It is typically startup companies in the UK that are looking for a commission only telemarketing agency. This is mainly due to lack of funds and the desire to share risk.
Many businesses (typically startups or companies that have financial issues) do ask about commission only telemarketing. There are 3 reasons businesses need telemarketing.
Popular comments would be:
‘If they are as good as they say they are, then surely they would be willing to put their money where their mouth is’
‘If they are confident in their ability to sell, then why not take a risk; they could make more money’.
‘We have paid telemarketing companies in the past and they do not generate results, just take our money’.
There are hundreds of lead generation agencies in the UK, however none do commission only selling as a business model – for a reason.
The role of telemarketing is to generate meetings/market for information/generate sales enquiries not to produce guaranteed results.
Marketing is not cut and dry, it is not predictable, it is subject to variables that constantly shift.
Telemarketing also works best when coupled with other marketing services all working together rather than just using telemarketing alone.
The role of the telemarketing company is to generate enquireis and information; the client is the responsible for the ‘selling’; small companies do not want the risk and look for others to share it, when it is not really their responsibility.
Indeed there is an itch, companies are looking for guarantees with their marketing. However it is not being scratched (marketing companies do not want to have this risk element).
There is also the perspective that if there are companies in the UK that are willing to pay money for calling without a commission element, then this is more attractive and they work together.
Unless the whole UK stopped and said ‘we will not pay day rates or monthly rates, only on commission’ would things need to change. But since there are people willing to pay the asking price, things will not change.
Options other than a commission only telemarketing agency is using a freelance telemarketing expert. Many can be found on recruitment websites like Indeed. However there are downsides:
The freelancer may be working for you, but may decide to spend more time working for another client offering more commission. They may be offered a full time job, so your search starts again.
As you are not paying them a wage, the freelancer may go on holiday or take time off as they lack an incentive.
All sales people need to be incentivised. Motivated to perform. If your product or service is not a simple one to market. they will lack the motivation to spend time on your campaign.
The main reason telemarketing companies will not adopt a commission only model is the risk attached to it.
They are taking on the risk that your products/services will sell to your target audience.
There have been telemarketing companies that have tried this model, and they have gone out of business.
Think about it, the telemarketing agency has to pay its staff, pay its business rent, running costs, website, phone costs etc. If they do not get income in the first month, they cannot pay any of these, or the staff.
There are some telemarketing companies that will meed half way, operating on a shared risk. Kind of in the same way a sales person has their basic monthly income plus a monthly commission. However these are few and far between.
We have put together a few tips for telemarketing which may be helpful.
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