Benefits of Sales Outsourcing

August 28, 2023
6 minutes to read
inside sales solutions
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What is Sales Outsourcing? 

It is the transfer or development of sales resources, including all overhead expenses, such as recruiting, payroll, insurance, commission management, equipment, training, and management responsibilities to an outside organization.  The outside organization, the outsourcing provider, is responsible for managing the sales team to meet corporate expectations and achieve results. Outsourced sales, or contract sales, provides sales resources to a client business by a trusted third-party sales team. The entire sales process or partial sale processes can be outsourced. From lead generation, and follow-ups to managing particular product/service segments or locations. Using a sales outsourcing company allows businesses to access a sales force without hiring employees in-house. Outsourcing has gained traction in recent years, providing necessary talent when needed as companies grow rapidly.  Companies realize the time and cost savings they gain and are outsourcing more non-core competency functions like accounting, HR, IT, marketing, and sales. Furthermore, it is often deemed a market entry strategy for startups or businesses wanting a quick time-to-market. Let’s look at some of the key cost savings and benefits below.

What is causing an increase in demand for Sales Outsourcing?  

  • “Sales Expertise” – Engineers and financial or operations-type professionals launch many organizations.  They can grow a business to a certain level based on their expertise, but to achieve their next level of growth, they need to look outside of the organization to find sales & marketing guidance and direction.  
  • “Keeping a Focus” – Many large organizations have existing sales teams.  If you put too large of a burden on your existing sales team with new products, new geographies, or new targets, they will lose their focus!  An alternative channel, such as a sales outsourcing organization, allows a focused sales effort on a particular market segment or product.
  • “Tactical Revenue Generation” – Sales Focus Sales Outsourcing solutions range from advisory services to inside and outside sales teams focused on developing Tactical Revenue Plans that will help companies quickly achieve the next level of growth.  
  • “Cost of Sales” – If an organization looks at the true cost of building, supporting, and managing a sales force, they would be surprised.  Many companies can’t tell you the true “cost of sales.”  Sales Outsourcing offers clients a “fixed” cost of sales solution.   Sales need support, including management, recruiting, training, marketing, commission management, etc. The average cost of sales outsourcing is lower than developing your own sales team because we bring the support team with us!
  • “Speed to Market” – Another factor is time to market; it’s much quicker for an outsourcing provider to have a well-trained and managed sales team out the door making and closing business than organically growing a team.  Outsourcing providers are constantly recruiting and have Sales processes in place, and can produce results with “feet on the street” in 45 days or less.

How Much Does Sales Outsourcing Save?

According to Bersin by Deloitte, the average cost per hire is almost $4,000. This may differ from company to company, but you can calculate this important metric on Glassdoor for your business. This cost is not only an upfront recruitment and training cost, but also a risk to businesses for additional payroll employees and also any future turnover costs. Seeking an outsourced salesforce reduces that risk and both partners are invested to grow together.

What are the Benefits of Outsourcing Your Sales?

When you decide to outsource sales with a reputable partner, you’ll gain access to higher-quality talent faster than you would search through the talent pool yourself or via a recruiter. Less training required also means that you won’t be facing the same reduced productivity when new hires are still learning their role. An outsourced sales company is also specialized to solely focus on your sales needs, so you’ll be able to dedicate more resources and time to core competencies like product development or management.

So now the question of “Is outsourcing sales right for me?”

The decision to outsource sales cannot just be focused on the cost savings or skills benefits. Companies must decide if it’s the right time to grow, what their focus is, and become educated about the different outsourced sales options out there. Like any business partnership, choosing a partner that aligns with values is important to be successful.

With all the benefits you stand to gain by choosing SFI, the question you really need to ask is “How soon do I want to outsource my sales?” Get started today. Contact us to speak to a knowledgeable representative about your sales needs and be ready to launch your new start-up sales plan in less than two months.

How to Hire an Outsourced Sales Agency?

Sales Outsourcing is still a growing industry that is becoming increasingly crowded with new competitors.  It’s important to verify that the organization has successfully developed and launched several sales teams.  The Sales Outsourcing provider should clearly understand vertical industries and know how to differentiate between selling products and services.   They must also possess strong sales organization development capabilities and have their sales processes well documented along with a solid launch process to get the team moving quickly. In today’s super competitive environment, building a successful sales force depends on a partnership mentality between the company and the provider.

The Business Owner should expect;

  • Rapid Market Share Acquisition
  • Exclusive Representation of Product or Service
  • Fixed Cost of Sales
  • Flexibility of Sales Staff
  • Industry Knowledge
  • Manageable Service Level Agreements
  • Quality Sales Professionals
  • Documented Sales Processes
  • Predictable Forecasting Tools

On the other side of the table, the employer is responsible for providing the tools and support necessary to give a motivated and talented sales team the means to turn their hard work into results.  The common denominator among successful companies is that they are process-driven and always FOCUSED ON SUCCESS!

Characteristics of High-Performance Intelligent Sales Outsourcing Solutions

  • A Compelling Vision for The Future
  • Organizational Alignment and Communication 
  • Managed Sales Processes and Service Delivery Systems
  • A Common Sales Skills Toolkit and Language
  • Effective Sales Talent Acquisition, Development, and Retention Programs
  • Targeted Sales Metrics
  • A Vertically Integrated System for Adapting to Changing Market Conditions and Capitalizing on New Market Opportunities

Hire an Outsourced Sales Agency like Sales Focus

Every business owner or corporation has the desire and requirement to expand and grow their customer base.  Everyone organization has a focus on new client acquisition and increase in annual revenues.  Most companies have some sales team, maybe 1 or two people or it’s the owner of a small business or a large organization may have thousands of salespeople across the globe, all types of businesses can utilize a sales outsourcing solution. For small companies, we can become the entire sales force, while allowing the management team to focus on delivery and operations.  Many small companies struggle with the rollercoaster effect, focus on short-term rewards and forget about building pipelines for long-term success.  Our model is on short-term revenue with long development so the business can continue to prosper and grow.  Many small businesses hit a plateau because they lose focus on development, we eliminate this problem. Large organizations need Sales Focus on Intelligent Outsourcing Solutions for SMB acquisition.  Our focus for large companies is to take over or supplement their existing teams and focus on the transactional sale of the SMB sector.  We can launch a team across the US in less than 45 days, whereby it could take a company month to accomplish this task.  Our experienced sales team will focus on areas of expansion; new territories, new product launches, test programs, and many other solutions that can build an immediate business unit that can be utilized or acquired for future expansion.

Outsourced Sales Agency Services

How do you differentiate your products and services in a global economy where you need excellent product/service packages and very competitive pricing just to be in the game?  Product and service differentiation is short-lived and can be easily copied, and very few organizations enjoy the type of ‘Economies of Scale” where they can afford to compete on price alone. Today’s buyers are much better educated and, with the aid of the Internet, can easily identify numerous suppliers around the world.  These same buyers are also looking for value-added business relationships and vendor partnerships. This is why simple product/service solutions or features, advantages, and benefits selling systems are no longer enough to help you win and keep clients.  To compete and win in today’s marketplace, you need a selling organization that can identify business solutions that will support your buyer’s business needs, requirements, and opportunities. This type of approach requires an organizational selling system and a sales team with advanced consultative selling skills.