1262: 4 Myths of Outsourcing Your Inside Sales Team w/ Sam Newey

WEBVTT 1 00:00:04.519 --> 00:00:07.950 Welcome back to be tob growth. I'm logan miles with sweet fish media. 2 00:00:08.230 --> 00:00:12.349 Today I'm joined by Sam Newie. He's the head of revenue and growth at 3 00:00:12.470 --> 00:00:14.990 market star. Sam, welcome to the show. How's it going today, 4 00:00:15.029 --> 00:00:18.510 sir? Thanks, Logan. Doing well. How are you? I am 5 00:00:18.629 --> 00:00:22.660 doing fantastic. It's starting to turn warm here in Colorado, but it's it's 6 00:00:22.739 --> 00:00:26.059 just that time of year where we have a sixty five degree day and then 7 00:00:26.100 --> 00:00:29.699 we get four inches of snow the next so fingers crossed, we'll see where 8 00:00:29.739 --> 00:00:33.140 we're at by the end of the day and by the time people are listening 9 00:00:33.140 --> 00:00:35.659 to this. But on all I'm doing well. Sam. We're going to 10 00:00:35.700 --> 00:00:40.729 be talking about some of the myths around sales outsourcing as well as some keys 11 00:00:41.009 --> 00:00:48.250 for companies to leverage outsourcing their sales development function in the rebound from covid nineteen, 12 00:00:48.890 --> 00:00:51.920 if, whenever that is, whatever the next several months look like. 13 00:00:52.439 --> 00:00:55.399 Before we jump into that conversation, though, Sam, can you tell us 14 00:00:55.399 --> 00:00:58.799 a little bit of background on yourself and what you in the market star team 15 00:00:58.799 --> 00:01:02.719 or up to these days? Or so from myself, I've been in the 16 00:01:03.119 --> 00:01:07.590 tech sector for more than twenty years, probably two thousand and twenty five years. 17 00:01:07.189 --> 00:01:11.390 The majority that has been in outsourcing in one form or another. I 18 00:01:11.870 --> 00:01:18.390 have been in outsourced testing and but really for the last seventeen years I've been 19 00:01:18.430 --> 00:01:23.900 in outsourced sales and marketing with markets star. So market stars, thirty two 20 00:01:23.939 --> 00:01:30.700 year old company, globally executing sales and marketing initiatives on behalf of our clients 21 00:01:30.739 --> 00:01:36.090 and B Tob Space. We are a full service vendor. We provide the 22 00:01:36.689 --> 00:01:42.769 insightful and proven practices to really accelerate our clients sales and marketing initiatives. Our 23 00:01:42.930 --> 00:01:51.120 products include everything from demand generation to account management to new sales acquisition, channel 24 00:01:51.159 --> 00:01:57.680 management, sales engineering, etc. We're based headquartered in Utahs or, whether 25 00:01:57.680 --> 00:02:01.189 it's similar to yours, in Colorado. I've also got office as in Dublin, 26 00:02:01.310 --> 00:02:06.549 Mexico City and all regions throughout the world. Awesome. I love is 27 00:02:06.590 --> 00:02:09.750 sham so fingers crossed for sunshine for you over the next week as well well. 28 00:02:09.750 --> 00:02:15.780 Let's dive into the conversation today. There are really four myths around sales 29 00:02:15.939 --> 00:02:20.139 outsourcing that you guys talk a lot about, and especially in the context of 30 00:02:20.180 --> 00:02:24.379 amidst the pandemic. Now looking forward to hopefully when we're on the other side 31 00:02:24.379 --> 00:02:28.379 of that. I think anybody saying when that's going to be is taking a 32 00:02:28.460 --> 00:02:30.930 shot in the dark. But we do need to deal with the current situation 33 00:02:31.129 --> 00:02:36.370 and also look forward, and so excited to chat a little bit about some 34 00:02:36.490 --> 00:02:42.689 of these myths and some of the keys to actually outsourcing your sales development, 35 00:02:42.770 --> 00:02:46.599 your sales processes. The first one that you guys hear a lot is that 36 00:02:46.159 --> 00:02:51.840 people say it always costs more to outsource than to build my sales team in 37 00:02:51.960 --> 00:02:54.479 house. Give us a little perspective from all of the companies that you guys 38 00:02:54.520 --> 00:02:59.310 work with in the years of experience. Why is this not