Benefits of an outsourced sales approach are many and varied.
March 11, 2014
A small initial outlay can dramatically reduce risk compared with other solutions because there can be a high return on investment due to the proven, successful sales people employed by the outsourcing company.
Flexibility and efficiency is increased by acquiring a wider range of skills as they are needed. Customers outsource services to compliment and support their own organizations core skills.
Reduce financial outlay by having an engagement where there are few upfront recruitment fees. A two to three month Launch and test phase can be used to prove the concept ad likely success rates before committing additional investment and resources.
Resource levels can increase or decrease, as required, at short notice. Low performing resources can be changed, quickly and easily.
Sales resources can be split geographically. For example, a five day sales recourse could be split: three days in the South East, a day in the west and a day in the Northeast and Canada. The same principle can be applied to divide sales resources according to vertical markets or product groups.
Employee relationships are not created eliminating the associated overheads and risks. You can have total resources control and management as with in house sales employees, with performance metrics and targets.
The outsourcer may also procure additional leads from within its own network for agreed finder’s fees and commissions.
Return on Investment (ROI) is vital for those considering sales outsourcing. In the methodology the preparation phase is typically fixed price and is a few day’s consultancy rates.
The Launce/ Test phase is typically charged on a time and materials basis, for the resources utilized, plus a small commission for early sales.
In the longer term the arrangement could be anything sensible – a continuation of the time and materials operation of the test phase, or more typical is a form of retainer and higher commission.
Many Business functions have been successfully outsourced over the years and this approach has recently adopted and developed to optimize the sales function. This approach has become a more common place, particularly within the small and start up business community, because they often do not have or cannot afford to employ their own, in house professional sales expertise.
In addition this solution is very applicable for companies setting up in a new market space or overseas where the outsourcing company brings a wealth of local knowledge and contacts.