There’s still a lot of people who don’t believe outsourcing can be a successful part of their business strategy. Lead generation is vital for sales success but handling it internally can be time-consuming and costly. Can outsourcing this task be a reliable solution?
Outsourcing certain job roles is becoming a more common business practice. From small startups to enterprise level companies, outsourcing has become a beneficial and vital part of how businesses are run and have been able to grow. However, as much as there has been an increase in outsourcing jobs, there’s still a lot of misunderstanding surrounding the concept.
Annually, almost 300,000 jobs in the U.S. are outsourced. (1)
While IT services are the number one position to be outsourced, sales is fast becoming an area of focus for those looking to expand their team and sales efforts. However, there’s also many people who have a negative view of this business strategy.
Let’s examine a few common misconceptions associated with outsourced lead generation services and explain why each is untrue.
1. Too Expensive
Though outsourcing lead generation services has a cost attached, it can be even more expensive to execute internally without guaranteed results. Outsourced lead generation services are usually a fixed cost and provide your sales team with a consistent flow of qualified leads. Expecting a consistent level of outreach from salespeople is not realistic with the other tasks they need to do to close a sale, and an internal hire focused on lead generation can cost over well over $100,000 when you factor in the costs of salary, commission, hiring and training, equipment, vacation and benefits.
2. Not Enough Appointments
Some business owners worry that outsourcing lead generation will not generate enough appointments. However, many companies experience that same problem internally, as there is no guaranteed number of appointments or the quality of the appointment. Because lead generation companies specialize in this area, they can provide consistent qualified leads and appointments so the internal sales team does not have to waste their time.
3. Brand Misrepresentation
One of the biggest concerns about outsourcing lead generation is that the outsourced sales reps will misrepresent the company’s brand. However, quality lead generation providers specialize in learning a company, their brand, and their products or services inside and out to represent the company exactly as you would want.
Tip: Look for a provider who provides transparency, such as recorded phone calls, to ensure your brand is presented to your business’s standards.
4. Product Or Service Is Too Complicated
Many companies assume their product or service is too complicated for outsourced providers to effectively sell, but keep in mind that lead generation providers have experience learning even the most complicated products and services. Just as you would train a new sales rep internally, lead generation providers simply need some training and resources to learn and understand your offering.
5. Cold Calling Is Dead
Some hold the belief that cold calling is no longer effective. However, that attitude is often born from experience, witnessing first-hand the ineffectiveness of cold calling. In reality, if done right by an experienced salesperson, it can be extremely effective in driving new leads and brand awareness.
If a salesperson is not experienced in cold calling or you are calling on a bad list, of course the results will be poor. On the other hand, lead generation providers are experienced in cold calling as part of a larger strategy including techniques to get past the gatekeeper and finding quality contact lists.
6. Outsourced Means That Sales Reps Are Overseas
A common concern when outsourcing any business activity, is that “outsourced” automatically means the job function will be operating from overseas. While that is the case for some lead generation companies, many are also based in the US. When researching lead generation providers, this is an important topic to get clarity on if this is important to you.
7. Outsourcing Means Scripted Calls From A Telemarketer
When some people hear “outsourced lead generation services,” they picture telemarketers making highly scripted cold calls. But if you are working with a quality lead generation company, you will have experienced sales reps working for you, not telemarketers. The best lead generation providers use your rendered talking points, know your common objections, know how to pivot and steer the conversation to get the desired results.
8. Outsourcing Is Something Only Large Companies Do
There are several reasons that companies of any size turn to outsourcing certain job functions. The top three are cost, flexibility, and speed to market (2). These top reasons are often pain points for small and medium sized businesses to bring a full-time person on staff. Outsourcing can help smaller businesses get a start on business objectives because they will be able to tap into the unlimited talent and experience of the outsourcing company they hire.
If you’re still not convinced, think of it this way: outsourced providers are motivated to keep your business and provide regular, quality leads and appointments. A quality outsourced provider will act as an extension of your own company and sales team and the prospects they are calling will never know that it’s really a third-party calling them.
If you’re interested in more information about the benefits of outsourcing your company’s lead generation efforts, contact MPI to learn more. With 25+ years in the business, we have the experience to help businesses grow.