Being hands-on in your business has its perks, especially during the startup phase. But, as your business grows, you’ll need to back away from any micromanaging tendencies and start delegating more and more to keep your business running efficiently.
In a 2014 Gallup study, 143 CEOs on the Inc. 500 list were analyzed. Researchers found that strong delegator talent came with an average three-year growth rate of 1,751 percent. The CEOs with weaker delegation talent only carried an average three-year growth rate of 112 percent.
That’s a huge difference!
The advantages extend to revenue. High delegator CEOs had 33 percent more revenue in 2013 and earned an additional $8 million compared to low delegator CEOs who only raked in an extra $6 million. The CEOs with high delegation skills created more jobs, faster.
When it comes to B2B lead generation, there is a limit to company size where DIY will cease to be a viable option. Trying to conduct every business task yourself usually leads to exhaustion, or being spread too thin, unless of course you are some kind of business superhuman (we’re jealous). However, since most people do NOT have mysterious and mystical business skills, you need to learn how to effectively delegate tasks or you risk putting your company in peril.
Instances when the in-house lead generation route is beneficial
— Your business culture is dependent on privacy. This happens when business leaders and heads of departments are not comfortable sharing business information with B2B lead generation companies. In this case, it may be more appropriate to go after your own leads.
— When operational margins are extremely thin but sales volume is very high. If a business’ sales volume is high and the profit from individual customers is low, the revenue gained from new leads might not be enough to cover the cost of acquiring those leads. The best bet for businesses in this situation might be to develop an entirely new lead generation strategy altogether.
— DIY also works best if you have a novel product or service that most B2B lead generation companies haven’t encountered yet. Third-party providers generally cannot compare to the passion and product/service knowledge displayed by your own employees. So if your product or service is highly complex and involves skilled knowledge to sell, outsourcing lead generation may not be the best idea.
Instances where you really should outsource to the lead generation experts
— If you plan to tap into a niche market and meet bigger sales targets.
— If you want to expand to another geographical location with a different target market.
— If your conventional strategies are running out of steam and you need fresh ideas from the experts.
— If you lack knowledge about how to quickly generate the leads you need. This is especially important if you have no existing data sources to build your own campaign.
— If you can negotiate a commission-based system. Many B2B lead generation companies offer pay-on-results services, where you only need to pay them if their leads turn into profits. This is a big advantage for companies with limited budgets.
— If you need more hands on deck but can’t hire people internally. Outsourcing allows you to pay only for the services you require when you need them.
— If you want to make sure your lead generation efforts are following best practices and don’t have time to learn, leave it to the experts.
Advantages of outsourcing your B2B lead generation campaigns
—Faster and easier budget approval. Hiring more sales people can be very expensive and time-consuming. However, budgeting for an outsourced lead generation campaign can be a lot simpler, especially if the outsourced company helps you build your proposal.
— Metrics-driven feedback. The scientific breakdown of leads is a gold mine for marketing teams, as the associated data can improve their marketing campaigns in the future. More importantly, they also get metrics-driven, quantifiable feedback on the results of their active campaigns.
— Generate warm appointments. Having a partner B2B lead generation company can help transform leads into warm appointments. This further assists your internal sales team in closing deals and can help prevent warm leads from going cold.
In the end, delegating your lead generation activities to an expert outside firm allows you to leave filling the sales funnel to the experts so that you can focus on the much bigger task of actively growing and running your business.
See you on the next Inc. 500 list!