Outsourcing Sales Calls

20 replies
Does anyone outsource all their sales needs? I'm thinking of hiring a telemarketing team to bring in sales while I do the work for clients. In my eyes this should work.

Let's say I get someone half decent for $30 an hour. I'm just making these numbers up right now, but let's say each sale brings in about $100 up front plus $30 monthly from each client. The sales person should be able to get 1 every ten hours of work. I'm putting a price of $300 per client based on an average of a 1 yr contract.

Is this not reasonable? Ten hours on the phone should be able to land at least 1 client. Especially since it is an easy sell.

Any thoughts on outsourcing telemarketing/sales?
#calls #outsourcing #sales
  • Profile picture of the author BreakingRetail
    Let me know how it goes, I am doing something similar
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  • Profile picture of the author GobBluthJD
    Originally Posted by Tocholke View Post

    Let's say I get someone half decent for $30 an hour.
    This is the key struggle; finding that person.
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    • Profile picture of the author Tocholke
      Originally Posted by GobBluthJD View Post

      This is the key struggle; finding that person.
      You're right. I think it's going to require a little investment to try out several people in order to find one that produces enough sales. I'll keep everyone posted as I go.
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  • Profile picture of the author OutsourceFactor
    If you're searching in all the right places, I'm sure you'll find someone for the job. I was really surprised with my VAs skill set and I found her in the Philippines. I think it's possible if you know where to search. I may not know much about telemarketing but I know outsourcing

    Goodluck!
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  • Profile picture of the author BarbaraMcKinney
    There are so many telemarketers out there. The key is to find the right person(skilled and can deliver what you need) to do job. Or try and test. If it works, then make it a lifetime investment.
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    • Profile picture of the author DavePalermo
      There are warriors that will do this for you here.
      But in my opinion, just do the cold calling yourself.
      Time management is the key.
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  • Profile picture of the author jimbo13
    Originally Posted by Tocholke View Post

    Let's say I get someone half decent for $30 an hour. I'm just making these numbers up right now, but let's say each sale brings in about $100 up front plus $30 monthly from each client. The sales person should be able to get 1 every ten hours of work. I'm putting a price of $300 per client based on an average of a 1 yr contract.
    Good job you are just making up your numbers.

    Unless you are funded by competent investors, you aren't I can tell, you have just described immediate bankruptcy.

    I'll do it for you if you can't see why.

    You pay 10 hours at $30 upfront to a TM which is $300 and get $100 back from a customer upfront.

    So you are $200 out of pocket immediately.

    And this does not account for other costs plus your own time and effort in building a website, revising it, completing an order and providing customer support.

    Pretend that all comes to $0 (obviously not) at $30pm it would take 7 months until you had your $200 back plus a crisp $10 bill for yourself.

    And all that assumes the very first person you take on performs. They wont.

    A more likely scenario would be 12 month Break Even with no salary for yourself.

    pm someone like Mwind (Melissa?) and get some real world figures for tele-appointing for you, then do your maths if you know your conversion rates.

    Dan
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    • Profile picture of the author Mwind076
      Originally Posted by jimbo13 View Post

      Good job you are just making up your numbers.

      Unless you are funded by competent investors, you aren't I can tell, you have just described immediate bankruptcy.

      I'll do it for you if you can't see why.

      You pay 10 hours at $30 upfront to a TM which is $300 and get $100 back from a customer upfront.

      So you are $200 out of pocket immediately.

      And this does not account for other costs plus your own time and effort in building a website, revising it, completing an order and providing customer support.

      Pretend that all comes to $0 (obviously not) at $30pm it would take 7 months until you had your $200 back plus a crisp $10 bill for yourself.

      And all that assumes the very first person you take on performs. They wont.

      A more likely scenario would be 12 month Break Even with no salary for yourself.

      pm someone like Mwind (Melissa?) and get some real world figures for tele-appointing for you, then do your maths if you know your conversion rates.

      Dan
      LOL, you STOLE the words out of my mouth. I saw the first post and was already scrolling to reply!

      Tocholke - I have PM'd you and would LOVE to help you out with what you are looking to do. I won't self sell here, but my husband and I do what you are looking for, and also do consulting to help you NOT go bankrupt and figure out a plan. So, we will devise a plan (after asking you TONS of questions) and then you can run with it and implement it yourself, or we can implement it for you.

      In short, your numbers (while just for talking purposes) scare me, so I truly hope you aren't looking to pay that much.

      We need to discuss a few things...you are requesting a telemarketer, but describing sales and what they should bring in. There is a huge difference in Telemarketers, Appointment Setters, and Sales people...we do all of that, but they will all require different amounts in compensation, because they all do different things for you, and since every business is different, you will need someone that is a good fit for your needs.

      You can't hire a TM and expect great sales, unless they are trained well, or know what they are doing. You also can't pay a TM for basic calls when they will be spending more time than they would on say a qualifying email call.

      Here's the gist because otherwise I'm going to ramble on without knowing your specifics, check out our FB page (phone and email is on there), or PM me, we'll hook you up with what you need
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    • Profile picture of the author Tocholke
      Originally Posted by jimbo13 View Post

      Good job you are just making up your numbers.

      Unless you are funded by competent investors, you aren't I can tell, you have just described immediate bankruptcy.

      I'll do it for you if you can't see why.

