Outsourcing the Sales Function
Small to medium companies that want to increase sales or profits and find it is possible to outsource sales should - do it! At this point most Business owners and executives either become overwhelmed with doubt or fear. Here's what we hear: "We can't give up control of sales, that's too risky." Or "Our products can't be sold by anyone but us, they are too complicated for anyone else to understand." Many small companies outsource accounting and legal work, but still find using contracted sales professionals universally out of the question. Unfortunately, most small to medium sized companies are good at one thing: making a particular product or providing a particular service - not selling. Hence, many companies find themselves dissatisfied with the salespeople they hire. They tend to hire people who have experience with a product or market and figure they can teach them how to sell. This, rarely works, and the company ends up with a product expert who just is not selling. A lose-lose situation is born. There are many industries that have a preponderance of willing and able partners that are looking for new and innovative (read profitable) products to sell. The vast majority of these re-sellers operate on a regional basis, other work on a national or even international level. There are even companies that will set up and manage the entire process for you, and some will even manage your marketing activities as well. So what makes this approach so good? Here are seven reasons: * Pay for performance. Contracted re-sellers do not get paid unless they sell something. They will either receive a commission on the goods sold, or be sold the goods at a discount which they in turn mark up and sell for a profit. This lowers your risk of having to pay salary and benefits and can also allow you to put more feet on the street faster because you're not handcuffed by these costs. * They already know how to sell. Professional sales organizations, whether they are called reps, agents, distributors, wholesalers, partners - whatever - have one thing in common, if they don't sell they don't get paid. This pretty much ensures that resellers who've been in Business for any length of time already knows how to sell. * Specialization. Re-sellers tend to pick a niche and specialize in particular industries and markets. So they spend their days in this environment and know what needs to be known from a Business and technical standpoint. Therefore, if you pick the right ones they surely can handle your "complex" product. * Instant credibility. An established re-seller has been calling on companies in their market or territory for years and has long standing relationships in place. These relationships allow them to call their contacts within a target company and easily get some time to present a new product or service that they are now handling. This is, obviously, a lot more effective that having an inside salesperson from the your company cold calling on the same target companies. These existing relationships, therefore lead to increasing a product's speed to market. * Other lines bring leads. Almost all re-sellers have other products to sell. In selling these other products they will uncover opportunities for selling yours. * They will tell it like it is. They need you to be doing the right thing because they need to make money, not secure their job. Therefore, you will get candid and timely feedback from the field, allowing you to serve you customers better. Often, feedback received from a rep and one territory can be used to improve relationships and increase |
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