Outsourcing sales is not a new concept. Companies have been using distributors, traders, and commissioners to increase their sales for centuries.
Credits: The Wall Street Journal (Coming Next: The On-Demand Sales Force); SalesForce (Why Selling is Service); Harvard Business Review (How to Sell Services More Profitably); The Startup (Sales-as-a-Service).
So, what is “Sales as a service”?
The unfair race (image courtesy of The Force)
Sales-as-a-service (SalaaS) could be considered as software or services (or a combination of both), which provides businesses with “sales capabilities as a service” whereby, businesses can access relevant and crucial sales resources when they need them.
The new concept is that companies are looking for long term partners who are qualified enough to act as the sales manager of the company itself.
Traders and distributors operate as a different organization. They have their own names and structures. Final clients indeed are usually not happy working with an intermediary. They always like to be in contact with the company providing the actual product or service.
This is where sales as a service or sales contracting become useful. You get the advantages of working with an intermediary without being too distant from your client.
Advantages
International expansion At some point in your growth, you need to expand your operations internationally. However, implementing your operations internationally requires knowledge and usually network in that particular target market. This is where sales contracting can be a great benefit in supplying guidance and support. You can use their existing network to enter a foreign market.
Improve Your Learning Curve Each organization eventually needs to set up its own sales team. However, the road to get there is full of obstacles and risks. Here comes the partnering side of sales as a service. Your partner guides you and your team with the experience they get from the market. They are the ones who are in direct contact with the client, so they should transfer all the feedback to you.
Flexibility You are the one to determine the effort level for your sales. Do you need two full-time sales managers for your Go to Market strategy or 5 hours per week? You are the one to decide with your partner. Especially for small organizations hiring a full-time sales manager is highly costly. In addition to that, in some countries, employment laws are extremely strict. So an unsuccessful hire can be highly pricey for your organization. Sales contracting is much less binding.
Of course, life is not all roses. Sales contracting have some downsides as well.
Disadvantages
Upfront costs While some sales-as-a-service firms offer success based rates, these partnerships are doomed to fail. You should keep in mind that they have other projects and priorities and with a commission model, they will spend the minimum time possible for your project unless you offer a hefty commission. The most preferred contracting involves a daily fee and a reasonable commission based on the results. In this way, you guarantee the time committed for your sales activities.
Difficulties in managing a remote sales team Supervising a sales team in your office is naturally easier than following a remote team. Luckily there are now numerous cloud CRM tools that you can use to monitor activities of your contracting salespeople. Still, communication is not easy, and they might not always be following what’s going on in the company.
Losing influence and control over the clients While you can follow up activities, you cannot always control how your partner is engaging with your potential clients. Are they in line with your values? Do they present your offer precisely? Do they contribute to the market image you want to build? These issues are hard to manage and requires close contact with the partnering team.
How to get most out of the sales contracting
As a business development consultant working for multiple clients, here are the five points I can state to get the most out of any sales contracting project:
Find a qualified partner Does the partner have the necessary resources for your project? Do they have experience in your sector? Do they have qualified people to make it happen?
Set goals Be clear with your expectations and set quantitative goals over a period. Revise targets when necessary.
Keep all parties informed Setting up weekly meetings is the best way to keep communication on track (e.g. share experiences, market information, and new developments).
Help Even if you get professional help, you are the expert on your particular product or service. So take time to instruct the team that is going to work for you.
Be patient Don’t expect miracles to happen from day one. There is always a learning curve, give your contracting sales team time to learn and develop.
Now that you are here
Holborn is a Sales advisory boutique in London, specialized in supporting high-tech firms in the B2B market development.
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