      You pay 10 hours at $30 upfront to a TM which is $300 and get $100 back from a customer upfront.

      So you are $200 out of pocket immediately.

      And this does not account for other costs plus your own time and effort in building a website, revising it, completing an order and providing customer support.

      Pretend that all comes to $0 (obviously not) at $30pm it would take 7 months until you had your $200 back plus a crisp $10 bill for yourself.

      And all that assumes the very first person you take on performs. They wont.

      A more likely scenario would be 12 month Break Even with no salary for yourself.

      pm someone like Mwind (Melissa?) and get some real world figures for tele-appointing for you, then do your maths if you know your conversion rates.

      Dan
      I completely understand and agree with you here. Maybe I should have stayed away from any form of numbers in my post. I was mainly looking for comments from people who have outsourced sales and what type of conversion they were getting.

      I apologize, I should have thought through my numbers before I posted. I just quickly wanted to get this post up. Next time I'll spend more time on this.

      Thanks for the feedback though. I appreciate it.
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  • Profile picture of the author PeacefulCalamity
    Originally Posted by Ken_Caudill View Post

    What happens when the salesman realizes he can hire a designer/webmaster for 10 dollars an hour?
    He realizes he gets what he pays for. It may not be true, the quality may be just as good, but the salesman doesn't necessarily know that. Whichever designer/webmaster/dev is hired for that kind of rate is usually foreign - if the salesmen is in a good deal with a US company, why take the risk and jump on board with a foreign company.

    That's what I'm thinking will go through his head.
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  • Profile picture of the author Ramila
    Banned
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    • Profile picture of the author Tocholke
      Originally Posted by Ramila View Post

      Let me know how it goes, I am doing something similar

      Will do. PM me when you reach the required post count. I'd be interested in exchanging ideas with you
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      • Profile picture of the author marketingstatic
        I currently do this but am about to make some major changes and considering doing the calls myself. I have hired and fired probably 8 differnt reps in a 12 week span.

        2 HUGE things that are easy to overlook.

        1- Even if the person oversees can speak good english it doesnt mean they can relate to our curlture in USA especially the business culture. I know I will hear it now from all the haters. But here me out I have been oversees and most of the business/entreprenuers in the US are an entirely differnt animal than overseas. If you cant relate you cant close pereiod.

        2- You have to have your ORDER processing *hit together or you going to have a horrible conversion rate. AKA what will be your form of payment. How will you inovoice the new customer or porspect? Who will follow up with them when payments fail or they never pay the invoice.

        So to repeat what was stated there are major differnce in Appiontment Setters, Closers, and order processor. Telemarketing is a very non specifc and generic term. Even when you try to be specif as possible I guarantee people will try and apply for jobs their not qualified for and happily take your money and training you will have to provide for them to get them up to speed on what you offer and how you want them to handle the call.
        So be perepared to invest TIME and Money your most valued assets for a few weeks minimum to get things ramed up.
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      • Profile picture of the author Mwind076
        Originally Posted by Tocholke View Post

        Will do. PM me when you reach the required post count. I'd be interested in exchanging ideas with you
        PM'd you back late last night, send me your number or call the one I sent you so we can talk.
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        Looking for answers on how to SUCCESSFULLY market your company?
        Cold Calling, Appointment Setting, Training, Consulting - we do it all!
        PM for more information

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  • Profile picture of the author WZCreation
    Let me know for this key to find any person.
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  • Profile picture of the author GailTrahd
    I have been reading this and wondering if people are using commissioned sales people? I've heard some marketers pay commissioned sales people 50% up front for each sale and then 10% of their monthly maintenance for every month they stay a customer. They have talked about this being the same as an affiliate relationship - 50% of something is better than 100% of nothing.

    I used a sales person a couple of years ago when I was selling advertising space and that relationship worked well. Of course, I went through several people before I found someone who could perform - BUT I was not out anything except my time and paperwork. And, I only hired those who had previous sales experience.
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    • Profile picture of the author Mwind076
      Originally Posted by GailTrahd View Post

      I have been reading this and wondering if people are using commissioned sales people? I've heard some marketers pay commissioned sales people 50% up front for each sale and then 10% of their monthly maintenance for every month they stay a customer. They have talked about this being the same as an affiliate relationship - 50% of something is better than 100% of nothing.

      I used a sales person a couple of years ago when I was selling advertising space and that relationship worked well. Of course, I went through several people before I found someone who could perform - BUT I was not out anything except my time and paperwork. And, I only hired those who had previous sales experience.
      Like I said, it all depends on what you actually want your caller to do. Many people say they want a telemarketer, but they want a trained sales person. You can't pay them the same, and if you try to, you will be disappointed. In the same line, if you try to pay an appointment setter a commission on someone else's ability to close the sale, they won't stick around long. It's imperative to know what you need, what you want, and to find the person that can do it.
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      Looking for answers on how to SUCCESSFULLY market your company?
      Cold Calling, Appointment Setting, Training, Consulting - we do it all!
      PM for more information

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  • Profile picture of the author WeavingThoughts
    I wouldn't mind paying a sales rep 30% of the gross sales doneby them for life if need be. But dunno where to find such people.
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  • Profile picture of the author ownergolan
    The ultimate problem. Try to incorporate an affiliate program and promote that on craiglist, forum etc..
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    Ill put in work, and watch my status escalate"
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