How To Use Basecamp as a Virtual Production Line For Outsource Productivity

Posted by in How To, James Schramko, Lifestyle, Outsourcing

A huge part of my business profit increase this year has been the effective leverage gained from outsourcing. Something that has become very clear to me is how most people have had limited experience in running outsourced projects.

How to co-ordinate your team

Having run a multi-million dollar business and studied material from legend Jay Abraham (who studied W Edwards Demming) I am interested in process optimization. Below is the system I have used to build teams of outsourcers in the last year resulting in a million dollar plus sales business…

Task Source versus Full timers

As soon as you can you should be engaging the help of full time resource. They will grow in skills as they learn more about your business and the way you operate. It is simply not effective to hire, manage and then re-hire manage and critique jobs one by one with different suppliers. If you need to task source repeatedly then at least use a dedicated supplier who has a high quality team rather than an individual. An example of this is SEO Partner who focus purely on SEO.

How to find full time Outsourcers

By far the best way is word of mouth. If you cannot find the right person via someone else then start thinking about the job boards like Odesk and classifieds like Craigslist. Countries like the Philippines have excellent people ready to help your business grow. I recommend you hire based on attitude over skills and conduct an interview over Skype.

Ask for some sample work and be prepared to pay for the first tasks while you asses the quality. Check the properties in the documents to see they are fresh. If you want to avoid competition from other employers then hire someone to help you hire someone local. This way you can have some local knowledge working on your side.

Rates will range from USD $300 – $700 per month for many typical Internet Marketing related roles. Paypal works quite well and expect to pay twice a month in arrears.

Developing Your Outsourcer

The easiest tools I have found for training and managing your outsource worker are Google docs, Jing, Basecamp, Skype and Dropbox. Lets look at how these can work together.

  • Google Docs – This is the easy place to have a shared spreadsheet to update skill level, Rss feeds, Ranking reports, usernames and passwords etc….

  • Jing – Make videos and screen shots and load them to a password protected folder on the fly. These videos (screencasts) can be used over and over again by the team. The best thing is the ease of sharing just one URL that is automatically generated when you take screen shots.

  • Skype – We have weekly team calls on Skype Conference call. Also we chat when there are questions in between. You can ask your staff to have Skype on when they are working if you want to be able to access them anytime.

  • Basecamp – This is where you setup the product line, notes for the team and discussion. The advantage of Basecamp is you can add in any team members you want and slide tasks along a virtual production line. The jobs will activate emails to the appointed team members and email replies will be posted to the project as it goes. You can also assign any people to any project and use templates to replicate projects. Basecamp is accessible via iPhone, iPad and is remote hosted server based.

  • Dropbox – Easily access and share documents between team members using shared externally hosted dropboxes. They can be split into security levels and are easier to work with than the file manager in Basecamp. Dropbox appears as an extra folder on your desktop and you simply drag and drop files. When files are added it shows an alert on the screen so you know what activity is being done.

Tips for setting up Basecamp

Here is how I lay out Basecamp to get the best work flow from my team projects. Basecamp really is the one place my business is leveraged to the max.

  • Messages - I use the message section for two things – one for ‘General Discussion’ and the other for ‘Daily Updates’. Each day the team members post a list of what they did for review. They tell me what they did, ask any questions they have and indicate what they are doing tomorrow.

Then I use the the ToDo lists. In the ToDo lists I have created a workflow that replicates a production line like this:

