Sales outsourcing and go-to-market sales in Europe can be daunting for American tech companies and failure is expensive. If you know someone that may have Europe on the 2016 radar, then this short YouTube will increase their chances of success.
Since the beginning of time, we’ve always wanted to go further, cross the oceans and conquer new frontiers at great risks, costs, and delays. Opportunities were achieved by the wise.
This is a story of Sales Force Europe. Imagine a man, a man with an idea, an idea that turns into a business and a company that wants to grow. The question is, “How can the company reach new markets?”
One way to begin is by taking hundreds of planes, opening new offices, hiring people, paying for lawyers, all while losing track of the goal – revenue and profit.
Is there a better way? Here is where Sales Force Europe comes in. How do we work?
One, we get to know the company and propose a strategy.
Two, we test markets before major investments are made.
Three, we prepare SFE people located in qualified target markets to be part of the client’s team.
Four, we find customers, close deals and grow revenue and profits, all in the name of our clients.
The Sales Force Europe service has many benefits. Cost savings, fast time to market, reduced risks, clear objectives, local knowledge of the target markets, experienced team and achieving revenue and profit objectives without the headaches of flights, recruitment and offices.
That makes the man with the idea a very happy man indeed.
The benefits of SFE’s sales in-sourcing approach
In the current economic climate, many high-tech companies face the dilemma of generating growth and reducing costs at the same time. This problem is particularly serious when you decide to grow through international expansion. Sales outsourcing offers a practical solution to this issue, but it has some disadvantages. Enters the concept of sales in-sourcing, a twist to the traditional outsourcing approach.
Compared with hiring your own sales force, both sales outsourcing and in-sourcing present major benefits:
- Lower costs– Instead of spending scarce capital and vital senior management time to open overseas offices and recruit local staff, you engage sales representatives at a fraction of the cost of hiring full-time sales people.To give you an idea of how economical such services are, you can enter new markets for as little as a €4,000 monthly fee per market, plus commission. Compare this to the generally accepted cost of €1,000,000 to find and equip an office and to recruit, train and put a sales team on the road.Also, you incur no other costs for recruitment, legal, HR, social, facilities, IT, communication, etc.
- Reduced risks– Since you don’t have to establish local subsidiaries, you don’t need to deal with laws & regulations for hiring/firing local people, for filing/paying taxes, for health & safety, legal holidays, etc.In addition, a flexible agreement with a 30-day termination clause minimizes risk and commitment.
- Faster growth – The sales representatives are usually available under short notice. They are trained and selling in 1-3 months vs. typically 6-12 months when hiring direct. And they generate first revenues within 6-9 months on average.
However, outsourcing can have some drawbacks. In ‘traditional’ outsourcing, the external organisation usually operates relatively independently from its client and applies its own policies and processes. After basic product training, its sales representatives work at arm’s length from the client’s organisation, without much contact with the home office team.
Benefits of the in-sourcing approach
In-sourcing offers more. Sales representatives are more effective when they are integrated into your own team as one of yours. By becoming part of your own organisation, they execute the strategies and tactics you define; they communicate with you at least once a week; they use business cards and email address of your company and they conform to your processes and administrative procedures.
As consequence, you know you can trust and rely on an international sales team to represent your company to its best advantage and to resolve local problems efficiently. And you can be confident that they know their market thoroughly and will report back to you all relevant market information.
In addition, while sales representatives are able to benefit from your expertise and experience, they also get support from the entire Sales Agency team that accumulates many years of sales, marketing and technical experience. In other words, you benefit from something very valuable: an external point-of-view. Working hard ‘inside the box’, you tend to have a somewhat distorted view of the realities out there and, especially in high-tech, an inclination to see mostly the product ‘tree’ in front of the market ‘forest’.
A Sales Agency team offers a different perspective, literally, for they are out of the box, able to look at your company from outside in. As an example, during the initial phase of a collaboration, the agency team dialog with your team to assess your ‘international readiness’. This analysis allows to identify gaps and missing items in your international strategies, programs and sales support materials, and to offer help to overcome these issues, leveraging the agency’s extensive experience in international markets, channels and enterprise business.
Locally, in the countries you select for expansion, a good Sales Agency provides truly ‘in-country’ sales professionals, i.e. native persons knowing perfectly the language, culture, traditions, laws and regulations. They have the contacts to rapidly establish distribution channels and key customers for your products and services. And they manage these accounts on your behalf, supported by our marketing team, to keep the sales moving. This typically allows you to hold cost of sales at less than 20% of the income from the country/region.
As mentioned above, local representatives benefit from the agency management team’s experience and creativity for channel selection and management, defining effective marketing strategies and tactics and product design and development. An agency can help you on these matters for a small fraction of the fees charged by large consultancies.
