This question can be tricky. Through this blog, we will explain the reasons why.
Many external factors can affect the price of this service, like the type of business and industry you are working for, the size of the external team you need, the cost of labor in the country where you hire the team, and many others.
But on the other side, the benefits that outsourcing sales brings, especially in B2B sales, are significant. With sales professionals focused on generating leads and implementing effective marketing strategies, the potential for company growth and increased revenue is substantial, reducing the burden on your internal resources.
Considering that sales is the central puzzle in business and has a lot of benefits, the price of sales outsourcing is justified.
Table Of Contents
- What is exactly considered as Outsourced Sales Services?
- What does Outsourced Sales Personnel Actually do?
- Why should you Outsource Sales Services?
- How Much Companies Have to Pay for This Service?
- What is the cost of Outsourcing Sales Services?
- How to perform Cost/Benefit Analysis of Outsourced Sales offer?
- What are the benefits of Outsourced Sales Services?
- Conclusion
- How to Outsource Sales?
- Frequently Asked Questions (FAQ)
What is exactly considered as Outsourced Sales Services?
Sales outsourcing is a process of delegating one part or the whole sales process to an external sales team to handle on behalf of a company. It involves delegating tasks such as lead generating, finding and closing sales deals, and implementing effective marketing strategies, whether tailored for B2B or B2C sales.
Sales outsourcing brings you a huge opportunity to use your company and allocate limited resources in a quality and efficient manner, achieving continuous revenue growth and achieving sales goals without straining your internal teams.
Applying this model to your business is a great start for scaling your business and achieving significant growth in the future, making it an attractive option for companies across various industries.
What does Outsourced Sales Personnel Actually do?
When the sales department’s responsibility is entrusted to an external team, their scope of work is significantly expanded. The outsourced sales personnel play a crucial role in driving B2B sales success through various activities, including:
Lead Generation: They specialize in identifying and targeting potential B2B customers and dig through different channels to convert qualified leads effectively.
Customer Engagement and Relationship Building: Sales personnel continuously communicate with clients, whether they are B2B or B2C clients. They are responsible for building relationships of trust and loyalty, truly understanding customers’ needs by offering personalized solutions.
Sales presentations and demonstrations: The main characteristics of sales in 2023 are high level of competition and a huge amount of similar products. In such a challenging environment, your killer sales pitch will help you stand out! People are relying more and more on their visual sense. Add a bit of storytelling and voila – you have a winning sales strategy.
Representing a brand: Through selling products and answering customer calls and questions, sales personnel are true representatives of a brand and its values. This part of your team is the main point of contact between the business and its customers.
Implementing a marketing strategy: They contribute to developing and implementing effective marketing strategies through a higher percentage of achieved conversions. Keep in mind that the main marketing goal is selling a product or service.
Why should you Outsource Sales?
Outsourcing sales can offer numerous advantages and bring positive outcomes for your business. The five reasons to outsource sales are:
Cost-effectiveness: If you opt for this type of business, you will avoid costs such as recruiting, training, and maintaining an in-house sales team. Sales outsourcing eliminates the need for additional infrastructure, employee benefits, and ongoing training costs. In this case, you will allocate your financial resources more efficiently.
Access to Specialized Talent: If you choose to work with an outside sales team, you can work with professionals with sales expertise and niche market experience. This way, you will improve your sales performance and make more revenue.
Access to advanced technology and tools: External teams often have access to cutting-edge technology and tools that can make the sales process more efficient. The benefits of following new trends in the industry are making the automation of a sales process, data analytics, and customer relationship management (CRM) systems, which maximize efficiency and customer experience, benefiting companies across various sectors.
Efficiency and Resource Allocation: Integrating this model into your business operations can yield multiple benefits. It can save you valuable time and resources, ensure the efficient work of all teams with minimal disruptions and errors, and, most notably, empower you with the knowledge to make your company and accelerate its growth, reducing the strain on companies’ internal departments. To better understand the expenses associated with outsourcing, we recommend reading our blog post.
To better understand the costs associated with outsourcing, we recommend reading our blog post, “Should I Outsource Sales?”
How Much do Companies Have to Pay for This Service?
Understanding the exact costs associated with outsourcing sales services is essential for making informed decisions. Let’s explore the financial considerations in more detail:
Cost Determinants:
The expenses related to outsourcing sales services can vary significantly. Several key factors play a role in determining how much companies have to pay for this service. These factors include the size of your external sales team, the duration of your engagement, the geographic location of the outsourcing provider, and prevailing economic conditions in their region.
