The marketing, advertising, customer service, sys admin work, more complex tax laws, etc. that comes with running a business. He could start hiring people to do all that stuff for him, but then that extra 30% quickly starts dwindling.
18 karma · joined December 12, 2011
If the majority of people with internet access preferred to pay directly for every website they use, advertising wouldn't exist. But they don't, so it does.
Managing outsourced workers is expensive, and quite a hassle too. You will most certainly have to hold their hand much more than a native. Without significant oversight and hand holding, it's a recipe for disaster.
In most successful outsourcing scenarios, there is a dedicated team to manage the outsourced workers. For every one success story with outsourcing, there are 50 failed and frustrated attempts.