word or Excel document, a mindmapping tool or just a pen and paper, and write down all the details of what you’re looking for, to the best of your abilities. For example, if you’re not a web programmer and you need one, of course you won’t know all the questions to ask. But put down everything you envision you will need, from a conceptual standpoint as well as any specific tasks that come to mind. At the same time, keep notes on the issues you need to clarify, such as technical specifications, content management requirements, copyright/ownership agreements, hosting and maintenance fees, etc.

If you are truly stumped about how to specify what you need, or the types of questions to ask, then talk to someone you know who’s completed a similar project. Post a query on Yahoo Answers, LinkedIn Answers or Twitter. Visit your local library or Small Business Administration office.

Take this phase seriously. Otherwise, you are going to waste your time and other people’s.

Determine Your Price

This is both easy and difficult. In one sense, it’s easy because you know in your mind what you think you might like to, or be willing to, spend on a given project. But it’s hard because what you want and what the market charges might be very different animals. And that creates a tough situation for everyone involved.

Think of it another way: for some industries, pricing guidelines are fairly concrete. If you’re in the market for a car, you know whether you can afford a used Toyota or a brand-new Ferrari. Chances are, if you have a Toyota budget, you’re not going to waste the Ferrari dealer’s time! Same thing with buying a house: you might really want a mansion in the hills, but reality dictates you can afford a small apartment.

It’s tough when you are shopping for something you don’t understand, or in an industry where prices and choices are not as clear-cut, like graphic design or web development. In cases like this, if you don’t know roughly what something should cost, they do your homework before you start getting quotes. Again, turn to friends you know, Q&A websites, industry forums, the library, trade magazines or the SBA. Describe your project and ask, “What should something like this cost?”

The benefit for doing this is three-fold:

1. You will know if your budget is in line with the marketplace
2. You can use this knowledge to avoid resources that are outside your price range (like the Ferrari dealer or custom home builder)
3. You can adjust your project parameters or expectations (like, say, you need more than a Toyota but can settle for less than a Ferrari)

Prepare a Request For Proposal (RFP)

A Request for Proposal, or RFP, is a document that outlines all the project requirements for the project you have outlined. It can be as simple as a brief introduction and a list of bullet points, or it can be a longer, formal document. In my experience, the more details you share, the better. Remember, your goal is to be very explicit and address as many “what ifs” as possible. Otherwise, you are going to invite a flood of clarifying questions the minute your start shopping for resources.

Some of the key items to include are:

• Project Title
• Project Overview (brief summary of what you need to accomplish)
• Project Background (more information about what has led to the project and what the parameters include)
• Specifications (this is where you elaborate point-by-point on your precise objectives)
• Project Constraints (state anything that must happen, such as deadlines, existing hardware/software that must be integrated, project assumptions, etc.)
• RFP Requirements (describe what you need to evaluate each response, including how they will handle the project, their line-item or per project pricing details, prior experience, legal considerations, etc.)

Find Freelancers

There are lots of ways to find good talent:

• Referrals From People You Know
• Referrals From People You Don’t Know (use LinkedIn & Yahoo Answers; visit your local library, Chamber of Commerce or SBA office; do a Google search for professional organizations related to your needs)
• General Online Marketplaces such as Guru.com or Elance.com
• Specific Online Marketplaces like Crowdspring.com, 99Designs.com or Namethis.com

Distribute or Post Your Project

If you have gotten several personal referrals from people you trust, then send your RFP to them. Better yet, do your due diligence ahead of time and send only the firms whose prior work is in line with your desired outcome. There is nothing worse than wasting multiple firms’ time just to collect more price quotes! (Smart firms can spot this a mile away and will likely avoid responding, anyway.)

For the online marketplaces, it’s wise to spend time looking through their site for awhile, before you create a profile and post your job. You’ll get a better sense of how to structure your request, and you can search for similar projects to see typical pricing and the types of firms that will respond.

