International Hiring Cost Tiers

A framework for hiring international talent based on different approaches, cost structures, and trade-offs between various models.

Three Main Approaches to International Hiring

  1. Direct Hiring (DIY Approach)
  • Use platforms like Upwork or online job boards
  • Lowest cost option (~$99/month for platform fees)
  • Requires self-management of hiring, vetting, and training
  • Must handle screening 200+ applications yourself
  • High time investment but lowest ongoing costs
  1. Managed Service Providers
  • Companies like Athena or Growth Assistant
  • Highest cost - 3x markup on actual talent cost
  • Example: $800/month worker costs $3000/month
  • Handles all vetting, hiring, and management
  • Good for convenience but expensive long-term
  1. Hybrid Model (Like Shepherd)
  • One-time finder's fee structure
  • Handles screening and vetting
  • Presents 3-5 pre-vetted candidates
  • Direct hiring relationship after placement
  • 10-20x cheaper than managed services long-term

Cost Structure Comparison

US vs International Talent:

  • US employee: $80,000-120,000/year
  • International talent: $800-3000/month
  • Roughly 10x cost difference for similar skills
  • Example roles and rates:
    • Customer support/assistant: $800/month
    • Mid-level roles: $2500-3000/month
    • Senior roles: Can reach US-equivalent for top performers

Key Success Factors

  • Focus on recurring roles vs one-off projects
  • Start with customer support or assistant roles
  • Expand to specialized roles like:
    • Data analysis
    • Design
    • Inventory forecasting
    • Channel management
  • Build teams gradually based on success
  • Look for skilled professionals with relevant experience
  • Consider cultural fit and communication ability

Management Approach

  • Less intensive management often required
  • Simple communication protocols work well
  • Example: Weekly check-ins vs daily meetings
  • Clear deliverables and expectations
  • Focus on output over face time
  • Use structured logging (login/logout updates)
  • Emphasis on autonomous work capability
SP

Shaan Puri

Host of MFM

Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.

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