  • Pipeline – It starts with ‘Pipeline’. I add a domain name here and assign the username, password and hosting details. From here a team member will grab that item and drag it into the next bucket called “Site Build”.
  • Site Build – This bucket is where the team will create a page title optimized WordPress blog with a 100 word original post.NOTE: Being able to drag items between buckets is an awesome feature and allows the next person in the team to see what is coming down the production line. They can start working on it in advance so therefore there is no idle time.Next stop for the project is ‘Research”.
  • Research - Here we look for keywords using Market Samurai. We do some detailed competitor analysis and look for offers to promote. This will be either CPA, my own products, Affiliate offer, Lead Gen or our default promotion – Adsense. Adsense is a good test to see conversions, offers and understand the market ECPM. Design is the next bucket.
  • Design – Here we make the basic site skin (usually on Thesis or OptimizePress), banner kit and report cover. We use genuine stock images for correct usage rights and custom CSS to make the site pretty. Then we move on the content.
  • Content - The team write ten unique articles and we post them to the site using keyword headlines and tags. We choose the best article as the static home page to pre-sell. We also create a video and load it to Youtube. We embed the video as a small thumbnail into the site too.  Next stop copywriting.
  • Copywriting – We tune up the static home page and add a free report. The name capture is installed and auto-responders written.
  • Traffic – Once the project is moved here we start the traffic roll out. We go out and grab traffic using several different methods. I’ll cover this in a separate post. We get backlinks, articles submissions, Bookmarks, Press releases and much more….
  • Conversions – We install crazy egg and Google Analytics and then test opt-in rates.
  • Technical -  We have set taks to do each week. We change the social media bookmarks and update blog plugins. Anything that requires technical work goes here.
  • Priority – We classify our websites according to high, medium or low priority. The high ones get daily content. The medium twice weekly and the low – once weekly.  This is where the website ‘lives’ from now on.
  • Sold / Exit - If we sell a site or the project is no longer required we move it here and tick the complete box.

Other ToDo items we use aside from the production line are Training and Transcriptions. We load jobs or training materials in there for completion. If you need to load files to basecamp you can use the Files section. We prefer dropbox though.

The Writeboard section is ideal to store notes, instructions, procedures or passwords.

Please post your questions below:

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66 Comments

Steve Brossman

09. Oct, 2010

Hey James Great flow info here. Thanks Steve

Rich Muir

09. Oct, 2010

Hey James,

Great breakdown of your process and incredibly valuable.

Rich

George

09. Oct, 2010

Hi James, thanks for sharing your process, I have been thinking about this for quite some time on how to break down the process. My one question would be at the research stage. Do you undertake preliminary research to see if a keyword or phrase has enough traffic, what the competition is like etc prior to registering the domain and staring the pipeline. Is this something you do to kick off the process?
Thanks George

James

09. Oct, 2010

@George, yes – I do research before I buy the domain name (prior to the it arriving in the pipeline)

Aman

10. Oct, 2010

Thanks James for sharing the post, gives me a better understanding on how you use Basecamp.

Also, do you use Highrise, Backpack or Campfire as well with Bascamp.

Also what Invoicing,billing,accounting applicaton do you use with Basecamp to get the amount of hours worked for a certain project to pay contractors if you ever get contractors?

Thanks
Aman

Brenton Ford

10. Oct, 2010

Thanks James, really helpful post! I find the content you give about strategies and business management hugely valuable.

Do you create a free report and autoresponder for every site you build?

Binh

10. Oct, 2010

Hey James,

Great to see your production line. Always good to model from someone who’s done it and done it well.

Binh

Stephen Frost

10. Oct, 2010

Hey James, awesome as ever! Will hold these ideas in my head ready for outsourcing, hopefully will be getting to that point very soon!!! Thanks :)

James

10. Oct, 2010

@Brenton – every site will eventually have a sales funnel from free report, paid upsell and recurring program. We also add in paid traffic later when we get the Google Search Query report

James

10. Oct, 2010

@Aman, I have full time contractors so no need for internal billing software. We also have a system for outsourced articles. The job is posted in our articles basecamp, then it moves to WIP (work in progress) then completed (for checking) then Paid.

Aman

10. Oct, 2010

Oh rite, so that’s how you do it.

I am trying to figure out what add-on to use for invoicing/billing/accounting from the below link as I haven’t tried any of them so I thought I ask you.

http://basecamphq.com/extras

Thanks for the post.

Regards..

Jared

10. Oct, 2010

Your pipeline process is road map to follow. Thank you.

Who does research? A team member? You? Who?

