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Four Reasons to Outsource Cold Calling

Many companies today are moving to outsource cold calling and the lead generation potions of the sales process.  Below are four key reasons that support the decision the decision to shift this business process to a sales outsourcer.

1.  Decrease Labor Cost

If you take a the total cost for a sales person (salary, benefit costs, overhead, etc.), then divide those costs to get to a per minute cost, then multiply by the amount of time spent making calls, then divide by the number of calls made, you will see that the cost per cold call can be fairly high.

With that being the case, many companies are shifting cold calling to companies that perform that function on a large scale and are able to provide it at a lower cost due to economies of scale and process efficiencies.

2.  Staffing Augmentation

In addition to trying to drive down costs, companies also will outsource the cold calling function in an effort to grow their existing staff in a quick, easy, and cost-effective way.  Almost every organization has the interest to grow revenue and gain market share and it is common to not have the resources and time needed to staff the sales department according to the desired growth plan.

Since experienced and quality sales resource are both expensive and hard to find, companies can keep their sales organization constant in terms of size and grow by outsourcing cold calling.  This helps businesses to quickly grow their staff and can be scalable option that helps to close the gap on the desired growth plan.


3.  Improve Return on Investment

Experienced, full-time sales resources can be fairly expensive to a company in terms of labor cost.  And even though that is simply the cost of doing business, owners and management will want as large of a return on the labor expenses spent on sales people as possible. 

This is why companies look to cold call outsourcing as by shifting that work load to an outsourcer, the experienced staff can then focus on more strategic activities like attending meeting, giving presentations, and working on proposals.  This shift can improve the return on investment that the company is making in their existing in-house sales staff.

4.  Division of Labor / Specialization

Cold calling is just one piece of a typical sales process.  And that one piece is fairly specialized area where there a number of techniques and philosphies that can be used to drive results.  When you have a sales person that manages the entire sales cycle and only a portion of their time is spent on cold calling, their level of expertise and effectiveness in that one area can be compromised.

When a company moves to cold call outsourcing, there will be division of labor where a group will focus solely on that one area.  Not only is a cold calling outsourcer positioned for effectiveness in cold calling since that is all they do, but the in-house sales staff can improve their expertise and effectiveness in areas outside of cold calling by that being decreased in their existing workload.


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Launch Pad Solutions, LLC helps companies to outsourcing cold calling through lead generation services.


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This article was published on Sunday 31 October, 2010.

Back to main topic: Sales Outsourcing
When it Can Make Sense to Outsource Cold Calling
Using Sales Outsourcing to Achieve Growth
Using Sales Outsourcing to Decrease Costs
Decreasing Costs with Sales Outsourcing
Three Options for Hiring Someone to Make My Calls
Three Options when You Need Cold Callers
An Alternative When You Need Sales People

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