Outsourced Lead Generation: 8 Reasons Why It’s Trending

According to a White Paper from NNC Services, “an outsourced lead-generation department can bring up to 43% better results than an in-house one.”

Your company may choose to outsource B2B lead generation for a number of reasons that can result in a healthier ROI. Through outsourced lead generation, your sales department is able to reduce wasted labor hours and focus more intently on the prospects that have already been vetted and nurtured by the outsourced team. 

Your company can also significantly cut the costs associated with expensive sales lead generation outsourcing tools. Finally, you gain years of experience and knowledge from a dedicated B2B lead generation firm giving you the luxury to skip the trial and error needed to build a strategy that converts.

What Is Outsourced Lead Generation?

Lead generation outsourcing is the practice of delegating lead identification, lead qualification, and lead nurturing to an external sales partner. The process involves engaging a third-party agency that will use its expertise and resources to generate pre-qualified prospects and deliver them to the hiring company.

To attract quality leads, outsourced lead generation partners leverage various tactics such as market research, prospecting, and cold calling. This strategy is particularly beneficial for businesses looking to scale efficiently while staying focused on core activities without the overhead of expanding their in-house team.

Key Advantages of Outsourcing Your Lead Generation

If you’re looking for a few more reasons to outsource your lead generation, the following examples should help tip the scales in favor of getting it off your plate:

If you’re looking for a few more reasons to outsource your lead generation, the following examples should help tip the scales in favor of getting it off your plate:

1. Accelerate Business Growth

When you’ve got a team of pros working on generating leads, you know they’ll be quality. You won’t have to worry about buying lists or doing your own optimization. And because of this, your leads will grow faster and be of higher quality.

Professionals who specialize in sales lead generation outsourcing for a living are laser-focused on your ideal audience.

Let’s face it, you don’t just want your list to grow in numbers… you want it to be high-quality leads. And instead of taking a shot in the dark, pros know exactly who to target… and most importantly, how to target them. Because they’ve been doing it for a long time; it’s their job to understand the market, the competition, and your product.

2. Adjust Scaling According to Your Needs

Outsourced lead generation is all about flexibility and providing scaling solutions to B2B companies as per their needs. No matter how rapidly you want to grow and whether you’re looking to slow down your progress at later stages, outsourcing sales is always a good solution.

When asked about this, Joe Kevens, the founder and director of B2B SaaS Reviews, said the following:

“Outsourcing lead generation can be beneficial for businesses seeking to scale without investing heavily in full-time sales reps. Agencies have proven methodologies that help mitigate risk and eliminate expensive sales management costs. In my experience as a Growth Leader, outsourcing to an agency allowed us to quickly boost our sales without needing the time, money, effort, and expertise to build an in-house sales team. I’d recommend businesses, especially those aiming for rapid growth, to consider this approach to get started with sales.”

3. Gain Fresh Perspectives and Strategies

New strategies and innovative perspectives can freshen up your lead generation approach and help you stay competitive in the industry.

Let’s hear more about this in the words of Jason Vaught, the director of content at SmashBrand:

“Working alongside a proficient lead generation agency offers numerous advantages, notably their exposure to diverse industries. Internal teams often encounter challenges in lead generation as they primarily view things through the lens of their industry. By outsourcing this responsibility, you introduce a fresh perspective and gain access to strategies that your internal team may overlook.”

4. Improve Sales Conversions

When your leads come to you pre-qualified, putting a ribbon on the sale becomes that much easier. Your leads will arrive at your “front door” well-educated on what you’re offering them. In many cases, this means they’re ready to take out their wallets as soon as you reveal the product or service you’re selling.

This laser-focused qualification process not only saves you time, but it helps you see quick wins in your business, leading to rapid growth and confidence in closing sales. In the end, when you pair time saved and rapid growth, it’s undeniable that your ROI will increase and your business will see the growth you’re dreaming of.

When you consider the education and content you’ll have to consume to produce results somewhat close to what a professional lead generation expert will produce, you could be wasting weeks, if not months and years, of time.

And we’re guessing you’d rather grow your business much quicker than that.

5. Enhance Focus and Efficiency

Outsourced lead generation teams have the necessary experience and training to help you streamline all operations, leading to greater efficiency and focus. As an industry insider, Marc Hardgrove, CEO of TheHOTH has an insightful perspective on this: 

“Outsourcing improves a company’s ability to focus on critical internal work. Outsourcing organizations are no longer untrustworthy and lack quality control.  Business owners can now totally rely on modern outsourcing firms to represent their company to the highest standards.”

6. Lower Lead Generation Cost

Taking on your own lead generation strategy sounds like you’ll be saving yourself money, but in business, time is money. And lead generation takes time. Lots of time.

Time to research your audience, time to create content, and time to promote that content (not to mention the optimizing that takes place later on). So, when you hand over your lead generation initiatives to a professional marketing agency, you’re saving yourself time… and, in turn, money.

7. Avoid Common Lead Generation Mistakes

Most in-house marketers and sales reps consider generating traffic and attracting quality leads their biggest daily challenge. There are many mistakes to avoid and tactics to implement perfectly if you want your lead generation process to yield positive results in a timely manner.

Daria Erina, the managing director at Linked Helper, had the following to say:

“You can venture to do lead gen yourself but there are plenty of nuances. Those who dive into lead gen without any experience make many mistakes. This eventually leads to disappointment and belief that lead gen is way too complicated. If you find a decent lead gen agency, you will avoid all typical mistakes. You’ll see how they set up the whole process: warming up domains, refining your social media profile and positioning, and all messaging funnels.”

