Welcome to the White Hawk Sales Partners blog
Opportunity Knocks will give readers insights and tips to motivate sales as well as execute targeted programs to meet revenue goals. We hope that sharing information and strategies will ensure you answer that next big opportunity.
Join the conversation and stop back often for the latest news!
In today's post we talk about 3 scenarios where outsourcing is typically the best way to go:
- New Product / Territory - Its the great unknown factor here. With outsourcing, you can understand the value and the potential before committing to your own inside sales team. Utilizing an outsourced sales team to test into a new market / feel out a new product BEFORE you make the time and money investment internally just makes financial sense.
- High Turnover with Current Sales Team - Inside Sales is notorious for being a high turnover job. Citing a few of the more common reasons - Lack of personnel to effectively manage / motivate the team, lower commission rates synonymous with the job, perception of not being as valued as other sales reps in the company i.e. - just there to pass up leads to the "better" reps. When you outsource, you bypass all of this and immediately gain access to an experienced team of sales professionals that have a built in sales manager ensuring results.
- Start Ups - Going back to the time, money & expertise considerations, Start-Ups typically come up short in all three of these categories. Usually stretched thin with their team often wearing many hats already, sales & marketing become areas that make the most sense to outsource for at least part of the process. Outsourcing inside sales to gain traction and grow the pipeline means 1 or 2 internal players can focus on qualified leads.
The trend shows year over year increase in companies outsourcing at least part of the sales process. But everyone company and situation is different. What makes sense for you? Should you invest in your own Inside Sales team or work with an outsourced firm?
Consider these 3 Main Factors: Time, Money & Expertise
1. Time: The fact is it takes 60-90 days to hire a sales team and then an additional seven months or more to ramp the team up to full productivity. If you are lucky enough to have a VP of Sales in place to manage the team, that VP of Sales is likely already maxed out with current responsibilities. Outsourcing to an experienced firm is like having a 2nd VP of Sales solely dedicated to your new project. It cuts the ramp up cycle tremendously by having an experienced team already in place as well as an experienced manager to lead them. They can hit the ground (or phones) running and start getting qualified prospects into the pipeline.
2. Money : Consider the investment in having your own internal Inside Sales team. Do you have the infrastructure in place to handle the people and measure their performance? Is there someone already on your team who will be managing your Sales team? Do you have the funds available to offer 2-4 new employees full time salaries and benefits? Investing in your own new Inside Sales team can easily exceed 100K. Outsourcing is a pay for performance investment that can be extremely cost-effective.
3. Expertise: You may have a brilliant group of people on your team and an amazing product or service to share with your market. But do you have an experienced Sales team? Talking to high-level prospects involves a serious learning curve. On average, 25-35% of the Sales people you hire will quit or be fired. And for a new initiative or a startup, it’s hard to attract seasoned sales people because of the time investment for them to reach an attractive commission. Managing an Inside Sales team takes someone with the proven experience doing so. If you don’t have the expertise in-house, it’s best to leave it to the outsourced experts. The most common reason start-ups fail is poor sales execution.
Be sure to think through the time, money and expertise involved in having an internal Inside Sales team. There are many situations where it typically makes sense to outsource: startups, testing into a new or risky market, and high turnover with your current sales team are three of them. We’ll talk about those and a couple others in our next post.
Don’t miss another great article and insights from Christine Crandell, President of New Business Strategies. Christine catches up with our own President Phil Arturi on her continued quest for innovation that drives new models in B2B marketing. Learn why she says Phil is a “thinker” sales archetype.
According to Christine, “The Thinker is a reflective leader, focused as much on the how and why as on the results. A solid business case for aligning sales and marketing will make sense to them and they are usually a receptive and collaborative partner. Thinkers want to understand the process, how it impacts their team, and when they can expect results.”
Read more…Forbes.com - Birth of a Social Salesman
“I caught up with Phil Arturi for a discussion on how the social transformation has changed his life, or not…..”
Here's a few good reasons in-house lead gen may not be the best path....article hits several key points.
Outsourcing your lead-generation means giving this responsibility to a company for which this is its core business, and masters the right tools to deliver qualitative results. As opposed to telemarketing, for instance, you won't get 200 "leads" per month, you will get (depending on the size of your company and industry you're in) maybe 2 leads, but these 2 leads have a far greater chance to turn into contracts.
Here is why: (read the full article)