What Is Sales Outsourcing?
Sales outsourcing involves transferring sales responsibilities and tasks to an external firm. This external entity essentially functions as a virtual sales team on behalf of your company, leveraging their expertise to refine your sales strategy, ultimately leading to increased deal closures and revenue growth.
Why Companies Outsource Sales
Companies typically turn to sales outsourcing when aiming to expand their sales pipeline and accelerate growth. Outsourced sales teams are frequently utilized for accessing new markets and capitalizing on the specialized expertise, technology, and comprehensive services they offer, which may not be readily available with an in-house sales team.
Moreover, cost efficiency is a significant driver behind companies’ decision to outsource sales. Compared to maintaining a full in-house sales team with associated salaries and benefits, outsourcing typically presents a more economical option.
Outsourcing Business Development: When to Consider and When to Reconsider
Deciding to outsource your business development processes is a significant undertaking, one that warrants careful consideration rather than hasty decision-making. It’s essential to take the time to thoroughly evaluate your requirements and objectives, ensuring alignment with the capabilities and offerings of potential external agencies.
Considerations for Outsourcing Business Development Representatives
Here are some factors to consider when outsourcing business development:
The cost of outsourced BDRs
Business development efforts often necessitate a significant financial commitment. It’s crucial to carefully evaluate the cost versus the anticipated benefits to ensure a realistic Return on Investment (ROI).
To conduct this assessment effectively, consider factors such as the expenses associated with building an in-house team, your specific goals, and the timeline for achieving them. This analysis provides valuable insights into the most appropriate course of action, aligning your budget with your expectations.
Outsourcing business development typically offers transparent and predictable costs that are easier to assess against your budget. However, it’s essential to inquire about any potential hidden costs or additional fees from prospective Business Development Representative (BDR) teams before finalizing any agreements. This proactive approach ensures clarity and helps prevent unexpected financial surprises down the line.
The time required to achieve business development results
Establishing a complete in-house team of BDRs is a time-intensive process. While outsourcing also requires a time investment, the advantage lies in the relatively shorter timeframe to onboard and ramp up the new team for effective lead generation aligned with your requirements.
Certain outsourcing firms are equipped to expedite this process by leveraging their existing expertise and infrastructure. They can quickly integrate your messaging, customer journey, and playbooks into their operations, streamlining the transition.
Even if some initial meetings are necessary to align on target markets and other pertinent factors, reputable outsourcing firms typically require no more than a month to become fully operational and generate leads effectively. This accelerated timeline allows for swift implementation and minimizes downtime, enabling your business to realize the benefits of outsourced business development promptly.
The effort required for ensuring success
Realistically, some level of involvement with the outsourced BDRs is necessary for optimal results. The extent of your involvement largely depends on the agency you choose to partner with. Initially, the agency may request a significant amount of information from you, which could require substantial effort on your part.
Your input and collaboration are crucial for providing the outsourced team with the insights and guidance they need to effectively represent your brand and generate qualified appointments. Without sufficient input, there’s a risk of not achieving the desired outcomes, potentially leading to friction with your internal sales team.
It’s essential to assess your capacity in terms of time and energy to support the success of your outsourced sales team. Understanding the level of involvement required and being prepared to allocate resources accordingly will contribute to a smoother and more productive collaboration with the outsourcing agency.
How Outsourced BDRs Align With Your Unique Needs
Ensure that the agency you select possesses relevant experience either within your industry or with businesses facing similar pain points and requirements.
A recommended approach to confirming their suitability is by reviewing their use cases. Request case studies and examples of previous engagements that started with circumstances akin to your own. This allows you to gauge the effectiveness of their BDRs in addressing similar challenges and instills confidence in their ability to address your specific needs.
Additionally, consider asking the following questions when evaluating potential outsourced agencies:
Tools and Technologies: Inquire about the tools and technologies utilized by their BDRs to ensure compatibility and effectiveness in supporting your objectives.
KPI Alignment and Projected Returns: Determine if their Key Performance Indicators (KPIs) align with your goals and expectations, and request projections on the anticipated returns from their services.
Track Record: Seek evidence of their positive track record, including success stories and testimonials from previous clients.
Conversion Rates: Gain insights into their average conversion rates to assess their ability to deliver tangible results.
Support Offerings: Explore how they can support you in addressing specific areas, pain points, or requirements relevant to your business.
Understanding of Your Needs: Request demonstration of their understanding of your unique needs and challenges, ensuring alignment with your objectives.
Industry Experience: Inquire about their experience working with companies in your industry or sector, and request examples of relevant projects or clients they have served.
By posing these questions, you can thoroughly evaluate outsourced agencies and select a partner that not only possesses the requisite expertise but also aligns closely with your business objectives and expectations.
When Outsourcing Business Development Isn’t Sensible
Your Other Sales Functions Lack Commitment
Motivating your account executives to diligently pursue leads generated by outsourced BDRs is essential to safeguarding your reputation. Treating outsourcing as an afterthought can have detrimental effects.
Neglecting to follow up promptly with calls or emails post-outsourcing may project an image of lack of dedication and attention to detail, both on your end and that of the outsourcing agency.
To enhance your sales functions:
Ensure your account executives and sales team have efficient processes in place for lead follow-up. Above all, ensure sufficient staffing levels to manage the anticipated lead volume effectively.
You Believe the Costs Outweigh the Benefits
Outsourced firms typically charge prices starting in the thousands of dollars per month, a common objection BDRs encounter when engaging with prospects over the phone.
The perception of high costs and lack of direct control over results can make it intimidating to explore outsourcing services for those unfamiliar with them.
However, it’s essential to consider the actual value associated with the cost:
Cost savings is often a primary reason for outsourcing, as establishing an in-house team can be costly. BDR salaries range from $47,000 to $62,000 annually, according to Indeed, with costs increasing for true business development experts.
Training new team members can also be time-consuming, with those with less than a year of experience unlikely to bring significant strategy or innovation to your company initially.
This training period can slow down your efforts, meaning it may take up to a year after onboarding to see significant results or ROI from your new Sales Development Representative (SDR) team.
You Fear Losing Control Over Your Sales Development Operations
Lack of control is another significant reason why companies hesitate to outsource sales. BDRs directly interact with your clients, raising concerns about whether they will effectively represent your company.
The fear of potential mishaps occurring without direct supervision can be daunting.
However, allowing BDRs to operate autonomously can yield positive outcomes:
While it may feel like relinquishing control to have sales representatives working remotely, consider that even in-house staff cannot be monitored around the clock as they carry out their tasks.
Competent BDRs are typically self-sufficient and capable of managing their workload independently.
Outsourced sales agencies employ a system of checks and balances to ensure their BDRs adhere to best practices and performance standards, often utilizing performance analytics for evaluation.
It’s important to recognize that agencies have a vested interest in their clients’ success, as their own success is contingent upon delivering favorable results. This mutual interest fosters a commitment to providing clients with optimal outcomes.
