Do you find it exhausting to find potential customers on your own? Do you feel frustrated by the lack of sales leads? Are you too busy to train a new salesperson? In case you responded affirmatively to any of these inquiries, it might be worthwhile to contemplate outsourcing your sales to a third-party. Although this may be a risky move since it involves entrusting your valuable leads to someone else, it may be a wise decision, particularly if you need to focus on your core business.
According to a survey by Statista, this is precisely why 57% of business executives outsource their sales. Outsourced sales can help you hit your sales targets or get more qualified leads if done correctly. To support this, here’s a famous quote, “If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.” Would you like to learn more about outsourcing your sales functions? Keep reading to discover how it can benefit your business and how to select the right provider.
Sales Outsourcing: Definition, Benefits, and Examples
Sales outsourcing is when a business hires an external team or individuals to work on some or all of the sales process, including tasks like generating leads, making appointments, and closing deals. This can help a business get the help they need without having to hire another employee.
The sales process typically has different stages, including creating awareness, qualifying leads, making an offer, negotiating, closing a deal, and building customer loyalty. Sales contracting companies can help businesses fill their pipeline faster, and some claim to reduce the sales cycle by at least 50%, increase pipeline volume by 3x, and boost revenue by 75% to 900% in the first year.
Many leading companies, such as Amazon, Microsoft, Mailchimp, Dropbox, Verizon, HubSpot, and Zoho, rely on outsourced sales.
Benefits of Sales Outsourcing for Businesses
Outsourcing is a practice that can offer many advantages for businesses. Here are some of the benefits:
- Cost-effectiveness: Outsourcing sales is a more affordable alternative to hiring a full-time sales team, as it eliminates the high costs of recruiting, training, and managing an in-house sales team. The cost of a salesperson can range from $4,000 to $20,000 per month, excluding commissions. Additionally, new salespeople take around three months to become productive.
- Efficient market entry: By working with a team of sales professionals outside of your country, you can tap into new markets. An outsourced team may already have existing relationships in the new target market, making it an efficient way to break into new markets.
- Time-saving: Outsourcing your sales process will take some of the pressure off of you as a business owner, allowing you to focus on other areas of your business that require your attention.
- Access to diverse specialists: By outsourcing sales tasks, businesses can gain access to a varied group of sales specialists, enabling them to tap into a broader talent pool and select the most suitable person for the job.
- Flexible staffing: Outsourcing provides flexibility in staffing, allowing businesses to scale up or down as needed, bringing in extra help during busy times and reducing the team during slow periods.
It’s worth noting that outsourced sales teams are often more productive than in-house teams because they are motivated by commissions and other incentives.
If you’re interested in outsourcing, you can start by using a directory-like website like Clutch to find top sales outsourcing companies.
Indicators that Your Business May Benefit from Sales Outsourcing
Let’s explore some indications that your business might benefit from outsourcing sales:
- You’re struggling to generate enough leads, and your current sales team may lack motivation or training.
- Your sales targets are consistently missed because leads are not sales-ready.
- You don’t have the necessary resources, like extra time or budget, to support an in-house sales team.
- You’re losing customers frequently, and your current team isn’t able to effectively match customer needs with your product or service.
- You’re expanding into new markets, and you need sales professionals with knowledge and experience in those markets.
- You require expertise that you don’t currently have in-house to close a deal.
- Your business is undergoing a merger or acquisition, and you need help managing sales during the transition.
However, it’s important to note that not all businesses can benefit from outsourcing sales. Factors such as business size, industry, and strategy may influence whether outsourcing is a viable option. It’s crucial to evaluate the pros and cons before deciding to outsource.
Situations where outsourcing sales may not be the best fit for your business.
There are situations when outsourcing your sales operations may not be a good fit for your business. For instance, if you have a unique product or service, it may be challenging to find a sales team that has the experience and knowledge to sell it effectively. Additionally, if you have a small budget for sales, outsourcing may not be the most cost-effective option. If you need to maintain a high level of control over the sales process, it may be better to keep it in-house. If you have a small customer base, it may be more efficient to handle sales yourself.
However, the most important reason not to outsource sales is if you have a successful sales team in place, and they’re working on a product with a strong product-market fit. In this scenario, your brand value proposition is already effective, and your product is solving your market’s problems. As a result, your sales team will find it easy to sell your product. The same logic applies to sales outsourcing – only when you have a product-market fit should you consider outsourcing sales. Outsourcing your sales will not address any product-market fit issues you may have.
Factors to Consider When Choosing a Sales Outsourcing Provider
When choosing a sales outsourcing provider, there are a few things you should consider. First, it’s important to compare the costs of different providers to see which one fits within your budget. Next, look at the specific services that each provider offers to ensure that they match your needs. For example, if you need cold outreach, make sure the provider can deliver on this. You should also consider the location of the provider and if they can work during your business hours and speak the language of your target audience.
To identify good sales providers, look for those with a proven track record of helping clients meet their sales goals. You can also check references and online reviews. The best providers take a consultative approach to understand your business goals and offer tailored recommendations. Finally, look for providers that are committed to customer service, as they will be more willing to address any concerns or questions you have.
Determining the Cost of Outsourcing Your Sales Processes
The cost of outsourcing your sales operations cannot be generalized, as it depends on different factors. The number of salespeople required, the duration of the project, the size and scope of your project, the typical sales process, and the location of your target market all influence the pricing.
On average, outsourced sales professionals may charge between $1,000 to $5,000 per project. However, big enterprises may pay more for such services. It is essential to determine the specific requirements of your business before deciding on outsourcing and to consider the costs involved.
Steps to optimize sales outsourcing performance
When outsourcing sales, the extent of the services provided can vary depending on the project. Some sales providers offer end-to-end sales support, while others only generate leads. Ultimately, the decision lies with the business.
Here are some steps that can help an outsourced sales team close more deals:
- Introduce the product: It is important for the salesperson to have a thorough understanding of the product they are selling. The business should take the time to go over the product’s features and benefits, and ensure that the salesperson knows how to communicate these to customers.
- Provide sales enablement materials: Sales enablement refers to any processes or technologies that help sales teams work more efficiently. This may include detailed presentations, product specifications, and information sheets.
- Establish Service Level Agreements (SLAs): SLAs establish clear expectations between the business and the outsourced sales provider. They specify the sales agent’s responsibilities, such as providing weekly progress reports or responding to inquiries within a specific timeframe. SLAs also indicate the number of leads the provider should generate within a certain period.
- Coordinate communication with the in-house team: Clear communication is important for ensuring everyone is up-to-date on the status of the deal. The sales agency or person should serve as the point of contact for all communications related to the sales transaction. Coordination with the in-house team helps ensure that all information is accurately relayed.