In short, with this approach, you can in-source the agency’s sales and marketing experience, outsource most of the risks and costs associated with international expansion, start immediately and create a strong basis for future expansion.
PhishMe, Inc – www.phishme.com – is based in Northern Virginia, just outside of Washington, DC, with additional offices in New York City. PhishMe is a self-funded software firm that focuses on educating individuals in how to avoid the ever-increasing threat from phishing attacks.
The PhishMe product is an evolution of over 10 years of social engineering assessments the company performed as consultants for customers . As its founding team looked at the results of the annual assessment model it implemented for clients, it realized that to effectively combat phishing attacks, customers needed to combine compelling exercises with dynamic training.
PhishMe.com puts this idea into practice and is currently in use, training over 3.1 million individuals on how to self-identify spear phishing attacks and avoid falling for the sophisticated bait hackers are launching into organizations each and every day.
SFE’s initial mission is to develop PhishMe business in the UK.
Tesnet Group (TASE:TESNET), founded in 1997, is the world’s first publicly-traded Quality Assurance and Testing company.
Tesnet Group develops, implements, and delivers complete, methodology-based testing solutions for its clients’ mission-critical applications and has positioned itself as a market leader and trendsetter. With six regional offices, an international team of more than 300 experts and more than 300 clients worldwide, Tesnet Group has become synonymous with uncompromising professionalism, ground-breaking innovations, a reliable and transparent partnership with customers, and top-quality customer service.
Tesnet Group combines its expertise in enterprise applications (ERP, CRM, DWH, Billing, e-Biz, Conversion, Real Time, Security, etc.) with in-depth knowledge of the broadest range of major industrial sectors – telecom, services, retail, finance, high-tech, insurance, pharmaceuticals, utilities, government and defense.
Tesnet Group is a proud member of the Amanet Group (TASE:AMANET) which was founded in 1970 and operates as a multi-disciplinary systems house offering a wide range of solutions in the area of industrial management, engineering and logistics.
Source: Tesnet Group
SFE selected by Continuent to develop sales outsourcing. Madrid, 15 September 2012 – Continuent is the leading provider of replication and clustering solutions for MySQL and Oracle. Their Tungsten Enterprise product allows rapidly growing businesses to manage data on economical open source DBMS without migrating data or upgrading applications.
Tungsten Enterprise operates equally well in cloud as well as on-premise deployments.
Customers include American Express, AT&T, Constant Contact, F-Secure, Financial Times, Juniper Networks, Hearst Magazines UK, Marketo, Norwegian Broadcasting Corporation, Sony Music Entertainment, Thomson Reuters and Zappos.com, an Amazon company. The largest Tungsten Enterprise deployment processes close to 1,000,000,000 (billion) transactions per day over 150TB of managed data.
Madrid, November 2011 – SFE helps CrowdEngineering expand in Europe. CrowdEngineering is a company operating in the Social CRM (Customer Relationship Management) arena in Europe and the U.S.A. Its innovative technology platform, CrowdForce, allows large companies and SMBs to design and run a crowdsourced business process fully integrated with existing processes.
CrowdForce has already been acknowledged as one of the most complete and innovative in the industry both by the market as well as by analysts. It enables an enterprise’s customer base and its web community to become valuable collaborators, a workforce who can be involved in various business processes such as customer support, sales and marketing, the three cornerstones of Social CRM.
CrowdEngineering is supporting a number of companies in the fields of Telecommunications, Media, Finance and Public Administration to design and implement their Social CRM strategy. CrowdEngineering raised $4M in a series A round in May 2011 to expand its current operations in the USA and Italy.
Madrid, February 2011 – Cambridge Broadband Networks provides telecommunications operators with carrier-class wireless point-to-multipoint transmission equipment…
Continue reading “Cambridge Broadband Networks” selects SFE – Sales Outsourcing
Madrid, November 2010 – Miniweb enables converged broadcast and broadband entertainment on the TV, with a Connected TV Services Platform allowing easy navigation and consumption of internet video…
Continue reading “Miniweb” opts for Sales Force Europe (Sales Outsourcing)
Madrid, October 2010 – Connectiva Systems is a revenue management software company whose solutions enable telecom operators to reduce revenue leakage, minimize fraud, improve operational effectiveness and increase over-all profitability…
Continue reading “Connectiva” – selects Sales Force Europe – Sales Outsourcing
Madrid, February 2010 – 8hands allows users to update, as well as to stay updated, with all social networks, sites and blogs – from one entry point – even when away from the computer.
Continue reading “LogiaMobile” selects Sales Force Europe – Sales Outsourcing