IAmA westerner running an office out of the Philippines AMA

Amoxicillin

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As per the other thread, here is the current employee list based on 173 working hours a month.

Designer 1: $3.30/hr
Designer 2: $3.30/hr
Designer 3: $3.30/hr
CSS Coder: $2.64/hr
Personal Assistant: $1.64/hr
Manager: $9.25/hr
Android Developer: $6.60/hr
CSS Coder / Designer: $5.28/hr
HR / Recruiter: $6.60/hr
Content Writer. $1.31/hr

I also have five interns working for me for the next month or two. They focus on Android development, but their code isn't worth talking about.

Ask me anything that doesn't out my shit.
 


Do you prefer smoothies, or juicing?

The fiber from smoothies might help to out your shit, so you don't have to answer...
 
Awesome thread. I've got a few hires in the Philippines, so this is right down my alley. Ok, let me start off:

1. Where do you hire from? ODesk? Elance? Direct?

2. How do you hire? In particular, how do you find quality developers/coders?
 
1. Where do you hire from? ODesk? Elance? Direct?

I don't hire anyone on a project or per hour basis. I hire them to work 10am to 7pm GMT -8.

I've got a fully registered PH company, which means I can post jobs on MyNemo, JobStreet, JobsDB, etc... and hire directly.

2. How do you hire? In particular, how do you find quality developers/coders?

As with any country, good people already have jobs. Nearly all of my best hires are from referral. I've had great luck identifying a company I want to poach from, finding a disgruntled current or ex employee who has worked for them for a year or two, hiring them, and offering P6,000 ($137) for anyone they can refer that gets a position. The first employee doesn't need to be particularly good, they just need to be friendly and on good terms with the rest of the company.
 
How do you handle the language barrier? Or is just English enough to communicate even complex ideas to your staff?

Any nuances / pitfalls regarding cultural differences you've had to adapt to?

I'm assuming you're a Westerner, and if so, any problems being the boss in a foreign country like that? In other words, any headaches to getting shit done (and done properly) because you happen to be a non-local?
 
How do you handle the language barrier? Or is just English enough to communicate even complex ideas to your staff?

English generally dictates hierarchy in business. There are 120+ unique dialects in the country, and even though Tagalog is the "official" language, you'll find the reality is most people can't (or won't) communicate in Tagalog fully (outside of Manila). Tagalog is a fairly shitty language for official matters, and as such, all the laws are written in English.

Everyone speaks at least the basics of English, and your managers should all think and speak in very fluent English. They still fuck a lot of words up and do some god awful things to the language.

Examples of bad English:

See you tomorrow = I'll go on ahead
Staples = Staple wires
Bakery = Bakeshop

Any nuances / pitfalls regarding cultural differences you've had to adapt to?

Most people think in their local dialect. This can cause issues when the local words aren't descriptive enough. The one big example i the word now. Take Bisayan (local dialect):

Now = karon
Today = karon

This leads to some situations where you say "I want this done now" and they don't start work on it until later in the day.

Pinoy (Filipinos) aren't generally thieves, but they will be lazy if you let them. You need to give them schedules and you need to have someone micromanage them.

The culture is VERY religious and family oriented. Don't expect free thought, or as they say, common sense isn't common.

Pinoy are willing to think on their own, but it's not natural for them. Rather than create work they are proud of, they will try to please you; but in doing so, they will do shitty work and become unhappy.

I recommend asking the phrase "are you proud of what you're about to show me?" a lot. If they aren't proud of it, don't even look at it. It's the only way you're going to get them to do quality work.

I'm assuming you're a Westerner, and if so, any problems being the boss in a foreign country like that? In other words, any headaches to getting shit done (and done properly) because you happen to be white?

You have to rely on locals to deal with locals. You will constantly get ripped off otherwise, because locals think you're automatically rich. Each region of PH is also fairly small, so word spreads around really really quick if you have a bad reputation.

Apart from just being white, you run into a fair amount of issues with the government. Particularly, they are slow and corrupt. It takes months to get anything processed, and they expect you to pay with cashier checks for nearly everything. Even paying payroll tax is a complete PITA and they don't make it easy.

The bigger companies aren't much better. It took two months just to get a post-paid mobile contract.

On the plus side, being white comes with advantages. You don't get hassled by anyone but beggers. You can for the most part walk into anywhere and everyone thinks you belong.
 
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Thanks for this awesome thread.

How did you come to the decision to set up your business in the Philipines, and did you have any prior experience or preparation? On paper it sounds like a dream, cheap labor, cheap housing, low taxes, but I would imagine the reality to be more complicated.
 
How did you come to the decision to set up your business in the Philipines, and did you have any prior experience or preparation? On paper it sounds like a dream, cheap labor, cheap housing, low taxes, but I would imagine the reality to be more complicated.

I've had Pinoy employees working remotely for me since ~2007. I was lucky my first one was awesome (and still works for me) which gave me a lot of hope that I could clone him a few times.

I've got prior experience setting up in western culture, but not Asia. I'd never been to the country before I decided to setup shop.

As a non-American, the low taxes made the move beneficial. If all else failed, I could have spent a year collecting recurring revenue and drifting about Asia. As a foreigner, you pay no income tax on foreign income.

Quality of life definitely takes a bit of a dive; even with the ability to hire maids, drivers, security, etc.. all for cheap (the minimum wage in this region is P327/day ($7.47). If you don't get out and travel a lot, you are likely to turn into an alcoholic, or be visiting the doc every few months for antibiotics to clear up whatever you got from some whore.

