What Does it Mean to Outsource Sales And Marketing? Benefits of Outsourcing Sales and Marketing

Whether in business for ten months or ten years, you’ve probably taken a ride on the sales and marketing struggle bus at one point or another. Sometimes riding that bus feels like your Keanu Reeves in Speed, just trying to maintain momentum so the whole operation doesn’t “explode.”But even Keanu couldn’t save the day on his own.

Oftentimes, no matter how well-trained and dedicated a team is, it takes an external perspective to understand the full scope of a situation. And sales and marketing strategies are so full of variables that partnering with an agency has been an increasingly popular decision for startups and enterprises alike.

Still, not every revenue leader has worked side-by-side with an outsourced sales and marketing company, so many are uncertain of what to expect. Here we’ll unpack just what it means to outsource sales and marketing to a trusted provider, along with some of the benefits most companies experience during their partnership. Finally, we’ll touch on some of the important factors to consider when vetting out potential outsourced firms. But first, we’ll define what outsourcing sales and marketing means.

Let’s get to it!

What is an Outsourced Sales and Marketing Company?

An outsourced sales and marketing company is a third-party provider that specializes in generating leads, nurturing prospects, and finalizing sales for other businesses.

This type of agency typically takes on the entire sales process from start to finish, including lead generation, appointment setting, and closing deals. However, outsourced sales and marketing partners are often flexible, giving clients the opportunity to choose the services they need help with the most.

What are the Benefits of Outsourcing Sales and Marketing?

Outsourcing is often synonymous with cutting costs, but there is more to it than that.

Outsourcing sales and marketing allows for a more comprehensive approach to customer outreach. To be honest, there’s just so much to do when it comes to generating leads and closing deals that, unfortunately, some of the most important tasks are neglected — like prospecting and following up. But by outsourcing, you can ensure that every aspect of the buyer’s journey runs like a well-oiled machine.

Here we’ll go over some of the ways outsourcing can help you make the most of your marketing efforts and resources.

Reduces Overhead Costs and Other Business Expenses

So let’s tackle the most obvious factor first. Outsourcing sales and marketing is a cost-effective option, especially in times of increased staff costs and attrition. In fact, 80% of small businesses have chosen to outsource at least one process to save money. You’re essentially gaining the immediate advantages of a fully ramped team of professionals without investing in the hiring and training. This can be especially effective for SMBs as it helps them quickly reach a wider audience for less.

Keep in mind that while outsourcing does allow you to maintain a smaller team — dialing up or down expenses on an as-needed basis — it’s not about replacing your current staff. It’s about supplementing their efforts to increase efficiency and maximize resources.

Aside from labor costs, outsourced partners reduce the burden of other expenses like marketing platforms, expensive contact databases, and additional office space so you can put more money into product development and customer success.

Generate More Leads with a Specialized Team of Sales and Marketing Experts

Certain vertical industries that are hyper-focused on one particular field benefit from outsourcing their sales and marketing efforts because of their inexperience in the strategies and processes.

Take B2B tech companies, for example. Most team members are engineers and developers trained in specific applications and coding languages. While talented, they lack effectuality in customer conversion. By partnering with the right outsourced company, these teams can employ experts who have successfully generated leads and closed deals for companies in the same sector — maybe even competitors.

In addition, outsourcing sales and marketing can help revenue leads develop ideas for new techniques. Because consumers quickly become numb to recycled lead gen tactics, strategies and campaigns have to be adjusted constantly to optimize for customer acquisition. Outsourced sales and marketing firms have a finger on the pulse in various verticals and channels, which makes them agile when faced with stagnant or declining metrics.

Launch New Products and Services Without Any Prior Experience

One of the hardest parts of launching a new product or service to the market is finding the right strategy. Only 40% of all products actually reach the market, and even then, only 60% of those products yield revenue. Think of it this way, once you make it out of the development phase, you’re just beginning your marketing journey. You still have to spend time developing, testing, and optimizing campaigns in order to hone your targeting and messaging. On top of the dreaded trial and error process, you also have to invest in and incorporate new marketing platforms and maybe even train new employees. Hiring an experienced coach with a professional coaching contract template might be a beneficial choice.

All of this can take months to work through, and that’s time you don’t have if you want to stay ahead of the competition. An outsourced partner can provide data to help assess the target audience size and product-market fit, as well as forecast your potential sales cycle compared to similar companies. By outsourcing marketing for a new solution, you can expedite the go-to-market strategy, acquire customers faster, and be well on your way to generating recurring revenue.

Quickly Establish Your Brand in Underserved and New Markets

Entering a new market can be just as challenging as launching a new product or service. Resource constraints — whether it’s time, employees, or capital — can really put a damper on a company’s ability to pursue a new genre of leads. B2B sales outsourcing companies can focus on a specific vertical or geographic market, so you can expand your reach without taking time away from your mainstream marketing campaigns.

