Lead generation companies
knowing the difference among lead generation companies
Lead generation companies come in all different shapes and sizes. In order to make an informed decision, you should probably know a thing or two about:
- What questions to ask a prospective inside sales outsourcing company
- Fee structure for producing sales appointments
With so many demand generation companies competing for your business, you should know the right questions to ask to determine if the company is a good fit. Questions like:
- What is the average tenure of your reps?
- What is your reps' experience in my industry?
- Where do you get contact data for B2B sales campaigns?
- Is there a fee for contact data acquisition?
- Are there campaign set-up fees?
- What guarantees do you provide?
- When we get a lead/meeting, what exactly do we get? Can you provide us a sample?
(Find more due diligence questions by downloading our whitepaper: 26 Questions to Ask a Lead Generation Vendor.)
If an organization elects to outsource demand generation functions, specifically appointment setting, to lead generation companies, they must weigh out the good and the bad in their due diligence process. In doing so, one might observe that there are two separate delivery models for lead generation and appointment setting:
- Pay for Performance - This is an arrangement where the vendor is paid for a quantifiable and well-defined outcome. For instance, a software organization might contract with an IT sales outsourcing company for 50 qualified sales appointments. A cost-per-meeting is established based on the prospect criteria set between the Client and Vendor, and the vendor’s compensation is tied directly to the success of the program.
- Pay per Time (Fixed Cost) - In this arrangement, 100% of the risk is diverted to the Client, and the vendor is “off-the-hook” for any explicit volume of results or quality of work. The vendor will charge for their time, which usually includes set-up fees, fees for marketing data, and a rate per hour or a rate per month. Similar to the pay-per-performance delivery model, the deliverables may include sales appointments, leads, or market intelligence resulting from the dials made – only no one knows how many sales appointments will be delivered.
Should you find yourself in the position of having to weigh these two types of demand generation vendors, we have created a side-by-side evaluation assessing the two models.
Sales outsourcing companies have huge differentiators. Make sure you know what you’re getting.
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