{"id":116,"date":"2019-09-18T11:02:25","date_gmt":"2019-09-18T01:02:25","guid":{"rendered":"https:\/\/www.evolvedcontact.com.au\/articles\/?p=116"},"modified":"2022-12-20T10:20:42","modified_gmt":"2022-12-20T00:20:42","slug":"dont-outsource-your-sales-its-too-expensive","status":"publish","type":"post","link":"https:\/\/www.evolvedcontact.com.au\/articles\/dont-outsource-your-sales-its-too-expensive\/","title":{"rendered":"DON’T Outsource Your Sales. Its Too Expensive!"},"content":{"rendered":"\n

DON’T Outsource Your Sales. <\/strong>This is the most popular argument we are presented with when speaking to heads of companies. It’s not unreasonable either; fees for outsource firms range in the thousands of dollars per month. <\/p>\n\n\n\n

Companies that have never used these kinds of services, or haven’t for a long time believe it will cost them a fortune, and that an in-house team will be less expensive with greater control.
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“DON’T Outsource Your Sales?” Let’s Challenge This Assumption<\/h2>\n\n\n\n

The reality is quite the opposite. According to most surveys, cost savings is the primary reason for outsourcing. Especially as the TRUE, unforeseen cost of running an in-house sales development unit is often only realised when it’s too late.<\/p>\n\n\n\n

Interesting data from leading job sites like Glassdoor<\/a> and Indeed<\/a> suggest the average Sales Development Reps (SDR) base salary<\/em> ranges from $50K to $65K. With a lead generation specialist <\/a> fetching $64K<\/p>\n\n\n\n

This is in line with data from Payscale\u2019s Average Business Development Representative Salary in Australia<\/a> report which also reports On-Target Earnings (OTE) inclusive of commissions\/bonuses of $85,076K.<\/p>\n\n\n\n

None of these costs usually factor in software, hardware, or other typical overhead — often 25% of salary. And the least factored part of in-sourcing is the allocation of management time, money, and resources. Figures, all-inclusive of these hidden costs, can easily run into the six figures.<\/p>\n\n\n\n

\"annual<\/figure>\n\n\n\n

It gets worse… In 2018, the SDR position largely serves as a short-term launchpad of a sales career (or brief foray into the land of rejection in a job many cannot handle).<\/p>\n\n\n\n

If you’re hiring phone sales staff, then the average hire comes with less than 12 months genuine experience and has an average tenure of under 15 months<\/a> (including ramp time). It\u2019s rare to find organisations allocating human resources costs for the endless treadmill of hire, train, and retain required for insourcing.<\/p>\n\n\n\n

In other words, companies spend 26% <\/strong>of their time on training, which takes a manager\u2019s time and efforts resulting in positive productivity for less than a year..
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\"No<\/figure>\n\n\n\n

Here’s one more thing to analyse, when you consider sales outsourcing. Along with cutting costs, companies usually try to estimate qualitative ROI using the following criteria:<\/p>\n\n\n\n