In building sales teams, the assumption is that “more is better.” We spend a lot of energy, time, and resources adding more people to our sales teams. We do it for good reasons – we want more closed deals or we know that the numbers are not good. And, if we don’t do something, if our companies shut their doors, then it is our fault. We do not want it to be our fault.
But I am about to say something that many might not accept: more internal sales professional hires are not better and it does not increase profits. In fact, the opposite is true. Don’t believe me? As stated in a recent Salesforce blog, “Today’s sales professionals spend 34% of their time selling. Most sales teams struggle with data entry, quote generation struggle to keep up with data entry, quote generation, and other tasks that take them away from customers.
Unsurprisingly, 57% expect to miss their quotas this year” (Bova, 2019). While the antithesis of what many believe, hiring more sales professionals decreases returns. Instead, outsourcing sales teams aspects like sales development representative can drastically increase small and medium-sized businesses bottom line.
In comparison to the actual output, the cost and expectations associated with hiring full-time sales professionals are staggering. A manager needs to hire three sales professionals to replicate the expected revenue when deciding to hire one. While large businesses might be able to absorb increased labor costs with lower efficiencies, this mindset severely cripples small and medium-sized businesses. Instead of looking to add sales professionals, how can we better support our current sales teams?
The classic b2b sales strategy assumed one person could handle the entire sales process steps – sales prospecting and the lead generation process, making cold calls, appointment setting, building relationships, closing deals, and account management. Yet, sales professionals struggled to do each of these well. Individuals focused their energy on one at the expense of the other two components. With the advent of sales prospecting tools, today’s sales teams added a fourth aspect to the original three. While this expanded sales professionals’ workloads and expectations stayed the same, if not grown, this only provided another choice for sales teams to deter their precious and costly time on the most essential activity – revenue generation.
Rather than hiring more salespeople, managers need to support their current teams by hyper-focusing the energy of sales teams on the most important activities. This starts with delegating sales process steps that are most time-consuming and most costly for sales professionals to do – sales development representative work. By building an outsourced sales team focused on sales development representative activities such as the lead generation process, sales prospecting emails, data input, and cold call outreach, managers simplify the process and maximize revenue. Moreover, this allows managers to hire sales professionals that only concentrate on the most important sales aspect – building relationships leading to closed deals.
Bova, Tiffani. “26 Sales Statistics That Prove Sales Is Changing,” January 25, 2019.