Building a business from ground up to a successful one requires same resources from small and big companies - SALES. Sometimes companies look into outsourcing their sales functions in order to optimize their new business acquisition and to get more traction in the market. Many result in successes and others fail due to various reasons. In order to get a sense what common obstacles and hurdles are, here is a list of some of the pros and cons for outsourcing sales to a third party:
- No successive hiring costs (there are still service costs).
- Trained and experienced sales team with a proven track record
- immediate success rate feed back
- Salespeople a highly incented to close business.
- Scalability of cooperation with sales team i.e. as results come in, opportunity to grow or downscale quickly depending on success rate and market feed back
- You pay for results only
- Quick and dirty - this either works or it fails miserably
- If success is hard to come by, outsourced salespeople will quickly begin to under-perform in the very beginning. Just like with commission-based sales executives, outsourced salespeople are more likely to fall out before you can see whether or not the relationship will really work out.
- Communication between the outsourced sales team is challenging and often requires clear reporting systems in place and extra resources to keep checks and balances between the two parties
- Outsourcing sales can be a long process and finding the perfect match is no picnic in the park
- Erratic compensation and lack of reliable income means your sales people have more financial problems, ironically distracting them from work goals.
- In the case that your company lacks competence in sales and is in a position to pay for results to an experienced sales team, outsourcing is the right path to take.
- However, if your employees are able to close deals, network and accomplish in attracting clients, hire a sales executive to train and motivate your staff in the ins and outs of sales to build a sustainable sales system for your own company. In the end, you either need to build a sales organisation and culture OR buy a ready set-up from somewhere else to "test" market response. As a long-term solution, outsourcing sales depends on which development stage your company is going through.
Any other pros and cons for outsourcing sales? Leave a comment and start a discussion below!
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