How to outsource marketing for your side project
Outsourcing development is still a common topic. But how about outsourcing marketing?
I'm faced with the (I'd guess also rather common issue) that I'm sitting on a - what I believe to be - cool side project that should be capable of generating some recurring income. Not a lot, but some. I am absolutely not the kinda person enjoying the marketing side of things though and I lack people in my circle of friends for this too.
Does anyone have experience with outsourcing this somehow? I'm thinking someone who'd do social media and promotion and we'd collaborate on a revenue share model of sorts.
Is that a thing people do?
51 comments
[ 2.9 ms ] story [ 118 ms ] threadThere is no shortcut to this. If you want to create recurring income (no matter how small), you have to work your ass off yourself initially. You need to learn how to find initial customers yourself. If you cannot, it's most likely game over. You cannot just build a cool side project and expect it to magically find customers using outsourcing. No such thing. Now, you could find someone else to help you with skin in the game but then that's different. You still need to get a few customers yourself in the beginning.
So initially, the goal is to find your first 1-10 paying customers yourself. In the process of doing that, you will learn a lot about the product and the market. You will then adjust things. Anything else is premature and you will just get burnt with the outsourced marketing crowds that are plenty.
So to hire a marketer, you need to first understand the stage you are at. For OP, it is early stage which means it is all about discovery and creating a brand around it. You cannot just throw PPC money at that.
Figure out what problems people are facing, explain how to solve those problems. Eventually you create processes for this, and can delegate.
Yes, this is possible, but really, if done correctly (and most of the time, it's not), getting a good marketing strategy and plan in place and successfully executing it is the hardest part of getting a startup going. As the CTO/technology guy in all those startups, it pains me to admit that, but it's true - the biz part is way harder than the technology/product part in almost all cases. The biz side challenges are responsible for way more of my gray/lost hair than building awesome products...)
If you already know who your customers are, how to identify them, and have at least a clue how to reach them, then outsourcing this is more straightforward. If you don't, and especially if you don't have any marketing chops yourself, you'll definitely need to learn enough to not get taken advantage of, and then hire someone to help do that for you. Early/existing traction with PAYING customers is a big help here.
Dynamitejobs.co is one good place to find such people, but be aware that even hiring remote workers in another country may not be all that cheap, and you're making a commitment that's right up there with taking on a key employee or cofounder.
(FWIW, I plan to do this next year, once my new startup is off the ground, and flowing enough cash to pay for remote team I'll need. Interestingly, this is a small automated mfg play, and almost all the software dev (much of what I'll want to outsource) can wait until we're making money.)
That's a lot of experience.
What is your experience with affiliate marketing, pay-per-subscriber or outsourced sale with commissions?
Good luck with your master plan!
Prob mainly because I only wanted to spend relatively small amounts
A grand a month for dev
Less for marketing
I always thought there would be people out there like me when I was younger
Hustling picking up side work on Craigslist
Often for very little money
I still think there is a way
Maybe it's just finding the right provider
I've always imagined a upwork-for-indie-hackers marketplace that provides services at some fixed rate like $5/hr, and all the money has to flow through a single payment gateway so that everyone gets paid
In theory this is what upwork and fiver and the rest already do
Minus the revenue share
Ideally it'd be revenue share and equity share over time
That's part of my motivation for most things I have ever tried to do -- find some mutually beneficial situation
I don't know what it's like for the contractor who have done work for me
Do they think I'm too cheap? Or just suck? Or I'm just a contract and if it doesn't work then onto the next one?
For my part, I often or always get work that does not work
So right now I have an app I need fixed but I don't want to go back to the dude who did it for various reasons
So my execution is shit
I've learned but it's gd expensive to learn
Also, if taking on any work, have clear definitions on what is considered done. If it looks nice but doesn't work (like you currently seem to have), it's not done and not all money should be handed over. Good luck.
You get a product (one that's the basis of your company, your company can't exist without it). You have it, you start making money from it. It's unlikely it can be taken away, it's tangible.
You get it right now. If the person is unreliable or doesn't deliver, you don't pay, you find someone else.
Your "partner" gets a promise of some future benefit from somebody they don't know. They have to rely on future work and investment from somebody who is currently demonstrating they don't want to work or invest. If the person doesn't produce they get nothing. There are a million ways they will get nothing even if the person does succeed.
This is not a "mutually beneficial arrangement". This is exploitation of desperate people. Furthermore, there are twenty guys a day asking "mutually beneficial arrangements" like this from programmers: it is not a unique opportunity for anybody.
Outside the work-paid-for-with-hope scenario, you're talking about $5/hour? If the going rate for landscapers is $15/hour, what quality of work do you think you'll get if you hire somebody for 75 cents per hour?
Roll up your sleeves and learn how to program. You're not going to find a sucker to do your work for you.
- Value proposition. What's your unique advantage?
- Target market. Is it a new segment of an existing market? An existing segment? Mass market? Don't worry about age groups, but know who is best for the problem and solution.
