09/08/2022, Orlando // PRODIGY: Feature Story //
The average amount of money companies spend on lead generation is 1% to 3% of their sales; Software and design companies spend an average of 15%. Because generating leads requires a lot of planning, strategy and management, but can also quickly become expensive.
In the US alone, the lead generation market will be worth approximately $3.24 billion by 2023 statistics. However, there are many ways companies can save money on lead generation. The best way is to work with a company that specializes in this, like SalesHive.
Agency vs. in-house
While an in-house team is typically preferred over hiring an agency, one of the biggest ways companies can cut costs is by hiring an agency to manage their lead generation. For most companies, building an in-house team to do this work is going to be incredibly expensive. “The average cost for a Sales Development Representative (SDR) is just over $100,000 per year. Businesses don’t usually really factor in a lot of extra costs, like a seller’s commission,” says Sam Feldotto, CRO of SalesHive.
Many other costs come into play when you have an in-house team. For example, the costs of a company’s payroll, taxes, provision of benefits, equipment and office space are often high. The most expensive aspect of having an in-house team is the cost of training.
“Companies often don’t consider the cost of training and managing an employee,” says Feldotto. “You have to get them on board and outfit them with the technology they need to do the job. A lot of people think, “Oh, I can rent an SDR and I’ll train him.” But they don’t think about how much time they have to devote to their training.”
Feldotto is not entirely wrong; corresponding Training Magazine’s 2021 Training Industry Reportthe average company in the US spent $1,071 per employee on training costs this year….
