Outsourcing: Do Your Independent Contractors Get Paid Like Today’s James Bond?

With a license to kill, a hit team took out a Hamas terrorist leader while he was staying at a Dubai hotel. If he were alive today, Ian Fleming would probably have considered the hit as a plot for one of his James Bond novels.

As the hunt continues for the those who carried out the hit, it appears that the majority of the agents involved used Payoneer pre-paid credit cards.

I’ll confess. When outsourcing, I use and have recommended Payoneer for paying overseas independent contractors. They are a good solution for compensating those who do work for you when you can’t get the funds sent via PayPal.

However, like PayPal, Payoneer undoubtedly faces scrutiny because of the potential for abuse for money laundering, tax fraud, financing terrorism, and other illegal activities.

That being said, both companies are useful tools to have in your oursourcing arsenal. You can use them for good or bad purposes.

And if you’re using them to pay your independent contractors abroad, be sure you’ve got documentation on file regarding identity, etc. that will reduce the likelihood of spending time dealing with either the Internal Revenue Service or the Department of Homeland Security.

When in doubt, make an outsourcing paper trail showing what you’re doing is legal.

Outsourcing is just one of the many important issues covered in “Internet Marketing Legal Secrets Revealed,” my book that’s currently offered as a bonus for those who invest in Website Legal Forms Generator software.

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India Outsourcing Killed by PayPal?

If you’re paying for computer programming, web design etc. to India via PayPal, think again for the time being. In response to the Indian government’s crackdown on international money laundering, PayPal has suspended “personal payments to and from India and transfers to local banks in India…Customers can still make commercial payments to India but merchants cannot withdraw funds in Rupees to local Indian banks.”

India-based affiliates for online marketers who pay commissions via PayPal are probably going to have a difficult time getting paid now too.

In this case, you shouldn’t shoot the messenger. PayPal is going to have a difficult time verifying the identities of those who send payments. Until it comes up with a solution that satisfies India’s government, don’t expect resumption of payments.

One hopes that the issue is simply one of fighting money laundering rather than India looking for a way to track payments for income taxation and other regulatory purposes.

If you send funds by PayPal to India and the money gets returned, at least you’ll know why. Although a hassle, one temporary solution is to use international bank wire transfers because you’re providing your identity via your bank when sending the funds. Of course, that may mean renegotiating your agreements with Indian independent contractors to cover the additional transfer fees and modifying your affiliate program operating agreement to take into account additional costs too.

Hat tip: Personal Payments and local bank transfers in India (PayPal blog)

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Outsourcing: Delegate Does Not Mean Abdicate

delegate-outsourceIf work can be assigned to someone else who will do it for less than the value of your time, I’m a big supporter of delegating that work. Ideally, you’ll want it done on an independent contractor basis. In rare instances, an employee will be necessary. You can then use your time to generate more money doing higher value activities.

The big mistake that I see business owners making these days is mistaking delegation for a total abdication of oversight responsibility. When you assign a project, do so with clear specific objectives and deadlines. Periodically check to ensure what you’ve assigned is actually being done. This isn’t micromanagement. It is protecting your business.

Where does delegation go bad? Here are some common examples.
•    You feel overwhelmed so you dump a project on someone else to sort out and hope that it gets done. Hope is not a business strategy.
•    Because “everyone is doing it,” you hire a personal assistant…but you don’t prescreen candidates or train your new employee. Most people who apply to work as your personal assistant are completely unqualified to do so.
•    After putting in years of hard work, your business is running smoothly, you feel you’re entitled to kick back, and let someone else take the reins. Chances are you’ll hire a technician (not an entrepreneur or manager) who will ‘competently’ run your business into the ground because of an inability to see the big picture. If the technician had your talents, he would have his own successful business.

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