How to Decide to Outsource Sales - Step 3: Pros and Cons of Outsourced Sales

The Ups and Downs of Outsourcing Sales

Just like hiring a new in-house salesperson, there is no guarantee that an outsourced sales person will be a good fit for your company.

But many of the problems that you face with hiring an outsourced sales person can be alleviated with seeing around the corner a bit to get ahead of many of the common pitfalls that many companies face.

This article will discuss the pros and cons of hiring an outsourced sales team for all or part of your sales division. Like most business decisions, there is no clear cut or black-and-white way to decide if an outsourced sales professional is right beforehand. Sometimes you just have to try it out for size, and see if it fits.

Pro #1: Your Business Can Hire for the Exact Position that Your In-House Sales Team Needs

The first positive of outsourcing sales is that you can hire for the exact sales position that your sales team needs.

This is true for two important areas: (1) the timing of a new hire and (2) hiring for a specific skill set.

Timing of a new hire can be vitally important; your company may be rapidly growing and in need of a lot of sales assistance in a relatively short period of time. This growth can be sporadic and/or short-lived. In a volatile marketplace, you may be forced to hire a full-time, in-house employee that might not be available to start immediately or want to work for a set amount of time. Outsourced sales professionals help solve this dillemna. Many are available to start working immediately and accept positions that are limited in time. For instance, you may need a lot of assistance with a relatively large sale that will only last for 6–9 months. This would be unattractive for a sales person looking for a long term position but absolutely perfect for an outsourced sales professional.

The second area where hiring for the right position relates to skillset. Outsourced sales professionals tend to specialize in one specific area. These include prospecting, research or lead generation. If your business is looking to improve on one of these vital KPIs, you can search for and hire a sales professional that is ideally trained and suited for your companies need. Many outsourced sales professionals have special degrees, training and a long pedigree of projects they have worked on at different companies in the same space as your own business.

Getting the right sales person, at the right time, with the right skills and for the right amount of time can be crucial to upping your company's sales game.

Pro #2: Outsourced Sales Representatives are Generally Qualified in Their Field and Can Start Immediately

There are pros and cons to outsourcing your business sales. On the plus side, outsourced sales representatives are generally qualified in their field and can start immediately. They also have extensive experience dealing with customers, so they can handle objections and close deals effectively.

For example, "outsourcing inside sales means better follow-up and management of qualified leads. When there is a program in place for making cold calls and qualifying leads, there is more time to pursue the leads that come in and give them the attention needed to bring them to the next step in the sales cycle." Link

On the downside, you have less control over an outsourced sales team than an in-house team. And because they're not employees, it can be harder to build a long-term relationship with them. You also have to pay them a commission on every sale, which can eat into your profits.

Ultimately, whether or not outsourcing your business sales is right for you depends on your specific needs and goals. If you need quick results and don't mind giving up some control, outsourcing may be the way to go. But if you want more control and a closer relationship with your sales team, you might prefer to keep things in-house.

Pro #3: Outsourced Sales People Are Usually Cheaper than In-House Sales People

Sales outsourcing is a popular option for businesses of all sizes. The main reason is that it can be significantly cheaper than hiring regular employees.

There are a few different ways to outsource sales. The most common is to use an agency or third-party company. This can be a great option if you don't have the internal resources to manage sales yourself.

Another option is to hire independent contractors or freelancers. This can be a good option if you need more flexibility in your sales force.

The main advantage of outsourcing sales is that it can save you a lot of money on labor costs. You won't have to pay for benefits, vacation time, or other employee expenses. And, you can often get discounts on products and services from the companies you contract with.

The downside of outsourcing sales is that it can be less personal and more difficult to build relationships with your customers. You also may have less control over the quality of the work being done. And, if something goes wrong, it can be hard to track down who's responsible and fix the problem quickly.

Pro #4: Outsourcing Sales Frees Up Internal Resources

Sales outsourcing can be a great way to free up additional business resources. It can help you take on more work without increasing your stress levels, and it can also help you reposition your revenue streams.

There are a number of reasons why sales outsourcing can be beneficial for businesses. First, it allows businesses to take on more work without having to increase their internal staff levels. This can help businesses save money on overhead costs, as they won't need to hire new employees or provide training for them. Additionally, sales outsourcing can help businesses focus their energy and resources on other areas of the business. For example, if a company is looking to expand its marketing efforts, it may make sense to outsource its sales functions so that it can devote more time and attention to this area. Finally, sales outsourcing can also help companies better position themselves in the marketplace. By working with an experienced and reputable outsourcer, businesses can gain access to new markets and customer segments that they might not otherwise have had access to.

If you're considering whether or not sales outsourcing is right for your business, there are a few things you should keep in mind. First, consider what type of work you'll be Outsourcing - will it be tasks that are core to your business? Or will it be non-essential tasks that could easily be handled by someone else? Second, think about what type of relationship you want with your outsourcer - do you want them to act as an extension of your team? Or do you prefer a more hands-off approach? And finally, make sure you choose an experienced and reputable outsourcer who has a proven track record in delivering results for their clients

Pro #5: Outsourcing sales to a third party can accelerate growth and provide increased accountability

Sales outsourcing can help your business accelerate growth and improve accountability. By working with a third-party sales team, you can free up your time to focus on other areas of the business while still achieving your sales goals. Additionally, outsourcing provides an extra level of accountability, as you will have access to KPIs and other data that can help you track progress and ensure that targets are being met. Ultimately, by partnering with a reliable sales outsourcing company, you can take your business to the next level.

Con #1: Managers Lack Control Over Outsourced Sales Professionals

The downsides of outsourcing sales are numerous, and can be a real hindrance to businesses. One of the biggest problems is lack of control. When you outsource sales, you're giving up a lot of control over your sales process and procedures. This can lead to big problems down the road, especially if things go wrong.

Another downside is lack of manager oversight. When you outsource sales, your managers may not have as much direct involvement in the day-to-day operations as they would if you were handling sales in-house. This can lead to communication breakdowns and a general feeling of disconnection between management and front-line staff.

Finally, one of the most frustrating things about outsourcing sales is the day-to-day grind. It can be very difficult to stay on top of everything when you're not directly involved in the sale itself. This can lead to missed opportunities and lost revenue.

Con #2: Businesses May Lack the Time or Manpower to Oversee Outsourced Sales Personnel

Sales outsourcing can be a great way for businesses to get the help they need without having to hire full-time employees. However, there are some downsides to outsourcing sales that businesses should be aware of.

One downside is that businesses may lack the time or manpower to oversee outsourced sales personnel. Without proper oversight, it's possible for sales representatives to take advantage of their position and make decisions that aren't in the best interest of the company. This can lead to lost sales and damage the company's reputation.

Another downside is that sales outsourcing can be expensive. While it may save money in the short-term, over time the costs can add up. Businesses should carefully consider whether or not they can afford to outsource sales before making a decision.

Finally, sales outsourcing can create time management issues. If not managed properly, it's easy for businesses to find themselves bogged down by managing multiple vendors and trying to keep track of progress reports and deadlines. This can lead to frustration and ultimately cause businesses to reconsider their decision to outsource sales altogether.

Overall, while there are some downsides to outsourcing sales, it can still be a helpful tool for businesses if used correctly. With proper oversight and management, businesses can reap the benefits of increased efficiency and cost savings.