Sales are a fundamental concern of any company. The primary goal of any business is to make profits. However, you cannot achieve this without sales.
As a result of the COVID-19 outbreak, most companies have entered into a financial depression. The effects of this go beyond this article. Most firms are looking for new ways to come back – improve sales. Suggestions have been made, like reducing staff force and automating processes.
Every company that intends to thrive spends so much money on marketing teams and strategies. However, if you want to sell more, saving money and time, an outsourced sale model might be best for you.
Outsourcing in the business world means handing over some duties to a third party. It can be a partial or complete transfer. In this context, outsourcing sales means transferring your marketing responsibilities to a third party.
Types of Sale Outsourcing Models
A Full-stack Model
In a full-stack model, the providers handle the entire marketing process. It involves generating leads and closing sales.
Full-stack models are best for start-up firms. Some start-up firms have less time and funds to build a marketing team. Hence, this option is best for them.
Mixed Outsourced Model
Here, you can only entrust some marketing duties to a third party. We can classify this model into three.
Vertical Marketing Strategy
The firm divides the funnel into two stages. Each stage is managed separately by the firm and the provider. The provider handles lead generation. The providers then pass on qualified leads to the firm’s internal marketing team.
Horizontal Marketing Strategy
The strategy drives competition amongst the external and internal marketing teams. Both teams work on the same market simultaneously. Some firms use this model to drive growth, sales and expand their business.
As the internal teams compete with the external ones, they become up to standard. Hence, your internal marketers improve over time. A horizontal marketing strategy does not only improve your company sales, but it develops the company’s sales team.
Top multinational firms use the geo-related strategy. Their internal sales team works exclusively to dominate the household market. In addition, they hire providers to dominate the local market. It aims to reduce risk and cost.
Benefits of Using an Outsourced Sales Model
There are several benefits of sale outsourcing. Some of the benefits include
Scalability refers to the ability of a firm to grow. However, growth is dependent on sales. To improve it, you might need to find professionals.
Searching and hiring professionals can result in so many costs and time spent. Hiring a provider takes away these responsibilities from you. You can read this article to know more about scalability.
How did we get here? The need to cut costs and make more money while retaining quality brought us here. Several companies have resorted to outsourcing sales to make more money. Below are some financial advantages associated with outsourcing.
Having an in-house marketing team accrues more salary costs when compared to hiring a provider. A third-party team reduces this cost by handling their location rents. Hence, you spend less on their salary compared to the cost of paying internal marketers.
Save Rent Cost
If you get a marketing team, you will need a larger space. Renting a spacious office will accrue more cost. However, transferring your marketing responsibilities to a third party will help reduce the space required. Hence, you save money on office rent.
Save Training Fees
To have a team that is up to standard, you might need to send them for training occasionally. The team needs to be up to date with recent market trends. However, outsourcing can take away this burden from your company.
The provider markets your product professionally. They understand the market and have a database of past clients. These providers also understand the art of managing transactions and have experience doing so.
Handling a business comes with a lot of managerial duties. Marketing takes a lot of time and effort. However, if you transfer these duties, you can do other things. You can click on https://trafft.com/why-is-time-management-important/ to read more about the importance of time in business.
Using an outsourced sales team is less risky when compared to employing and managing your own. While employing yours, you might hire the wrong persons or not know who to hire. Some business niche requires hiring local marketers that are conversant with the area.
An outsourced model is an effective method of cutting costs on marketing while sticking to quality and expertise. There are several benefits of using this model. It can save you time, money and lead to business scalability. If you are looking for a solution to your lack of sales, you should give it a try.