- Revenue model. Freemium? Microtransactions? Licensing? Ads?
- Customer relationship. Do you need to build trust? Do they need an explanation/demo? Community? Will they buy In my previous startup, they won't buy directly from advertisers, but will buy from a third party blog talking about the app. If you're making a database, they might need to see it used in production by a big company, and test it with a hackathon.
You'll have to figure this out first, then scale. If you outsource too early, they will drag your business to pivot to their marketing expertise and it might not even work. For example, selling a database or analytics tools through FB ads wouldn't be ideal even if they reach the right customers.
It feels a bit stupid to give up the bragging rights, but in exchange you're fully shielded from those pesky customers.
I believe it's got potential, marketing however is my weak spot (pathetically blowing my own horn just now serves as proof).
They almost always charge based on your marketing spend. Which means it's in their interest to make you spend as much as possible. They are only rarely willing to base a part of their compensation on your conversions. And often that's only structured as a bonus.
They are never willing to base on it CAC.
So, you often end up in a situation with thousands in ad spend that is basically useless.
That's what I've been struggling with as well. I know I need to learn to do it myself but it's quite time consuming.
The same could be said for IT and software development but for a strange reason lots of people are doing it.
I think for software it's easier to specify requirements that more closely relate to goals. Then you pay for the complexity they entail. For instance, you can say I want to replace this form with the objective of eliminating paper and improving efficiency. The dev shop might charge you more than the market rate but they'll still have to deliver you something that's relatively close to what you imagined.
Furthermore, it would be in the interest of an honest dev shop to advise and build something really useful for the client so that they come back.
I'm struggling to understand what are the differences - why isn't the best interest of a marketing agency to generate good results to a business? What's not aligned in that?
Like... it's cheaper to find clients, fool them into getting a chunk of their marketing budget, and dump them? I don't see how this is good business.
Why can't a dev shop just do a bad job, hide behind poor requirements, and keep a infinite scope of work after you're too invested in them?
The thing with consultancy it's kind of what you've said: they've built models/systems that kind of work with minor tweaks and sell it to other companies.
It's done because the perception of building those systems from the ground up seem more expensive then to get it "installed"... which might be true for many scenarios, but for others, it might not.
It's that specifying the meaning of a "good job" is much more difficult when it comes to ads.
Good job in software means do what I want and do a great job means accomplish what I want but do it more efficiently. (And on budget ofc)
For ads do a good job means give me most customers for my budget. And the measure of that is CAC. But I've yet to come across an ad agency that bases it's compensation on CAC.
Well that's the crux of it: it's about people and people aren't input/output machines. One message (input) doesn't predict a behavior (output).
That's why I think that anyone that promises specific results in marketing, you should step away from it. I think the best stance is that they will work with you to achieve something, and "work with you" means literally that - try to figure things out with you because your brand/product is it's own thing.
>For ads do a good job means give me most customers for my budget. And the measure of that is CAC. But I've yet to come across an ad agency that bases it's compensation on CAC.
Ok, now I think I understand you...
From the moment you're dependent on a 3rd party, basing your compensation on their work it's just soaking up risk. This goes for both ways: it's the same of some marketing agency saying to a dev shop hey guys, our marketing is solid, don't worry, we will pay you in rev share until the bill is settled... why would you take this deal?
Same goes for marketing: how can they know that you have a good sales dpt. to close leads? How can they know you have a good on boarding? Is the price competitive? They could be throwing you the best ads, getting top notch potential customers, and your product just sucks. Now what? Why should the agency pay for your bad job?
BUT they can establish a baseline CAC over the first couple of months and then work on improving it.
Take a look at this comment as well: https://news.ycombinator.com/item?id=27645674
I've spent years at the intersection of dev work, marketing, advertising, analytics, SEO, etc. for small businesses. Now the I know how terrible a job they usually do, I'd never pay a consultancy to do that work. I probably wouldn't even bother with it myself. It's mostly just faith based prayers to a few ad marketplaces who's interests are inherently in conflict with yours. It's a shitty marketplace all the way around.
Dev work has a higher barrier to entry, for now, so it's less easy to bullshit your way through with clients. The resulting software either does what it's supposed to (with bugs, of course) or not. Whereas the successful or failure of many digital marketing campaigns are largely matters of faith and not evidence.
That's why it's easy to perceive that marketing is mostly shit... because it is, and no wonder, it's not "hidden" in the backend or in some git repo.
Ads live in public scrutiny.
A lot of the dev work would probably just make you cringe just like many ads. You just don't see it.
With that said, you're right that the barrier of entry it's lower, and I don't think the hard part of marketing/advertising is the campaign setups - that's mostly being reduced to a step-by-step wizard. Thankfully! But that won't make marketing any good, in fact, you'll just see more of the bad stuff.
Marketing work is never ending and very fluid. There is always more you could be doing and you could always be doing something better with more time. It inherently doesn’t work well as spec work. And yet that is how marketing agencies operate.
