Outsourcing cold calling agents. Advice Needed

[Perform Computers]

Hi all,

So I've come across this lady, who works from home, and what she does is she gets leads for people who have their own business.

Example.....

I get clients by walk-in cold calls. Instead of this, I give her my target market, what I'm selling etc and she calls companies in the area that I want to target, and sets up meetings so I can go & do presentations to get the client.

She asks me a fee for the lead, not for closure on the lead. It's understandable as she has to make phone calls and this is obviously not cheap.

So now I have to let her know what I'm willing to pay for each lead she gets me. I've spoken to this lady on Skype, and she doesn't sound like someone from the Cape Flats. Excellent telephone manner. Good grammar.

Pro's:

I don't have to walk for hours handing out business cards to get leads
I can focus on other lead generating ideas & tactics while she calls for me.
She only calls the type of businesses I target. In this case, SME's.
I'm the only IT company she is calling for leads.

Con's:

Could work out expensive if I have to pay upfront for each lead with no guarentee of closure.
Don't really have a marketing budget.


She does ask qualifying questions to the company before getting me the meeting.

Do you currently have an IT guy?
Are you happy with your current IT company you use?
Are you looking to change to someone else?

etc etc

So that kinda puts me at ease that she won't just call random companies and setup bogus meetings just to get the fee paid upfront. BUT..... We don't live in a perfect world. It's possible.

Could you guys perhaps give me some advice please?

Should I say no & just tough it out on my own out there?
Should I try it for a month with her and see how it goes?
The fee paid upfront, how do I make sure it's a good lead so I don't pay for nothing.

Hope you guys can help me. It sounds good to me, but then again, there are more intelligent people on this forum than me. & more experienced with these kind of matters.

Thank you

[Justloadit]

Well what would it cost if you did it?

That's what shes worth in my opinion. Remember if you do it, there is also no guarantee that you get the business.

[KimH]

Perhaps she can give you a few names of the people that she is currently supplying this service to, that way you can see if it's worth your while.

I can understand why you would be keen to give it a try, it's not easy doing everything yourself but at the same time you need to be sure that there will be returns - it's no good spending R500 to earn R100.

[AndyD]

Yep, I agree with Kim, ask for some references from her existing clients. This type of marketing is commonly paid by commission so maybe negotiate that you pay her 20% of the turnover generated by the first job or, depending what type of work you do, even the first two jobs of each new customer she generates. You'll make next to nothing on those first jobs but she'll earn a handsome amount if she's good enough to get you in and you'll earn handsomely in future if if you're good enough to keep the customer and get the repeat business.

[Perform Computers]

Hey guys,

She does do this for two other companies, including her husbands company, and apparently the ROI is great.

She asks R1000 per lead, but told me that obviously this is too high for me, so we should find common ground inbetween. She asks this fee upon presentation of a new leads details, because it covers her telephone calls.

She could for instance call 100 people and no one agrees to a meeting with me. She can't charge me for this, so this becomes an expense to HER.

But, what if she's using a VOIP phone on an uncapped 4MB line? ( Round about R1k p/m for this ). Then she would be making calls at R0,00 per minute and charging clients R1000 per lead.

You can just see how this would add up for her, filling her pockets. Look, don't get me wrong, she was upfront & honest with me, wonderful woman. Professional. I just cannot pay R1000 per lead.

She said, "Tell me exactly what target market you aim for, so you don't get cold leads".

She has this form you fill in so that she can pinpoint the exact type of clients you are looking for, and then setup appointments for you.

I was thinking R250 per lead, but still..... 4 leads and I'm looking at R1k expenses. I could use that R1k to advertise in the local newspaper, or take that money and do boerewors rolls in front of the Pick 'n Pay on a Sat morning, etc

Any thoughts?

You see, I have no problem paying her 70% commision upon INVOICING. Even 80%. If I invoice the client, I make money, and she does. AND I get a new client.

Not too sure she'll accept this "payment plan" though.

[Justloadit]

I was thinking R250 per lead, but still..... 4 leads and I'm looking at R1k expenses. I could use that R1k to advertise in the local newspaper

I may be wrong here, but to me, local newspapers is not the place business look for leads, this is usually left for home owners looking for a cheap solution.

There is no sure way to capture leads, this is something you throw some money at it, see the results, if nothing, move on to the next method, until you hit something that works, then build on it. Its similar to fly fishing, you stick the fly on the end, and see if you get a bite, if nothing, you change the fly and try again.

[Perform Computers]

Good advice Justloadit.

Thank you

[Amado]

Just remember she will have to be subscribed to the DMA dont contact list as well else now with all the new legislation, you might be opening yourself up for problems at some stage.