What step(s) do you do take a big hand in?

James

10. Oct, 2010

A team member. They studied all the Market Samurai dojo videos.

Cheryl C. Cigan

10. Oct, 2010

Excellent process overview. Thanks for pointing out the ease of Dropbox.

Jared

10. Oct, 2010

In these comments, you say research BEFORE you buy the domain name. Yet in the post, you claim research is done after site build – which is also after you buy the domain name.

How can this be? Research before the domain name is bought? And Market Samurai keyword research after?

Sounds conflicting. Please shed light? Because this is confusing.

David Jenyns

10. Oct, 2010

I use it daily and recommend it highly. I find it super powerful when combined with a work wiki system like http://www.editme.com

Just my 2 cents.

Egbert Oostburg

10. Oct, 2010

James, You rock dude! I feel like I’m getting my MBA on Internet marketing operation management from all the awesome content you post. I appreciate your sharing philosophy!
Cheers,
Egbert

tzuming

10. Oct, 2010

Nice one James.

Mark

10. Oct, 2010

You say your preference is use Dropbox for stored files, rather than Basecamp file manager; can you please explain why?

Thanks for sharing your process

Simon James

10. Oct, 2010

Great post James. And if you wouldn’t mind sharing (just so I can gauge the level of my own humble performance); typically how quickly can you get a website through this process start-to-finish, and how many can your team process in a day?

Chris

10. Oct, 2010

Thanks for that insight James

I just hired my first full-time ninjapino, content writer. What sort of productivity should I be looking for? ie: how many articles per day should he be able to write?

Thanks,

James

10. Oct, 2010

@Chris the articles should work out at about USD $2 – 3 each on average if they are of low – medium difficulty

Paul

10. Oct, 2010

Hi James,

Good post. Had some great insights into how a successful operation works.

It seems a lot of internet marketers know of the importance of offering valuable free content like this on their sites, but few actually do it. Perhaps they’re afraid of sharing and letting their secrets out? If they read your posts every now and then they’d know the difference between adding fluff and giving value … and how it keeps people coming back for more.

Cheers mate.

Paul

James

10. Oct, 2010

@Simon we have hundreds of websites in our system but if we focus on one website it goes through very fast. (within a day) Note we have a team so if they focus on one thing it gets done almost instantly.

James

10. Oct, 2010

@Mark we started with the files in Basecamp and it works best for ecover drafts and site mockups etc… however we decided on a central storage archive for stock images and content that can be re-written and recycled. Dropbox is much easier to arrange by folders.

James

10. Oct, 2010

Thanks @Dave for the resource. I have seen that before. Looks good.

Maggie Holley

10. Oct, 2010

Hey James,

As always- great content, Thank you.

I see now I am underutilising both Google Docs & Basecamp!
I have 2 ‘Ninjapinos’ and this will help- as my forte is NOT ‘systemisation’!!
:)
Cheers
M

James

10. Oct, 2010

@Jared I do my own basic research when I am looking to purchase a domain name. Mainly the history of the domain, the search volume for the keyword and the comparative sales. When I buy the domain I put it in the pipeline. If I have a strong idea of the keyphrases I will pop then in the notes along with the username and password of the domain. The team will expand the research and note down first, second and third level keywords for the site. They also recommend offers to promote and map out the site structure (along the lines of the wonder wheel).

Aman

10. Oct, 2010

I use a software called Outpost 2 for the Ipad which I find is really useful to check on Basecamp projects and latest status updates when my laptop is not around…

Which one do you use James?

James

10. Oct, 2010

@Aman for iPad I use the safari browser to access basecamp directly it is big enough and I get the full features. On my iPhone I have been using Sherpa

Jim

10. Oct, 2010

Excellent post! Reminds me of the Henry Ford assembly line!

