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Outsourcing vs. Internalizing Your Cold Calling

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Cold calling is a tough job that doesn’t just require great employees—it also requires cutting-edge tools and an effective process. Due to the challenging nature of cold calling, many companies opt out and choose other lead generation tactics as means for growing their business. Excluding cold calling from your lead generation strategy would be a huge mistake, though.

Cold calling is still a powerful strategy. The question is: Is it better to outsource cold calling or internalize it? In this article, we’ll discuss the pros and cons of each option.

Is Cold Calling Dead?

First off, before we get into outsourcing vs. internalizing, let’s talk about the evolution of cold calling. Is cold calling dead? Yes and no. The traditional methods of cold calling don’t work—calling random numbers all day and hoping that someone bites is dead. But developing a process, implementing a strategic prospecting strategy, and using top-notch tools is not.

A lot of companies don’t want to implement cold calling into their marketing strategy simply because it’s difficult—and they’d be right. But dead and difficult are not synonymous. Cold calling is still very much alive, and when done right, it can be an extremely effective way to grow your business.

Cold calling offers the following advantages:

  • It’s the fastest way to get in touch with a prospect and start a conversation.
  • It’s the best way to start building a solid, sustainable sales pipeline.
  • It’s the best way to start the lead nurturing process.
  • It increases top-of-mind awareness.
  • It gives you immediate information about your target prospects (if you ask the right qualifying questions).

TL;DR—cold calling isn’t dead if you do it right. So now, the question still remains: Should you outsource or internalize this task?

Hiring a Cold Caller Internally

When and if you decide to implement a cold calling strategy in your sales program, you’ll have a decision to make. Either you can hire someone internally or you can outsource inside sales.

Benefits of Hiring a Sales Representative Internally

Hiring someone internally does have its perks. Here are the benefits of hiring a sales representative internally to perform cold calling activity:

  • More control over the process; your sales reps sit in your office every day so you can train them, monitor their performance, and answer any questions
  • An internal sales resource will understand the company more because you can train them and share information that you feel is important for prospective customers to know
  • More control over costs; you can decide what tools you pay for, how much a sales representative’s salary will be, etc.
  • Better insight into the sales cycle; an outsourced partner may only reach out every few weeks, whereas you can check in with internal sales reps every single day
  • Your sales reps can perform market research for you while they’re performing sales activities

Disadvantages of Hiring a Sales Representative Internally

It’s also important to be aware of the downsides of hiring an internal sales rep. Here are the cons of hiring an internal sales representative:

  • Cost—If you choose to hire an internal sales rep, keep in mind that lead generation costs will be about the same as if you outsource. Actually, in most cases, hiring internally will cost even more. The cost of replicating a lead generation program requires more than just people—it also requires various tools and technology. On top of that, you have to worry about overhead as well as training and turnover. Time is money, and the last thing you want to do is waste your time.
  • Training and turnover—Training takes time away from your day-to-day duties, and if the sales rep ends up quitting, this is a sunk cost that you cannot recoup. When you outsource, sales reps are already trained on how to move prospects through a pipeline. All that’s left for them to do is learn your business. Plus, you’ll never lose that external resource unless you decide to cancel your program.
  • They’ll feel overwhelmed quickly—So many B2B businesses make the mistake of having their sales reps handle sales activity AND delivering pitches. The best sales teams break their sales team into two separate teams—one is responsible for setting appointments and the other is on sales pitches all day. This allows appointment setters to focus on managing a pipeline and scheduling qualified appointments, while sales reps can focus solely on what helps them close a deal. Hiring more sales reps won’t always fix your sales problem; sometimes, you just need a process. If you hire one sales rep and give them too many responsibilities, they’ll feel overwhelmed and get burnt out quickly.

Should your business outsource or hire internally? Let’s discuss →

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Outsourcing Sales and Marketing Activities Such as Cold Calling

Sales outsourcing is another option when you decide to start a cold calling campaign. For many businesses, outsourcing has a negative connotation. Less control over the process and hefty expenses will often deter people. However, there are actually several benefits of outsourcing sales.

Benefits of Sales Outsourcing

  • Access to team, tools, and technology—An outsourced sales team (lead generation companies specifically) will already have the team members, tools, and technology needed to successfully run a program. You won’t have to figure out how to generate leads yourself because this is already their area of expertise.
  • Expertise—Outsourcing gives you more than access to an entire team of professionals because these professionals are sales experts. You don’t have to worry about training them or getting them up to speed on a process. An outsourced sales team already knows exactly how to execute a sales program; they just need to learn your business. And the more you’re willing to work with them, the faster they’ll learn.
  • Free up your time—One of the biggest benefits of sales outsourcing is that you free up your time. When someone else is building your sales pipeline and focusing on appointment setting activities, you free up so much time for other business development activities. You can improve your current products or services and focus on serving your customers better. All you have to do is sit back and wait for the qualified appointments to come.

Disadvantages of Sales Outsourcing

  • Little insight and visibility (sometimes)—Depending on the company you choose to outsource to, you might have very little insight into your program. This can prevent your program from being successful. When outsourcing, look for a partner that provides insights via a dashboard or reporting. Also, ask your partner how often they plan to meet with you. At a minimum, you should be touching base monthly.
  • Costs don’t always fit into your budget—While outsourcing sales often costs less than hiring one full-time employee, the cost can still be out of your budget. If you’re on a tight budget but still want to generate more leads, look for a company that will create a custom program that fits in your budget.
  • There are no guarantees—Outsourcing requires a lot of trust. You don’t know how well things are going to work, and what if you don’t generate as much revenue as you expected? This is why it’s so important to evaluate several different partners when outsourcing sales. Then, you can make an informed decision about who you work with.

Are you looking to add a cold caller to your company but don’t know where to start? Abstrakt Marketing Group offers the team, tools, and resources you need to run a B2B appointment setting program for less than the cost of one full-time internal employee. We want you to feel like we’re an extension of your business, not just an outsourced call center. Interested in learning more about our programs? Book a meeting today.

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