Not to go too off topic, but you learn three things while here:

1) Numbers don't matter. Around the time of your second threesome, you're over dating seriously

2) You are treated like a hot blonde - women are constantly checking you out, and you get sick of hearing fat chicks refer to you as "guapo" (handsome)

3) Just how stuck up western chicks are. What do they have to offer that makes their pussy worth more than whoever you're banging lately?

It takes a long time to find replacements for good food. It took me months to find tolerable Thai, Korean, Ribs, Wings, etc..
 
I just got over I think the 2 month period with a new VA strategy that Stack Paper outlined in this thread http://www.wickedfire.com/2039780-post16.html, and using onlinejobs.ph.

I pay her $2 an hour for general tasks that I wouldn't know how to automate and it's been great so far. Especially since I used to hire through Odesk and overpay a shitload for not that great of service.

I'm thinking about hiring a designer. Do you make them use a lot of pre-made icons from stuff like GraphicRiver?
 
I'm thinking about hiring a designer. Do you make them use a lot of pre-made icons from stuff like GraphicRiver?

Call it my ego or whatever, but no, never. I ask for original work only.

I found the trick to hiring good designers is to hire a good illustrator instead. The designer mindset is very "photoshoppy" and tends to give you designs that look like they came out of a template. Illustrators on the other hand understand aesthetics, shading, and don't focus on symmetry and straight lines.

Part of the reason I have 3.5 designers is that I want variety and originality.
 
Despite the sarcasm or whatever, there is some truth to that. I gave all my designers a $0.92/hr raise over their previous job when I hired them.

Lol yeah.

But really, I'm pretty sure gov employees don't even make more than 10.000 peso a month which is only about $230 a month. So, yeah, I'd say you are actually overpaying.
 
Lol yeah.

But really, I'm pretty sure gov employees don't even make more than 10.000 peso a month which is only about $230 a month. So, yeah, I'd say you are actually overpaying.

Again, depends on the region. My friend who runs a factory has 8,000 employees at the minimum wage, which is P7,675/mo ($175) (including 13th month).

My content writer is on P10,000, and PA is on P12,500.

But honestly, I'm not going to try run the entire office at minimum wage. it just wouldn't be worth the frustration.
 
As a non-American, the low taxes made the move beneficial. If all else failed, I could have spent a year collecting recurring revenue and drifting about Asia. As a foreigner, you pay no income tax on foreign income.
Are you registered as a company, if so do you pay any kind of company tax? If you're paying no income tax and the laws seem pretty lax in that regard would it be a good idea to just do business out of your own personal account, or would setting up some kind of structure the legit way be necessary. Also is it easy to get a local bank account?
 
I'm going to ask again, how good are they ? What's the output of a 3$/h designer or a coder ? I'm not really interested in how it looks, but rather the level of placement in the current market. For example, do they compare to templateforest themes ? Are they even close to it ?
I'm thinking that, as long as they are not warrior forum quality, this is a really good deal.
 
Are you registered as a company, if so do you pay any kind of company tax? If you're paying no income tax and the laws seem pretty lax in that regard would it be a good idea to just do business out of your own personal account, or would setting up some kind of structure the legit way be necessary. Also is it easy to get a local bank account?

Here are the basics of my setup. I have a HK corp that takes contracts, pays me, and generally gets whored out. I then have a PH registered company which operates properties for the HK corp. The HK corp pay 2% above invoice for the work.

The PH corp is currently PEZA registered and therefore isn't required to pay income tax for ~5 years, however the banks here suck and I wouldn't any significant amount of money in them. Everything financial here is a pain in the ass, so I'd strongly suggest keeping as much banking as you can offshore. HK takes about 1-2 hours to fly to, and you can stay there for 60 days a year without paying tax.

Given how PH works, I'd highly suggest going legit. Everyone I know who ran an office out of a house, or delayed the SEC registration ended up with a bad reputation at one point or another. A bad reputation makes it very difficult to hire anyone with a functioning brain. Going legit is painfully slow at first, but worth it in the long run.
 
This is a pretty awesome thread. I recently opened up an office in Costa Rica, in January. I've been living here since September and I can relate to a ton of things you wrote about. I've always considered taking a trip to the Philippines to check it out. Your labor cost is certainly a lot better than mine.
 
I'm going to ask again, how good are they ? What's the output of a 3$/h designer or a coder ? I'm not really interested in how it looks, but rather the level of placement in the current market. For example, do they compare to templateforest themes ? Are they even close to it ?
I'm thinking that, as long as they are not warrior forum quality, this is a really good deal.

My designers spend a fair amount of time going through The Best Designs / Best Web Design Awards & CSS Gallery and can produce some very similar work.

A couple of my designers have won multiple contests on T-shirts and other products designed by an artist community of 2 million | Threadless

Quality wise, they are as good as anyone I've worked with in the states. It just takes a bit of extra time to make them understand what your trying to get done.
 
This is a pretty awesome thread. I recently opened up an office in Costa Rica, in January. I've been living here since September and I can relate to a ton of things you wrote about. I've always considered taking a trip to the Philippines to check it out. Your labor cost is certainly a lot better than mine.

Good to hear! Not to derail, but I seriously considered Panama and Costa Rica before deciding on PH. Being that close to the US would have been convenient, but at the end of the day, the language barriers were too high for my interests.