SFI Sales Outsourcing Costs

August 28, 2023
4 minutes to read
sales outsourcing costs
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Sales outsourcing costs depend on multiple factors.  The sales experience level of the sales representative, the geographic location of the salesperson, and whether specific industry knowledge is required.  Our Intelligent Sales Outsourcing Solution typically has 4 factors in the pricing model.

  1. Startup Fee – to develop the sales plan and training materials along with the recruiting of the sales professionals.  Recruiting is a one-time fee and never charged again for the duration of the program no matter the number of turnovers of any staff member. The startup fees can range between $1950 – $10,000, depending on the size of the sales team.
  2. Monthly Fee – Monthly Fees for an Inside Salesperson, one who works 100% of the time from our US office conducting phone, email, and electronic communication runs from $4,650 to $5,850 per month per sales agent.  Monthly Fees for Outside Sales representatives are a factor of the skill level and geographic location of the salesperson.  To determine the monthly fee for an outside person we take the annual salary, which is predetermined by the client and Sales Focus, then add a multiplier of 1.5 then divide that number by 12 months to get the monthly fee.  The monthly fees are all-inclusive of salary, insurance, taxes, all benefits, facility, management, operation oversight, and all HR expenses.  The only fees not included are travel and entertainment.
  3. Incentive Fee – Before any program launching a commission/incentive plan will be developed by Sales Focus and approved by the client.  Commission plans vary depending on the product/solution, the value, the margin, and several other factors.  Commission plans are developed to focus the salesperson on achieving specific revenue or client acquisition goals.
  4. Performance Guarantee – Every program has a performance guarantee, whereby if Sales Focus does not achieve specific and predetermined revenue goals, we will provide a credit of some of the monthly fees to the client.

The investment for a client to outsource their sales team is typically much less than if they hired sales representatives internally and have to burden the cost of management, recruiting, and training, along with all the HR costs associated with hiring and staffing a sales team.  The cost to replace salespeople is included in our fees, which can be extremely expensive for organizations to take on themselves.

Sales Outsourcing Costs

Most quality sales outsourcing companies charge monthly fees, whether they are fixed or variable depending on the outsourcing company.  The investment a company will make depends on the quality of the sales team. Off-shore, organizations will sometimes offer commission only or pay for performance programs.  Typically, the cost of these programs is higher than paying fixed monthly fees, however, the risk is much lower.   Most organizations do charge three levels of fees;

  1. Startup Fees
  2. Monthly Fees
  3. Commission/Incentive Fees

Fees vary depending on many factors.  Some organizations have minimums on the number of sales agents on a program.  They will only do a program with 5 or more sales representatives.  Sales Focus has always allowed the customer to determine the number of sales agents with no minimum or maximum number allowed.

The cost of outsourcing is typically 20-30% less expensive than hiring internally.  With the burden of management, overhead, recruiting, and training, the true cost of outsourcing is much less expensive.  The decision to outsource should be based on many factors, however, the cost should not be the deciding factor, as the desire to grow your business, expand, and acquire new customers should be the reason to outsource.  With the Sales Focus guarantee, we put “skin” in the game and commit to our success which is your success!

The Cost of Not Doing Sales Outsourcing

The cost of NOT outsourcing typically revolves around lost opportunity, lost revenue, and lost clients.  A decision to not outsource and do the process in-house typically costs more in initial investment and lost opportunity, as the time to build internally is much longer and costlier.  The infrastructure of an organization must also be prepared to staff, train, manage, and replace, which takes recruiters, HR, and sales management and trainers.

The Sales Focus Intelligent Sales Outsourcing Model can launch an entire team across the US or globally within 45 days, independent of industry or skill set requirements.  Most small organizations do not have the infrastructure to build and effectively train and manage sales representatives.  Small organizations rely on owners or partners to be the sales management team and typically they don’t have the time, skill, or ability to effectively train and manage sales representatives.  Large organizations have the issue of too much infrastructure or bureaucracy to launch a team quickly and effectively.  They have internal skills and are quick to market.  Intelligent Sales Outsourcing solutions provide small companies with the knowledge and expertise and provide large companies the speed and flexibility.  

When a company can’t get to market or takes months to get their product/solution to the customer it can cost them millions of dollars of lost opportunity and market share.  If a small organization doesn’t have the skills to manage a sales team, then they struggle with a constant battle of hiring, training, and replacing because they don’t have the time or skill to effectively provide the salespeople the skills needed to succeed.