Outsourcing Sales – How Does it Work?

Sales outsourcing is an effective technique that both small and large size businesses adapt to achieve an increasingly high volume of buyers for their offerings – products and services. These businesses and companies employ the services of source vendors known as outsourcing agents to boost sales volumes.

The Client Pays the Outsourcing Partner Based on Result

The best part about sales outsourcing is that the client doesn’t have to pay for something that did not bring in the expected returns. Instead, the company using a sales outsourcing solution would pay the independent marketer based on the generated or achieved the result. The relationship between the client and the outsourcing partner is a mutually benefitting situation for a business and the outsourcing company.

The Full Sales Outsourcing Technique

This is a situation where a business or company employs an independent third party sales force. This is distinct from the value-added distribution or reselling where the business model could be dependent on shared risk — but in some models, the outsourcer gets payment for the entire marketing activity they performed. Sales outsourcing is also known as channel sales or indirect sakes.

Sales Outsourcing Vendors are Accountable for their Tasks

When you outsource sales, you are not just leaving your marketing or sales to fate. No, the independent marketer you hired is responsible and accountable for the entire sales results and activities while representing your brand. The customer would think it’s the company selling its own product because every step goes smoothly and professionally, if not more professionally, as long as the company contacts the right sales team.

In essence, the marketing outsourcing company is an extension of the company whose products and services it is marketing. But, as mentioned earlier, the third party takes responsibility for the entire operations and activities that come with direct sales.

So, Why Sales Outsourcing?

The only reason for sales outsourcing is to make sales resource available to businesses and companies, without the outsourcing agent taking title or ownership of the client’s product and/or services. Typical examples of sales outsourcing providers include the following;

• Sales Outsourcing Consultants
• Sales Agents
• Contract Sales Organizations

These services are increasingly adopted in companies and businesses of various kinds to replace or supplement internal sales/marketing resources with increased functionality and expertise.

What Benefits Does a Business or Company Get from Sales Outsourcing?

Obviously, outsourcing sales comes with tons of benefits, which is why companies are increasingly adopting this solution for their sales and marketing. Top in the list of those benefits include the following;

• Compared to the high-loaded cost of hiring an in-house salesperson, outsourcing sales is cheaper. This stems from using variable costs to replace fixed costs, which is indeed attractive to budget-holders.

• In addition to cost-saving, another major benefit of outsourcing sales is the increase in revenue and flexibility, plus the speed of response.

Indeed, it pays to outsource sales.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.