You might be considering outsourced lead generation to help improve your business profitability. Why? Because without qualified sales leads, your business will not bring in huge amounts of cash; which, in turn, will lead to lots of stress. To close deals, you need stronger qualified leads.
Additionally, studies have shown that NURTURED leads increase sales and business opportunities by 20%; the same study showed that these nurtured leads result in 50% more sales.
What is the cost?
You might be concerned about the cost of hiring a lead generation agency. Some companies decide not to outsource lead generation because of money concerns. But is it really more expensive to outsource lead generation? Is in-house lead generation for B2B is cheaper? How can hiring a sales team of professional business development reps be more affordable than hiring your own in-house team?
In this post, we will discuss 10 reasons why you should outsource a lead generation team in 2023, as well as the pros and cons of doing so.
Outsourcing lead generation – what does it mean?
According to Hubspot, lead generation is the process of attracting and converting strangers and prospects into people interested in your business.
Lead generation is well known, but what exactly is outsourced lead generation?
This entails, rather than training someone within your business, you will hire an outside company to build your company’s sales by nurturing clients until they are ready to buy. (We will discuss the pros of outsourcing in more detail below.)
Since 96% of website visitors are not ready to make a purchase from the first page, the “nurturing” of prospective clients becomes extremely important.
You need to keep track of these potential leads in order to grow your business, and personalization is key to closing deals faster.
This is where many businesses fail; generating quality leads is the lifeblood of any business, and when this is done incorrectly, it is like flushing money down the drain.
See also: Mortgage Lead Generation Companies
Lead generation teams are responsible for what?
Lead generation teams will be responsible for, but are not limited to:
- Cold emails
- Outreach on LinkedIn
- Telemarketing/cold calling
- Selling through social media
- Networking
However, choosing a company that shows genuine interest in your potential customers is important. Often we unsubscribe or spam generic bot-generated emails when we receive hundreds of them which is why using spam-type emails don’t work and tend to eventually frustrate people.
Therefore, hiring sales reps with a personal touch will increase sales.
According to statistics, 79% of marketing leads never convert into sales due to a lack of nurturing.
When it comes to nurturing potential clients, you should find a lead generation company that goes the extra mile.
Why You Should Outsource Lead Generation
From saving money to having more time for your business, outsourcing a lead generation team is worth considering.
You can focus on making sales instead of finding leads. Outsourcing lead generation is also 43% more efficient than generating leads in-house because lead generation companies have more expertise (source). Additionally, hiring an outbound lead generation team will yield quicker results than waiting for inbound results like SEO or social media marketing.
- The first benefit is that you will actually save money. A recent Glassdoor report shows that the average salary of a sales development representative is $48,418.00 a year, which means that you will be paying $4,034.00 per month. It is 63% cheaper to outsource lead generation services than to hire someone internally. In addition to hiring a sales development representative (SDR), you might also incur the following costs:
- Taxes paid by employers
- Licensing of software
- Costs associated with management and administration
- Costs associated with training
- Human resources
- Costs associated with data
Additionally, you might need to rent or buy extra office furniture, computers, and milk, coffee, or tea if you offer this to your employees. Therefore, you might end up paying someone $150k per year.
- You won’t have to worry about training a new SDR. In-house training takes time. A typical trainee takes at least three months to really find their feet. And in some cases, your trainee may need even longer to develop the skills they need to succeed. If you hire a professional prospecting team, you won’t need to spend valuable time training them. Having a professional lead generation team that finds new leads every single day allows them to focus solely on your business. You can get the leads you want immediately from them. You will also have more time to close more deals as a result.
- The flexibility of outsourcing lead generation. Outsourcing lead generation is flexible. When your business is booming, outsourcing allows you to scale up or down depending on your needs. When you are open about your company’s needs, the lead generation service you choose can adapt to your needs. Whether you need a bigger lead generation team or a smaller one.
- You will be able to close more deals more quickly. Outsourcing leads to a lead generation agency means you’re hiring professionals who dominate their niche, resulting in more leads for your business. In a startup company, time equals money. Therefore, when you hire done-for-you-lead generation services, you are allowing your business to flourish. The best part is that these leads are valid leads that are checked before going to the sales department. In this way, there is no time wasted, only genuine prospects that will lead to sales.
- Lead generation agencies can handle high sales pressure. An outsourced lead generation team will be able to handle the pressure of mounting sales and leads if your business is flourishing exponentially. Every day they deal with different prospects and large accounts. There are some lead-generation companies that have been around for years; thus, they are able to handle the pressure of companies with excellent growth rates.
- Increased data optimization. You are also taking on a team that knows how to manage data when you outsource a professional SDR team. Your business might find other services helpful, such as creating new client lists or cleaning up your existing records. Outsourced companies can help you determine your company’s conversion rate. Did you know 25% of marketers don’t know what their conversion rate is? You can develop a successful marketing plan if you know and understand your conversion rates.
- There will be more time for you to do what you enjoy (closing deals). Truly, Lead generation isn’t everyone’s cup of tea. By knowing that your business is in good hands, you can devote more time to the aspects of your company that you enjoy. Instead of micromanaging an in-house team of lead generators, sit back, relax, and let the done-for-you lead generation service do all the work.
- You will have access to specialized technology. You don’t have to buy specialized lead generation programs because the company you choose already has all the specialized technology you need. This saves you money and allows you to leave everything in the capable hands of your outsourced team, as opposed to purchasing these tools in-house. Even their basic plans can add up if you purchase all of the different plans offered by these programs. As an example, Zoominfo costs small startups on average $18,321 per year; outsourcing lead generation can also save you money.
- Quick growth and more leads. The best reason to outsource lead generation is that it ensures your business grows quickly. With the right lead-generation strategy, you will get quality leads. When you have a specialized team behind you, all you have to do is wait for new business to come in and close those sales.
Outsourcing lead generation has some negative aspects
As with anything in life, there is always a negative to a positive. To get the most out of outsourcing an SDR team, you have to choose one of the best. If you hire a less experienced outbound lead generation company, you might not get the results you want. A brand new outsourcing company might not have the resources or experience to get the right leads.
There are so many b2b lead generation companies out there that they might lower their costs to compete, but remember that cheaper isn’t always better. Consider interviewing a few different lead generation companies if you are unsure who to hire. Rather, take your time and choose the right company, because if you choose the wrong one, you could lose money. Aside from that, you could also ask if they offer appointment setting services. Outsourced lead generation companies can also lack transparency. Make sure you understand the process, and read the contract thoroughly before signing it.
Also check: Life Insurance Lead Generation
How do outsourcing and in-house cost differ?
Expertise in lead nurturing results in a 50% increase in sales leads along with a 33% decrease in costs (source). It is true, and it might make you wonder how much outsourcing actually costs.
Almost $3,000.00 a month, with no hidden costs; No need for bonuses or benefits from your side. Depending on the industry and market, the average cost per lead in 2019 was $198.
But does this mean in-house is always a bad idea?
The perfect balance is to start with an outsourced lead generation team and then move in-house later. As a start-up, outsourcing is the best option because it’s more affordable, but as time goes on and you reach your financial targets, you might be able to start your own internal lead generation team. An outsourced expert team also offers a shorter learning curve and immediate results. Eventually, once the system has been built, tested, and fine-tuned, you can bring the process in-house.
This gives you control, a slight cost savings, and the ability to scale as large as you need.
As a conclusion
Outsourcing lead generation is totally up to you. The facts still show that generating genuine leads (even if it’s just initially) for your business will be the best way forward.