There are many elements that are essential to not only having a good sales team but to developing and sustaining a top sales team. A strategic approach and knowing where and why you should insource or outsource specific sales positions and management opportunities is all part of the equation. Knowing the benefits of outsourcing sales versus insourcing sales can be crucial to your organization’s growth and success.

The Benefits of Insourcing Sales

Insourcing, or hiring from within the organization or through your own hiring team for new recruits and candidates, offers the company the greatest in possible control over the entire process.

A report from the Whitehouse from January 2012 titled “Investing in America: Building an Economy That Lasts”, takes a big picture and very detailed look at the increased hiring in the private sector, resulting the addition of 2 million jobs across the country in 2011 with the trend predicted to continue.

This trend has continued, with the Bureau of Labor Statistics reporting that 2.45 million jobs were added in the United States in 2015. However, this really hasn’t created a dent in the talent available with many qualified, experienced and highly effective sales professional out of work or underemployed.

When sales positions are posted and a company receives applications from talented and qualified candidates, insourcing makes good business sense. Through this process employees already fully trained in the business model and with solid product knowledge and experience can move into sales positions and also be maintained, trained and evaluated for potential moves up the corporate ladder.

This is one of the most critical factors to consider. When a business has a pool or stockpile of current sales professionals able to move into more advanced positions in team management, to take on lead in-house sales roles and to develop a solid network of qualified leads, the business and the employee both win.

The employee on the sales team sees and understands the potential for advancement which motivates them to continue with their professional development and leadership skill development. The company, in turn, has a long period of time to evaluate all employee skill levels, leadership potential and ability to work within the business model and achieve the individual and team goals.

In other words, with insourcing, there is a very low risk in promoting people up through the ranks of the sales team and even into management positions. The company also has full control over the training of the individuals, which can include cross-training for different positions within the sales team to provide a team that can function even through unforeseen issues should a critical team position be left vacant.

It may even be easier to think of the benefits of insourcing as having a farm team. Talent can be mentored, trained and evaluated across real-world experiences and situations before a promotion or a move is offered. Sales recruiting is key to attracting top talent that can be mentored and trained as specialists in your industry.

Additional Benefits of Insourcing Sales

There are other benefits to consider with insourcing of in-house sales positions that include:

• Direct supervision and support – when the sales team is present and under your management, there is immediate feedback available, support when atypical issues arise, and full supervision of the team by a manager from the company.

• Collaboration potential – problem solving and innovative ideas are more easily generated with the use of in-house teams. The ability to identify challenges or potential issues and develop workarounds that conform to the company policies or that are used to create new policies gives you full control over how these situations are addressed. Since management can be easily brought into the discussion, sales staff are more likely to understand they have a voice at the table and a vested interest in working to resolve the issue.

• Specializations – often outsourcing companies have the same challenges as any business in finding highly specialized types of sales employees and managers. When a company has these specialized positions, hiring from within may actually be faster than trying to find an outsourcing company offering those specific skill sets in a cost-effective way. The argument for insourcing is solid, and it is one that is used across all departments in a company, not just in sales. Developing top company trained and experienced staff for sales or sales management and leader.

 

The Benefits of Outsourcing Sales

Outsourcing sales is a way to bring in new blood, new ideas, new energy and even new possibilities to any company sales team. However, it is not always the right option for every company and business, and it needs to be carefully considered as there can be many benefits of outsourcing sales. However, making the decision to outsource sales staffing is not a simple task. There may be multiple options that make it difficult to insource these jobs, and it may be very challenging to vet potential candidates and get them in place, through the onboarding process and ready to start selling in the necessary window of time. Below, we outline the benefits of outsourcing sales.

In general outsourcing of sales teams makes good business sense when:

• Time is of the essence – for startups and new businesses, or established businesses changing their business model or going through new product launches, outsourcing provides a very quick transition to a fully trained, experienced and cohesive sales team.

• Lack of qualified candidates – sometimes, despite those 250 resumes per job opening, you are unable to find the correct candidates for the job. When you have multiple positions to fill or are adding a sales team or restructuring a sales department this lack of qualified candidates can create significant challenges that may have a very large financial impact on the company.

• Loss of qualified talent – in a survey by Glassdoor for Employers it was found that 46% of those defined as Millenials left their job because of a perceived lack of opportunity for career growth. To add to this 65% of this same group were highly skeptical of the promises made by employers, and were more likely to change jobs for an opportunity for advancement, even if a lower base salary was offered. When companies are constantly losing qualified talent, it is very challenging to develop an effective inside sales team. With an outsourced sales team, this is a non-issue as the sales staff has their own internal progression or advancement model. These 4 professionals are also not as susceptible to heavy recruitment from the competition, creating a more stable sales workforce for short or long-term deployment with the company.

• Failing to meet goals – this is a complicated process that can include poor performance on the part of the sales team as well as incorrect metrics developed or the inside sales team. In a report by memoryBlue, many companies over or underestimate the metrics they use as they related to industry averages. This can include the number of calls made per sales rep, the amount of sales or other factors. With an outsourced sales team, the sales model will already include these metrics, providing more accurate information and a clear picture of performance.