Troy

11. Oct, 2010

Some great info james.
Thanks alot for this post, I will be directing people here as I think you covered some good detail. Especially getting a full time outsourcer. Hiring someone for a job and then hiring someone else, over and over can be very frustrating.
great post

Kat Hudson

11. Oct, 2010

great article – thanks for posting this – it is something I have to get rolling on but have been putting it on the backburner and in to the ‘too hard’ basket – now to hire someone to hire someone lol – one thing’s for sure – I know it is a necessity for anyone wanting to grow an internet business quickly – once you know what you want/need you just have to do it or submit yourself to a long drawn out internet marketing death – i think what you say about speed of implementation is absolutely critical to not only surviving but THRIVING online!

gilad

11. Oct, 2010

Great post James.
When you say you have a team, do you mean, actually a team all sitting in one office, or people from different place, each person and his own job ?

James

11. Oct, 2010

@gilad my team are full time and they work from their own homes. I work from my home with zero on-site staff

Brent

11. Oct, 2010

Thanks James

I am a newbie – do you have a course for all this ?

James

11. Oct, 2010

Brent get over to FastWebFormula for some free training

Arthur

11. Oct, 2010

Hi james great article, love the process. What do you mean by We change the social media bookmarks and update blog plugins

James

11. Oct, 2010

@Arthur we change the social media logins on the RSS submission software so that we pock in the back links. The Blog plugins need updating on WordPress in the background.

Oliver

11. Oct, 2010

Hey James!

Thanks for the great article! I love especially the way you use
Basecamp. I had setup a similar workflow using todo lists, but it
got very messy very fast.

How do you organize your basecamp? Do you set up different “projects” for
different departments or do you operate from one basecamp project?

If you can do, I’d love to learn more about organizing processes,
workflows and projects with Basecamp.

We switched over to similar solution using Google Docs but this
doesn’t work well and it’s difficult to manage outsourcers and
task assignments.

Thanks!

James

11. Oct, 2010

I have separate projects for each business. The one you are looking at in this post is my outsource team project where we build out websites for our portfolio

David Adibo

11. Oct, 2010

Great post!

Alternative if you don’t like BaseCamp’s recurring fees (and rather host same functionality yourself):
http://www.ActiveCollab.com

Oliver

12. Oct, 2010

@James: Thanks! :)

Grace

12. Oct, 2010

This is one of the greatest posts I’ve read in a long time. Thank you for this post. Its definitely a huge determinant between the successful and not so successful.

Aurelius Tjin

12. Oct, 2010

Hey James. You never fail to amaze me. You make things look so simple. I’ve been over complicating and over analysing a lot of my systems.

I heard about Basecamp a year ago but never had a chance to try it out. I finally signed up today and went to set it all up. It looks very promising compared to other project management tools. No more emailing this worker and that worker to get a project done. This would get rid of all the relaying and “middleman” work.

Thanks for this post. Would love to catch up with you again! Haven’t seen you in ages.

Oscar

13. Oct, 2010

Thanks for the great article, James.
Here’s a nice list of basecamp alternatives:

http://drup.org/20-basecamp-alternatives-project-management

James, have you ever tried anything else but basecamp? That FengOffice seems to be pretty neat and there’s also an open source version available..

Mark

13. Oct, 2010

@Oscar

Great link… thanks

I’ll check out some on that list

chris

17. Oct, 2010

Hey James,

Long time follower, still remember the day I implemented Double Digit CTR…awesome…Looks like you still deliver.

I think the idea of being organized is imperative in this business. This post kind of drives that idea home.

Without systems/products like this in place, your job as an IM’er is exponentially harder.

Anyway, looking forward to catching up on your older posts. I cant say enough about your earlier work, that has been a great influence on who I am today…

To any newbies stumbling across this site…listen to James, he is the real deal…

Take Care All,

Chris

Jay

18. Oct, 2010

James, thoroughly insightful overview of efficient working practice. How do I pull my socks up and start benefiting from this ASAP – FWF? Its clear there are many best practices and I want/need to be shown how to use these. You say you have hundreds of websites in your system – are these sites that you have developed to generate income or sites that you are working on for clients?
I am pre launch with just one digital product in golfing niche that I know I’ve gone round the houses with and done it the hard way, I feel that road ahead could be costly and terminal if I don’t get it right from this point on. Have 18 months and lots of cash invested, workload slightly daunting, uncertainty is the real challenge though!! Point me in the right direction so I can engage, learn, succeed and contribute back.
Regards,
Jay

Janna

19. Oct, 2010

Thanks for the great post James. Especially your production line on Basecamp is awesome!

