Business owners often rely on external contractors or consultants to provide skills and expertise their businesses need to grow – from the web designer who built the company's site to the accountant who oversees company finances. Outsourcing sales can be a smart choice for businesses that have growth ambition but lack the experience or bandwidth to tackle the requirements of day-to-day sales.
What Is Sales Outsourcing?
Sales outsourcing is the use of a third-party individual or company to sell your products or services. A sales outsourcing service might be accountable for the entire sales cycle, from prospect identification through contracting, or a subset of the cycle, such as lead generation.
Why Do Businesses Outsource Sales?
As they grow, small businesses experience various stages and situations well suited to outsourced sales. Consider these scenarios in which an outsourced sales solution can be a great choice for increasing revenue without hiring full-time sales employees:
1. A startup ready to move beyond the ability or bandwidth of its founders, who may have been the entire “sales engine” so far.
Perhaps your business has too many inquiries to follow up on or, more commonly, you can’t devote the time to drum up prospects while delivering on existing orders. Either way, a career salesperson can offload that burden, freeing you to concentrate on tasks that demand your unique skills.
2. An established business seeking to expand into adjacent markets or new geographies.
You may already have a good salesperson or two on staff, but you anticipate future growth will come from reaching into new markets with specialized knowledge or language skills. In addition, you don’t know whether the initial revenue growth will be enough to justify investment in a full-time employee.
Outsourcing sales can be a smart choice for businesses that have growth ambition but lack the experience or bandwidth to tackle the requirements of day-to-day sales.
Outsourced sales providers often offer “fractional” services – that is, working less than full-time hours on emerging areas of growth. Such fractional service sales providers can validate an expansion strategy by road-testing your value proposition within the new market, returning with valuable feedback to confirm your approach or help redirect your strategy.
3. A business that needs short-term sales coverage for peak periods or absent employees.
Your business may be seasonal, or your star seller may leave for an extended absence. An outsourced sales service can cover these periods to keep the wheels turning.
Types of Sales Outsourcing Providers
Depending on the industry, growth expectations, and budget, your optimal selling partner may be either an individual who operates independently or a business that specializes in sales outsourcing. It’s a good idea to consider both options, meeting with several prospective partners to evaluate the best fit.
Here are some key considerations:
Sourcing
Develop a short list of outsourcing companies to evaluate. Good sources include LinkedIn, Google, and OutsourcingLoop. To find prospective independent sellers, tap into your own professional network. Customers can often offer referrals because they likely encounter many sellers in your market or adjacent ones. Other good resources include your industry’s professional associations (which often also host job boards) and local business clubs.
Cost
Cost can vary widely by product, the types of sales services you plan to outsource, and region. Likewise, compensation models vary widely: Typical approaches include a retainer-plus-commission model, commission draw, and target-based incentive plans. All are good potential models for performance-driven compensation. Whichever model you choose, make sure that the structure is spelled out clearly. If the provider doesn’t supply it, make your own spreadsheet to illustrate how payouts will rise with achievement levels.
Scale
Some outsourced sales companies require a minimum engagement size. Offerings can depend on the size of your business and growth opportunity. If the business is growing rapidly, the independent seller may prove more unwieldy than the outsourcing company, as it would require sourcing, training, and onboarding multiple sellers.
Services
Think carefully about your business’s needs. While independent sales contractors typically handle the entire sales cycle from prospect to contract, outsourced sales companies often offer services tailored to a subset of the sales cycle. Do you have people within your business who do a great job of listening to engaged prospects, tailoring your solutions, and closing the contract, but have no time or expertise to generate new customer leads? A lead generation provider may be the solution.
Benefits and Risks of Outsourcing Sales
Benefits
Revenue growth is the predominant benefit of sales outsourcing, but there are several other advantages to this model. Chief among these is the level of sales expertise you can expect. Outsourced sales consultants frequently possess a depth of experience and proven track record across multiple industries. If you’re considering an individual sales contractor, you might manage to find a pedigreed sales professional seeking flexible or shortened workdays in exchange for a moderate rate.
When working with a sales outsourcing company, you will also be leveraging the investments they’ve made in sales processes and technology. In modern B2B sales, sales process (the series of steps sellers use to achieve repeatable results) and sales technology (such as customer relationship management and AI tools) can offer a competitive advantage. Sales partners with robust sales technologies can significantly boost your sales operation.
An added benefit is the data and analytics typically generated by these platforms. Qualified providers collect and analyze data such as conversion rates and can segment by lead source and prospect profile to identify best-fit customers, helping improve future sales performance.
These benefits can be compelling reasons to pursue an outsourced sales solution, but it’s important to consider the potential risks, too.
Risks
Loss of control. Day-to-day customer-prospect interactions you’re used to overseeing (or even driving) will be happening elsewhere. Make sure you establish a plan with your provider up front, not only for training but also for the cadence, format, and depth of their progress reporting.
Reputation. It’s essential to feel comfortable with the style, language, and approach your sales partner will use to cultivate and nurture prospects over the life of the sales cycle.
Data security. Ensure your data remains your data – the agreement should clearly define who owns the data generated by the sales process. In addition, make sure the agreement stipulates that personally identifiable customer data acquired during the sales process remains protected and not shared with other partners.
Preparing for Success in Sales Outsourcing
To get the most out of conversations with potential outsourced sales suppliers, a bit of thoughtful prep work can go a long way.
To start, identify and clearly articulate the needs that drive your interest in outsourcing sales. Who is selling for your business today? Will they stop selling, or are you looking to augment their efforts? If the latter, define the pieces that need the most support: typical examples are lead generation and scheduling meetings. Ensure your internal seller is on board with the plan and decide how and when handoffs will occur.
Be prepared to summarize your business’s unique value proposition. What differentiates your offerings, and why do customers return? What is your ideal customer profile, in terms of the prospect’s title, function, and pain points? Where do your best leads come from today?
Consider what assets you can provide to assist your sales partner’s prospect interactions. Do you have testimonials or case studies? An ROI calculator? Credible information that helps buyers make informed decisions can be for skilled a salesperson's toolkit and well worth developing if you don’t already have it in hand.
Questions to Ask Sales Outsourcers
Armed with this preparation, you’re ready to engage with prospective providers.
Questions to consider asking:
- What experience does the seller have selling within your market segment?
- Do they have a defined sales process, and, if so, what does that look like? Outsourced sales providers should be able to describe their typical outreach cadence and the channels they use to engage prospects.
- What tools do they use to generate leads? Look for experience with third-party tools that help sellers source prospects based on your ideal customers' attributes, which you’ll provide.
- What tools do they use to keep track of engagement, the sales pipeline, and forecasts?
- How will they keep you informed of progress?
- How do they manage and secure your data?
- What other businesses have they worked with, and will they share testimonials or referrals with you?
- What is the fee structure and contract terms, including minimum commitments?
Answers to these questions should help you find the provider that’s a good fit for your growing business. During the question-and-answer process, assess potential providers’ cultural fit with your brand. Selecting a partner who embraces similar values – such as a commitment to diverse and inclusive hiring and promotions, pay equity, and sustainability – can be crucial to success.
The Takeaway
Whether you decide to explore sales outsourcing for your business as a short-term solution or a long-term structure, these guidelines can help position you for success. Outsourcing some or all sales operations can help unlock revenue growth, drive new customer insights, and accelerate your overall business goals.
Photo: Getty Images
