Hey Haley, this contractor offers a set and strategy but is expensive, should I hire them?
I often get people in my DM’s asking me about hiring contractors, and how to see if the rates they are being charged from these contractors are actually fair. There is totally a way to map out whether or not their services and rates will be a good hire for your company, and here is how I do it.
Example of Contractor ROI Formula:
There is a Pinterest contractor that is charging $200 a month. This contractor is bringing you 500 leads from Pinterest every single month at their current rate. You know they will hit these goals, you trust them to hit that number pretty consistently. You have a conversion rate of 5%. This equals 25 students. If you multiply that by how much money you are actually making per student, that is $7,500 that you are receiving from those 500 leads.
This is awesome! If you are making that much of a profit, you will find that your return on investment is high enough to afford their rates. If you find that the numbers do not balance out, you might reconsider your investment and look at other contractors to hire that might be a better fit for you and your business.
This is how you map out the ROI with contractors so you know if investing in them will be profitable and reasonable for your business!
Do Not be Afraid of Contractor Rates
I want to say, do NOT be afraid of contractors just because their rates seem high! If you use this method to map it out, you might find that your investment will actually turn into a huge payback your business. Don’t look at it as just shelling out money, look at it as an investment. You know you will make return because you have data that will back it up. (You know how much I love numbers, this is why!)
Ready to Hire?
Curious about how I hire contractors and team members? Check out this article
where I completely breakdown my team for you so you can see how my backend is structured.
READY TO LEARN MORE?
- how to stop relying on expensive Facebook ads
- how to increase your conversion rate using sales psychology
- and how to ditch live launching for an automated, evergreen sales machine