Why not to outsource lead generation

VP Sales, VP Marketing and CEO’s wonder and evaluate if they should out source the lead generation for their business.
It seems easy: just appoint a lead generation service and pay a monthly retainer. Then effortless the leads will flow in.

The 6 month lead time for a new sales rep to become effective

In B2B it typically requires at least 6 months for a new sales rep to understand the benefits, unique selling points of the products.
Only after that initial time frame he will:
- Start making the suiting or appropriate propositions in order to generate leads
- Be able to engage potential customers into a conversation
- Have enough insight in the business and the market to qualify leads
This sales rep is working in your company and listening to colleagues from sales, marketing and other departments 5 days a week during 6 months.
This i 6 months of investment for the future.

Outsourcing lead generation will take longer to become effective

If you outsource, how will these outsiders learn and understand the benefits, unique selling points of your products. As they are not working or in direct contact with your other employees, it will take much longer before those outsiders understand how to generate leads for your specific business. They are not immersed in the culture of your company and confronted with your products everyday.

Moreover the outsourcing company will probably appoint several people to handle the lead generation for your products. Hence the knowledge need to be spread over several people as they . They need to understand the business, the products, the lot.
It will take ages before they will generate good leads that can be qualified.

Transferring leads is hard to do

Another issue is the transfer of the qualified leads.
If the outsourcing company has managed the leads which were qualified, then these leads need to be transferred to the sales reps. Transferring internally qualified sales leads from the Marketing dept. to the sales reps is already difficult, then it will be even harder to transfer leads from a third party to the sames sales reps.

Company outsourcing lead generation is driver less

In some cases for common products (standard office products) outsourcing of lead generation is feasible, but for most products or services the hurdles are important and the time frame will be longer than 6 months.

For filling you funnel and pipeline, you and your company would rely upon the efficiency and effectiveness of a third party. Outsourcing your lead generation is outsourcing the main driver of your business: the new leads are beyond your control.
However you will also miss all possible feedback from the market: it is already hard to capture feedback through your own marketing and sales personnel – thus it will be even harder to get market and potential customer feedback from your lead generation company.
VP Sales, VP Marketing and the CEO will all start losing their feeling with the market as they will miss the direct feedback from the sales reps. as it is no longer happening internally.

Outsource vs OEM

If you outsource lead generation, then you could as well just become an OEM manufacturer as they rely upon their OEM partners to generate leads and close deals, they also have no influence on their lead generation neither.

Do you outsource your lead generation ?

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One Response to “Why not to outsource lead generation”

  • Cyanne Campbell says:

    Outsourcing is a manner of getting serious about your lead generation campaign. It gives you all the tools you need to generate sales leads to your business. It can even help you generate money right off the bat to make back your investment. Plus, it is the perfect solution to help you and your team gets started-regardless of your skill level.

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