What is outsourcing?
Simply put, outsourcing is the art of using leverage to create profit. It’s taking the job you were paid to do, and pay someone else to do the job (or parts of the job) for less than you were paid. Outsourcing is all about recognizing a good deal when you see one, and negotiate a better deal for yourself.
In order to succeed as an outsourcer on Studypool, you need to have a tutor account. You should also try to maintain a good reputation to better your chances of being recommended for work. Aim to build a large network of students. The more people you provide good work for, the higher the chances those same people will invite you for more work in the future.
An example of outsourcing
Let’s say a student posts a question with a time limit of 8 hours and a budget of $100. You know the question would take less than 8 hours to answer, and you know your friend would probably do it for less than $100.
With this in mind, you bid on the question, and win with a bid that matches the student’s request – within 8 hours for $100. You then repost the same question, and invite your friend to answer within 7 hours for $80.
Your friend accepts the request, and deliver within the timeframe agreed upon. You then turn the answer over to the original asker, and you’ve made a profit of $36, simply by acting as the middleman between the two.
You see, while the margin is $20 between the original post and your repost, Studypool also gives a 20% discount on outsourced questions to increase the profit margin for outsourcers. Meaning the question you posted to Studypool for $80, only ended up costing you $64 because you are a Studypool tutor.
This means outsourcing is not only profitable for work found on Studypool, but also from other freelancing sites and real world sources.
What to look for when Outsourcing
In addition to looking for questions with a high budget range that can be answered for a lower price, there are a couple things you should look for that will greatly help you when outsourcing on Studypool.
Not only do you get a rep boost from answering questions posted by new students, but due to how Studypool’s friendship system works helping new students can be very beneficial.
Every time you answer a question for a student, you are automatically added to their friendlist. And every time a student ask a question, the top 3 tutors on their friendlist is invited by default. Which means the next time the student ask a question, you are almost guaranteed to be invited to answer it.
If you are invited to a question by a student, any bid you place takes precedence over a bid from tutors who were not invited. An invited tutor who bids within the students time limit and budget is almost guaranteed to win the question, unless another invited tutor with a higher reputation does the same.
Automatch questions are great for outsourcing because they are easy to win without having to undercut. As long as you bid within the time limit and budget of the student, you have a high chance of being selected as long as your reputation is good.
If a question has an open budget it’s usually because the students budget has been set too low to receive good bids, and the budget has been opened to attract more tutors. Since you can freely bid whatever you think is reasonable on these questions, you can potentially get some good deals by bidding on them.
Outsourcing is not without its risks, and there are a couple pitfalls you should beware of when outsourcing. The good news is, 99% of the time these can all be avoided through diligence and good decision making.
If you have a problem winning bids in the first place because other tutors are ruining the profit margin of the question by bidding lower than the students budget, you should prioritize building your reputation. The higher reputation and the more questions you have answered in the past, they more confident our moderators will be recommending you to students. As long as your reputation is better, it doesn’t matter if another tutor is cheaper.
DEADLINES AND POOR QUALITY
If the people you are outsourcing to misses their deadlines or provides poor quality work, it will reflect poorly on you. It’s your responsibility to pick the right person for the job, and sometimes the cheapest option is not always the best one.
Always read reviews of tutors and keep an eye on their reputation before selecting them. After all, it’s your reputation on the line if they mess up.
NOT RECEIVING BIDS
If you are not getting bids on your outsourced question, you might have set the budget too low or the time limit too short. If so, try increasing the budget a little to attract more bids. Sometimes it’s better to cut into the profit margin before wasting too much time. After all, you are still guaranteed a profit even if you repost the question at the original asker’s price.
If the budget is not the issue, try inviting tutors who has delivered work for you in the past. The more tutors you invite, the better your chances of getting a good deal. An effective outsourcer usually have a large network of both students and tutors. Make sure to utilize it.