I’m often asked: “why would I pay an outsourced agency when I can just hire my own telemarketer for $25 per hour?”
It’s an interesting question so I thought I’d have a look at the real cost of running an in-house telemarketing person or team.
As you will see below, the real cost of doing this yourself is over $60/hour assuming everything goes well and that you are getting the same quality of performance. If not, the true cost could be a lot more!
The basic hourly rate you will pay the telemarketer will be somewhere between $25 and $30/hour depending on skill level. Can you pay less than this? Yes, but as with all things, you get what you pay for. Do you want someone experienced who will get results, or do you want someone who’s cheap? There’s a great saying in business: “If a professional is too expensive for you, try hiring an amateur”.
An hourly rate of $25/hour, is an annual salary of $49,000. On top of that you have to add:
This increases the actual wage costs by $24,495 to $73,495 per year, or $37.69/hour.
There are other costs that you need to include, such as:
This adds $20,499 to your costs, taking the total annual cost to $93,994 (or $47.57/hr)
Now let’s look at all of the extra resources that come with one of our lead generation campaigns. In addition to the agent on the phone you also get the following:
Total additional resources = $23,300. This is equivalent to $11.95/hour, which can either be added to the cost of running the campaign internally, or deducted from the cost of the outsourced service. Let’s add it to the in-house cost for simplicity.
Total cost is now $117,294 or $59.36 per hour
This assumes that everything goes well. But as we all know in business, things rarely go exactly to plan. You also need to consider what if….
You only need one of these events to occur, and the cost of running your own in-house telemarketer has risen to $70/hour or more. If two of these events were to happen, your costs will jump to over $80/hour – especially if you have to replace under-performing telemarketers more than once per year.
So, when you look at the cost of an in-house solution compared with an outsourced one, remember to factor in all of the “invisible” costs. When you do this, you’ll see that the costs of outsourced versus keeping it in-house are actually very similar – and with an outsourced solution, all of the headaches disappear, to be replaced by peace of mind that a professional service provider is looking after all of these “headaches” for you.
However the question of outsourcing your telemarketing versus doing it in-house is not a one size fits all answer, and every situation is different. You can also read more in our FAQs.
Keeping in mind the real costs, if you still want to run your own in-house lead generation team, don’t hesitate to get in touch with me via LinkedIn or email firstname.lastname@example.org and I’ll send you a copy of my book “The Ultimate Guide to B2B Sales Prospecting” which will help guide you in setting this up and avoiding many of the common pitfalls.