Extreme Outsourcing - The Wave is Coming

If you are subscribed to this newsletter - you are, at the very least, “Outsourcing Curious.”

Perhaps you have too many things on your to-do list.

Perhaps you want to scale your business faster.

Perhaps you want to source more off-market deals.

The purpose of this week’s newsletter is to get serious. You MUST transform your business or go the way of the dodo.

I’ve been going down the residential property management rabbit hole lately (Due to this project).

This month, the National Association of Residential Property Managers (NARPM) came out with their benchmark study - a deep dive into the profitability & metrics of property managers.

They looked at data from about 150 property management companies of varying sizes.

Here’s a key table:

The percentage headings at the top are the average of PM companies in the “Bottom 25%,” “Middle 50%,” “75%”, and “Top 100% (top quarter).

Here’s the simple analysis:

The least profitable 25% of PM companies use global talent for 2.62% of their workforce. (Spare me the correlation and causation argument for now, please).

The most profitable 25% of PM companies use global talent for 65.42% of their workforce!

Holy bejesus.

Holy bejesus.

Holy bejesus.

The downstream implications of this are nuts.

For example:

Who do you think is going to whether the recession more effectively?

Navigate increasingly unfriendly employer regulations?

Provide better customer service with a long-term workforce?

If I had software that increased NET profit by 20%, I’d be hanging with Elon on his private island within a year.

Now - do we think this is limited to just Property Management companies?

Of course not!

They just have good data and an industry association willing to compile it.

Beekeepers.

Bookkeepers.

Billing Specialists.

Business Development.

And that’s just the Bs!

The profitability revolution is coming.

Anyone who isn’t ripping their business apart and rebuilding it using global talent is going to be a dinosaur.

Need help?

Drop me a line. I’m expensive and pay for myself like 5 times over.

Jon

PS For anyone looking for my free “End of Day Report,” here’s the link to download it.