3 Reasons Startups Should Outsource Sales Development
Everywhere I look there seems to be a new company trying to innovate and bring new products and services to market. In today’s economy, it is easier than ever to launch a website and start a marketing program; but what about sales development? For us and our clients, we understand the importance of keeping people engaged, but also finding new people to engage with. Some folks look internally for this, while others find that it’s best to hire someone to do the job for them. Sometimes we see an abundance of sales development positions available, but they phase out in a few months time. Start-up organizations can find a solution to continue stocking the pipeline by choosing to outsource.
In the beginning especially, outsourcing can help you get the activity needed and help you understand best practices for when you’re ready to hire sales development internally.
Here are a few reasons why outsourcing is beneficial:
- Infrastructure and cost
- Hiring an SDR is beneficial to any company looking to build a sales pipeline. As technology continues to grow, a successful SDR has to be able to keep up, which usually translates to added cost per individual. SDR’s need a computer as well as a seat on your preferred CRM, along with other plugins and extensions used for prospecting. Once you add all of that up, and you add in training time so they are efficient, let’s be generous and say you need 45 days at least to ramp before even 1 appointment is set.
- Inbound leads are definitely fruitful, but we find there are more people who are not actively looking for your solution, or don’t yet recognize your solution can solve a problem they didn’t realize they had. Due to this trend, we recommend a combination approach to inbound and outbound. The challenge with outbound prospecting is that everyone is trying to get out of it. Need someone to clean the marketing closet? Run out and pick up more Diet Coke? Your SDR is the first to raise their hand. As a result of this, we’ve found that on average, internal reps make 5-8 dials an hour. What if they were making 12-15 dials per hour? Just think, that is more than double the opportunity to have conversations with prospects, and double the appointments set.
- Hiring SDRs to make calls and schedule meetings is one thing, but managing those employees can be time consuming & difficult. There are a lot of strategies and tasks that go into managing an SDR team and without an SDR manager; those tasks are going to fall on someone’s plate who usually already has a full load. Most of the time, outsourcing comes with management of the team you are using to help strategize and keep the SDRs on track. When appointments are not as high as everyone would like, there’s a lead generation expert to jump in with questions, ideas, and to implement these to increase results. Outsourced management also comes with knowledge of best practices when bringing a new service or product to market.
Overall an entrepreneur is interested in results. They want to get the best quality for a low cost so they can continue to build their next best thing. Outsourcing sales development will not only help speed up the process and get activity quicker, but also help guide you along a path of building your own internal team.
Let LeadJen help your business fill the pipeline and generate some qualified appointments so you can create some steady streams of revenue.