• Management support – with the services offering outsourced inside sales teams it is also possible to bring in management with the team. This can be a terrific option for a smaller company or a startup, allowing the in-house management team to train and develop until they are ready to assume the leadership roles. When transforming a sales team changing management strategy and skill set may also be an important consideration and this option allows for that time, training and experience working with a proven professional. A great example of Management Support is working with a Virtual Vice President of Sales.

Additional benefits of outsourcing sales can include top companies providing support to the in-house management team to work with B2B sales companies to hire, onboard and develop protocols for creating the insourced sales and management team that will eventually take over. This places the outsourcing company in the role of both a consultant as well as a mentor, literally training and developing the replacement in-house team in the same effective model they are using. Metrics and analysis methods in tracking team effectiveness and success can be further refined to accurately reflect the needs of the company.

Outsourcing sales is typically considered a temporary option for most companies, but the duration of the service can be months to years. While it is difficult to find specific statistics on outsourcing inside sales, in the United States alone in 2013 Source Line Computer Economics reports that 2.6 million jobs were outsourced, with about 20% of companies reporting that the outsourcing was done to transform and/or reorganize internally. In addition, about 9% of companies in the same survey reported the outsourcing was done to speed up the time to enter the market. While this survey was completed on outsourcing to different countries, many of these jobs were in sales and customer service.

You can also consider outsourcing digital marketing by working with a reputable SEO firm to bring in additional sales leads.

Here are four common mistakes Sales Managers make that can lead to their downfall or the downfall of their team.

1. Focusing on the Wrong Guy

It is easy to focus your attentions on the guy that is making the most sales. However, you have to focus on the guys who are not hitting their targets and find out why. What you need to know from your top performers is what technique they are using. You can then try using that technique to train those who are under performing.

2. Grooming the Wrong Leader

It is important to be looking to those below you to help you find the next leaders. It is not necessarily crazy to think you will automatically be drawn to your top sellers, but selling is not managing. Watch your entire team for signs of leadership, not for those who sell well. This will help in two ways. First, it may help keep your top sellers in the ranks of selling where they belong and in many cases earning better money for themselves depending on your pay and commission structure. Second, it will help you find the right person to lead. Leaders have different qualities than sellers although sometimes the two do meet. Use tools to assess your sales team to discover their hidden talents so you are grooming the right people for the right job.

3. Selling

Sounds odd, but it is true. Sales Managers don’t sell, they lead. Make sure you don’t get caught up in selling as a) It takes sales away from your team and b) It takes you away from your job.

 

4. Forget Your Core Job Description & Responsibilities

In general, a Sales Manager should only do the following:
• Train and develop the team
• Hold the team accountable for goals
• Coach and motivate
• Hire and fire

Being a Sales Manager is not always easy. Finding ways to help your team succeed is a job that requires dedication and constant attention to detail. If you are going to be a successful sales manager, you must avoid making mistakes sales managers make like the ones listed above.

Related Article: 6 Steps To Becoming an Effective Sales Leader

Follow this link for more information on sales recruiting.

1. The Cost of Business: Public companies are expensive to run; they must carefully comply with the myriad of board responsibilities and the rules established to protect investors. The Securities & Exchange Commission (SEC) audits conformity and adherence to other strict regulations. Such complex structure requires more goods and support staff to function best. Such a setting makes for greater sales potential for your company’s products and services.
   1. While accounting costs may be high, public companies have the advantage over private companies in potential larger amounts of capital through access to selling stock or corporate bonds. Additionally, investors tend to be more trusting in a public company because of perceived reduced risk. Potential cash reserves deserve investigation.

2. Shareholders: Public companies can be slow in decision making due to their need for shareholder approval in operational and growth decisions. Most private companies are not limited in this way, meaning you will likely work out a final decision with a smaller group of decision makers and possibly in a more rapid, straightforward way. Depending on the size of the public company and the impact your product or service will have on a company, there can be more hurdles to jump through if shareholders are involved. Using the information available online, including financials, get comfortable with the company’s essence and momentum and to whom you should be selling.

3. Buy One Share of Stock in Your Target Public Company: As a “Shareholder,” and not just another annoying sales representative, you can increase your odds of getting through to the decision makers–and separate yourself from the “pack.”
   1. Coco Channel noted, “You have to be different to be remembered.” After I purchase my share, my first call is to the Office of Investor Relations. I ask for the manager of the department and introduce myself as a “Shareholder” who has a financial interest in the overall profitability and success of the business. I ask this same manager to provide to me the names of the individuals that would be involved in the decision-making process for my product/service. I have over a 93% success rate obtaining the decision-makers information and getting a successful “Warm” phone introduction. Food for thought!

