Many startups struggle against larger and more established companies because of limited resources. However, gaining an edge is not impossible with outsourced sales.
Outsourcing sales allows startups to explore other opportunities and expand without taking on huge risks. When done right, outsourced sales can also be more cost-effective and improve sales productivity.
What is Outsourced Sales?
Outsourced sales is the practice of delegating sales tasks to a third-party individual or agency. Companies commonly use this alternative when they lack the workforce or want to expand sales volume without hiring additional team members.
These are examples of sales tasks that can be outsourced:
- Lead Generation: Also known as outbound sales prospecting, this is the process of collecting information about potential customers. The goal is to generate qualified leads to fill the pipeline so that the account executives (AEs) can convert them into customers.
- Lead Qualification: Lead qualification fills the sales pipeline with high-quality leads by comparing each prospect to the company’s buyer persona. Those who fit are pushed towards the next stage on the buyer’s journey.
- Cold Calling: This is the process of making calls to potential customers who haven’t shown previous interest in the products or services you are offering.
In-house Sales vs. Outsourced Sales: Pros & Cons
Startups have three setup options for their sales process: in-house sales, outsourced sales, or a mix of both.
In-house Sales
In-house sales involves having a sales team employed directly by the company. This team will use the organization’s resources to perform tasks and achieve specific sales objectives.
Here’s a quick look at the pros and cons of in-house sales:
| Pros | Expert Knowledge Quality Control Transparency |
| Cons | Time Cost |
The advantages of having an in-house sales team include:
- Expert Knowledge: Your in-house team members will be with you for a long time, allowing them to become experts in your niche space and offerings.
- Quality Control: An in-house sales team allows complete control over sales procedures. It also puts you in a better position to track the development and progress of team members, allowing immediate improvements.
- Transparency: You’re familiar with your employees and how they execute their tasks.
The main disadvantages of in-house sales are:
- Time: Building an in-house sales team is time-consuming because finding the right candidates and training them with the company’s processes can take months.
- Cost: An in-house sales team has a lot of associated costs in addition to salaries and benefits. You’ll also have to shoulder their training, pay for tools and equipment, and other expenses such as overtime pay.
Full-Stack Outsourced Sales
Full-stack outsourced sales refers to businesses that outsource their entire sales process to a third party.
These are the pros and cons of outsourced sales:
| Pros | Access to sales technology stack Readily available workforce Cost-effective |
| Cons | Lack of business knowledge Lack of control |
- Access to Sales Technology Stack: Reputable sales outsourcing agencies have an arsenal of technology stacks such as research tools, CRM, sales engagement tools, data lists, and automation platforms, allowing their professionals to work efficiently and accurately. By hiring an agency, you’ll benefit from these tools.
- Readily Available Workforce: Outsourced sales agencies have teams ready to take on the tasks that you need.
- Cost Effective: Outsourced sales agencies have fixed rates for services. If you require custom solutions, most agencies will charge you a retainer fee if you require tailored solutions, which is still more affordable than paying for full-time employees’ salaries and benefits.
The downsides of outsourced sales include:
- Lack of Business Knowledge: Outsourced sales agencies have professionals who are experts in lead generation and other sales tasks but not necessarily experts in your niche space.
- Lack of Control: Although outsourced lead agencies might deliver the results, the way they achieve it might not align with your company’s core values.
Mixed Outsourced Sales
Startups can get the best of both worlds by combining in-house and outsourced sales. They can have their own sales team and outsource specific tasks, allowing the in-house team to focus on uncovering new opportunities and increasing the chances of closing deals.
It’s strategic for startups to outsource time-consuming and repetitive sales tasks. This will give their in-house sales team more time to focus on other business aspects that increase the company’s revenue. Some examples of these tasks include:
- Lead generation
- Outbound calling
- Managing the sales pipeline
Startups have lesser quality and control issues with a mixed outsourced sales approach. You’ll still be in complete control of the direction of your sales playbook, only letting a third party do the legwork for you.
Benefits of Outsourced Sales For Startups
Outsourcing sales for startups has many benefits. These include:
| Benefits |
| Cost-effective |
| Scalability |
| Flexibility |
Cost-effective
There are a lot of associated costs in building an in-house sales team. Aside from paying for full-time salaries and employee benefits, you’ll also have to pay for their onboarding and training expenses. You’ll also have to provide them with the necessary equipment and tools.
On the other hand, you’ll only pay a fixed price if you choose to outsource your sales process. For example, suppose you outsource your appointment setting program. In that case, the cost will already include fees for the sales development representatives (SDRs) in charge of your account. That price also covers training, tools, and equipment.
Scalability
Outsourcing sales tasks allow you to scale rapidly without increasing much on risks and expenses. Outsourced sales agencies can deliver results in a shorter time because they already have the workforce and equipment to execute tasks.
Flexibility
An outsourced sales team can quickly adapt to your company’s sales playbook since it already has a solid foundation.
Outsourced sales is also more flexible in terms of costs because agencies are usually contracted. If you are not getting the results, you can pull the plug on the project and explore other sales strategies to help your company grow.
How SalesRoads’ Services Increase Startup Growth
SalesRoads is an outsourcing company specializing in appointment settings for lead generation. We can help your startup grow by:
- Filling your sales pipeline with qualified leads: SalesRoads provides highly experienced and trained SDRs to conduct lead qualification on your prospects. You’ll have a steady stream of highly qualified leads in your pipeline.
- Unburdening your account executives: SalesRoads’ SDRs will do extensive lead qualification on your prospects. This will give your sales executives a high-quality lead list, allowing them to focus on closing deals.
- Offering a targeted sales approach: Outsourcing your appointment setting program will make it easier and faster to identify prospects more likely to convert into customers, allowing you to focus where it matters.
Do you want to grow your startup fast? Get in touch with SalesRoads today. We’ll build an appointment setting program that resonates with your sales playbook!
