Many agencies and marketing services firms over the years have made the decision to outsource their new business development efforts vs. handling new business outreach in-house. In fact, this has been a very common practice with U.K. agencies– and now more U.S. agencies are following suit. Why? They’re seeing multiple benefits including time-savings, incurred costs and overall performance.
If you’re currently deciding which route your agency should take, consider the following 5 reasons why “Buying” may be more beneficial than “Building:”
#1 Expertise – when outsourcing your new business to a firm that specializes in helping agencies with business development, you are getting a proven, successful, dedicated team working for your company on a consistent basis. Business development firms have “hunters” leading their prospecting efforts; senior professionals with a proven track record of results – and who know how to effectively work a sales pipeline.
#2 Time Saving – having a new business firm handle prospect outreach can be a big time-savings opportunity for agencies – as these firms are 100% focused on prospect outreach vs. relying on in-house teams that typically execute sales in their spare time or in spurts. Working with a team of veteran new business professionals also reduces your ramp up time. For example, our team at Catapult is trained to be in-market within the first 30 days, whereas we find that agencies who train this role in-house can take up to 60-90 days, depending on the new business tools and process they currently have in place.
These firms also typically offer list-building software and technologies like marketing automation and CRM that equip them to execute hyper-targeted outreach – all which offer additional, significant time savings.
#3 Consistent Pipeline of Qualified Leads – many agencies do not have a strong new business “pipeline,” and we often find it’s because they don’t have an effective, repeatable new business process in place. Often times when agencies work on a RFP and do not win the piece of business, they find themselves back at square one, frantically trying to drum up qualified opportunities. Executing new business in this manner can be stressful and unresponsive.
Outsourcing to new business firms provides ease-of-mind knowing you have a proven expert with the tools and network in place to deliver consistent meetings with brands you’re uniquely positioned to win business from.
#4 Cost Savings – when looking at the fully loaded cost of hiring someone in-house to manage your new business, agencies typically find it’s much more economical to buy vs. build. Most business development firms charge a monthly fee for their services that is often less than the salary, bonus and benefits incurred by hiring a new business director.
#5 Success – the name of the game. New business development firms enjoy a strong success rate of teeing up a consistent number of qualified meetings each month– while also working alongside the agency to help them turn those leads into paying, renewable accounts. When hiring a firm, ask about their success rates, and when possible inquire about other agencies that have found success in using them.
>> Need help deciding if buying vs. building is best for your agency? Learn more by contacting Catapult today.