The Benefits of Outsourced Sales Management

August 25, 2023
4 minutes to read
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Finding and retaining customers is one of the major challenges faced by small businesses, with employee management being another. However, hiring a sales professional is too expensive for most small enterprises, so why not outsource your sales team?

You must be thinking that outsourcing any form of service is only for large companies. The truth is, the entire outsourcing industry was created with the goal of cutting costs and adding value for businesses. With outsourced sales management, you get to reap the benefits of having a professional sales management team on board while minimizing expenses.

What Is Outsourced Sales Management?

Sales are situated at the very core of any business, regardless of its nature or industry. “Sales” is the blanket term for activities dedicated to selling a product or service. Sales teams strategize the best ways to encourage people to buy whatever their company is offering.

Larger organizations often have their own sales teams, with some that are dedicated to different regions. Small businesses would naturally benefit from a similar yet smaller group of people. However, acquiring and managing a sales team is quite expensive and time-consuming for a small enterprise.

Sales outsourcing is the practice of hiring a third-party company to become the sales manager for you. They will take care of the hiring, training, and management of the team that will handle the sales for your business. That team will develop a sales strategy that will help your small business acquire and build strong relationships with your customers.

In-House Sales Team: Not All Rainbows

A lot of small businesses have chosen to outsource sales management in order to cut costs while benefitting from the expertise of professionals. But for small businesses with limited resources, managing an in-house sales team can pose some issues.

The primary challenge of hiring an in-house sales team for small businesses is the financial cost that comes with it. You have to invest your resources in hiring and then onboarding a sales representative. Then, you have to provide them with a salary and benefits as well as dedicate a space for them in your office. Meanwhile, you have to wait a few weeks or months for the return on your investment when the new hire starts gaining traction. Still, there is no guarantee that this new employee will be productive.

It is also possible that the sales representative will not fit your small business’ established organizational culture. Keeping them on may not be healthy for the organization as a whole and the employee as well. It is possible that you will not get back the return on your investment until you find the perfect match.

The Benefits Of Outsourced Sales Management

Here are the advantages of outsourced sales management:

1. A Cost-Effective Tool

54% of companies use outsourcing as a cost-cutting tool. It helps them eliminate expenses needed to establish a sales team, which includes both salary and investment in technology. Along with reduced costs, companies benefit from the skills of a highly effective sales team.

2. Access To Sales Expertise

Extremely qualified professionals are hard to find, and they often require higher salaries. Outsourced sales management serves as the bridge between small businesses with limited financial resources and the expertise of sales professionals who will help expand their business.

With outsourcing, you do not limit your hiring pool to your geographic area. Rather, you have access to the most qualified individuals from all over the world. What’s more, sales management providers like Sales Focus, Inc. have a tried-and-tested methodology that can be customized according to your business needs.

3. Flexibility

Sales outsourcing companies offer flexibility for small businesses in terms of tailoring services and processes and scaling operations up or down. For instance, you can outsource a sales team to help you in launching a new product. You do not need to retain the services if you do not need them anymore.

Why Sales Management Outsourcing Works Well For Small Businesses

Reduced Staff Overhead

How much of your budget goes to payroll? Payroll, of course, is an inevitable expense for any business. But what kind of employer does not want to find ways to minimize staff overhead? The prevailing practice today is to outsource certain jobs, especially those you may not need all the time or that can be done remotely.

Sales are among those jobs. By outsourcing your sales team, you do not need to expand your office or invest in salaries, benefits, and training. If your budget is restricted, you can have a team working with you instead of an individual.

Improved Capacity And Service

There are certain features and services you need to offer in order to compete with the market and grow your business. Two examples are generating leads and addressing client concerns. However, it is costly to establish and handle those services on your own. A sales outsourcing company will provide you with the manpower and technology to improve your operations.

Scalability Goes A Long Way

As a business owner, you must know how drastically the economy can change. Your business could be doing well so you decide to scale up your operations, but then something like the COVID-19 pandemic happens and forces you to scale down. With regular employees, it is difficult to scale in any direction as it will cost a lot no matter what. In contrast, when you outsource a sales team, you can scale up or down easily without worrying about people losing their jobs.