As Recruitment partners and agencies are making their first cautious steps towards a comeback, founders try to evaluate the outcomes of the lockdown and the impact of the economic recession. So, the question is: how to minimize the losses? Outsourcing sales might be one of the answers.
Recruitment agencies face the constant challenge of attracting new clients and filling job positions efficiently. Outsourcing sales can provide a range of benefits for such organizations. From increased flexibility to cost savings, outsourcing sales can help recruitment agencies achieve their goals more effectively. In this article, we will discuss 7 key benefits of outsourcing sales for recruitment agencies and how they can contribute to overall success.
Outsourced Sales at a Glance
Outsourcing sales can be a smart business decision, offering numerous advantages such as reducing costs. However, it’s important to consider the potential drawbacks as well. There are two main models of outsourced sales: full-stack and mixed.
Full-stack Outsourced Sales Model
In this model, the provider takes care of the entire sales process, from lead generation to closure. It’s a great option for start-ups, particularly technology companies that don’t have the resources to hire an in-house team.
Mixed Outsourced Sales Model
With this model, a company delegates a specific part of the sales process to a provider. There are three types of mixed models: vertical, horizontal, and geo-related.
a. Vertical Outsourced Sales Model – In this approach, the sales funnel is divided into two parts, one managed internally and the other externally. Typically, the provider handles the lead generation stage and passes the qualified leads or appointments to the internal sales team.
b. Horizontal Outsourced Sales Model – In this strategy, both internal and external teams work simultaneously, either sharing one market or dividing markets as needed. This approach is ideal for growth, expansion, testing new products, and sales strategies.
c. Geo-related Outsourced Sales Model – This model is often used by multinational companies with an internal team at their headquarters working solely on the domestic market and local providers to minimize risks and reduce costs in other regions.
Benefits of sales outsourcing teams
1. Financial Advantages of Outsourced Sales Teams
When it comes to outsourcing, cutting costs is always a top priority for companies. Sales outsourcing teams offer several financial benefits that can help businesses save money.
a. Salaries – While reducing employee salaries is a common way to cut costs, outsourcing sales teams can save money on managerial expenses. These teams often operate from lower-wage locations, and their large sales teams allow for a more efficient and cost-effective hierarchical structure.
b. Rent and Office Costs – Outsourcing sales teams can also help reduce rent and hardware expenses by operating from locations with lower costs.
c. Hiring and Training Costs – The average onboarding period for outsourced sales companies is typically two weeks to one month, compared to the three months it takes for a sales development rep to ramp up. This can significantly reduce hiring and training costs.
d. Techstack – Outsourced sales providers use up-to-date software that can reduce costs by bulk purchasing subscriptions or sharing one account between multiple reps.
2. Expertise
Managed sales services offer a range of expertise that can benefit companies without incurring a high cost.
a. Product and Industry Knowledge – Sales outsourcing teams have experience working with various products, services, markets, and industries.
b. Client Database – These teams also have a database of previous clients that they can draw from.
c. Management Expertise – Outsourced sales providers bring expertise in management and can help companies operate more efficiently.
d. Sales Process – Many providers have developed and trained their reps in effective sales processes to optimize performance.
3. Time-saving
One of the main benefits of sales outsourcing is the reduced time required for hiring and training employees. Additionally, the quick replacement of employees in case of churn, vacation, or illness helps to maintain a consistent workflow.
4. Scalability and Flexibility
Scaling sales can be challenging, but outsourcing provides the ability to grow or shrink the sales team as needed quickly. This is particularly useful in times of uncertainty when being able to adjust rapidly is crucial. An example is a biotech company that hired an outsourced sales development team to penetrate a small market, which generated so many leads that the cooperation had to be temporarily stopped.
5. Expansion into New Markets
Expanding into new markets, whether for a new product, region or target audience, can be facilitated by an outsourced sales team that can quickly build a sales process from scratch. The low costs and ability to withdraw anytime provide opportunities for experimentation and testing new strategies.
6. Accountability
One potential concern with outsourced sales is the lack of control over the external team. However, reliable providers often provide weekly or monthly reports to ensure accountability.
7. Risk Reduction
Outsourcing sales teams can help reduce the risks associated with building and managing in-house sales teams, such as the risk of hiring the wrong person. Hiring a local provider when expanding into a new country can also mitigate risks by providing knowledge of the local legislation, economy, and business rules.
Summary
Outsourcing sales can bring a lot of benefits to recruitment agencies. It can reduce costs by cutting salaries, rent and office expenses, hiring and training, and tech-stack expenses. Sales outsourcing teams also bring expertise in areas such as experience with your type of product or service, market, industry, clients, and sales processes.
In addition to these financial benefits, sales outsourcing can save time by onboarding reps more quickly, allowing scalability and flexibility, and expanding to new markets. It can also provide accountability through weekly or monthly reports and reduce risks associated with building and managing sales teams.
If you’re interested in outsourcing sales, we’re here to help! Reach out to us to determine what model will work best for your recruitment agency. We offer a Pay-per-cure model where you only pay us when we earn for you.
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