What is Business Development / Sales outsourcing?
Sales outsourcing can be a great way for companies to increase lead generation and sales without having to invest in onboarding and the cost associated with full-time sales reps. There are important things to consider before outsourcing sales, including familiarity with the product/service, your business model, and your company's views on cold calling.
Outsourcing isn't new, it has been around since the dawn of time however many companies are still very cautious and reluctant when it comes to entrusting such a core business activity like generating new business to a third party.
BizDev South has worked with many companies across a variety of sectors and we believe that Business Development outsourcing isn't a one-size-fits-all equation. It works extremely well for some businesses & not so well for others.
Outsourcing a B2C model will not work.
B2C models usually run on high volume, low cost with B2B being the opposite. Yes B2C models have a wider audience & larger market however this does not make the selling process any easier. The trade off between time spent cold calling and sales made is often below the profit line meaning that its rarely a beneficial process.
With GDPR now in play consumers are more protected than ever, you will be hard pressed to find a company that will provide any form of fully compliant outbound outsourcing.
Typically if you have a B2C model you will be much better off finding your target demographic online and advertising through the most relevant platform (Google Ads/ Facebook/ Instagram).
Sales outsourcing is too expensive.
Some outsourcers are expensive, they require you to take a 'leap of faith' as you will have to pay ££££ upfront before any activity takes place. This is why most outsourcing companies fall at the first hurdle, they are stuck in a stalemate and put 100% of the risk on the clients side who are often hesitant to hand over the cash for an 'unproven' service.
The average UK wage of a Business Development Manager hovers around the £40,000 mark and tenure of under 2 years, when you add in the overheads - on boarding, training, sick days, tax, pension, expenses & annual leave this can get closer to the £70,000 mark. - £5833 per month.
The beauty of outsourcing sales is that it becomes a scaleable resource rather than a constant overhead. BizDev South are the only company in the outsourcing space that provide a 'as a Service' model. We don't charge thousands upfront as you only pay for what you need / use.
Cold calling is dead.
There are many, many voices arguing cold calling and emailing are dead. We have never had so many channels of contact such as social selling, inbound, advertising etc.
These new platforms are great and each tackle different elements however they all lead to picking up the phone and having a conversation.
The cold reality of cold outreach is it’s the only way to guarantee direct targeting which matter to your business. It’s one of the reasons Account Based Marketing and Account Based Sales are such trending topics over the last few years.
Each of the 20 fastest growing B2B SaaS companies have implemented outbound outreach. Each B2B company to issue an IPO in 2017 has embraced outbound. This is a successful, productive go-to-market strategy practiced by the fastest-growing companies in the world.
According to a recent study on the most popular sales myths by the RAIN Group, the earlier your outreach occurs in the purchase process, the better. And by earlier, this often means before buyers even understand what they really need.
You won't have control over an outsourced team.
Understandably, when it comes to sales, control is a top reason for not outsourcing. Our Business Development Consultants are people who contact your potential clients directly. You don't want them to screw it up.
Furthermore, you want to be sure that they don't waste their time and avoid cold calling.
Having a sales rep who’s constantly out of sight looks like a total loss of control. This is partially true. But only if you think of control as 100% supervision over every action your staff makes with your oversight, which isn't an effective option in a distributed world.
We partner with our clients and become part of their team, with daily communication, reports and regular on site visits you get to know us personally.
Any outsourced sales agency only succeeds when clients succeed.
As such, daily reports, activities performed, and advanced analytic charting of progress should always be part of the equation.
So for some organisations sales outsourcing simply will not work, as mentioned its not a one-size-fits-all however for a majority of B2B companies it can be very attractive.
In a way, there is a level of trust involved and it can feel like an element is out of your control however we are here to ensure your success, its our number one goal.
We are only successful when our clients are successful.