Answer Questions

It is likely that you will get questions from people who are evaluating your offer. Be responsible and answer them as best you can. A good way to handle this is to ask for any questions by a specific deadline, then post or send all the Q&As to the original list or site you are using. Another way is to schedule one or more face-to-face meetings or a conference call.

Weed Out Bad Resources And Proposals

There are some obvious signs to help you weed out bad resources:

• They don’t respond with thoughtful questions
• They ask questions that were already addressed in your RFP
• You host a conference call or meeting and they don’t participate
• They submit incomplete or canned responses
• They don’t follow your instructions on what to provide and how to respond

Contact References

After you have received, reviewed and narrowed down your choices to a short list of candidates, contact their references. Listen for any hints of negative feedback. Do you own Google searches to detect any bad experiences. Look them up on Dun & Bradstreet or the Better Business Bureau.

Get An Agreement In Writing

Once you have decided on a resource, make sure you get a signed letter of agreement or legal contract. This will protect both parties and help ensure there are no surprises as you enter into a working relationship. For best results, consult with your attorney before signing anything.

To sum up, finding freelance help for your business projects shouldn’t be daunting. However, it does take work on your part upfront, and throughout the process, to make sure both you and your potential partners are clear on the objectives and expectations.

Do you have other advice on how to manage outside vendors? Please leave your comment below.

Special thanks to Kristen with Guru.com for helpful information in this article (They did not sponsor or review this article.)

Photo credit: Tommy Pariah

So you’ve been laid off. Or you’re unhappy in your current job and looking to make a change. Or some other circumstance is driving you to think about how you can supplement your income online. Somehow.

You’re not alone. I, like thousands of other people, am walking in your shoes. I quit my job last August and rebooted, because I was unhappy and wanted to start doing something else where I was more in control. I also wanted to use the power of the web to earn a good living and design a more flexible lifestyle.

I’m happy to report that it is entirely possible to make money online, though in my experience it is confusing to know out where to start. Unfortunately, searching for the golden ticket to wealth and freedom is like typing “what is the matrix” on Google. (Sorry to mix metaphors from two classic movies. Bonus: name those movies!)

It is also far from a get-rich-quick scheme. Sure, there are the stories of the guy who figured out a way to bring in $10,000 a month or more on eBay or whatever–but they are the exception, not the norm. If it were really easy to make a ton of money online fast, by now most people would’ve quit their day job, right? Sadly, people throw good money after bad buying shaky products that promise freedom and a Ferrari for just $1,297 plus S&H.

Actually, there are some products worth that or more that can get you far down the road to online success–but the problem for most is, they buy them and don’t actually apply the information contained therein. They either don’t crack the seal on the package, or they do and piddle around with the material, then set it aside and forget about it when life gets too “busy” (which for most people is…yesterday, today and tomorrow). I know this first-hand, because I’ve bought several CD courses and other stuff that I haven’t even looked at. Guilty as charged.

But rather than argue the benefits of one system or guru vs. another, for now I’m going to focus on sharing some of the many ways, conceptually, to make money online. And I’m not talking about schemes and scams to rip people. If that’s your idea of a good time, move on someplace else. What I’m interested in sharing are honest ways to sell stuff.

So here’s an initial list of various ways to make money on the web. I’ve made a few high-level comments, but will delve deeper into the mechanics and merits of these various methods in future articles.

Advertising

Sell ads on your website. This can be either space you carve out, put a price tag on and sell yourself directly or through an online ad broker. The other, most popular way is to sign up for Google AdSense and/or Amazon Associates (just to name a few of the top sources) and incorporate a few lines of code to display ads relevant to your content. When people click through and buy, you make a small percentage. (Warning: You definitely won’t get rich quick, or even make any money really, unless you have a very well-trafficked site.)

