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The Right Time: When Outsourcing Sales Makes Sense - Part I

    

WhenOutsourcingSalesMakesSense

Tempus fugit—translation, please—time flies, and when it comes to sales, time is money. But when is the right time to consider outsourcing sales? There is no one answer to that question. Every organization’s sales needs are different, but chances are that your sales team can use a little outside help.

Outsourcing isn’t something new. Back in 401 B.C., Cyrus the Younger had one of the first outsourcing contracts when he hired Greek warriors to kick his brother off the Persian throne. Companies continue to outsource today, enlisting outside expertise for accounting, financials, payroll, and human resources. Anytime you need more resources or specialized expertise, consider outsourcing.

When it comes to sales, companies outsource everything from incentive programs to worldwide sales. It takes careful consideration before you can decide to trust your sales to an outside service. In a tight economy, it can be difficult to justify expanding the sales team, but if you don’t expand sales, your business can’t grow. That’s when it makes sense to look outside your organization for help.

Sales-as-a-service specialists such as MarketStar have the resources and the expertise to ramp sales quickly, delivering custom sales solutions that reduce risks and eliminate the immediate need to expand your own sales infrastructure. As management guru Peter Drucker said, “Do what you do best and outsource the rest.”

Download E-book: 5 Outsourcing Strategies for Inside Sales

You may have a good reason to consider outsourcing a portion of your sales program. Here are five of the most common reasons organizations are outsourcing sales:

1. Cost Reduction

Outsourcing sales lets you bring on the best resources without adding overhead. Organizations underestimate the cost of hiring in-house sales reps. Estimates for the typical cost of hiring a sales rep in 2014 included recruiting ($15,000), training ($20,000), plus salary and incentives ($75,000 or more). When you consider that the turnover for sales reps was around 26 percent in 2020 according to one survey, that’s a lot of money to invest.

Outsourcing sales gives you ready access to expert reps without having to go to the time and trouble of hiring them. Sales-as-a-service companies specialize in recruiting and training sales reps to serve you, so you don’t have to do it yourself. Outsourcing sales not only saves overhead, but it also cuts costs since outsourcing is considered a tax-deductible expense, unlike staffing.

2. Staffing Challenges

Putting the actual costs of staffing costs aside, finding qualified sales reps can be quite challenging. There are a lot of salespeople looking for work, but do they have the right experience and credentials to meet your needs? Some experts estimate the cost of a bad sales hire can be as high as $2 million.

Rather than risking a bad hire, you can get the best sales talent right away by outsourcing. The best sales-as-a-service companies have a pool of sales professionals that are right for your needs.

3. Scalability, Flexibility, and Shorter Time-to-Market

When you engage outsourced sales specialists, you can scale faster. If you need to launch a new product, open a new market, or expand your sales quickly, then outsourcing gives you immediate access to the right sales talent.

When you outsource sales, it also gives you more scalability and flexibility. You can expand the sales team as needed, and if you need specialized sales expertise, you can outsource it rather than trying to hire it.

4. Mitigating Risk with Pilot Programs

Anytime you ramp up to create a new sales channel or new sales initiative, you are assuming a degree of risk. You can mitigate that risk by “renting” the sales resources you need rather than hiring them. By outsourcing sales as a pilot program, you can move quickly and test new strategies and new markets with minimal financial risk.

5. Focus on Sales Performance

When you outsource, you also get to hold your outsourced sales partner accountable for performance. You have a statement of work and can implement quotas, so you essentially pay for performance. Using a statement of work acts as an incentive that drives the outsourced sales team to work harder to meet their goals. You reap the benefits of a more focused sales team without incurring the overhead.

There are just five reasons you should consider outsourcing sales. Chances are that your organization is facing challenges such as scaling for growth, finding the right sales talent, or opening a new sales channel. It may be time to consider outsourcing. You have nothing to lose and everything to gain.

If you want to learn more about outsourcing sales strategies, be sure to download our e-book, 5 Outsourcing Strategies for Inside Sales, and know we are always available to chat further when the time is right.

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