The outsourcing of sales

Small and medium businesses that want to increase sales or profits and find you can entrust the sales should - do it! At this point most owners and managers, or be overwhelmed with doubt or fear.

Here's what we hear: "We can not relinquish control of sales, it's too risky." Or "Our products can not be sold by anyone but us, are too complicated for anyone to understand."

Many small businesses outsource accounting and legal work, but have yet to find professionals with worldwide sales contract out of the question.
Unfortunately, most small and medium enterprises are good at one thing: making a particular product or provide a particular service - not sales.

Consequently, many companies are dissatisfied with the sellers taking. They tend to hire people who have experience with a product or market and figures that can teach them how to sell.

This rarely works, and the company ends up with a product expert who simply is not selling. A lose-lose situation is created.

There are many industries that have a preponderance of members who are willing and able to search for new and innovative (read profitable) products to sell.

The vast majority of these retailers operate on a regional basis, other activities at national or even international.

There are also companies that initiate and manage the entire process for you, and some even manage marketing activities as well.

So, what makes this approach so good? Here are seven reasons:

* Pay for performance.

Contracted retailers are not paid unless they sell something. They will either receive a commission on goods sold, or sold the goods at discounted prices, which in turn, mark up and sell for a profit. This reduces the risk of having to pay salary and benefits and may even allow you to set foot on the street faster because you are not handcuffed by these costs.

* They already know how to sell. The professional sales organizations, whether they are called representatives, agents, distributors, wholesalers, partners, whatever - have one thing in common, if not sell unpaid. This pretty much ensures that retailers who've been in business for a certain period of time already knows how to sell.

* Specialization.

Retailers tend to pick a niche and specialize in specific sectors and markets. So they spend their days in this environment and know what needs to be known by a commercially and technically. Therefore, if you choose the right ones that will surely be able to manage your product "complex".

* Instant Credibility.

A fixed re-seller has been urging companies in their market or territory for years and have long standing relationships in place. These relationships allow them to call their contacts within a target company and to easily get some 'time to submit a new product or service they are now handling. This is obviously much more effective than having a salesperson in your company cold calling on the same targets. These relations already existing, and then lead to increase the speed of a product on the market.

* Other lines run wires.

Almost all retailers have to sell other products. Sale of these products will uncover other opportunities to sell your.

* They say things as they are.

They need to do the right thing because they need to make money, not to guarantee their work. Therefore, you will get candid and timely feedback from the field, allowing you to better serve customers. Often, feedback received by a representative and a territory to be used to improve relationships and increase sales in all territories.

* An advanced sales.

This approach can replace or improve the function of current sales. In some cases it is appropriate to dissolve an existing direct sales force and be fully committed to a strategy of indirect sales or outsourced. In this case you would have a sales manager working directly for you or hire a sales management agency to hire and manage your indirect sales force. In other cases a company may choose to retain all or part of its direct sales force in certain markets, or manage certain accounts, and outsource other parts. Despite the many virtues of outsourcing, there are some disadvantages.

First, you must choose the right ones. Independent retailers should be selling products and services that align with your offers. They also need to be sold to the right customers, and the right players within those companies. (Example: You want a dealer who does not live his vocation for purchasing agents if engineers or CFOs are responsible for making the final decision to purchase for your offer.) Taking the time to find the right repeats is more productive and cost-effective than taking the first who express an interest. You do not want to spend resources recruiting and training twice if necessary.

Second, treat them well and they sell. In short, re-sellers follow the money. If commission rates are on the low end of industry average, is to provide any additional incentive for meeting the quota, or simply make it difficult to do business, a media agent will spend his time selling other products.

If commission rates are good, they offer interesting incentives and make their lives easier, you have agents that run on every stone, in an attempt to sell your products.

Three other important factors in the use of a force independent of the sale are: Support, support, and support. A good representative will know a lot about the product, they will also make sure they know what they do not know. Faced with a request from a client for whom you do not know the answer, a good salesperson will say, "I do not know, but you get the answer tomorrow."

Your task is to ensure that they provide assistance in finding those answers in a timely manner. You should also make it a habit to share these questions and answers with the entire sales channel, because the questions usually arise in different places.

Finally, sales outsourcing is a commitment. You must realize that it's going to take some time to determine the sales channel. Usually the same year to eighteen months it takes to have a direct sales person up to speed. With this approach, however, you can have twenty to forty people and selling for you, rather than a handful. Furthermore, as regards the engagement, it can not be shaken between direct and indirect sales. If the independent channel, you will soon feel the direct sales, which will slow their efforts to a crawl. Furthermore, the news travels fast, if you went from indirect sales, returns to direct, the agents will be reluctant to commit if you decide to return to the indirect method.

Outsourcing, or indirect sales has gone on for centuries. As companies become more aware of their bottom lines and attack their basic skills we are seeing a renewed vigor in this approach.

If you are a small or medium sized company that is trying to increase sales and you're in one of the many industries that lends itself to outsource the sales function, it is definitely worth investigating.

Gaetan Giannini is a partner in Giannini O'Connor LLC, a full-service marketing / PR firm whose goal is to increase sales of its customers through the imagination. Contact him gaetan@goimagine.biz ......