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The Outsourced Sales Contradiction: Why Companies Expect Sales Partners to Carry All the Risk

Businesses invest heavily in product development. They invest in software, operations, in technology, marketing, yet when it comes to sales, many suddenly adopt a very different mindset:

“We are looking for a commission-only sales partner.”

At first glance, this may seem reasonable.

After all, if the sales partner performs, they get paid.

If they don’t, they don’t.

The problem is that this logic is rarely applied anywhere else in business.

Would You Sell Your Product Without Getting Paid?

Imagine a software company approaching a prospective customer and saying:

“Use our platform for six months and only pay us if you achieve a positive return on investment.”

Most businesses would never accept that.

The same applies to manufacturers.

Law firms.

Accountants.

Marketing agencies.

Consultants.

All expect payment for the expertise, resources and infrastructure they bring to the table.

Yet many organisations expect outsourced sales providers to operate differently.

They expect the sales partner to absorb all of the risk while investing significant time, expertise and operational resources into building pipeline and generating revenue.

The question is simple:

If you would not sell your own product without payment, why should a sales organisation?

The Real Cost of Sales

One of the most misunderstood aspects of sales is the amount of work that happens before a customer signs a contract.

Effective sales requires:

  • market research
  • ICP development
  • sales strategy
  • messaging development
  • account identification
  • prospecting
  • outreach
  • follow-up
  • qualification
  • opportunity management
  • pipeline progression

None of these activities happen for free.

Just as software development requires investment before a product can be sold, sales requires investment before revenue can be generated.

The reality is that pipeline is built long before contracts are signed.

Commission Is Not the Problem

To be clear, commission itself is not the issue.

Commission structures can work extremely well in the right environment.

Internal sales teams operate on commission.

Channel partners often operate on commission.

Referral arrangements frequently include commission.

The issue arises when businesses attempt to outsource an entire commercial function while expecting the sales partner to assume all of the financial risk.

That is no longer a performance model.

It becomes a risk-transfer model.

The business carries little risk.

The sales partner carries almost all of it.

This is rarely sustainable and rarely attracts the strongest commercial partners.

The Investment Gap

Many businesses spend:

  • tens of thousands developing software
  • months refining products
  • significant resources on operations

Then allocate little or no budget towards sales execution.

When growth stalls, the assumption is often that the product needs improvement.

In reality, the issue is frequently commercial.

Many businesses do not have a product problem.

They have an investment problem.

They have invested heavily in creating the solution and very little in creating demand for it.

What Strong Commercial Partnerships Look Like

The most successful outsourced sales relationships are built on shared commitment.

The client invests in growth.

The sales partner invests expertise, infrastructure and execution.

Both parties are accountable for outcomes.

Neither party is expected to carry all of the risk.

This creates alignment.

It creates commitment.

And it creates the conditions necessary for sustainable revenue growth.

Outsourced Sales Is Not Lead Generation

One reason commission-only discussions often arise is because outsourced sales is misunderstood.

Many organisations view sales as simply generating leads.

In reality, effective outsourced sales involves:

  • market positioning
  • pipeline ownership
  • qualification
  • opportunity progression
  • commercial accountability

It is an extension of the business itself.

This is fundamentally different from transactional lead generation activity.

For organisations seeking predictable growth, the objective should not be finding somebody willing to work for free.

The objective should be finding a commercial partner capable of building and owning a structured route to revenue.

You can learn more about our approach to outsourced sales and pipeline ownership here:

https://www.ministryofinnovation.co.uk/outsourced-sales-and-marketing/

Final Thoughts

Sales remains one of the few business functions where organisations regularly expect external partners to assume all of the risk.

The irony is that these same businesses would never ask their own customers to buy under the same conditions.

Growth requires investment.

Pipeline requires investment.

Sales requires investment.

The strongest companies understand that sales is not a contingency plan when revenue slows.

It is a core business function deserving the same commitment as product development, operations and marketing.

And that commitment is usually where sustainable growth begins.

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