CFO’s Guide to an Outsourced Sales & Marketing Team

Looking to grow your sales and marketing department? Aligning with your CFO is crucial. Offshoring can offer 3 to 10 times more human capital for the same budget, making it a smart investment for your company's future.

Here is what we’ll cover this week:

1. CFO’s Guide to an Outsourced Sales & Marketing Team
2. The Economics of Sales: Why Traditional Approaches are Failing
3. Do You Really Need to Raise Capital?

CFO’s Guide to an Outsourced Sales & Marketing Team

As a sales and marketing leader, you want to grow your department. Maybe you’re looking to increase your budget or just get creative with what you’ve got. Here’s the thing – getting alignment with your CFO is key. They’re always interested in two main things: cutting costs or getting more bang for their buck.

First off, you’ve got to make your pitch metric-centric. You need to be clear: "I’m asking for X to get Y and achieve Z outcome." Simple and to the point.

A great resource I found is from 2X Marketing. They talk about how to get on the same page with your CFO. One major point they make is about making an immediate positive impact on your P&L. Offshoring is powerful because, for the same budget, you can get 3 to 10 times more human capital. If your HR and recruitment processes are solid, you can onboard offshore talent smoothly, which means more projects and more output for the same cost. CFOs love this.

Another thing to consider is scalability. Hiring in North America comes with deferred liabilities like severance, which can be a headache. Offshoring, on the other hand, lets you scale up or down easily based on your workload and cash flow without those extra liabilities.?

Plus, if you work with an agency like Get Levrg, you don’t have to worry about capital expenses like computers, internet, chairs, desks, or insurance. The agency covers all that.

It’s about getting the most out of your budget and making a solid investment in your company’s future.

The Economics of Sales: Why Traditional Approaches are Failing

Last week, I did a LinkedIn Live session that highlighted a significant issue in the sales industry, focusing on the experiences of sales reps at Gong, a global software company for sales and marketing professionals.?

These sales reps have been "building in public," openly discussing quota attainment, salary expectations, and the actions required to generate sales-qualified leads and meetings. If you're paying close attention, a major problem becomes evident.

Here's the scenario: an account executive commands a base salary of $150,000, aiming for on-target earnings of $300,000. Yet, only 17% of sales reps are hitting their quotas. Sales professionals shared their efforts over a quarter—sending hundreds of emails, making countless cold calls, and sending LinkedIn messages—just to book a few meetings.

Imagine you’re the business owner who just paid $150,000 for one sales rep. They book five meetings in a quarter with a 20% close rate, resulting in one deal. Even if that deal is worth $150,000, it barely covers the rep’s salary. This doesn’t even factor in other operational expenses.

To break it down further: To cover $150,000 in profit with a 20% EBITDA, you’d need to generate $750,000 in revenue. This highlights how inefficient the process is. You’re paying top dollar for tasks that could be outsourced at a fraction of the cost.

Sales reps are doing $5-an-hour tasks, like sending emails and LinkedIn messages, yet you’re paying them $75 an hour. This results in an unsustainable cost of customer acquisition and lengthy payback periods.

The real issue isn’t about working harder or adding more tools. It’s that the economics of sales is broken. To fix this, we need to rethink how we allocate tasks and leverage cost-effective resources globally. And delegating all the routine sales tasks to offshore talents can be a real game changer.

Visit getlevrg.com to learn more. ??

Do You Really Need to Raise Capital?

Maybe you don't need to raise capital after all. I've raised capital before, and while I don't regret it because it was a learning experience, if I had a time machine, I probably wouldn't do it again. I didn't realize I had more options than I thought.

Here's the thing: in a 20% EBITDA business, a dollar saved is $5 you don't need to sell. Many business owners think more money means faster growth. But we often overlook how expensive that capital really is. Giving up 10, 20, or 30% of your business means losing future equity and a sense of control.

As founders, we start businesses to do things our way. External voices can disrupt that flow. Not enough founders think objectively about their biggest expense: human capital, which can be 50-80% of your cost structure. If you think more creatively about managing these costs, you might not be as resource-constrained as you think.

With the world becoming more global, trends toward offshoring and cheaper software tools, it's a magical time to be an entrepreneur. You can start and grow companies on a credit card.

So, before spending $75,000 on a social media manager or $100,000 on a videographer, ask yourself if it's really necessary. You might find that you don't need to give away 20% of your business just to pay other people's salaries.

Instead, consider offshoring as a solution. By utilizing global talent, you can achieve the same results at a fraction of the cost, freeing up resources and retaining control over your business.

Ready to take the next step?

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