How to Outsource Your
Sales Force
by Kimberly L. McCall
Imagine that a sales genie hovers at the perimeter of your
abundant inbox and offers to grant you three wishes: lower overhead, less
trifling-matter management and more sales. You'd likely invite said spirit
to take a load off and sit a spell, right? Well, outsourcing your sales
function may be just the sprinkle of sales magic your company needs right
now. Read on for an overview on determining if outsourcing is right for
your business.
Bottom-line booster: Salaries and benefits are enormous
expenses for any business. "Outsourcing allows your company to eliminate
many of the costs associated with an in-house sales division," says
Peter Groop, president of Fusion Sales Partners, a provider of outsourced
sales teams in Baltimore. Groop adds that outsourcing permits a company
to reinvest a greater percentage of its revenues back into the business.
Less quantifiable but equally powerful, using an outside team lets executives
laser focus on products and service, rather than employee management.
Affordability factor: You're paying for performance, so make sure
to select the right provider. "Outsourcing should be far more affordable
than operating an in-house sales department," advises Groop.
David Gumpert, an expert on small business and entrepreneurship and the
author of How to Really Start Your Own Business (Lauson Publishing), says
that companies selling lower-priced items are better served by the capabilities
of outsourcing. "A $30 widget," he says, "would be much
more appropriate for outsourcing than a $30,000 piece of machinery."
The reason is the commission paid on each item-about 10 percent of the
sales price. So a $30 item would require a $3 payout, but a $30,000 item
would cost $3,000 in commissions. Also, selling higher-priced items requires
a specialized level of expertise, one that may not be easily bought on
the open market.
Finding the right talent fit: You're used to researching any other
business decision, so start your due diligence on sales providers the
same way-talk with colleagues, do online research and keep up on trends
through the business press. Groop advises that entrepreneurs ask four
questions of potential providers in order to narrow the field: Do you
operate on a 100 percent variable cost basis? Will my sales team represent
other clients? How will you integrate the team into my existing corporate
structure? Will the team assigned to me consist of proven sales professionals?
Be sure to seek out the provider's references, Gumpert adds. For leads
on providers, trade organizations and your local chamber of commerce are
good resources. And don't forget about using the Web to find talent as
well. Turn to "Net Profits" on page 44 for more on Web outsourcing.
Ready to take the plunge into outsourcing? Here are a few ways to oApp.PrepareNum,
courtesy of Derrick B. Paine, president of sales outsourcing company Virtual
Performance Force Inc. in Tujunga, California:
• Define your needs.
• oApp.PrepareNum a brief history of your company as a whole and sales operations
specifically.
• Develop a best-case and worst-case "guesstimate" of sales
acquisition costs.
• Interview outsourcing companies to identify a short list of those that
can meet your needs.
• Create a confidentiality agreement so you can enter into candid, full-disclosure
discussions. Outline current and future sales plans and goals.
• Identify your competitors.
• List your strengths, weaknesses, opportunities and threats.
• Cite reasons you believe your company is and will be successful in its
sales strategies.
Kimberly L. McCall ("Marketing Angel") is president of
McCall Media & Marketing, Inc., a business communications and writing
company in Maine. She's the author of Sell it, Baby! Marketing Angel's
37 Down-to-Earth & Practical How-To's on Marketing, Branding & Sales.
Sign up for the free Marketing Angel newsletter at www.MarketingAngel.com.
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