always true and 39 00:02:59.469 --> 00:03:01.870 what are some things that that leader should be thinking about saying? It's a 40 00:03:01.949 --> 00:03:07.229 great questions, one be run into often, but particularly now as we start 41 00:03:07.270 --> 00:03:13.340 to see glimpses of what could be an end to this new situation that we 42 00:03:13.379 --> 00:03:16.699 all find ourselves and we all know that as we emerge from it will be, 43 00:03:16.780 --> 00:03:21.860 you know, totally different world, and so clients and customers and companies 44 00:03:21.939 --> 00:03:25.740 out there will be looking for ways at how they might trim costs. When 45 00:03:25.819 --> 00:03:30.250 you look at outsourcing is as an option, you immediately think, well, 46 00:03:30.250 --> 00:03:36.530 it's cost too much. Outsourcing takes in more than just salary. Of course, 47 00:03:36.569 --> 00:03:38.849 when when our clients look at these costs, we encourage them to look 48 00:03:38.849 --> 00:03:44.159 their fully burden cost. It takes him more than salary. It's cost like 49 00:03:44.919 --> 00:03:50.039 T and B. It's recruiting costs, training, higher and cost, infrastructure, 50 00:03:50.319 --> 00:03:55.509 overhead and, inevitably, the cost of attrition, cost of a backfill 51 00:03:57.030 --> 00:04:00.789 or, unfortunately, like we're seeing with a lot of companies today, the 52 00:04:00.909 --> 00:04:06.990 cost of severance incurred during an economic down term or changing strategy. Those types 53 00:04:08.030 --> 00:04:12.659 of cost or people are things that are clients filling often anticipates. When you 54 00:04:12.819 --> 00:04:16.660 stack all those things together on a sudden, outsourcing becomes a much more violent 55 00:04:16.819 --> 00:04:24.649 able option. To consider all those challenges and cost implications can be solved by 56 00:04:24.810 --> 00:04:30.290 outsourcing your sales, your marketing functions to a provider like market store. We 57 00:04:30.490 --> 00:04:34.009 typically hire a faster we typically hire, I don't want to say cheaper, 58 00:04:34.089 --> 00:04:39.959 but more efficiently than our clients. And the beauty of outsourcing this you can 59 00:04:40.160 --> 00:04:44.839 scale up or down as you need to and in a very short amount of 60 00:04:44.879 --> 00:04:49.519 time, with typically no lingering cost implications of that scale. I have good 61 00:04:49.639 --> 00:04:56.029 friends in the tech sector right now whose companies have been profoundly impacted by this 62 00:04:56.189 --> 00:05:01.670 covid nineteen pandemic and as a result they're havinging the layoff hundreds of good people 63 00:05:01.790 --> 00:05:04.790 and cells, Reps, marketing functions, all kinds of things, because the 64 00:05:04.870 --> 00:05:10.980 business is suffered. There is a heavy emotional toll, there's a heavy financial 65 00:05:11.100 --> 00:05:15.620 toll in doing that. Things like outsourcing eases that burden and eliminates those kind 66 00:05:15.620 --> 00:05:20.449 of long term implications. So when companies brace for the rebound, we have 67 00:05:21.490 --> 00:05:28.569 the ability to provide different financial vehicles for them going forward. In this new 68 00:05:28.689 --> 00:05:34.250 world, companies might consider leveraging and outsource partner through OPECTS, finding or contra 69 00:05:34.370 --> 00:05:41.399 funds instead of Kappex. We provide the facilities, the infrastructure that would otherwise 70 00:05:41.480 --> 00:05:46.279 be necessary for an organization to fun. We can also bridge the gaps or 71 00:05:46.360 --> 00:05:54.189 provide the entire text act necessary for a sales team or marketing team or channel 72 00:05:54.189 --> 00:05:58.990 team to operate in this new world that we all find ourselves in. Yeah, 73 00:05:59.029 --> 00:06:01.389 absolutely, and a new world and new normal. I keep hearing in 74 00:06:01.589 --> 00:06:05.579 conversations both here on the podcast and offline. You know, Sam, you 75 00:06:05.660 --> 00:06:11.459 did a great job of talking about some of the hidden lingering costs that aren't 76 00:06:11.459 --> 00:06:15.019 there when you outsource. One of the other common myths you've mentioned to me 77 00:06:15.100 --> 00:06:19.610 before offline was that larger companies, fortune five hundred and others often believe that 78 00:06:19.689 --> 00:06:24.610 they've got no need to outsource their sales process, that it doesn't make sense 79 00:06:24.730 --> 00:06:29.290 once you get to a larger size. It only is efficient, effective and 80 00:06:29.449 --> 00:06:33.000 make sense really when you're at the smaller, earlier stages of company growth. 