Monday, February 16, 2009

Sales Management Outsourcing

Like any purchasing decision, you need to ensure that you get value for money. If you bear in mind that the reason you would even consider investing in sales or marketing in the first place, is to increase revenue and profit, then do these calculations first. How much additional revenue do you wish to generate, and by when. What is your margin on that? How much profit does that put in your pocket? Now how much of that are you willing to spend? One of the issues apart from the loss of time and cash flow in making a mistake in hiring is the actual cost of hiring fees and monthly base salary. This is a cost even before a single additional sales is generated. If you could get the sales execution focus of a sales director for a fraction of the monthly cost of a full time hire, paid them on performance and have the ability to part company on a month's notice, without any employer liability - would that not be attractive. If a sale was dragging on, would you know what questions to ask to find out why? Have you ever been paid commission, do you think sales people are overpaid? If a sales person was not performing, would you fire them and get a new sales person? How would you define not performing, in the previous question? Have you ever used and do you understand the value of a sales process? The answers to questions like these come as second nature to an experienced Sales Director or Manager. Over 90% of the most successful companies in the world have experienced sales directors on their management board.

8 comments:

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