4. Short Term vs. Long Term Goals: Public companies issue quarterly statements to their shareholders and must often disclose more financial information than private companies do. A private company often has the advantage of looking more at long-term goals when making decisions. Public companies live the day to day life of a business in order to please shareholders and continue to attract investors. Selling to a public company? You need to solve sale problems in a different way than you would for a private company. Promote the immediate positive impact your product or service will have when chosen.

5. Savvy Management: Public companies attract a stronger, more experienced breed of senior management, which means in-depth research of the company’s business issues is critical. Quality leads. The sales rep prepared with solid knowledge of how their sales product/service solution is the best value, will be at an advantage. The sales individual is going to have to do their homework to make a sale with a public company.

6. Access to Information: Always research potential prospects in the public company domain, so you are not wasting your time on a poorly run, beleaguered, and financially strapped organization with less growth potential and little access to capital. Peruse the company’s website for financial data, rule out missed earnings targets, or SEC concerns. A sudden drop in company stock price may warn of short-term credit problems; review rating agency reports, stock analysis, and press reports. If there are volumes of bad news, you are wise to find another PROSPECT. Remember, a prospect is defined as a company that has NEED, MONEY, AUTHORITY, & DESIRE. All others are just SUSPECTS and are a WASTE OF TIME!

I am thrilled to announce that my colleague Christine Corelli and myself have landed a cover story on SMM Sales & Marketing Management Magazine!

This has been a great experience and you can learn more about our How To Sell To Women sales programs at www.howtoselltowomen.us.

READ THE FULL ARTICLE HERE!

A sales leader manages a group of sales representatives and increases the sales teams performance. It doesn’t matter if the product and/or services offered are the best in the world if there is not an effective sales leader to make sure that the sales process excels in performance. There are a few criteria that an effective sales leader must employ in order to create and maintain a productive and excellent sales team.

Hiring the Right Team

Before you can help your team succeed in sales you must hire and train the right candidates and know what to look for in a job applicant. When a person comes into an interview they must meet certain criteria in order for them to be considered a good candidate for the sales team you are creating. Previous sales experience is a plus, but is not always necessary if they meet all other mandatory requirements. They must present themselves professionally in everything from the way they dress to the manner they speak in. They must show an excellent speaking quality and be able to perform an example sales call on the spot. Additionally, try to make sure that they fit into your organization’s culture, this will ensure that they are comfortable and happy, thus they will stay with you for longer!

For More Information on Sales Recruiting Click Here.

Motivate and Reward

Part of your job as a sales leader and sales coach expert is to inspire, motivate and reward your team. Every day you will need to get your team motivated for the day and inspire them to perform at their optimum ability. There are many ways to do this and you may need to try a few different tactics such as morning meetings, business lunches or end of the day reviews. It has been proven that when employees are offered incentives they perform better at their job. Try engaging your team in one on one sales coaching or professional sales training. Additional incentives include allowing them to leave an hour early or providing them with a gift card for excellent performance. If they aren’t impressed with your first incentive you could experiment with a few other rewards until there is a reasonable balance of rewards, capability, and improvement.

Assign and Delegate

Every sales team has a quota or expectation they need to meet either made by you as the sales leader or by one of your supervisors. You will need to delegate certain tasks and assign work properly so that your team can meet these quotas efficiently and easily. As a sales leader, you should be reading articles and books on how to delegate tasks to ensure you have various effective methods of delegation to employ. This will help keep your great sales team on track during slow times or fast times. It will also keep you on track and help you come up with new ideas that will push the boundaries of your sales team and ultimately bring improvement and expansion.

Make Good Decisions

You as a sales coach and leader will need to be able to make decisions that are best for the entire team. You may be faced with tough choices and decision that you would rather not make, but you need to be able to perform the task at hand no matter how difficult it is, you are the leader! For instance, you may be told that your team needs to be reduced by two people based on budget cuts in the company and your supervisor needs your decision by the end of the week. You may be attached to your team and the choice will be one that is not easy to make. You will have to look inside yourself and at each individual team member’s performance and make the best decision you can for the company and remaining team members.

Confidence and Trust

You will need confidence in order to be a sales leader. You must show confidence in yourself and your team in order to succeed. You will also need to let go of your need to micromanage your subordinates and show them that you trust them to perform on their own. Once everyone on the team feels confident in themselves and that you trust them with responsibilities, the entire team will perform better. Have confidence in your decisions, your actions, and your team’s ability.

Filter Information Properly

As the sales leader you will be bombarded with information on a daily basis. You will need to sort through all of this information and categorize it from top priority to semi-important and least important information that can be put lower on the list. You will have information and request coming at you from all sides all the time. An effective sales leader has the ability to manage, sort and make decisions regarding all information and requests that come his/her way. Your supervisors are going to have requests anywhere from changing the arrangement of the team seating to laying people off. Your team will have requests for days off, schedule changes, or employee tensions. You need to be able to effectively and efficiently sort through everything and tackle the most important issues first.

 

4 Mistakes Sales Leaders Should Avoid Making