Team Size and Engagement Duration:
The size of your outsourced sales team and the duration of your collaboration can significantly impact costs. Larger teams may entail higher expenses, while longer-term contracts might offer cost advantages.
Geographic Location:
The location of your outsourcing partner is a critical cost factor. Labor costs, exchange rates, and market dynamics can differ significantly between regions and countries, influencing pricing structures.
Additional Expenses:
Beyond the core service fees, consider additional costs that can shape your overall expenditure. These may encompass training expenses, technology investments, travel costs, and other logistical factors. Some outsourcing companies may provide logistical support, further affecting costs.
Strategic Cost Analysis:
To gain a comprehensive view of what your company will have to pay for outsourcing sales services, consider performing a strategic cost analysis. This analysis involves defining your business goals, identifying key cost components, quantifying potential benefits, and establishing Key Performance Indicators (KPIs) to measure success.
What is the cost of Outsourcing Sales Services?
This sales outsourcing service can be financially challenging and impose significant costs.Firstly, the size of the sales team directly affects costs. Generally, larger teams incur higher costs. The number of team members depends on the sales targets, the size of the customer base, and the company’s financial capabilities.
Duration of engagement also has a significant impact on costs. Long-term contracts should be more budget friendly than short-term corporations. The geographical location of the outsourcing provider can also influence the price. The labor cost differs significantly from the region and country where the provider works. Also, the economic situation in the country where the provider works, exchange rates, and market demand dynamics contribute to price variations.
Finally, additional costs determine the direction of further business, like training costs, technology investments, travel costs, etc.
If the outsourcing company possess logistical infrastructure (venue, internet, office material and logistical support) this reduces costs significantly. And brings peace of mind, you focus only on what is being done for your company, the outsourcing company takes care of everything else.
How to perform Cost/Benefit Analysis of Outsourced Sales offer
If you are still considering whether outsourcing sales is a good option for your business, start with a cost-benefit analysis first. Here are the steps of the cost-benefit analysis for an outsourced sales offer:
Step 1: Define your business goals:
Goals should be clearly defined, achievable, and time-limited oriented. It’s important to take a realistic assessment of your current business position and your resources. Also, the position of your main competitors should not be ignored. Nor their actions and position in the market.
Step 2: Identify key cost components:
Identify and analyze the key cost components, including fees for sales outsourcing services, onboarding, training costs for your internal team members, and technology and infrastructure expenses if you decide to work sales in-house.
Step 3: Quantify potential benefits:
After you analyze cost and compare both models, in-house vs. outsourcing, you should consider the benefits of sales outsourcing service.
Outsourcing offers many benefits, and the most essential are cost-effectiveness, access to specialized talent, instantly visible results, access to advanced technology and tools, etc. Something that you should also keep in mind is the benefit of keeping you focused on your business, development and more strategic and vision related topics. With outsourcing these services you are exempted from the logistical organization of the team.
Step 4: Define your KPIs:
By defining clear key indicators of success, you will be able to follow your business’s development and ensure the efficiency of the work of the external team.
What are the benefits of Outsourced Sales?
This model has a lot of benefits. Let’s just check a few of them:
Rapid market penetration for Business Development: Working with an external team, you can significantly reduce the time it takes to bring products or services to market. Sales outsourcing firms often offer more productive business solutions, have more sales experience, and develop networks that help accelerate sales cycles. They can quickly increase sales efforts, penetrate new markets, and accelerate revenue generation, all of which are highly advantageous for business development.
Expanded network and connections: Sales outsourcing providers often have established relationships with key decision-makers, distributors, and other relevant stakeholders. Using the potential of outsourcing, you can expand the reach of your company, develop new strategic partnerships, and enter into new segments more easily in comparison to when you work alone with an internal team, benefiting your business development efforts.
Instantly visible result: Speed is essential in a fast-paced business world, especially for business development. You are able to achieve an immediately visible result through various sales tools and a high focus on the target audience, which external providers have. Using all social platforms, especially Linkedin, sales professionals are constantly digging for new ones and can easily find quality leads and convert them immediately without waiting, which is highly valuable for business development.
We suggest you read our blog “How to Outsource Sales?” where we dive deep into this topic.
Conclusion
You probably hear no matter how good your product or service is, without sales, you will not be able to market it and to continue your company in today’s highly competitive environment.
For 2023, the biggest challenge is to handle all tasks efficiently, but outsourcing is the best option if you have no time to deal with everything.
With a sales outsourcing service, you will have more time to focus on managing your core business and developing new business ideas, while simultaneously conquering new markets, expanding your company, and achieving outstanding results with the dedicated work of an external team.
