LEARN ABOUT SALES OUTSOURCING

Sales outsourcing is the practice of contracting with an external channel to sell your products and services in a direct “branded” representation model. Direct branded representation means the sales reps appear to represent the client organization rather than the sales outsourcing firm when in front of the customer. Contracts are between you and the customer rather than with the outsourcing firm. Direct representation also requires the firm be accountable to the client just as an internal sales force would answer to their own directors. Reporting and direct communication with program management between the firm and yourselves is required. The representatives sell for one client only just as your internal sales representatives would. You may have add-on products with your partners that are sold by your internal reps, outsourcing reps would sell in the same way, but they would never represent two client organizations at the same time.

The sales outsourcing model differs from contract sales or value added resale in that the sales representatives are dedicated to selling just your product and are fully accountable for their actions. You gain the benefits normally reserved for having an internal sales force while gaining the benefits of the capabilities of a firm that can focus 100% on just sales.

Most sales outsourcing firms hire their representatives for each program as contracts are signed. Those employees are almost always W-2 employees (be wary if they are 1099, by law, you cannot hold 1099 agents accountable in the same ways you can with W-2 employees). Compensation is usually a hybrid of fixed fees and commissions.

Companies have been providing sales outsourcing for about 15 years. For most industries, sales outsourcing firms can out-produce contract sales/VARs but also provide critical strategic benefits (control over your program and data analysis). Total sales in the global sales outsourcing industry currently exceed $10B (US)/year and are projecting to exceed $100B (US) within the next five years. It is one of the fastest growing business service fields in the world today.

Sales Partnerships, Inc. has been an industry leader since 1997 helping to drive the direction of the market and the ethics of the industry. As the most successful firm in the market, we take our leadership position seriously including being a founding member of the sales outsourcing trade association.

To learn more about sales outsourcing as an industry, click here to request a white paper.