Sales

Tips for Outsourced SaaS Sales Success

Jeremy Hurley September 14, 2023

Outsourced sales is a viable option for SaaS companies as either a low-risk entry-level step or a more permanent, long-term solution. But it doesn’t work for every product or every stage - and how you set up the relationship matters as much as who you partner with.

Here’s what to know before you get started, and what to do to make it work.

Who Is a Good Candidate for Outsourced SaaS Sales?

Not every SaaS product is a fit for outsourced sales. The model works best in specific situations:

High-touch, higher-MRR products. Outsourced sales makes economic sense when the unit economics support it. Relatively high-touch, longer sales cycle, higher MRR ($500+/month) SaaS products are where this model typically works. If your product sells itself through a self-serve motion at $49/month, the math on a human sales engagement is harder to justify.

International companies entering the US market. Firms based outside the US who need same-timezone, native English-speaking representation to sell into American markets are natural fits. A local sales partner removes the barrier of international calls and cultural unfamiliarity.

Bootstrapped companies with strong products but limited sales capacity. If your product is working and you have inbound demand, but sales isn’t an internal strength, a sales partner can help you convert that demand without the overhead of building an internal team from scratch.

Companies with ancillary product lines. If you have a secondary product or service that has real demand but isn’t core enough to justify a full internal sales hire, outsourcing is a way to capture that revenue without distraction.

Why Consider Outsourced Sales?

The primary benefit is reduced risk. Partnering with an outsourced sales firm is far less expensive than opening a physical office or hiring a full-time employee with salary, benefits, and equity.

Beyond cost, good outsourced partners bring existing relationships, local market knowledge, and category-specific experience that an internal hire would take months or years to develop. When sales isn’t an internal strength, a partner who already knows how to sell can accelerate revenue growth significantly.

Tips for Making It Work

1. Commit to Regular Communication

Weekly or bi-weekly check-in calls are essential. Use these to discuss pipeline status, market feedback, and objections that prospects are raising. The best outsourced sales relationships function like a true partnership - the sales partner learns your product deeply, and you learn what’s landing and what isn’t in the market.

2. Provide Warm Leads When You Can

Outsourced sales partners perform better when they’re not starting from zero. If you have inbound leads, marketing-qualified leads, or warm referrals, passing those to your sales partner accelerates their ramp and gives them early wins that build momentum.

3. Invest in Customer Success and Onboarding

A sales partner’s job is to close deals. Your job is to make sure those deals stick. Robust customer success and onboarding support on your end protects the revenue that the sales partner generates and keeps churn from undermining the economics of the arrangement.

4. Select Partners Familiar With Your Niche

A generalist sales firm that has never sold into your vertical will take much longer to ramp than a partner who already understands your buyer, their pain points, and how decisions get made in that space. Niche familiarity is worth prioritizing in your partner selection.

5. Set Realistic Timelines

Pipeline takes time to build. Don’t expect a full pipeline in 30 days. Allow for a ramp period and evaluate results over a meaningful timeframe - typically at least 60 to 90 days of active selling before drawing conclusions about whether the partnership is working.

6. Think Long Term

Outsourced sales works best when both parties are committed to a long-term partnership rather than a short-term experiment. The sales partner invests time learning your product and market; you invest in giving them the tools and leads to succeed. Short-term engagements rarely allow enough time for that investment to pay off.

7. Use a Retainer Plus Commission Model

A monthly retainer plus commission structure aligns incentives well. The retainer ensures the partner is committed and covering their costs; the commission ties their upside to your revenue. Purely commission-based arrangements can attract lower-quality partners or create misaligned behavior. A base retainer is worth it for quality and commitment.