How to Outsource Sales?
To ensure a profitable sales outsourcing experience, consider adopting the Strategic Business Growth (SBG) process. This method involves a systematic approach to sales outsourcing, maximizing its benefits for the organization.
Client’s Idea
Our partnership will start by scheduling a call with you to understand your business requirements and goals. Based on all the information, we will prepare a customized proposal with a scope of work, pricing, and other relevant details. The proposal will also highlight the benefits of outsourcing digital marketing positions, such as access to a more incredible talent pool and efficacy in executing your projects while being cost-friendly.
Setting up the right team
Once we sign the Agreement, our HR department will start with the screening and recruitment process, so we can set up a team of marketing experts to work on your project. Once we get a pool of qualified candidates, we will present them to you for review. You would be able to interview and evaluate the candidates in the last round to determine if they are a good fit for your business.
Facilitating and onboarding
Once you get your dedicated Belgrade team who works exclusively for you, we will start the onboarding process. This would include setting up their office and workspace, providing necessary equipment or tools, and ensuring they receive the required training.
Execution
The marketing team will execute the project as per the agreed-upon SLA. The team will use various methods to generate leads, including email marketing, social media outreach, cold calling content creation, running PPC campaigns, etc. We are keeping up to date with all the necessary information quickly since you have a designated project manager explicitly working for your business/project.
Maintenance and training
We will provide comprehensive training for the newly recruited marketing team. This training will include product knowledge, sales techniques, and other relevant skills. We will ensure that your freshly established marketing team is equipped with the tools and resources necessary to succeed in the industry in which you operate.
Managing and reporting
As mentioned, each project has from our side project manager who ensures everything runs smoothly in the office. He is your single point of contact, overseeing the project, so you can rest assured that all your requirements will be met and you will receive regular updates on the progress of your project.
Frequently Asked Questions (FAQ)
What is exactly considered as Outsourced Sales?
Sales outsourcing is a process of delegating one part or the whole sales process to an external team to handle on behalf of a company. It involves delegating tasks such as lead generating, finding and closing deals, and selling a product or service, whether tailored for B2B or B2C sales.
What does Outsourced Sales Personel Actually do?
The most common activities performed by the sales staff are lead generation, customer engagement, relationship building, sales presentations, representing a brand, and other common activities. Sales personnel are the main point of contact between the business and its customers, whether they are B2B or B2C clients.
Why should you Outsource Sales?
Outsourcing sales can offer numerous advantages and bring positive outcomes for your business. One of the reasons you should start thinking about outsourcing sales services is, cost-effectiveness, lack of internal expertise, and access to advanced technology and tools, especially beneficial in B2B sales.
What is the cost of Outsourcing Sales?
This sales outsourcing service can be financially challenging and impose significant expenses, like sales time size, duration of period to which the signed contract refers, the geographical location of the outsourcing provider, economic factors, additional expenses, etc.
How to perform Cost/Benefit Analysis of Outsourced Sales offer?
If you are still considering whether outsourcing sales is a good option for your business, start with a cost-benefit analysis first. Here are the steps of the cost-benefit analysis for an outsourced sales offer:
Step 1: Define your business goals.
Step 2: Identify key cost components
Step 3: Quantify potential benefits
Step 4: Define your KPIs
What are the benefits of Outsourced Sales?
Sales outsourcing service has a lot of benefits. The main benefits are faster time-to-market, expanded network, and connections, particularly advantageous in B2B sales.
How Much Companies Have to Pay for This Service?
The cost of outsourcing sales services can vary based on several factors. These include the size of your external sales team, the duration of your engagement, your outsourcing partner’s location, and additional expenses like training and technology investments.
To determine the exact cost and assess the potential impact on your revenue, it’s essential to perform a strategic cost analysis by defining business goals, identifying key cost components, quantifying potential benefits, and establishing Key Performance Indicators (KPIs) for success.
What Metrics Should I Track to Measure Outsourced Sales Performance?
Metrics such as lead conversion rates, revenue generated, customer acquisition cost (CAC), and return on investment (ROI) are essential for evaluating the performance of your outsourced sales team, particularly relevant in B2B sales. Clear KPIs should be established to measure success.
How to Outsource Sales?
It all starts with your idea. Our team is here to support your idea and help realize it with adequate recruiting and the process of selecting the right candidates, training, and managing them effectively. Before we begin, we suggest you schedule a consultation with our team, who will provide the necessary guidance and answer any questions you may have.
