Why Do B2B Businesses Often Outsource Sales Teams?

There are plenty of reasons why businesses, especially B2B, always prefer Best Outsourced Sales Team rather an in-house team, including:

Cost Effective

Opting for B2B sales outsourcing eliminates the necessity of hiring an in-house sales team. If you maintain a sales team, you’re obliged to compensate all your sales representatives along with a department manager, incurring significant costs.

Moreover, if you’re currently managing your sales department, you might be losing money by diverting your focus to administrative tasks rather than client interactions. B2B sales outsourcing presents a more financially prudent option, enabling you to maximize your return on investment.

Easier to Manage than In-house Team

Managing in-house sales teams can pose several challenges. Firstly, they may lack the flexibility needed to adjust to changes within the company. You might hesitate to impose strict quotas, especially during periods of significant business transformation, fearing that it could lead to employee dissatisfaction and attrition.

On the other hand, a B2B Outsourced Sales Management team is well-equipped to navigate such shifts in your company. Each team member is adept at swiftly adapting to fluctuations in your business requirements. Additionally, if your business needs to scale up or down, you won’t have to handle the complexities of hiring or firing employees. The B2B sales outsourcing provider will manage that aspect for you.

Quick Recruitment Process

Sales outsourcing providers can expedite the hiring process for businesses since they already have established recruitment and training procedures in place. This enables companies to swiftly fill sales positions, resulting in a more efficient sales team in a shorter timeframe. 

This advantage is particularly notable during periods of layoffs and hiring freezes, as recruitment teams are often among the first to be affected. By outsourcing sales functions, businesses can reduce their time-to-hire by up to 25%.

Breaking Down the Costs of Outsourcing a Sales Team

The costs of outsourcing can vary based on several factors:

● Time frame: Expedited results require more investment since the outsourcing provider will allocate additional resources.

● Type of project: Custom solutions tend to be pricier. Additionally, if you need a specialized team dedicated to your project, expect higher costs.

● Complexity of products and services: B2B transactions often involve multiple decision-makers, leading to longer sales cycles. Selling high-value items can also extend the process.

● Call volume: Sales Development Representatives (SDRs) typically make between 30 and 100 calls daily, depending on quotas and objectives. More calls increase the likelihood of setting appointments with qualified leads.

While outsourcing your sales process isn’t inexpensive, considering these factors often reveals it to be more cost-effective than establishing an in-house team. Typically, an outsourced sales team in the US would cost anywhere between $1000 to more than $5000 per project based on complexities and workload. Hourly rate starts from $25, which can go beyond $50.  

On the other hand, the average cost of sustaining a sales team of three employees (including expenses like training, benefits, commissions, and operations) only can cost a company close to $300,000 per year (or around $25,000 – $30,000 per month). 

In most cases, outsourcing a sales team may be the right choice, keeping in mind the fact that sales can fluctuate caused to several factors including seasonal, direct, cross, competitive, or composite demand. 

Outsourcing especially benefits startups and other SMBs keeping the overall overhead costs at a bare minimum. 

Whereas, in-house teams only make sense in big corporations and/or when the product is simple and the sales cycle is short.  

How Outsourcing a B2B Sales Team Gives Better ROI?

The typical onboarding period for a sales representative spans 4.5 months, with at least 12 months required to elevate them to top performers. By opting for outsourcing, you can capitalize on the expertise of the service provider’s trained workforce, accelerating your path to achieving objectives. Conversely, hiring and training new sales reps demand significant time investment, keeping aside the costs related to the training.

Put simply, while your in-house sales rep undergoes preparation, an outsourced team, already trained, can commence delivering results and often start generating profits within the initial or second month. With outstanding rates of return ranging from 8:1 to 13:1 for every dollar spent, outsourced sales teams can achieve even larger returns more quickly. Their emphasis on sales experience and access to a large pool of qualified people are the main causes of their efficiency.

So, Does B2B Sales Outsourcing Make Sense?

Absolutely yes!

B2B purchases are typically multifaceted in most cases, requiring careful thought, a large upfront expenditure, and a large number of man-hours to completely commit to a product. And if a manufacturer/company offers multiple SKUs the task becomes more and more difficult for the rookie sales rep to handle and even to put it forward effectively.

As a result, the buyer’s journey has become a lengthy sales cycle with numerous decision-makers. This is many of the reasons why most companies in the market frequently use Best B2B Sales Outsourcing Teams to improve pipeline performance because of their proficiency in creating and carrying out successful prospecting campaigns.

Conclusion

Nowadays, B2B sales outsourcing is a key strategic tool for companies that want to improve efficiency, increase income, and address the complex issues of modern markets. The outsourcing approach is not only cost-effective, but delivers a great return on investment, and is the ideal solution for the challenges of having a sales team housed in a company. 

Outsourcing enables companies to quickly respond to market changes, make hiring processes faster and more efficient, and result in quicker company expansion. Different costs depending on the complexity of the project do not hide the fact of serious returns, so outsourcing is linked to guaranteed success. In the long run, resourcing B2B sales will mean a positive for business in terms of maximizing profitability and competitiveness in the ever-changing business atmosphere.

Ready to optimize your B2B sales strategy? Contact Grow4sureconsulting today for expert insights, cost-effective outsourcing solutions, and impressive ROI!