Why I Pay People to Do Things I Could Do Myself (And Why You Should Too)
I've built multiple 7-figure businesses over the years, but one of my most valuable skills isn't what you might expect. It's not marketing genius, tech savvy, or even industry expertise. It's knowing when NOT to do something myself. Throughout my 30-year entrepreneurial journey, I've hired hundreds of people—from high-level professionals to personal chefs, housekeepers, and landscapers. My rule? I outsource without hesitation if their rate is lower than my "effective hourly rate" (EHR). Let me put this in perspective: If you're earning $75/hour and debating whether to spend $45 on someone taking care of your landscaping (a 2-hour task), you're essentially choosing between: A) Doing it yourself = Costing $150 of your productive time B) Outsourcing = Spending $45 That's a $105 LOSS when you choose to do it yourself. And yet, I watch smart, successful people make this mistake constantly. Why? Three possibilities: 1. You're greedy (sorry, but it's true) 2. You're overly frugal to the point of self-sabotage 3. You fundamentally misunderstand leverage This isn't just about lawn care. This principle applies to EVERYTHING in your business. That social media content you're creating? Those customer service emails you're answering? The website updates you're tinkering with? Calculate your EHR. Be honest. Then ruthlessly eliminate everything from your schedule that falls below that threshold. As James Schramko brilliantly explains in "Work Less, Make More," understanding your EHR is the cornerstone of working smarter. (If you haven't read it, stop what you're doing and order it now.) Another game-changer is "Who Not How" by Benjamin Hardy. The premise is simple but profound: When you have a goal, don't ask "how do I accomplish this?" Instead ask, "WHO can help me accomplish this?" Most entrepreneurs know HOW to do many things. That's not the problem. The problem is thinking we SHOULD do them. Every time you perform a task someone else could do for less than your EHR, you're choosing to make less money. You're actively deciding to be less successful.