Outsource your Life
People who are familiar with the book by Tim Ferris, 4-Hour Work Week would probably know this already.
The whole CORE CONCEPT of his book was based on the Pareto Rule, aka the 8020 Rule.
8020 Rule – A rule of thumb that states that 80% of outcomes can be attributed to 20% of the causes for a given event. Sometime its skewed towards 9010 or 7030, but the same concept applies for almost everything in the universe. It’s like the Invisible Hand in Economic. So don’t bitch about the top 1% richest people in the world/Singapore/any country owning more than 50% of the wealth. If the statistic is not so skewed (YET!), praise the government for holding back the universal 8020 Rule with their policy in hope to prevent wealth disparity. Remember, its only natural (in a truly free market w/o govt intervention) that every dollar that is made, the top 1% will take $0.50.
Took me a while to explain 8020. So back to Tim Ferris. Oh yes! So by focusing on the top 20% of the task that generate you 80% of your income. It will turn your $10/hour, into productive $20 hour or even $1000 hour (such as setting up systems that run without a second thought)
How about the 80% of the task? Those $10/hour work. Things still needs to get done right? Like handling emails, sorting through datas, and data entry? Tim recommended outsourcing. Outsourcing with geographical arbitrage.
Geographical Arbitrage – Paying someone with lower standard of living cost location, such as Philippines, to do your $10/hour task and pay them a fair wage according to their country. Most of my VAs (Virtual Assistants) are from Philippines and they are some of the nicest people out there. So an example Tim gave is. A programmer from US working on remote basis, literally went holiday and get an India outsourcer to code for him. So he is getting paid US salary and paying India salary to get his work done. The important thing is get things done right? Also its fair wages as well. Singapore uses arbitrage as well. Foreign workers? Fellow Singaporean, please do a day hard work as a construction worker before complaining. I did once. One day 🙂 Just as an experience.
What’s after Outsourcing with 8020 Rule in mind?
Learn to see everything in life as being about giving, and getting feedback
We always respond to negative feedback. Remember the time when you reflect your day work? The negative aspect will always come back and give us this rude awakening, this wake up call. That propels you to becoming a better person. (I hope no one, go the other route)
How about time in your life when, you get a positive feedback? Do you remember to give thanks too? And furthermore, use that to solidify whatever you are doing to correctly.
How about not just reflection. You based your life on a constant feedback loop?
In your business? In your marketing? Like your whole intention of your marketing plan. Is to get a feedback.
Racking a shotgun. Getting a feedback on who actually “stands up” and respond and goes on to make sales to those people.
Racking a shotgun – Perry Marshall mentions in his book 8020 in Sales and Marketing about a story in which this Poker expert taught a rookie player how he get make money playing poker. The trick is to play with “mark” and just profit from these lousy player. Under his seat. He racks his shotgun! Immediately a few people from the poker tables across in different direction turn around. The Poker expert then advise the rookie player that those that response are not a “mark” and do not play with them. So Perry coined the term racking the shotgun as making a “noise” in the marketplace and probably your customers response, those you attend to them. Or probably competitor responded. Those you try to avoid and become partner.
All the greatest business benefited from Feedback loops. Testing, Split-testing. Getting the best way to do things, becoming more productive. In fact, what took us months and months of research can now be in the form of hours or even minute due to the technology improving dramatically over the last decades.
I just went to a wedding fair last weekend and at least 3 vendors there uses Google Form to get us to fill up their form for them to get back to us. Instant response on their Google Doc database. Unlike those who uses paper form and have to manually key in the field after the event.
An example of Feedback Loop in our every day life that helps us is Photography. Now with Digital SLR or even point-and-shoot camera. Sensors were to deploy to capture and give instantaneous feedback about the lighting condition, recommended aperture, shutter speed, etc that we no longer have to train for years as a professional photographer just to take great picture.
Just like before. I need to get started working.
I will probably write another post or continue from this post onwards.