Agencies are best hired when you do need something very specific done that you don’t have the expertise to do in-house. A video, a new website, a very specific, time-limited marketing campaign.
If the work is continuous, it should be moved in-house ASAP and it is better to wait then pay an agency to do it in the short-term.
It's not technically outsourcing, but it does remove the task from you directly, and gives it to someone far better suited for it, with properly-aligned incentives.
Plus, would you rather have 50% of something, or 0% of nothing?
The last two companies I’ve sold have had this structure and it works well.
We collaborate on wireframes, I turn it into designs in Figma, he executes with code and I sell it.
We both get feedback, build it into the roadmap, then start the next process over. He builds, I sell.
You need production and distribution, it’s hard to make it work without both.
Much more at small things.
I have a partnership with a friend, it take care of sale stuff. The deal is simply: I get X and he can sell more than it as he please.
A good salesman will instantly see how much nice the deal is! (btw: I know all his deals and customers: I host them. We were before partners in our first and failed startup and split to make things leaner and flexible - not more cost for office and all that-, and have worked for us)
Other very simply, is get % off the sale. Most I know work like that, and prefer it to a salary.
If you decide that you are looking for a co-founder, HN will be the perfect place to pitch your project and describe what exactly you are looking for.
EDIT: I might actually be interested myself depending on the nature of your project.
You can go through the route of organic reach, but that takes time to build.
Locking a deal based on revenue share might be a good way to top things off. But unless you have an extremely good product I don't see people up-fronting budget for anyone's project.
Remember that in the end it will depend on the product/service... if the value isn't there, you can have the best marketing but things won't happen.
So I think the answer is, it's too risky.
>I'm sitting on a - what I believe to be - cool side project that should be capable of generating some recurring income
This sentence could be made by a marketing guy, pitching to find a dev to build it. Same goes the other way around.
Most agencies charge you an hourly rate with no incentive to win. You can sometimes negotiate performance-based incentives or % of sales, but it's a bit rare. Both of these can actually bring in more money for the vendor and you're not giving up equity.
Source: I'm a B2B marketing technology consultant.
This is absolutely something you can do. Freelancers are out there and so are agencies. Agencies are expensive and, in my opinion, are best for specific campaigns, not for long term management of all of your marketing efforts.
You need to find a business partner that knows marketing and that you can trust. They should ask lots of good question about your product and they should clearly be able to explain to you the why and how of what they are doing. If they can’t or you feel like you don’t understand what they are saying, they are probably not a good fit for you.
However if you just want to outsource marketing, there are marketing agencies who can do that work for you. However, there are few things that you must keep in mind.
1. Sign an NDA and a proper contract
2. Make sure your contract has important provisions on price, price increases cap every year, performance measurement and penalties, SLAs
3. Depending upon, whether what the vendor has access to, you may need to ensure that they are compliant with privacy laws in the country where your customers are. PIPEDA in Canada, HIPPA, COPPA in US, GDPR in Europe, etc.
4. Have the vendor purchase sufficient insurance policies to cover for cyber breaches and other forms of losses arising because of this arrangement.
5. If they have access to confidential information including customer and employee PII, Make sure they have sufficient technology controls in place to protect your information.
I am not a lawyer, i am sharing this based on my experience. You should hire a lawyer to draft a full contract.
Its very common. Marketing consultants and agencies abound.
> I'm thinking someone who'd do social media and promotion and we'd collaborate on a revenue share model of sorts.
These types of agreement exist but in my experience they tend have mixed results. It works OK in an affiliate enviroment, typically business models that have 1) a quick interest to sale window and 2) One of these two factors i) high conversion or ii) high value payouts. For example credit cards do well in affiliate environments but home loans (while they exist) dont get the same affiliate interest as there is a much higher research to purchase ratio and then proving you had a hand in that purchase decision etc.
If your business suits affiliate style results, then someone can work on promoting something and see fairly fast results. Also note social marketing can have a long term requirement to gain traction. In the partners interest they should want some ongoing claim to revenue/profit or for them its best to set up a independent site and build an audience, then direct said audience to a product. That way they retain value for the lag effect of their work. So if you want someone to do this for your website, they might spend 6-12 months working their ass off building a supply of organic people then you give them the flick now its actually bringing revenue in. Huge risk for them to take.
I think in this situation the 3 better and fairer options:
1) Pay someone for their work and you take on the cost risk as the business owner.
2) Bring in a true partner and give them a share of the business.
3) Go to the affiliate marketing enviroment and get a clear pay for performance model set up. If going down this route be careful in it doesn't suit all product and there some really shonky people in this space. It can be one of the most successful channels for the right business and model. Also people can do their dough if they dont know their ins/outs and sign up to poor terms.
Overall: yes this is a thing people do. Try to look at it form both sides and set up a fair solution vs trying to get someone to work cheap. HN is full of comments of people trying to get developers to work on a product for some mythical long term payout, this is no different.