81 00:06:33.519 --> 00:06:36.120 You guys have kind of seen the opposite of this. Tell us a little 82 00:06:36.120 --> 00:06:40.560 bit about the realities you see here, Sam. Yeah, though, really 83 00:06:40.639 --> 00:06:45.000 the type of clients we work with our major clients today. We also work 84 00:06:45.040 --> 00:06:47.629 with a lot of emerging technologies, but there are a few key benefits that 85 00:06:48.310 --> 00:06:54.550 every company can recognize when the reaching of markets are another sales as a service 86 00:06:54.670 --> 00:07:00.579 provider. Speed to market is one that our clients constantly call out as benefit 87 00:07:00.779 --> 00:07:09.420 of working with us. Our ability to source ready higher and deploy a fully 88 00:07:09.660 --> 00:07:14.980 functional team is something that we do far faster than our clients are typically able 89 00:07:15.100 --> 00:07:20.129 to. Skill ability is second, whether it's scaling for a new strategic initiative, 90 00:07:20.250 --> 00:07:26.089 a new market segment, a new geographic segment. Maybe a client is 91 00:07:26.170 --> 00:07:30.120 going from North America to Europe or to Latin America. We have the ability 92 00:07:30.240 --> 00:07:35.519 to take those best practices, export them and localize them in a very scalable 93 00:07:35.560 --> 00:07:41.560 and efficient way. But the other primary thing really is focus. When you 94 00:07:41.759 --> 00:07:46.389 have a strategic partner who is able to deploy a team that the soul focus 95 00:07:46.550 --> 00:07:53.350 is selling your brand, executing on a change in strategy or a capitalizing on 96 00:07:53.430 --> 00:07:58.860 a new opportunities that comes to a client, it empowers your other business units 97 00:07:58.899 --> 00:08:03.699 to focus on what they really do best. As we continue to realize the 98 00:08:03.819 --> 00:08:07.779 impact of this virus, that the impacts that it will have on a global 99 00:08:07.819 --> 00:08:13.129 basis, many large and emerging companies can benefit by outsourcing their inside sales or 100 00:08:13.129 --> 00:08:20.449 their channel management processes. Or outsourcing can provide an option for companies to reduce 101 00:08:20.529 --> 00:08:28.040 their infrastructure and their management cost while deploying the highly while deploying high performing talent 102 00:08:28.160 --> 00:08:31.879 quickly and predictably. Quickly and predictably, those are two things that are just 103 00:08:33.080 --> 00:08:37.320 music to any leaders ears right now. Sam another thing you know, we 104 00:08:37.440 --> 00:08:41.830 talked about cost. We talked about depending on the size of the organization. 105 00:08:41.990 --> 00:08:43.309 Does it make sense, and you make a really good point there, that 106 00:08:43.750 --> 00:08:50.029 it depends on a number of different pieces of context. Another part of this 107 00:08:50.149 --> 00:08:54.750 conversation that comes up a lot is the idea of risk. That especially for 108 00:08:54.870 --> 00:08:58.179 larger organizations, but really for anyone. I'm sure you guys hear this objection 109 00:08:58.220 --> 00:09:03.700 a lot, that there's too much risk in outsourcing my inside sales teams, 110 00:09:03.779 --> 00:09:05.940 for instance. Sam, tell us a little bit about how you guys see 111 00:09:05.980 --> 00:09:11.850 that and help customers realize where the real risk is and how they should evaluate 112 00:09:11.889 --> 00:09:16.889 it when deciding to outsource or keep in house their inside sales teams? Yeah, 113 00:09:18.009 --> 00:09:22.289 there are a couple of consistent objections. Are