As a startup, having a strong sales team is essential for growth. But building and managing an in-house team can be costly and time-consuming. That’s why many startups are now opting to outsource their sales efforts.
By doing so, they gain access to experienced professionals without the high overhead of hiring full-time staff.
In fact, 59% of businesses outsource at least one business function to reduce costs, and sales is one of the most commonly outsourced. Outsourcing gives startups the flexibility to scale their sales efforts quickly, all while staying focused on what truly matters: growing their product and brand.
In this guide, we’ll show you why outsourcing sales is a smart move for startups and how to implement it effectively.
First Things First, What Is An Outsourced Sales Team?
An outsourced sales team is a group of external experts or agencies that handle all or part of your sales process. This can include lead generation, prospecting, full sales cycles, and account management.
Instead of hiring full-time employees, startups partner with specialized professionals to manage these tasks efficiently.
Outsourced teams work under your brand and follow your sales processes, but they operate outside of your company. This offers startups a flexible and cost-effective way to scale their sales efforts.
For example, a tech startup might work with an outsourced team to handle lead generation, qualification, and initial sales stages, while focusing internal resources on product development.
Common outsourced sales roles include Lead Generation Specialists, Sales Development Representatives, and Account Executives. These roles are crucial for driving sales success without the overhead of a full in-house team.
Pavago can help you find top-tier candidates for these roles (and more) with no significant upfront costs, giving you access to expert talent while saving time and money.
Why Startups Should Hire Outsourced Sales Teams
Outsourcing your sales can be one of the smartest moves for your startup, especially if you’re looking to grow fast without the overhead of building a full in-house team.
Here’s why outsourcing sales is such a game-changer for startups:
Save Money and Scale Fast
Let’s face it: building a sales team from scratch can be expensive. Salaries, recruitment costs, training, and benefits add up quickly. But when you outsource, you cut out those hefty upfront expenses.
For example, a study found that outsourcing can save businesses up to 50% compared to hiring full-time employees. And the best part? You get a whole team of experts without the long-term financial commitment.
This flexibility lets you scale your sales operations up or down based on your needs, without the worry of extra costs.
Get Access to Experts Without the Effort
Sales isn’t something you can just throw anyone at, especially if you’re a startup. You need skilled professionals who know how to close deals, qualify leads, and represent your brand. Outsourcing gives you instant access to experienced salespeople who are experts in their field.
You’re getting talent that’s already fine-tuned to work at the highest level, so you don’t have to spend time training them from scratch.
Quick Start, No Delays
Time is everything in a startup, and getting your sales team up and running fast is crucial. Hiring, onboarding, and training an in-house team can take months — months you could be using to grow your product or service.
With outsourcing, you can have a fully functioning sales team within weeks (sometimes even days). They come with all the tools and knowledge ready to hit the ground running, so you can start generating leads and making sales immediately.
Focus on What You Do Best
Sales is a big job, but it’s not your only job. As a startup, you need to focus on developing your product, building your brand, and keeping customers happy. Outsourcing sales takes the pressure off, so you don’t have to juggle everything.
You can focus on improving your product or service while your outsourced team handles everything from lead generation to closing deals. This lets you channel your energy where it matters most, while experts handle the heavy lifting on the sales front.
When is the Right Time to Hire a Salesperson for Small Businesses?
Knowing when to hire a salesperson can be tricky for small businesses, but it’s usually a sign that you’re ready to grow. Here are a few moments that might mean it’s time:
- You’re overwhelmed by leads: If your inbox is flooded with inquiries but you can’t keep up, it’s time to bring in someone who can focus on converting those leads into sales while you handle other parts of the business.
- You’re missing out on sales: If you’ve got potential customers but aren’t closing as many deals as you’d like, it might be time to have someone dedicated to the sales process and making sure no opportunity slips through the cracks.
- Your business is growing fast: As your business scales, you need someone who can focus on new markets, products, or customers. A salesperson can help keep up with that growth and ensure it’s sustainable.
- You’re stuck doing everything: If you’re spending more time on sales than on actually building and improving your product, hiring a salesperson can free you up to focus on what you do best while they handle the selling.
Related: The Right Time to Hire Salespersons for U.S. Startups
How to Choose the Right Outsourced Sales Partner
Now that you know the benefits of hiring an outsourced sales team, it’s time to figure out how to choose the right partner for your startup.
Picking the right sales team can make or break your sales strategy, so it’s crucial to find a partner who aligns with your goals and needs.
