October 24, 2022

Is it better to outsource sales activities?

Businesses, while growing, sometimes face this question. There are many pros and cons, and the decision is difficult. The company executives should consider some aspects before taking one or another direction.

Investment or cost

Usually, sales outsourcing can be more costly than having an in-house team if you take the unit economics POV. Obviously, this is because agencies charge you the cost of service plus profit.

On the other hand, you save on recruitment, training, onboarding, and many additional costs.

Agencies can charge you around $1,500 to even $8,000 monthly and ask for commissions. There are also other options for charging depending on involvement and dedication.

Involvement and dedication

If you hire a sales rep on a part or full-time basis, there are 2 things you can be sure about:

  1. She will dedicate pre-defined time to the job, which can be good and bad simultaneously. Instead, you can outsource sales and pay-per-lead or even only commission from sales which will be cheaper, but in this case, you can’t control the time an agency spends for you. Agencies might even offer the client several solutions, including yours.
  2. She will become experienced and knowledgeable about your product. This will help to close more deals time after time.

But not only the dedication of sales reps or outsourced agencies are essential but also yours.What do you do, and how do you support them?

Some questions may arise:

  • Do you already have a sales strategy and defined ICP?
  • Who is responsible for inbound leads?
  • How much time should you dedicate to product training?
  • Who will be at sales meetings with prospects?
  • How will marketing and sales communicate?

Before you start outsourcing, this should be discussed and pre-defined; otherwise, there’ll be many disappointments.

Sales Strategy

Outsourcing companies usually have some outreach strategies in their mind that worked before for their clients. They might want to implement it for your case, but it might not work and just be a waste of time and money for you.

We faced this once and understood that we were doing the wrong thing. Our sales rep was outreaching people by email. The target was NFT creators, and we understood that we should switch from email to Twitter. Shortly after, we saw the first results.

But generally, it’s better to have a strategy in your hand and ask agencies if they can sell based on that. Or even better, ask them to develop a custom sales strategy for you.

Other factors, such as expectations, KPIs, and aimed ROI, are also crucial. You can do tons of research or book a 30 minutes free call with us and ask them all.