8. Leverage Cutting-Edge Technology

For any company to be able to keep up with the competition and enhance its lead gen efforts, it needs to take advantage of the latest tools and technologies in the market. But without the right tech-savvy skills and sales expertise, access to cutting-edge technologies may not be a luxury that everyone can have.

The perspective of Corey Donovan, the president of Alta Technologies, on this subject is quite insightful:

“There are a few reasons for this, with the most notable being the fact that lead generation companies have access to the most up-to-date and cutting-edge technology so they’re able to generate leads faster and more efficiently. With this access to technology, they can also source higher quality leads that are specifically targeted based on customer avatars and audience profiles.”

9. Concentrate on Core Sales Duties

Outsourcing allows you to place the right employee in the right position and at the right time. Your internal marketing and salespeople will then be able to zero in on what they do best, enhancing your business’s overall efficiency. 

Here’s an interesting comment from Matthew Ramirez, the founder of Rephrasely, about outsourced sales duties: 
“Outsourcing allows companies to prioritize important areas like research and development or customer service, rather than getting caught up in other less crucial tasks. It is not solely about expanding, but about making the best decisions for the company. By concentrating on our strengths, we can work more effectively.”

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What Is the Lead Gen Outsourcing Process Like?

FAQs: Outsourced Lead Generation

1

Who Needs Sales Outsourcing?

Outsourcing sales is most helpful for companies that want to focus on their core competencies while benefiting from the expertise of professional sales partners. Businesses that lack in-house sales resources while they’re launching new products, entering new markets, or simply needing to scale up their sales efforts can benefit from sales outsourcing.

Sales outsourcing is also particularly crucial for startups and small businesses that may not have the budget or resources to build a dedicated sales team. That’s because it’s a cost-effective approach to building sales teams without incurring the overhead costs associated with hiring and training in-house sales staff.

Additionally:

Big corporations looking to optimize their sales operations can also leverage sales outsourcing. Hiring a reputable sales firm with specialized knowledge in specific industries is often a great step for any large organization looking to enhance its sales performance to keep up with the competition.

2

What Do Sales Outsourcing Companies Do?

Sales outsourcing firms provide a wide range of sales services to their clients — from lead generation and prospecting to appointment setting and closing deals. It all depends on the specific needs of each customer and what they’re trying to achieve with outsourced sales.

The primary role of an outsourced sales team is to manage and execute sales activities on behalf of their clients. This can include target market research, competitor analysis, generating leads, nurturing prospects, closing deals, and managing customer relationships.

Moreover:

Sales outsourcing companies may provide additional services such as sales training, sales strategy development, and sales analytics. These services include working closely with each client to set goals, develop customized sales strategies, and monitor performance to ensure targets are met.

 

3

What Is an Example of Outsourcing?

Let’s say that a tech company is looking to expand its operations and increase its customer base by breaking into a new geographical market.

This business will now need more assistance with the accumulating sales activities. Therefore, they’ve decided to outsource some of their sales functions to a specialized outsourcing firm with relevant expertise and market knowledge.

The outsourced sales partner will provide the tech company with an experienced team of sales professionals. So that’s going to help them save a lot of time and resources that would’ve been wasted if they decided to hire and train an in-house sales team.

The outsourcing firm will manage the entire sales process, from generating leads and qualifying prospects to closing deals. They’ll also be responsible for supporting the internal sales team and providing ongoing training to ensure that all the software company’s goals are met.

This enables the software company to remain fully focused on other core tasks such as product development and customer support.

4

How To Outsource Lead Generation?

Here are a few steps to help you get started with outsourced lead generation: 

• Define Goals: Clearly outline your target audience and lead objectives.
• Research Providers: Identify agencies with relevant industry experience.
• Evaluate Proposals: Assess strategies and capabilities from potential partners.
• Select a Partner: Choose based on alignment with your goals and budget.
• Set Expectations: Define KPIs and communication protocols.

Review Performance: Regularly assess and adjust strategies for optimal results.

5

How Much Should I Pay For Outsourced Lead Generation?

The cost of outsourced lead generation varies based on several factors, including the scope of services and the expertise of the agency you’re hiring. Pricing models include monthly retainers, per-lead fees, or a percentage of sales generated, typically ranging from a few hundred to several thousand dollars per month. Be sure to evaluate your budget and desired ROI first so you can determine the most cost-effective option.

6

Are Lead Generation Companies Worth It?

Lead generation companies can be invaluable as strategic partners — offering tailored solutions that integrate seamlessly with your existing sales processes and enhancing your marketing efforts with their expertise and innovative approaches. A reliable lead generation agency will also allow your business to maintain a sharp focus on its primary goals while benefiting from specialized strategies developed to specifically address your needs and market dynamics.

7

How Hard Is Lead Generation?

Many business owners find lead generation challenging due to its multifaceted nature — requiring expertise in market research, data analysis, and customer psychology. Successfully converting a prospect into a customer involves refined lead generation techniques that align with evolving market trends and consumer behaviors. However, the right tools, expertise, and resources can streamline this process, enabling any company to identify and reach potential customers efficiently.

Resources You’ll Love

B2B Sales Outsourcing Services: An In-Depth Guide

Sales Outsourcing Interactive ROI Calculator [Get Your 12-Month ROI Estimate]

What Are Appointment Setting Services

Buyer’s Guide to Hiring The Best Lead Generation Companies

Case Study: How Martal Helped Complete EDI Generate 6781/month