Here’s how to ensure you’re making the best choice:
1. Look for Experience and Industry Expertise
The best outsourced sales teams bring more than just basic sales skills – they bring deep industry knowledge and expertise.
For example, if you’re running a SaaS startup, you’ll want a team with experience in selling software, understanding the typical sales cycles, and speaking your prospects’ language.
Take the time to check out their case studies, ask for references, and get a feel for how their experience lines up with your niche. The more familiar they are with your industry, the faster they can start delivering results.
Pavago can help you find pre-vetted sales professionals who are ready to hit the ground running. With our extensive network, you can connect with top-tier talent without the hassle of recruitment.
2. Evaluate Cultural Fit
Sales isn’t just about closing deals; it’s about building relationships and representing your brand authentically. That’s why cultural fit is so important.
You need a partner who understands your company values, speaks to your target audience in the right way, and can align with your long-term vision. A quick conversation or two can give you a good sense of whether their approach matches your company culture.
3. Check Communication and Transparency
Communication is key to a successful outsourcing partnership. You need a sales team that’s open, transparent, and keeps you in the loop.
Ask them how they track progress, report on results, and keep you updated on key metrics. You don’t want to be left guessing about how your sales strategy is performing.
4. Consider Flexibility and Scalability
As your startup grows, your sales needs will change. Whether you’re launching a new product or entering a new market, you’ll need a sales partner who can adapt quickly.
Make sure the outsourced team you choose is flexible and scalable, able to ramp up or down as your business needs evolve.
5. Look for a Proven Track Record of Success
Ultimately, you want results. So, when choosing an outsourced sales team, look for one with a proven track record of success in generating leads, closing deals, and hitting sales targets.
Ask for case studies, testimonials, and hard data that show how they’ve helped other businesses grow. A team that’s consistently hit their numbers in the past is more likely to do the same for your startup.
Top Countries for Hiring Outsourced Sales Teams
When choosing the right location for your outsourced sales team, factors like cost, quality, and communication play a crucial role.
The Philippines has long been a leader in outsourcing sales, thanks to its large pool of English-speaking professionals and affordable labor. With a strong cultural connection to the West, communication is seamless, making it ideal for startups looking to scale quickly.
Skilled sales representatives in the Philippines can handle everything from lead generation to full-cycle sales, all at a fraction of the cost of hiring in-house.
Pakistan is becoming an increasingly popular option for outsourcing sales roles. With a growing talent pool and competitive rates, it offers a great mix of value and skill.
Many sales professionals in Pakistan are highly proficient in English and specialize in both B2B and B2C sales, particularly in industries like tech, SaaS, and digital marketing. The cost-effectiveness combined with quality makes Pakistan a strong choice for businesses looking for skilled sales teams at an affordable price.
South Africa also stands out as an outsourcing destination, offering highly skilled sales professionals with strong English language proficiency. The country boasts a well-educated workforce and offers an attractive time zone advantage for businesses working with both European and North American markets.
Outsourcing to South Africa provides a balance of quality and reasonable costs, making it a great choice for companies seeking high-quality sales teams without the hefty price tag.
Frequently Asked Questions about Sales Outsourcing
Can you outsource a sales team?
Yes, you can outsource your sales team. This involves hiring external professionals or agencies to handle all or part of your sales operations, such as lead generation, prospecting, and account management.
Is outsourcing sales a good idea?
Outsourcing sales can be beneficial, especially for startups and small businesses. It offers cost savings, access to specialized expertise, and the flexibility to scale quickly. However, it’s important to ensure alignment with your company’s goals and maintain effective communication.
How do you pay a sales team?
Sales teams are typically compensated through a combination of base salary and performance-based incentives, such as commissions or bonuses. The structure can vary, with some companies offering a higher base salary and others providing a commission-heavy model.
How to hire 100% commission-only sales reps?
To hire commission-only sales representatives, clearly define your compensation structure and performance expectations. Utilize offshore sales and marketing recruitment agencies to find qualified candidates. Ensure your product or service has strong market demand to attract motivated sales professionals.
What is the failure rate of outsourcing?
Studies indicate that approximately 20–25% of outsourcing relationships fail within two years, and up to 50% fail within five years. Factors contributing to failure include poor communication, lack of alignment, and inadequate management.
Wrapping It Up
Outsourcing your sales team can be a game-changer for your business, helping you grow faster, smarter, and without the heavy costs of building an in-house team. Whether you’re looking to scale, save time, or just get expert help, the right sales partner can make all the difference.
Ready to take that next step? Pavago can connect you with top-notch sales talent, so you can focus on what you do best: growing your business.
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