Outsourced sales and in-house sales are two different approaches to managing a company’s sales function. At Credico, we work with Fortune 500 businesses to determine if outsourcing to us would be beneficial for their growth ambitions.
At Credico, our services are tailored to our clients’ unique challenges but understanding the difference and potential benefits of outsourcing is the most common question in preliminary meetings.
In-house sales refers to a sales team that is comprised of employees who work directly for the company. This team operates within the company’s own office and is responsible for all aspects of the sales process, including lead generation, qualification, negotiation, and closing.
Outsourced sales, on the other hand, refers to a sales team comprised of individuals who work for a third-party company that specializes in providing sales services to clients. This team operates outside of the client company and is responsible for all aspects of the sales process. The client company pays the outsourcing agency for the services provided by the sales team.
The costs associated with outsourced sales and in-house sales can vary widely depending on a number of factors, including the size of the company, the complexity of the sales process, and the desired level of expertise and specialization.
For in-house sales, the main costs are typically salaries, benefits, and overhead expenses such as office space and equipment. These costs can add up quickly, especially if the company is looking to build a large sales team or hire highly experienced sales professionals.
For outsourced sales, the main costs are typically fees charged by the outsourcing agency. These fees may include a flat rate for the sales services provided, or as we do here at Credico, they may be based on a performance-based model.
In terms of cost-benefit analysis, outsourced sales are often more cost-effective than in-house sales because outsourcing can provide access to a large pool of sales expertise and resources without the need for a large upfront investment in salaries, benefits, and overhead expenses.
The cost-benefit analysis of outsourced vs. in-house sales will depend on each company’s specific needs and goals.
If it is decided that outsourcing is the best route, collaboration becomes the key ingredient for success. Here are some tips and best practices for maximizing the success of an outsourced sales team:
- Set clear expectations: Clearly define the sales goals and objectives, as well as the desired outcome of the sales process. This helps ensure that both the client company and the outsourcing agency are on the same page and working towards the same goal.
- Regular communication: Regular communication is key to the success of any outsourced relationship. Establish regular check-ins, such as weekly or monthly status updates, to ensure that both parties are staying aligned and making progress toward the sales goals.
- Comprehensive training: The outsourcing agency should be provided with comprehensive training on the company’s products, services, and target market. This helps ensure that the sales team is fully equipped to represent the company and sell effectively.
- Utilize technology: Take advantage of technology such as sales management software and CRM systems to provide real-time visibility into the sales process and progress. This helps ensure that both the client company and the outsourcing agency have access to the information they need to make informed decisions and optimize the sales process.
- Foster a positive working relationship: Foster a positive and productive working relationship with the outsourcing agency. This helps ensure both parties are motivated and committed to achieving the sales goals.
- Monitor and measure performance: Regularly monitor and measure the performance of the outsourced sales team to ensure that they are meeting or exceeding expectations. Use this information to make necessary adjustments and improvements to optimize the sales process.
- Be flexible: Be flexible and open to change. The sales process can be complex and dynamic, and it may be necessary to adjust the approach and strategy over time to maximize success.
If outsourcing your sales and customer acquisition sounds interesting and could benefit your business, get in touch and speak with us.