BDR Outsourcing: How to Start
In the dynamic landscape of business growth and expansion, the role of Business Development Representatives (BDRs) has become increasingly crucial. However, as essential as they are, building and maintaining an effective BDR team can be a challenging and expensive endeavor, especially for businesses looking to optimize resources and focus on core competencies. This is where the concept of BDR outsourcing comes into play.
When beginning your BDR outsourcing journey, we recommend taking into account the following considerations to guide you in your journey of selecting a BDR outsourcing partner.
Consider Your Current State
For businesses new to outbound prospecting or those launching a product into the market, it's essential to find an outsourcing partner with specific expertise in go-to-market strategies. Look for a partner with a proven track record of using past experiences to formulate effective testing strategies. This approach helps expedite the process of determining whether outbound prospecting is a viable demand generation channel for your product. A process-driven partner can also help you avoid common failure points in an outbound demand generation program.
If you have an existing internal BDR team that's successfully meeting goals, there are still a few reasons you may want to outsource. Consider outsourcing to alleviate the burden of managing and developing staff, particularly in dealing with turnover or progression within the company. Many outsourcing partners can adeptly adopt your existing playbook, applying their expertise to manage staff turnover and maintain consistent performance. BDR outsourcing is also a way to scale quickly, or manage seasonality.
In both cases, reflect on your customer acquisition cost (CAC) goals and average contract value (ACV). Assess whether investing in a BDR is a cost-effective approach to demand generation for your business. While the cost of BDRs varies based on location of the staff, it's important to note that there are often less expensive demand generation channels available. These can include owned and earned media, inbound marketing, and peer-to-peer strategies. The key is to strike the right balance between cost and the effectiveness of different demand generation channels to achieve your business goals.
Consider Long-Term Objectives
When it comes to BDR outsourcing, it's essential to think beyond the immediate benefits. Many firms leverage BDR outsourcing as an initial step in their journey of outbound demand generation. This approach capitalizes on the rich experience of a BDR outsourcing agency, using their knowledge and proven strategies with similar clients to foster an accelerated learning curve. This strategy is designed to set clients up for early success—or insightful failure—by providing a rapid assessment of the financial viability of BDR outsourcing. This is often achieved within a four-month period and at a lower cost compared to the lengthy and expensive process of hiring and managing an extensive internal BDR team without the guidance of an experienced outsourcing expert.
Evaluate the methods used by potential outbound agencies. Some agencies may operate in a 'black box' manner, owning all the technology and delivering good results without revealing the hows and whys. This approach can make it challenging to replicate success internally. On the other hand, consider agencies that function more like consultants in outbound demand generation. These agencies use technology owned by you, ensuring transparency in results, data, and methodologies. Choosing an agency that not only achieves targets but also shares their playbook allows you to internalize these strategies at a lower cost in the future. You might even consider transitioning the outsourced BDR assets in-house on a temporary-to-permanent basis.
Different BDR outsourcing agencies offer varying levels of flexibility. Some may permit the transfer of BDR management in-house, reducing the pressure on your team, while others might offer outbound program management on a retainer basis. Given this diversity, it's crucial to have a clear understanding of your long-term goals from the outset. Ensure that the agency you choose aligns with these objectives, offering the right balance of expertise, flexibility, and control over the process.
Outbound prospecting is a common approach to demand generation, and it can be very effective. If done wrong, however, it can be an expensive way to learn necessary lessons. BDR outsourcing can help with risk mitigation, especially with the right partner. If you want to see if FullFunnel is a good fit for your needs, schedule a free consultation.