- Posted by Steve Gruber
- On August 15, 2017
- 0 Comments
The question of outsourcing components of your business needs comes up all the time. Whether it be your accounting or payroll or IT services…but what about your sales? The revenue generation component of your business is undoubtedly the most important for without top line revenue you have no business. Sales team outsourcing can be a bit daunting and perhaps even a bit scary, but if you have not had success running or building your own sales team, if you don’t have a background in sales or if you are limited with respect to your resources, then there is a case to be made for looking externally to support this need.
There are numerous benefits to outsourcing your sales, and yes, I am biased as a major component of our business is sales outsourcing. These include:
Focus on What You Are Best at
If your core business is making software or providing industrial solutions and you have a solid, technical team that can deliver but really no background in formally selling, then there is a good case to be made for outsourcing your sales. Do what you do best and look to bring in experts to do what they do best. The key here is finding the right sales outsourcing partner to work with. You want one that understands your business and value proposition and has a plan to help you get out to the market and drive new sales.
Hiring salespeople, whether at a senior or mid-line or even junior level, can be costly. For a senior person, you could be spending $100,000+, for a mid-line salesperson $75,000, and for a new recruit $40,000. Plus you have government burdens, paid for vacations, office space, computer and related equipment costs, mobile phone bills, etc. The cost of outsourcing in many cases can literally be half of what you would spend on a full-time person and yes, you get someone who may be working part-time for you but at the same time, every hour they spend is selling – not going to the water cooler for a chat or a long lunch break with colleagues.
Provide More Flexibility
Cash flow is king in any situation and dictates spend. Outsourcing your sales gives you more flexibility in many cases because you can ramp up and ramp down your investment as you need to. I know we have many clients that, depending on the time of year, need to scale back a bit but don’t want to stop. Having the ability to do that but not lose the consistency of the effort is key. In many cases too, your outsourced sales resource may be able to provide not only sales execution horsepower but also strategy assistance, and they can tie that into your marketing to ensure you are firing on all cylinders. So you get access to the expertise you need when you need it.
Another example could be the launch of a new product. You don’t have the sales resource internally to launch it, so rather than go through a costly recruitment process, outsource the sales to a firm that specializes in selling. This saves you having to invest in a new person, saves training costs and also allows you to test the market for this new product in a much more cost effective and efficient manner. If the product turns out to be a huge success, then you could look to hire full-time.
Bring in Proven Methodology and Expertise
Most firms that specialize in sales outsourcing have a set of methodologies and best practices they follow to drive success. I know we have a specific process we follow to help onboard customers quickly, and this process allows us to begin the outbound sales effort in a few days. We then apply a process methodology to the sales work where a sales CRM is utilized, follow up calls are scheduled on a timely basis, sales pitch decks are built in a specific way and delivered in a specific manner, etc. Basically, don’t reinvent the wheel. You can leverage someone else’s expertise to get things rolling faster.
You Lack the Resources
Whether it be money or simply the human capital, outsourcing your sales can be a solution. Often times as I mentioned earlier, there is a cost benefit to outsourcing your sales and it can be in the range of 50% less costly than hiring full time. Tied to this is the human capital component. Due to financial constraints or even managerial constraints, it may not make sense to bring a new person on full-time, so consider outsourcing to a firm that can manage the work with little oversight and ongoing management.
If you’re looking for outsourced sales and marketing assistance, please don’t hesitate to contact us. For great insight into startup sales and marketing, feel free to sign up for our newsletter or follow us on Twitter.