Today, we’ll give out a few essential tips on how to outsource lead generation. If you’re considering outsourcing your lead generation then this is the right article to start with.
What is “Lead Generation Outsourcing?”
Lead Generation Outsourcing is when your business is required to hire an external team to generate leads for a certain brand which will help you to focus on the vital aspects of your business and move forward with the important tasks.
When you’re selecting an external team to do your work, it’s helping you to save your time and energy and alongside it’s helping other people to get employment and be paid in return for doing the task.
In-House v/s Outsourcing:
You can generate leads in two ways, let’s discuss that.
|In-House||In-House, lead generation is when you’re giving the task of generating leads to the staff of your own company.|
|Outsourcing||Outsourcing is when you hire an external team to generate leads, who you’re paying for that particular task.|
In-House lead generation involves the staff of your own company to generate leads. As we know, some people prefer in-house lead generation because they believe that their staff knows the product better than the outside world. However, if you are not an expert in lead generation, it can take up a lot of time.
Outsourcing is when you’re working with a different company and it’s a financial investment, so you need to have a good working relationship with an external service. If you’re hiring an external team then they’ll be efficient and will be dedicated to the task as they’re charging for it.
If you’re thinking of gathering leads then you can use our expert tool, LeadStal, which knows what they are doing and can deliver results quickly to help grow your business.
How To Choose A Lead Generation Company?
You’ll have to research and determine if the company has good reviews and if it’ll be the right choice to consider. You’ll have to identify if the company knows your business/product well enough and if can they provide you with the things within your budget or not.
When to outsource lead gen?
When to leave it to the internal team:
Using in-house lead generation
To focus on internal business development:
- You need a dedicated, experienced team working on lead gen full-time
- You should know which channels and specialisms to focus on
- You should focus on inbound marketing methods to generate leads
When to leave it to the external team:
Outsourced lead generation
Consider external business development when:
- You don’t have the resources to hire and train new staff and build out internal marketing teams
- You want to supplement internal marketing efforts with new channels
- You want or need to focus on booking appointments (through cold calling or email prospecting – common in B2B lead generation)
- You want to launch a new product or service
- You need to pivot the business
Is it better to outsource lead generation?
It is said that outsourcing lead generation is at least 43% more effective than in-house lead gen. Outsourcing lead generation is definitely a clever move. The right lead gen company will do all it can to become a part of your sales efforts and give you the best deals possible, even in the tough sales situation e live in.
Advantages and Disadvantages of Outsourcing Lead Generation:
Everything comes with advantages & disadvantages, let’s discuss them below.
Advantages of Outsourcing Lead Generation:
- Focuses on selling
- Increases capacity quickly
- Sales growth without headcount growth
- Testing new channels
- Lower costs
Focuses on selling:
The sales staff are required to focus on selling the particular product/service for which they’ve been hired. Outsourcing demand gen allows sales teams to optimize their sales pipeline and sell more.
Increases capacity quickly:
When you hire an external team for generating leads, you get a whole new experience through them. You get a brand new channel of leads pouring into the sales team in a relatively short amount of time.
It also saves your time and energy which you would have used in training a new team.
Sales growth without headcount growth:
Startups can often face a certain problem which is the need to increase sales, in order to increase marketing headcount, in order to increase sales headcount, in order to ultimately increase sales.
Outsourcing lead gen means small businesses can focus on the sales cycle, bringing in vital revenue to continue growing.
Testing new channels:
Outsourcing can also have a risk factor so it’s better to test your tools and channels. Always test the viability of a channel before bringing it in. Just make sure you have the expertise lined up and ready for a seamless transition.
While this is certainly not a given, your cost per acquisition can often be lower when your leads are coming from a specialist company that has refined their own particular lead gen down to an art form.
Disadvantages of Outsourcing Lead Generation:
- Not defining your ICP
- Static databases
- Lack of exclusions
- Reputational, financial, and technical risks
Not defining your ICP:
By ICP we mean “Ideal Customer Profile.” You should always define your ideal customer profile to the lead generation agency or else your lead quality is going to suffer. Make your agency do the research on your customers.
Sometimes, the agencies fail to identify the targeted customers so you’ll need to really put the effort in to make sure the agency understands your customer.
You really need to understand where the company’s data is coming from.
Any static database, even one that is regularly updated, will contain out-of-date information. This means results suffer, and costs increase.
The average worker changes roles once every three years. If a database isn’t updated, half of the list is useless in 18 months. Even with data that is regularly refreshed, the most common method involves updating a slice at a time – leaving outdated information behind.
Lack of exclusions:
There can be misfires in the tools that you bought in. Always update and check them regularly to avoid any odd situations.
Reputational, financial, and technical risks:
When you’re forming a company, you would obviously want it to be renowned and reputed in the market and it takes time to build a reputation.
You need to invest capital when starting a business, which involves risks of failure and unsuccessfulness.
Lastly, you face technical issues and misfires.
What Do You Need to Outsource Lead Generation?
- You need a dedicated, experienced team working on lead gen full-time.
- You should know which channels and specialisms to focus on.
- You should focus on inbound marketing methods to generate leads.
To Wrap It Up:
We have discussed how outsourcing lead generation works. Let’s hope it was helpful to you. We suggest you follow this article for any confusion regarding this topic. Thank you for reading and being with us.
There are more articles on our blog, how about you check this one “How To Get Sales Leads For Free” out?