Howdy! I’m Alex from Buff Web Solutions, we’ve just launched InstantService and I thought about writing an article for those who are curious out there about how web design agencies, programming service providers or any other type of outsourcing companies work. They’re basically all the same with just a few dissimilarities.
The main point of an outsourcing business is to take advantage of a thing called arbitrage and what that means in simple terms is that you buy low and sell high. But we’re dealing with services here so you may be wondering: buy what low and sell what high? Well, workforce obviously. Or manpower or whatever you may want to call it, but the idea is that you buy a high quality service at a low-cost and you wrap it in a nicer package, make it more attractive by using marketing techniques and then sell it higher to clients that are willing (because you’ve convinced them) to pay more for high quality work. It doesn’t really matter from where you buy it as long as you’re making a profit, maybe you have the funds to get employees and rent an office space or you just hire talented folks on freelance sites, etc, so this is the basic concept, it sounds simple but trust me… it ain’t!
I’ll give you an example of a project and I’ll get into some specifics too. So, let’s say that you hustled and somehow through word of mouth or Google Ads or any other way you attracted a client from France, let’s say, that has a project ready to start and is looking for workforce to complete it. You talk with them, you tell them about your agency in a few words, you give them some past projects that you’re proud of so that they can see that you provide quality services and if they’re convinced, they’re going to want to discuss further details like budget, deadline, etc. After all that is decided, you’ll sign the contract and begin working. Well, not you, but your employees. You deliver the project before or at the agreed deadline, you get paid, you pay your employees and on to the next project!
That about sums up how web design agencies work, of course that there are a lot of technicalities and other details but this is just a broad way of explaining it, consider it like a tip of an iceberg.
About the author
Alex Werner is the CEO of Buff Web Solutions and a web developer with more than 12 years of experience. He enjoys photography, reading and creating awesome products!