Affiliate Sales

Sell either digital products like e-books or physical ones as a virtual “re-seller” for someone else. Make a commission for each sale you make. Clickbank is a big marketplace for selling digital goods, while Commission Junction is huge for physical products. There are also thousands of sellers of products and services with their own, direct affiliate programs.

Blog Reviews

Get paid for blogging about other people’s products and services. Check out sites like PayPerPost and ReviewMe to learn more.

Content

Package and sell content in various ways. This can be in the form of downloadable e-books, MP3 files or private videos, for example. Often, it involves enhanced, extended or in-depth versions of existing content.

Consulting

Sell yourself (no, not like that). Use the web to position yourself as a credible expert and attract buyers of your services. This can involve both physical and web-based consulting.

Courses

Package and sell training courses related to a specific area of expertise. This can be either a one-time or ongoing offering (e.g., monthly mailings). Typical materials may include books or printed newsletters, CDs and DVDs.

Free-Lance Services

Similar to consulting. But there’s a huge market for free-lance gigs. Check sites like Elance and Guru.com.

Information Products

Produce and sell informational products. Often these are in the form of magazines, newsletters or other bundled materials.

Memberships

Sell access to private, web-based membership programs. This is usually related to selling advanced or extended versions of other digital content such as e-books but can also include:

• Audio/video files
• In-depth tutorials
• Individual or group coaching (i.e., “mastermind” access to one or more experts)
• Screencasts
• Local meet-ups (for larger membership sites)
• Members-only chat rooms and forums
• Members-only networking opportunities (social networking)
• Private listing of key industry contacts
• Teleseminars and webinars

Sell Other “Stuff” Of Your Own

The top ways to do this are usually through an existing marketplace like Craigslist , Ebay, Etsy, Lulu, Zazzle and other sites. Or you can set up your own e-commerce site and either handle all aspects of shipping and handling or outsource this to a drop shipper.

Seminars & Training

Sell either web-based access to classes, or use the web to promote classes, coaching courses, seminars or teleseminars you provide.

Software Products

Sell custom written software that you develop or outsource.

Web Domain Sales

Buy and sell domain names. (Good luck! This is a pretty darned competitive crapshoot from what I can tell.)

Website Flipping

Either build a new website and turn around and sell it, or take over an existing site, improve it and re-sell it. This is an unusual but surprisingly robust cottage industry. Visit the SitePoint Marketplace to see some of what’s going on. There are other web site brokers as well.

Special thanks to Shaun Noonan of Learning Indonesian for several of the tips included here!

For Further Reading:

Ways To Make Money Online (DoshDosh)

101 Ways to Monetize Your Blog Without Irritating Your Readers (InsideCRM)

Photo credit: Luz

Starting up a new business is not easy. There are seemingly a million tasks to do, and unfortunately there is not a one-size-fits-all manual.

After being involved in two start-ups, I do know one secret to success. And it’s very simple, yet quite difficult for a lot of people (myself included) to apply on a consistent basis. Here it is:

Take one step at a time.

Sounds easy enough, right? The problem is, when faced with a huge undertaking, it’s really tempting to get pulled in many directions simultaneously. The result is that you look busy, and feel busy, but nothing ever seems to get completed. Before you know it, you are behind schedule, off on wild tangents, losing money, losing energy and getting more frustrated by the day.

The trick is to slow down…and map out what you need to focus on and accomplish. Be very specific. Then figure out all the next action steps. Write them down, or put them in your Getting Things Done (GTD) application of choice. Better yet, cut them out and post them in front of your work area. Then turn off all distractions so you can get them done. One at a time.

This article is a fine example. I have stressed out about how to get more done, and felt pressure to write more frequently. And finally I realized it isn’t going to happen until I shut out the noise, make a plan and stick to it. Writing more articles starts with this one.

I hope you will commit to getting the things done that matter most to you this year!

Feel free to leave a comment on how you overcome distractions, self doubt and other hurdles in order to achieve your goals.

Photo credit: Jantik