Outsourced Marketing Companies


Outsourced marketing companies are on the rise. Several corporations outsource their marketing and sales efforts to third party companies. This allows them to focus on their core competencies without hiring additional staff. Outsourced marketing companies offer a lot of benefits and very few negatives.

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Advantages of Outsourced Marketing

One of the advantages of hiring an outsourced marketing firm is the level of accountability. Companies that perform specialized marketing services employ people as W4 or W2 workers. Since these are actual employees and not contractors, the level of accountability is higher. Veritas Inc Atlanta, the leading outsourced sales and marketing company in Atlanta, hires workers on a W2 basis to offer higher sales quality.

Enhanced sales reporting and tracking is another benefit of outsourcing marketing and/or sales efforts. Tracking sales can be time consuming. A lot of these third party companies provide their own reporting and sales tracking. This way, a company knows exactly how many customers are coming from the outsourced company’s efforts.

​Since many marketing campaigns require a lot of money to execute effectively, outsourcing reduces a lot of the risk. Outsourced marketing companies often work on a pay-for-performance basis. Many of these companies pay their staff on commission. Therefore, if the marketing company does not perform, there is very little risk involved.

Disadvantages of Outsourced Marketing

A potential disadvantage of contracting through outsourced marketing companies is the possibility of misrepresentation of services offered. There is no person better to represent a company than its own employees. Hiring a third party company could potentially put a company’s image at risk.

Another disadvantage of outsourcing marketing or sales efforts to another company is the expense. A lot of the marketing companies available charge very high commissions and fees. There is usually an upfront fee and ongoing commissions. Marketing companies can charge a flat rate for each customer or a percentage of sales acquired. These expenses can add up quickly. Many marketing companies offer solutions to offset this expense. For instance, Blitz Inc Bellevue provides a 100% return on a company's initial investment. While this may offset the initial up-front fees, the long-term profitability should be taken into consideration as well.

Outsourced Marketing Industry Statistics

The industry of outsourced marketing and sales is quickly growing. Globally, outsourced sales and marketing produced over $10 billion in revenues last year alone. This figure is expected to extend to over $100 billion in the next ten years.

In almost every developed country, outsourced sales and marketing companies are prevalent. Just as a person might hire someone to undertake their taxes at the end of the year, corporations hire marketing companies to perform various services throughout the year.

​Outsourced marketing companies offer a variety of services including but limited to: telemarketing, face-to-face sales, database management, lead generation, account maintenance and customer service. If a corporation needs to grow quickly, outsourced marketing companies provide a unique solution.

Why Corporations Love Outsourced Marketing Companies

Corporations love outsourced marketing companies for a variety of reasons. Just imagine if you could hire someone to go out and find you a fresh twenty dollar bill in exchange for ten dollars. Would you do it? Of course you would. Companies like Veritas Inc in Atlanta, Blitz Inc in Bellevue, and DMA Portland in Oregon have all built successful organizations around this fact...but why do companies love them?

First of all, there is very little risk involved by outsourcing your marketing to a third-party vendor. If a company doesn't have to pay upfront fees for services yet to be rendered, the financial risk is just not there. The only risk that an outsourced marketing and sales company poses is misrepresentation, but companies like the aforementioned have already thought of that. They hire workers as W-2 employees, not independent contractors. This allows for more quality control over work performed.

Another reason that large corporations love outsourced marketing firms is the speed-to-market and communications. If the larger corporation wishes to roll out a new service, it can be communicated instantly and sold in the field that very day of the roll out. How's that for efficiency? In fact, Veritas in Atlanta, GA recently rolled out a multi-million dollar campaign for a major telecommunications company which has caught on like wildfire. Several additional markets have been established due to the company's quick turnaround and fast results.

​An additional reason that outsourced marketing companies do so well and get great results, which larger corporations LOVE, is the quality and consistency of the work performed. These marketing companies don't hire the traditional salesman. They hire people who are motivated by opportunity for advancement. They hire people who are willing to prove themselves to get to the top. For instance, Blitz Inc Bellevue has increased their company's staff from two in 2011 to well over twenty as of late. This is because there is even more opportunity in management for these staff members now than ever. It just makes sense.

Another primary function of outsourced marketing companies is to drive customer retention through in-person communication. This means that after the initial sales process, staff members of said company follow up with these newly acquired customers in person. This not only ensures sales quality, but also drives long-term brand loyalty from those customers. DMA Portland Oregon focuses mainly on customer retention while other sales companies look more for the short and quick sale without much follow up.

There are many other reasons that larger corporations outsource various business processes, of which you may be able to find in the additional resources below.


- Poping Lin

Source: http://hbswk.hbs.edu/item/4883.html

*Poping Lin is a business information librarian at Baker Library, Harvard Business School, with a specialty in Marketing.

Additional Marketing Resources:


New York, NY

Portland, OR


Dallas, TX

Advice Interactive Group

Bellevue, WA