Sales outsourcing

Sales outsourcing is a way for companies to attract increased, high volumes of sales for their products or services by using a third party. The company typically uses outsourcing companies to improve sales volumes without links to the sales teams that carry out those campaigns. The company that undertakes the outsourcing normally will be paid based on the results that they are able to generate and therefore creates a mutually beneficial situation for both Client and outsource.

Full 'sales outsourcing' is observed where companies have an external third party sales force. It is differentiated from value added reselling or distribution in that the business model can be based on shared risk, although there are models where the outsources is paid for all of their activity - just as with a hired direct sales force, but the outsources provides rapidity, flexibility and experience. Other names for sales outsourcing include 'indirect sales' and 'channel sales'.

Full sales outsourcing is different from telemarketing in that it requires direct recruitment of sales personnel with specific backgrounds for each sales campaign. Usually the sales executives will be part of a team that may include telemarketing, marketing, tools systems and methodologies as well as sales management.

Sales outsourcing firms provide accountability regarding all sales results and activities while representing the brand of the client. For the end-customer, it usually appears as if the sales team sold the product themselves rather than the sales outsourcing firm. The outsourcing firm is, in essence, an extension of the client but is responsible for all operations associated with direct sales activities, often receiving sales engineering and initial product/service training support from the client.

The sole purpose of a contract sales organization is to provide sales resource to its clients, without taking title to their products. Sales outsourcing providers include manufacturers' representatives, contract sales organizations, sales agents or sales outsourcing consultants. One way of organising the sales effort, especially when product delivery is erratic, is to replace or supplement internal resources with and expertise brought in from contract sales organisations.

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