Types of Outsourced Marketing Services

1) Lead Generation

Lead generation services can help your company identify and cultivate potential clients specific to your business needs. This service is not just about attracting any customer but about finding the right customer who is most likely to purchase your product or service.

In outsourced lead generation, service providers use a combination of market research, advanced analytics, and multi-channel marketing techniques to generate leads. This includes a variety of strategies, such as launching personalized email campaigns, networking with decision-makers on LinkedIn, and connecting with warm prospects via phone calls.

2) Cold Outreach

Cold outreach is a targeted approach used in outsourced marketing to directly contact potential clients who have not previously interacted with your brand. It involves reaching out to a carefully selected audience with personalized messages that aim to initiate a business relationship.

While cold outreach has long been synonymous with high-volume cold calling and mass blast emailing, top-performing agencies have moved away from these potentially harmful tactics. Modern cold outreach services harness sophisticated techniques to ensure that the messages are well-received and effective.

3) Appointment Setting

Appointment setting involves securing meetings between your sales team and potential customers with the end goal of closing more deals. It streamlines the process of turning qualified leads into potential buyers by arranging meetings that are focused on detailed product discussions or customized presentations tailored to client needs.

Agencies offering appointment setting services leverage a combination of targeted communication and cutting-edge prospecting tools to engage, nurture, and coordinate discovery calls with potential clients. Appointment setting is often a byproduct of lead generation and cold outreach services performed by outsourced marketing and sales agencies.

4) Content Marketing

Content marketing focuses on creating and distributing valuable, relevant content to attract and retain a clearly defined audience. As an outsourced service, this approach is designed not just to attract leads but to engage and educate them, building trust and positioning your business as a thought leader in your industry.

An agency specializing in content marketing can help you produce a wide array of content types, including blog posts, videos, whitepapers, and infographics. Each piece is tailored to the interests and needs of the target audience, ensuring that it drives engagement and fosters a deeper connection with the brand. This content will then be strategically distributed across various social platforms, company websites, and email newsletters to maximize reach and impact.

It’s also important to note that more brands are relying on user-generated content to support or even lead the charge for their content marketing strategies. In essence, e-commerce businesses are connecting with video creators on UGC marketplaces like Billo to create custom-made marketing materials. It’s a clever and unique way of outsourcing content marketing in an era when videos are leading the charge in consumption and conversions.

5) Email Marketing

Email marketing goes beyond simple promotions, offering content that speaks directly to the recipient’s needs and interests. This marketing technique allows you to build relationships by delivering timely and relevant information that encourages reader engagement and drives action, making it a powerful tool for nurturing leads and converting them into sales.

Email marketing agencies specialize in crafting creative, data-driven campaigns that drive tangible results. These campaigns leverage segmentation to target specific demographics, ensuring that each message is optimized for the highest engagement. Automation tools are also often employed to deliver these messages at scale, allowing for consistent communication and interaction with prospects.

6) Market Research

Outsourced market research services delve deep into consumer behavior, preferences, and trends, providing invaluable insights that shape winning marketing strategies. Companies offering market analysis have the expertise to gather and analyze data comprehensively, helping businesses understand their market position and identify opportunities for growth.

To ensure a robust understanding of the market landscape, outsourced marketing agencies harness a range of techniques, from surveys and focus groups to data analytics. This strategic insight informs product development, marketing strategies, and sales approaches, allowing companies to effectively meet the specific needs and desires of their ideal buyers.

7) Account-Based Marketing (ABM)

Account-based marketing (ABM) is a specialized strategy in which marketing efforts are tailored to individual high-value accounts rather than a broad audience. This approach enables businesses to create marketing campaigns that resonate deeply with each target account. However, for an ABM strategy to succeed, it requires meticulous planning and execution.

An outsourced ABM agency will combine detailed account insights with customized messaging to address the specific needs and pain points of each account. To ensure that the sales message aligns precisely with the account’s business objectives, the ABM partner will also utilize various techniques such as targeted advertising, personalized web experiences, and direct communication.

How to Choose the Right Outsourced Sales and Marketing Provider?

It takes time to find the right provider. Outsourced agencies use a range of methods to generate leads and increase sales, so the right provider for your company will depend on your unique business model.

Let’s go over some of the key questions and steps you need to take before hiring an outsourced sales and marketing provider.

Understand Your Current Sales Process and What Needs Improvement

In order to successfully integrate outsourced sales and marketing, it’s crucial that both teams work together seamlessly. To do this, you need to fully understand your current sales process and be able to translate it to the potential provider.

In doing so, the outsourced sales executives or marketing experts will be able to diagnose and propose solutions for areas that need improvement in your lead gen and customer acquisition processes. And, if you already know where your team is lacking, you can use the outsourced agency’s assessment to verify if its tactics align with your business practices and ideal outcome.

