Before Sales Outsourcing, Stop and Think About These 4 Things

Josh Slone posted this in the Sales Skills, Sales Terminology Category
Reading Time: 4 minutes

Some companies race to outsource their sales processes from start to finish.

Usually due to the complex and time-consuming processes involved. Things like finding quality leads and pitching prospects.

What exactly is sales outsourcing?

Sales outsourcing is when you purchase sales functions (lead generation, cold calling, etc.) outside of your own in-house sales department to help promote your company’s products or services.

Sales outsourcing has been at the center of sales management debates for over a decade now. Many companies prefer to be in “full control” and are hesitant to trust third-parties to operate crucial parts of their pipeline. To outsource, or not to outsource, that is the question.

What is the answer?

The answer is, unfortunately, is that there is no definitive answer. Sorry!

Every company’s infrastructure and products are different and will require various combinations of in-house and outsourced sales resources.

Before you start shopping around to outsource your entire sales department, it is essential to consider the best option for long-term sustainability and affordability for your unique sales pipeline.

Nowadays there are many options for finding specialists and agencies to help with your pain-points or a function in your sales department you do not have the personnel to execute well.

They are there to help, and many are incredibly reputable, bringing better results than a company could produce on its own. In other cases, employees can be the best advocates for your product, and might only need help with one smaller area, or perhaps no help at all, they are entirely self-sufficient.

This article will serve as your one-stop guide to b2b sales outsourcing, giving you tips on how to design your sales department, what to outsource and why, and what to keep working on in-house.

Every business is different, and every sales manager and operations executive have their own strengths and weaknesses to consider, in addition to their budget, and existing personnel.

Before sales outsourcing stop to consider these 4 things to help customize and optimize your department for maximum long-term sales results with minimal costs.

Before We Get into That — Why Not Automate?

Sales outsourcing may or may not be a good thing for small businesses. But automating almost always can be. 

Using LeadFuze, you can:

  • Search for highly-targeted leads.
  • Send leads automatically to your favorite sales tools (Like Mailshake and Orca).
  • Use those tools to automate your outreach!

Doing this can effectively “outsource” your lead generation and outreach. The only thing you’ll have to do (once it’s setup) is talk to leads who respond.

Now, back to the subject matter at hand.

1 Consider Your Sales Cycle and Product

Your particular sales development style might not suit an outsourced model.

Especially if you are B2C or B2B2C. Any product with a contract value priced below $1,000 has difficulty fitting into many outsourcing services. It might be hard to balance account executives and SDRs in a meaningful way.

If your product is over $1,000 and has a longer sales cycle, you might be a better fit for outsourcing.

When personas are more important than reaching a large pool of prospective consumers, outsourcing lead generation makes more sense.

If your business has a short sale cycle with endless potential leads, your strategy, more so, needs to revolve around getting as many people to know about the product as humanly possible.

Cold-calling could be a good fit, but inbound marketing strategies might be a better use of budget. Consider your product and customer before outsourcing.

2 Budget and Bottom Line

Budgets, every company has one.

This number might carry the most weight in your decision to outsource, and in many cases, the decision starts and ends here. While it is incredibly important to stick to your sales department budget, remember to not limit yourself to this point as the sole thing driving your decision to outsource or not.

At a glance, fees for outsourcing firms can seem like an unreasonable monthly burden on a budget. It always feels “extra” because it exists outside of the company.

When pricing out services it is important to remember your total insourcing costs, and the potential in-house costs that could be cut and the potential sales there are to gain through outsourcing.

When pricing out services it's important to remember the total insourcing costs, the potential in-house costs, and the potential sales. Click To Tweet

In-house SDR salaries are quite expensive ranging from $47K to $62K, just for the base.

Then there is training to consider. For the first year, an SDR might only cost the company money. It is these hidden costs we forget to weigh against the seemingly hefty price tag of outsourcing. Remember to look at the whole picture and don’t forget that you aren’t just trying to find the cheapest labor.

But you are trying to build an incredible sales department that will increase their revenue each quarter and develop long-term relationships with your clients.

3 The Illusion of Control

Those who are actively against outsourcing often think they are more in control by keeping their sales department completely in-house. This tends to be a total myth, and if control, or rather the illusion of control is your reason for insourcing, you might need to reevaluate your motives.

It is natural to feel protective over your potential clients, but similarly, you cannot hover over every shoulder in your own office.

While you think you have more control over your SDRs, you cannot control every word they say or type; sales is very much a solo operation.

Outsourcing can free up your in-house SDRs to help them execute your strategies more effectively. So, residual benefits like this can bring you the control you are seeking. You get to decide where the energy of your in-house employee goes, by paring away more draining tasks and entrusting them to the care of specialists.

Control isn't about eavesdropping on every conversation, it's about deploying and delegating tasks to the parties best equipped to handle them. Click To Tweet

You can have control when it comes to both insourcing and outsourcing, control isn’t about eavesdropping on every conversation, it is about deploying and delegating tasks to the parties best equipped to handle them.

4 A Fresh Perspective

You might think you have a 360-degree vision of your company when everything is in-house, but you could be missing out on a useful perspective from an outsourced agency.

They will have more specific reporting systems and record potential buyers’ attitudes and opinions on your product. Completely in-house agencies can have a lot of blind spots that hiring a third-party can illuminate.

Finally, Consider this Before You Outsource Sales

The most outsourced sales function continues to be Lead Generation. Why? Lead generation agencies will systematically produce results.

They do so by using tried and true methods that are then customized to fit your product or service.

There isn’t just one kind of lead generation or sales process to outsource. You can hire inbound lead generation agencies for content marketing and social selling or outsource to outbound lead generation agencies that specialize in cold calling and email prospecting.

There are also lead services that focus on relationship building. And SDR to follow up on opportunities to free up time for your account executives.

Every business is different.

Sales outsourcing is only successful when you have fully considered your options. Without analyzing your existing capabilities and setting a realistic goal — it’s not going to work.

Don’t expect outsourcing or taking everything in-house to be an overnight cure!

Whatever sales issues you were facing last quarter will likely still be there. Refining your sales department is a constant process and will continuously need evaluation as your company and product grow and evolve with your client base.

Josh Slone
About Author: Josh Slone
Josh Slone is the Head Content Writer for LeadFuze. Josh writes about lead generation strategies, sales skills, and sales terminology.

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