Revenue Ventures: The Cost Effective Solution
Along with growing your business and fueling increased revenue, we save you money by drastically lowering the cost of maintaning your own sales force. We determine how to structure our fees by taking into account the resources needed to make your business a success while positioning ourselves very competitively against the other choices you have.
Even though cost savings is not the most important reason for companies choosing to outsource Sales and Marketing functions, it is a significant benefit. Full Sales Force Outsourcing typically saves 25% to 50% in costs over onsite teams. Although the benefits from cost improvement are compelling, they are just part of the financial gains from building a more competitive business model.
Over 20% of B2B sales in the United States across every sector are made by outsourcedsales professionals. Many technology companies make significant use of sales force outsourcing. Intel, forexample, uses outside sales organizations to sell products in markets where its inhouse sales force lacks experience or has few relationships.
Top Ten Reasons why Technology companies are outsourcing sales and marketing today.
Reduce and control operating costs
Improve company focus
Gain access to world-class capabilities
Free internal resources for other purposes
Resources are not available internally
Accelerate reengineering benefits
Function difficult to manage/out of control
Make capital funds available
Let's examine the inhouse sales options in comparison to sales outsourcing.
If you hire your own sales staff
You go it alone, conduct a search, interviews, hiring process and hope it works out.
According to Salary.com, the median pay for an inside sales person in the San Francisco Bay area is $42,000 or $3,500 per month. If in a few months they don’t work out, you must invest in a renewed search for that person's replacement... and will likely continue the process over and over again.
The average Sales Manager commands a salary around $126,000 in annual base pay plus another $34,000 in performance pays, according to Salary.com.
A headhunter will find you this person, but will charge you a fee equal to 3 months contract salary, another $30,000.
If you hire a sales manager
If you use a staffing agency
Staffing agencies work in a similar way to headhunters in that they take a percentage of the base pay of the employees they find for you.
Therefore, they'll work for you only if your base pay is $50,000 or more. Even for a small sales team you can see how costs can easily exceed $200,000 in short period of time with ultimately no guarantee of a return.
This is like the desert mirage of the sales recruiting business. It looks appealing at first, no risk on your part and you estimate that if you offer a high percentage the smart ones will get it. Unfortunately, straight commission jobs have the perception of low-level and second-tier. What happens is the experienced and marketable sales people will take the base jobs leaving you with the misfits who will - for as long you'll let them - hang around while they continue their job hunt for some guaranteed income. More time and more money is expended chasing one risk free mirage after another.
If you offer to pay commission-only
Let Revenue Ventures save you time and money. Set up a free consulation today.
“Revenue-Ventures interaction is professional and goal oriented, with a very positive and friendly approach they deliver and know what they are doing with a personal touch.”
Enterprise Software Solutions – Principle