concerns that we hear from 114 00:09:22.450 --> 00:09:26.840 clients when we're talking about engagements like this. Number one is often that they 115 00:09:28.120 --> 00:09:33.080 worry about their brand representation, not only that they're represented in the right way, 116 00:09:33.120 --> 00:09:37.480 of their partner says the right things, follows the right processes, etc. 117 00:09:37.399 --> 00:09:43.309 The other primary concern that we hear from people is that they're caught their 118 00:09:43.470 --> 00:09:48.269 products, their services, their solution is too complex to outsource to a third 119 00:09:48.350 --> 00:09:54.259 party like a market star. After more than thirty years we've worked with very 120 00:09:54.460 --> 00:10:01.139 complex technologies, complex virtualization, five nine availability, hardware and it is centers. 121 00:10:01.379 --> 00:10:05.500 Those types of things we always strive to exceed our clients expectations. Our 122 00:10:05.659 --> 00:10:11.690 role really is to preserve our clients brand integrity as an extension of their team. 123 00:10:13.450 --> 00:10:18.330 Markets are provides dedicated sales seems for companies that really change the world, 124 00:10:18.370 --> 00:10:22.240 and by doing so, we enable those brands a focus on their products, 125 00:10:22.399 --> 00:10:26.200 their road maps and their strategic goals to shape the future of the B tob 126 00:10:26.440 --> 00:10:33.360 customer experience when companies build their sales teams in house says to all risks associated 127 00:10:33.360 --> 00:10:39.950 with the cost performance everything. Outsourcing your inside sales processes allows you to move 128 00:10:39.070 --> 00:10:46.710 some of your risk onto a strategic partner who's oftentimes whose revenue is associated with 129 00:10:46.870 --> 00:10:50.460 their performance. For you, sales is a service. Companies like markets are 130 00:10:50.539 --> 00:10:58.179 not only operate on performance based contracts, but also provide clients with value added 131 00:10:58.299 --> 00:11:05.210 and transparent reporting on key performance indicators and metrics that really show our and track 132 00:11:05.330 --> 00:11:11.370 the progress against your company's goals. So, Saam, you mentioned your experience 133 00:11:11.409 --> 00:11:15.049 at Market Star and one of the concerns that I know a lot of people 134 00:11:15.129 --> 00:11:20.960 have with outsourcing their sales development is that you know sales is a service or 135 00:11:20.240 --> 00:11:26.559 outside sales development agencies don't bring thought leadership to the table. Can you speak 136 00:11:26.639 --> 00:11:31.519 to where you guys have been able to help some customers there and what company 137 00:11:31.559 --> 00:11:37.029 should be thinking about and evaluating and outsource sales provider as they're having those conversations 138 00:11:37.070 --> 00:11:43.149 and at thinking about this aspect of thanks. I tell my clients that we're 139 00:11:43.230 --> 00:11:48.100 not just an execution house. There a lot of clients, when they consider 140 00:11:48.220 --> 00:11:54.139 outsourcing their used to outsourcing customer service or technical support, those types of very 141 00:11:54.340 --> 00:12:01.220 cann repeatable, scripted processes. When you're looking at outsourcing your sales or your 142 00:12:01.259 --> 00:12:05.450 channel management or any of your marketing functions, these are functions that require a 143 00:12:05.850 --> 00:12:11.490 partner who is really a strategic partner, somebody that can think on their feet, 144 00:12:11.570 --> 00:12:16.879 somebody that can iterate and riff and vibe with our clients as they evolve 145 00:12:16.320 --> 00:12:20.799 and provide value out of the feedback. As if I mentioned, for thirty 146 00:12:20.799 --> 00:12:26.759 years we've done nothing but outsourced sales. In most cases, thirty years means 147 00:12:26.799 --> 00:12:31.149 we've been in a business longer than most of the clients we work with or 148 00:12:31.269 --> 00:12:35.230 many of the clients would work with. As a result, we've got a 149 00:12:35.350 --> 00:12:41.269 lot of experience. We know the pitfalls they're facing in both an emerging company 150 00:12:41.389 --> 00:12:46.419 category and an established company. We know how to help them navigate those pitfalls, 151 00:12:46.779 --> 00:12:50.940 from the people we hire, the technologies we implement to enable our teams 152 00:12:52.419 --> 00:12:58.809 to the advanced analytics that we have. Market Stars Processes, systems and tools 153 00:12:58.850 --> 00:13:05.250 are really designed to maximize our clients Uri and continue to deliver exceptional results. 