Risky Pay Per Sale Telemarketing: What’s the Alternative?

Risky Pay Per Sale Telemarketing: What’s the Alternative?

A blog banner by Magellan Solutions about Risky Pay Per Sale Telemarketing: What's the Alternative?

A blog banner by Magellan Solutions about Risky Pay Per Sale Telemarketing: What's the Alternative?

What Else Are You Losing in Pay Per Sale Telemarketing Except Money?


A lot of startups and SMEs fall into the temptation of the financially low risk pay per sale telemarketing. Like when they choose to increase their marketing efforts and drive more visibility towards their services or product, telemarketing becomes a valuable tool. When they do so, there is the desire to drive down costs

Pay per sale telemarketing lures business owners with the idea of no risks, high rewards. Imagine a strategy where you only pay unless you made a sale. 

Which is something that goes against the basic principle of business management. There is no such thing as “no risks” when it comes to any business strategies. Only good risks and high risks.


Pay Per Sale Telemarketing: Is It Really For You?


If you are aiming for short term goals and instant rewards, pay per sale telemarketing may be your best option. But we know good ROI is only possible with a good sales pipeline. Business stability comes from nurturing relationships with your existing clients while building rapport with prospects. 

Pay per sale telemarketing focuses heavily on quantity rather than quality. To simply put, if the lead given to you generated five sales, you pay five times for generating that lead. 

There are two types of lead you can get from pay per sale telemarketing. These are the following:


High Range Lead

Low Range Lead

Worth more

Less valuable

Exclusive to your business

Less likely to make a purchase

Qualified leads

Offers fewer or no insights 

Offers more insight about its nature

More competition


How Pay Per Sale Telemarketing Works?


The basic pay for telemarketing agents range from $25-$30/hour. Factors such as skills and experience also contribute to the salary grade. Some may argue that telemarketing is quite expensive and would try to save up by using pay per sale telemarketing.

While in pay for performance appointment setting, businesses only pay for the appointment set. To illustrate, the cost of appointment setting services ranges from $0.82-$1.13 per minute. The total bill also depends on the industry where the appointment is made, which could range from $9-$25. 

Pay per call marketing has the same payment principle. The business’ affiliated company who publishes marketing materials of the business gets paid when a customer calls using their channel. 

You may think that pay for performance sales outsourcing will only drive your market visibility at its peak with little to no risks. If you do think so, let us break it to you, it could be dangerous to your business. 


Dangers of Pay Per Sale Telemarketing


You may think you are saving up on your telemarketing efforts but you are putting your business in irreversible risks. What is it? Your business reputation and brand image. 

When you choose pay per sale telemarketing to ramp up your leads and quantity is your metrics, expect aggressive calling to target prospects. 

You should ask yourself these questions if you are thinking of going down this route.

  1. Do you mind aggressive and crass behavior when calling your target prospects to earn leads?
  2. Is it okay with you to receive complaints due to poor call interaction?
  3. Is it feasible for you to be one pushy vendor customers never want to talk to?
  4. Do you have qualifiers to determine if a lead is unique to you?
  5. Do you mind having tons of competitors for one lead?
  6. Is it okay for you to sacrifice quality and let your salespeople waste business resources to close a low range lead?
  7. Is it okay for you if you receive leads that offer no marketing insight?


If you don’t mind these scenarios happening to your business, then pay for performance sales outsourcing is indeed for you. But for serious business owners, brand damage is something irreversible. Prevention is better than cure, so they say.

Business strategies should help your business and not ruin it in the long run. Telemarketing plays in the principle you get what you pay for. This does not mean that pay for performance sales outsourcing is the only choice for small business owners. 


What Are The Alternatives for Pay For Performance Sales Outsourcing?


For a good telemarketing outsourcing provider, pay per sale telemarketing is not a good business sense. From their perspective, telemarketing is not simply reaching potential customers. It is the art of making a conversation enticing and persuasive to encourage a customer to make a purchase.

In order to be an effective telemarketing agent, one must have the skills and experience to do so. As well as the emotional quotient to handle tons of rejections. Their skills did not come from the heavens, it is something they studied and trained for. Plus experience in industry is a factor to their efficiency.

Which telemarketing outsourcing provider reserves their resources and assets for. Skills training is an investment for these vendors in order to deliver the best results. It is understandable that the best telemarketing companies do not offer pay per sale telemarketing.  

A good alternative that suits startups and SMEs is the pay by the project scheme. Also known as fixed-rate, daily-based, or monthly rate. This is a good alternative as long as you have a clear goal agreed on in the beginning. 

Your outsourced telemarketing company then aligns their infrastructure and manpower in order to achieve your goal. Which is quality leads. Also this enables them to approach your project through the lens of long term perspective.  


Keys to Successful Telemarketing

1. Data Quality

On a project based telemarketing, your outsourced telemarketing provider zooms in on qualifying your customer lists. This process includes pre-qualifying them through market segmentation. This is done in order to define the market segment with the highest probability to make a purchase or avail your service. 

They can also eliminate bad and obsolete information while doing so. This way you get a clearer insight which market you should be targeting. Even to realign your marketing and business messaging in order to attract them. 

2. Proposition Strength

There are tons of telemarketing outsourcing providers and you can set them apart through their proposition strength. When it comes to telemarketing, the basics are industry experience, their telemarketers skills and abilities, their clients across industries, to name a few. 

3. Level of Market Competition

A bad habit of startups and SMEs is setting up goals incompatible in their market landscape. This means that if you offer generic products and services in a market with dense competitors, there is little probability that you can get tons of leads. 

In project based telemarketing, they take the time to understand your business and your market. They do so in order to be effective telemarketers once they start representing your brand. Also they can set up with you the reasonable and achievable goals. 

Every call they do with your customers lets them write up reports that offer valuable information. Something you can use to recalibrate and improve your product or services to earn bigger market share.

4. Timing

Your outsourced telemarketing provider with years in the industry has in-depth knowledge on customers behavior. They have better timing insights to call your prospects in order to earn positive regard for your business and brand. 

5. Prospect Budget Availability

This is in connection with market segmentation. As your outsourced telemarketing agents target the proper customers, they are already calling prospects with the budget necessary to make a purchase. 

Telemarketing is effective because of these things that contribute to its success. As the old saying goes, success does not happen overnight. That is why it is best to take telemarketing as a long term investment and not a one-off strategy. 

Good thing to take in mind is good risk shared between you and your outsourced telemarketing vendor in order to make your telemarketing a success.


Magellan Solutions Offers Flexible Telemarketing Pricing Options For SMEs


Our 17+ years in the business proves our efficiency when it comes to our telemarketing services. We take our sweet time in order to gain in-depth knowledge of your business, your products and services. We do this in order to extend an accurate representation of your brand to your customers. 

Magellan Solutions telemarketing staff are knowledgeable and have enough EQ to bounce back from rejections. Our quality assurance teams ensure our KPIs and SLA is closely followed and qualities are met. 

We are ISO-27001 certified and HIPAA-compliance as we understand the importance of information and data security. Also, we don’t share your leads to other companies. Integrity is one of our core values. 

Thinking of outsourcing your telemarketing efforts? We are your partner to increase your business visibility! Contact us today and get your free 60-minute business consultation. Fill up the form below!


Contact us today for more information.