Justyna

24. Oct, 2010

Wow, that’s so much great content James, as always!

I’ve been using Jing, Dropbox, Skype and Google docs and these tools are so much time saving and free!!
Basecamp is on my list tools to use, especially knowing of your super results with it.

Thanks for the info!

Aman

25. Oct, 2010

Hi James,

Can you please advise, how do you invoice clients, do you use any add ons with Basecamp to invoice clients?

Also once the clients have paid you, what do you use to give them receipts online, do you use add-ons like Freshbooks with basecamp?

It will be great to hear your feedback on this.

Cheers,
Aman

Dwight

26. Oct, 2010

Nice, some good product creation secrets there James. thanks for the resources.

Dwight Anthony
Financially Elite Blog dot Com

Having a full platform of resources is essential for quickly communicating and operating with your virtual team. This is definitely some great insight James.

Another tool that may be useful not only to clients, but also with your virtual staff is yuuguu.com. Yuuguu is a Web Sharing & Conferencing tool, where you don’t have to download or install any codes, or programs. It’s like Skype on steroids. I came across this while providing my clients support and was in need to share the clients screen with them. It worked out perfectly.

James

28. Oct, 2010

Thanks Darrin

Mitch

28. Oct, 2010

Hi James,

Mitch here, just checking out what a ‘professional’s’ blog looks like. You certainly do put in some amazing quality content. I am just making my first blog and Steveo is guiding me through this with our coaching sessions. I certainly have a long way to go to looking at this. You give out so much information to people, you are selflessly helping others which is amazing.

I love the forum and the tools you have created. I will keep chipping away at my little blog!!! Thanks

mitch

James

28. Oct, 2010

Thanks Mitch.
Just keep posting stuff that might help people and you will gain a readership.

Neil Ferree

30. Oct, 2010

One of your best Tips do date James, albeit, a lot of people need to get their online business to the next level before outsourcing / scaling (me included) will become a requirement.

James

30. Oct, 2010

start small but start SOON Neil!!!

Jurgen

04. Nov, 2010

Hi James, thats awsome. I will use that. Thanks for sharing.

Todd

16. Nov, 2010

Hi James,
I appreciate all the valuable info in this article – I especially liked Jing which I downloaded and am now using for screencasts.
One question – do you have any recommendations for finding an outsourcer in the Fillipines to do webmaster tasks?
Best,
Todd

James

17. Nov, 2010

Try jobstreet.com

Jon

17. Nov, 2010

Hey Todd, I have signed up to JohnJonas’s ReplaceMyself.com site and he has a tonne of advice you may find helpful. There’s compelling reasons to go to the Philippines. Let me know if you want to partner short term to explore the ReplaceMyself.com resource

David

04. Dec, 2010

BTW, Basecamp lets you use ONE project for FREE (and NOT just as a free trial for 30 days. Unlimited…
Super cool!! You can take it pretty far in one project already…
Example: having a TO-DO LIST for each team member (called ‘Mike To-Dos’, etc.

TOTAL GAME CHANGER to do that, vs. sending people emails with tasks, which then get LOST…

Result: no more ‘ohhhh, sorry… I must have overlooked that email…’

Super-powerful…

Todd

07. Dec, 2010

Hi,
Just a thanks to the commenter who recommended the one free project on basecamp.
I’ve signed up already, and am already managing a project.
Great service so far, glad to receive the tip!
Thank you,
Todd

Aidan Sheerin

05. Jun, 2012

Great article, we use cloud HQ to sync with basecamp. When will they add the ability to tag files.
Folders within projects would be awesome

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