Outline What You Want from Your Outsourced Partner

When choosing a provider for outsourced sales or marketing, you must be clear about what your company needs. It’s important to ask yourself what you want out of the relationship and what you can afford — both from a time commitment standpoint as well as in terms of cost.

Because outsourced marketing agencies and sales firms specialize in different strategies, you’ll need to find a partner that has experience in targeting the audience you serve. Are you looking for inbound marketing or outbound sales services? Do you want to focus on social media ads or cold email outreach?

It’s essential that the provider also focuses on the metrics that matter to you, and they’re transparent in their reporting so you can accurately measure success. The goal here is to find a reputable partner with the skillset required to meet your company’s objectives with an ROI that makes financial sense.

Interview Potential Outsourced Sales and Marketing Companies

Hiring an outsourced sales and marketing company should kind of be like hiring an employee. After all, these external experts will work closely with your internal team.

Ask vendors you are vetting about their knowledge in your industry and what results clients similar to your company have experienced. Request case studies, testimonials, or other materials that demonstrate their ability to execute on whichever function you’re looking to outsource. Questions like these should never blindside a trustworthy agency. Reputable outsourced partners’ usual plan of attack should be outlined in detail.

The provider’s reporting expectation and sales analytics are also important considerations. How often are reports delivered? What metrics are tracked, and how are they measured? How is data used to assess campaign health and optimize results?

Much of this information may not be mentioned on the provider’s website. For those outsourced teams that you are seriously considering, schedule a demo so you can get an idea of what the service is like.

Don’t Be Afraid to Ask for References

While conducting research is imperative to making an informed decision, speaking with references can be equally enlightening. Through references, you can gain a client’s perspective on the level of service potential partners provide in a way that can’t be obtained from simply reading review websites. While it may not be the most impartial way of assessing your options, it can be a great addition to your vetting process if you ask the right questions.

Conclusion – Are You Ready to Hire a Marketing and Sales Outsourcing Company?

So the big question is: are you ready to make the leap? Hiring an outsourced sales and marketing firm is not a decision to be taken lightly, but we hope by now you have a clear understanding of your next steps.

While talking about outsourcing in the workplace can be a touchy subject, discuss the benefits with your team and explore your options. Interview some potential partners to get a feel for the process as well so you can decide for yourself if outsourcing sales and marketing is right for you.

FAQ: More About Outsourced Marketing

What Is Outsourced Marketing?

Outsourced marketing involves hiring external agencies or professionals to handle specific marketing tasks or the entire sales strategy at a company. This approach enables businesses to leverage specialized expertise and advanced tools without the overhead associated with an in-house team. These services typically include sales outreach, email marketing, content creation, and lead generation.

When you choose to outsource your marketing, you are essentially partnering with a team of sales and marketing experts who bring along deep knowledge in your target area. These professionals often work in hybrid teams, combining a diverse range of skills and experiences to help you overcome complex market challenges.

How Much Does It Cost To Outsource Marketing?

The cost of outsourcing sales and marketing varies significantly based on the scope and complexity of the services required. It also depends on a few other factors — including the scope of services, campaign size, and the expertise of the agency.

Generally, you might encounter a range of pricing models:

Hourly Rates: Ideal for targeted campaigns or consultations, where agencies charge for the actual time spent on specific tasks.
Monthly Retainers: Common for ongoing sales support and marketing activities, offering a consistent set of services each month.
Commission-Based Pricing: In sales, some agencies may charge based on the performance or revenue generated by their efforts.
Project-Based Fees: For comprehensive campaigns, such as a product launch or market entry strategy, agencies might charge a flat rate that reflects the project’s scale and intricacy.

Each pricing model has its advantages and is designed to accommodate different needs, from temporary campaign management to full-service outsourcing. This structure helps you guarantee flexibility and scalability in your sales and marketing efforts.

How To Outsource Marketing?

Getting started with outsourced marketing requires careful preparation and alignment with your business objectives. Here’s a structured approach to help you effectively embark on that journey:

Define Your Objectives: Clearly outline what you hope to achieve with your outsourced marketing efforts. Is it increasing lead generation? Are you trying to boost brand awareness? Or do you ultimately want to drive more sales?
Identify the Right Agency: Look for an agency that specializes in the type of sales and marketing you need. Make sure they have experience in your industry by checking their track record, case studies, and client testimonials.
Set a Budget: Determine how much you are willing to spend and understand the pricing models available. Discuss and agree on the scope of work within this budget.
Establish Clear Communication: Set expectations for communication methods and frequency from the start. Also, ensure there is a clear process for regular updates and feedback.
Develop a Strategic Plan: Work with your outsourced marketing partner to craft a strategic plan that aligns with your business goals. This plan should detail the marketing activities, timelines, and metrics for success.
Monitor and Adjust: Regularly review the performance of your outsourced marketing activities. Remember, it’s an ongoing process of trial and error, so always be prepared to adjust strategies based on results and market changes.