I want to start an online Agency, where I outsource a service for example facebook/google ads, to people from other (not wealthy) countries like Colombia, south africa, india. I pay them an above average wage for them locally so that they are motivated, are willing to work on flexible contracts and I can attract high skilled individuals, but in my country (Germany) this wage wouldn't be sufficient. My main task is looking for potential clients who are willing to pay for the service by reaching out. The good thing about this business model is something called "Contractor Arbitrage". This principle allows me to operate the business completely risk free. It works like this:
The Client pays me at the start of the month (for example 2,500€)
The Employee gets paid at the end of the month (for example 1000€)
I pocket the difference (for example 1,500€)
The main Advantage is not only that there is no risk associated, but also that i can be 100% focused on outreach instead of service delivery, and that the business is easily scalable because the end goal is to outsource my job of outreach to then have a sort of passive income.
What is your Opinion on this business model, do you have any improvement ideas, do you have any similar models or experiences.
Thank you for reading.