The Cost of In-House Telemarketing

While most sales roles are supported by marketing programs that deliver sales leads, many high-level sales executives inevitably find themselves cold calling to hit their quota, which can take time away from more important tasks like relationship building and contract negotiations. To keep high-performance reps focused on closing business, many companies hire an in-house telemarketer or Inside Sales Representative (ISR) to make outbound calls to leads that marketing teams produce. ISRs further qualify these prospects and set meetings with them accordingly. However, results of in-house telemarketing efforts can be lackluster and expensive for a variety of reasons:


1) Overall Cost vs. ROI
When hiring an ISR, organizations must factor in the following expenses at minimum:

1. Pay: Salary, Commission, Bonuses, and PTO

2. Benefits: 401k, Worker’s Compensation, Short-Term and Long-Term Disability, Unemployment, and Health, Dental, and Vision Insurance

3. Training & Management: hard and soft costs associated with not only the trainee but with the trainer and ongoing supervision

4. Infrastructure & Technology: Computer, Software Licenses, Desk, Work Station, Office Supplies, Phone, and Internet

5. Administrative Fees: Payroll Taxes, HR, Recruiting, and IT Support

6. Costs associated with turnover and under-performance


2) Unpredictable production outcomes and meeting quality
An in-house ISR's production will usually vary. If the rep has a bad week, he or she still receives a pay check, and their company will continue to sink more time and money into training and management. Furthermore, the quality of each meeting set by an ISR is heavily dependent upon skill-level, motivation, and thoroughness.

3) Scalability
It is an expensive and manual process to find Inside Sales Reps and train them with no guarantee that they perform. Some reps will produce just enough to keep their jobs, which can create a culture of mediocrity and diminishing returns with newly hired reps. In the case where revenue growth goals are not being met, the additional expenditure for unpredictable results can be difficult to justify.

The good news....

Creating a situation where sales appointments are set at a fixed cost with measurable results is not an impossible feat. If you want to learn more about how you can build an appointment-setting model that delivers meaningful conversations with key decision-makers and influencers who have an interest and an identified pain or need that your organization can solve, let's talk.


Emily McCoy - Business Development Director, SalesStaff
(832) 945-1618 emily.mccoy@salesstaff.com