The Complete Guide to Sales Team Outsourcing

An efficient sales team is a dream come true for any business owner. They handle leads generation and growing revenues. The sustainability of any business or its long-term potential shows in the sales. 

A sales team can be in-house or outsourced. An in-house sales model is common and the most tested but it has its flaws. Have you tried an outsourced sales team?

How do you outsource a team? Get the complete guide to sales team outsourcing here. 

What Is Sales Team Outsourcing? 

Sales outsourcing is where a business delegates its sales functions to a third-party provider. The third-party provider takes over the prospecting, nurturing and engagement of leads. 

Outsourced sales teams can suit both small and large companies. Providers can be individual freelancers or an agency composed of many sales representatives. In short, anyone can outsource their sales regardless of size or budget. 

Outsourced sales free you from various sales activities. Another sales team takes charge of your channels and targets. In turn, you find the time to focus on other key aspects of your business. 

A strong sales function is a key component of a successful business. But, it’s also one of the most challenging. So, you might hesitate to outsource it. 

Not sure whether to go with outsourced sales? Here’s why you need to consider it and how to make it work for your business. 

Saves Money

Meeting your sales targets improves your business by boosting revenues. But as your business grows, you may lack time to conduct proper prospecting and outreach. Building a house sales team takes time and resources. 

Sales outsourcing is a quick and effective solution for growing and established businesses. You can switch from the sales role to an outsourced team without heavy investment. A growing brand can avoid staff development when you hire a sales representative. 

Hire the Right Sales Representative the First Time

Employee turnover cost US industries over $630 billion in 2020. Every leaving employee costs various resources and money. You incur further losses when you replace employees.

The problem of turnover can be severe when you employ an in-house sales team. Sales employee turnover rates are one the highest across industries. Hiring an in-house sales representative is like gambling because you can’t bet on them fitting in. 

Sales outsourcing removes guessing when hiring and eliminates the risk of high turnovers. You can pull a list of vetted candidates from a reliable third-party provider like FreeUP. This increases your chances of hiring the right sales representative the first time. 

Build a Flexible Sales Team

The ups and downs of growing a business can present many challenges to sales and staffing. Every industry faces seasons or changes which can boost or lower production. Any of these challenges can force companies to adjust staffing.

The problem comes in when your sales team is internal. If you don’t respond quickly, existing staff may fail to cope with increased demands. You might also experience a staffing shortage which can result in poor customer service. 

Sales outsourcing provides a reliable source of talent that you can count on at all times. You can build a full-time sales team for the peak seasons and scale down quickly during the low seasons. A third-party sales provider further allows you access to temporary sales representatives. 

Improve Sales Efficiency to Boost Revenues

An in-house sales team may fail to be productive and fall short of your expectations. It can be a challenge to maximize everyone’s potential under a full-time arrangement.

Sometimes you might pull back on sales targets. Your sales leader will try to balance between pushing for better results and avoiding pressure on employees. In the long-term, sales output may drop and revenues decrease. Under a third-party provider, delegating sales management improves accountability. 

How Do You Outsource a Sales Team? 

As seen, outsourced sales come with a range of incredible benefits to your business. Yet, like every other decision, it can also be risky. For one, you lose control over your sales team. So, you may doubt whether a third-party provider presents your brand in a good light.

Brand communication and messaging can also be a challenge when you outsource. A misaligned messaging or tonality can end up confusing your audience. Trust issues may also come up in your mind.

So, how do you ensure an outsourced sales team pays off for your company? Here are some tips:

• Find out the specifics of the third-party provider’s hiring process
• Build your team from a pool of freelance sales representatives
• Ask for an arrangement that allows you to track progress and not the final output alone
• Establish clear goals, expectations and procedures

Confirm whether or not providers vet candidates and if you’re allowed to interview recruits. Also, let the agency know what you expect of them on brand alignment.

How Much Does Outsourced Sales Cost?

The cost of outsourced sales depends on the number of hired sales reps and the project itself. Outsourcing to one sales rep may mean paying the average hourly rate paid to freelancers. 

According to Payoneer, a freelance sales professional earns an average of $25 per hour. Experienced sales professionals may demand up to $100 per hour or more. If you’re running a large company or on a tight budget, this may seem too expensive. 

But when you’re outsourcing sales, you have to look at the larger picture. Consider the benefits and the costs you’re foregoing by outsourcing. Managing a full-time sales team may end up being costlier in the long run. 

A full-time sales team typically requires internal support from the start. You need to orient, train, refresh and provide leadership support to your team. Also consider that each staff comes with costs like insurance, commissions, software, equipment and supervision. 

Hire a Freelance Sales Representative

There are plenty of benefits for your business to reap when it comes to sales team outsourcing. If there’s a reason you need to consider when building a sales team is flexibility. Outsourcing sales sets you free to focus full-time on growing your company. 

For more business tips and advice, check out the rest of our blog.