154 00:13:05.730 --> 00:13:09.409 Not Everything we touches gold, of course, but our clients get to leverage 155 00:13:11.090 --> 00:13:16.399 our knowledge gave across multiple industries, multiple geographies, multiple sectors. Sales as 156 00:13:16.440 --> 00:13:22.399 the service companies, like markets are, incorporate deep and proven sales methodology to 157 00:13:22.519 --> 00:13:28.470 develop customized programs to drive results for our clients. That can be long term 158 00:13:28.590 --> 00:13:33.629 strategic programs, that can be short term tactical programs, and there may even 159 00:13:33.629 --> 00:13:39.750 be occasion when our recommendations may seem unconventional, but our thoughtful approach is really 160 00:13:39.830 --> 00:13:45.980 based on our evolving best practices. A good sales of service company will view 161 00:13:46.059 --> 00:13:50.659 each client as a trusted partner and should regularly provide feedback and analysis and not 162 00:13:50.820 --> 00:13:58.610 only optimizes the outsource portion of the sales process, but really accelerates improvements at 163 00:13:58.730 --> 00:14:01.490 every step of the sales funnel. Absolutely, I look what you said. 164 00:14:01.490 --> 00:14:07.889 They're about gaining from that collective knowledge across industries. You obviously want to look 165 00:14:07.889 --> 00:14:11.559 at Best Practices Trans within your niche, in your industry, but at times, 166 00:14:11.679 --> 00:14:16.120 whether that's your sales development process or any part of your business, it 167 00:14:16.399 --> 00:14:22.240 does benefit you usually to gain some outside some broader perspective, as well as 168 00:14:22.279 --> 00:14:26.470 that very narrow, focused, in depth expertise that you have within your own 169 00:14:26.470 --> 00:14:30.190 four walls as well. Let's Sam. This has been a great conversation. 170 00:14:30.269 --> 00:14:33.669 I think you've given listeners a lot of things to think about. If any 171 00:14:33.710 --> 00:14:37.029 of them have some follow up questions for you, would like to stay connected 172 00:14:37.070 --> 00:14:39.419 with you or the team at market star with's the best way for them to 173 00:14:39.500 --> 00:14:43.220 reach out or stay connected with you? Guys. Great question to you can 174 00:14:43.419 --> 00:14:50.860 reach out the market starcom. My email address directly is s Nui. That's 175 00:14:52.220 --> 00:14:58.450 s since Sam and as a November e we why market starcom? Or you 176 00:14:58.529 --> 00:15:03.129 can catch me on Linkedin at Linkedincom, forward, slash in or send new 177 00:15:03.570 --> 00:15:07.009 I love it. Sam. Thank you so much for joining me on the 178 00:15:07.049 --> 00:15:11.759 show today. Thanks so much. A Little Bit appreciative. I hate it 179 00:15:11.840 --> 00:15:16.039 when podcasts incessantly ask their listeners for reviews, but I get why they do 180 00:15:16.080 --> 00:15:20.240 it, because reviews are enormously helpful when you're trying to grow a podcast audience. 181 00:15:20.549 --> 00:15:24.309 So here's what we decided to do. If you leave a review for 182 00:15:24.429 --> 00:15:28.309 me to be growth and apple podcasts and email me a screenshot of the review 183 00:15:28.429 --> 00:15:31.269 to James at Sweet Fish Mediacom, I'll send you a signed copy of my 184 00:15:31.389 --> 00:15:35.299 new book, content based networking, how to instantly connect with anyone you want 185 00:15:35.340 --> 00:15:39.299 to know. We get a review, you get a free book. We 186 00:15:39.460 --> 00:15:39.860 both win.