A while ago, more precisely sometime in 2010, I was waiting in an airport for my delayed flight and I was thinking…
What if there would be a company out there – that is specialized in sales!
All they have to do is to handle the sales of all types of products like an accountant deals with your paperwork or a solicitor is taking off the hassle of legal & contracts, etc.
Indeed, sales is a core function – and in the business environment – it is difficult to imagine how you can put your fate in the hands of someone that won’t care as much as you do about your “baby” – which is the product/service you built your business around. But the bigger your company grows – the more you loose the control of the sales – and the sales staff are most volatile. They are like cowboys or mercenary – being paid for the job and when a better paid job is around the corner – they just leave - with your training, with your resources, with your clients sometimes and you are back to square one and you have to do it all over again! Not a nice thought! And I bet every single company faces this situation at a certain point.
So yes – what about a company like this? I have Google it and couldn’t find any. I took my flight and got back to my work – but the seed of this idea remained in my mind until few months later when I decided to do it on my own.
After 8 years, I can say the differences of an in-house sales department or an outsourced one are:
|In-house sales department||Outsourced one|
| + higher control on the procedures||- they handle the sales as they want but |
you can outline some rules in your contract
| - higher costs for recruiting|| + no cost to set up the contract and get |
| - higher costs for training the staffs|| + you do not have to train them – they |
are trained and ready to start working
| + you can go daily in the sales office |
and stress them to deliver results
| - you might be panicking at the |
beginning as you lose control on daily
proceedings – though you can establish
| - you feel the client is not yours but he |
belongs to the outsourced company
| + if the terms of the contract are clear |
& open – you can opt for transparency
on your clients’ list
| - limited number of clients|| + they have their data base of clients |
plus they HAVE TO prospect and
increase it – so no costs for you with
| - when you lose a good salesman – |
your monthly sales are affected and
replacing him/her takes time
| + the company handles these staff |
fluctuations and you do not have to
spend time stressing about it
| - a salesman might leave with your |
clients to a competitor
| + the company is obliged by the |
contract to protect your info
| - massive savings that impact your P&L |
- NO bonuses & commission schemes,
team buildings and special training courses
| + by the contract you established a |
service fee and the rest of motivational
bits & bobs are their own problem
| - you focus on your core business: making |
the product, improving the service, etc
| + they focus on promoting & selling it|
| - no customer services costs / no angry clients|| + we all know how annoying is to calm |
down a hysteric client – that just has a bad
day – so leave it to them
| + you decide the price and market restrictions|| - they have to comply with your rules|
| - they open new markets and provide you |
with local know how – very important
feedback for your future development plans
You can always test the model – if it works – you just made a massive saving to your company – if it doesn’t – you haven’t lost anything.
And because it was so difficult to convince the companies to give me a try – I have started by asking them to give me what was “impossible” to sell by their sales department.
Did I manage to do it? Yes but overcoming much more hurdles than I was imagining.
ATTRACTING REAL LEVERAGE Ltd