Wednesday, July 16, 2008

The Fallacy of Pay for Performance Appointment Setting



by Brian Grinonneau

If a deal seems too good to be true, you can bet it is.


When searching for a sales appointment setting firm, some clients are tempted by the pay for performance model. It is intriguing. Have the appointment setting/ telemarketing firm only receive pay if appointments are made. It seems risk free. It is not.

Most pay for performance models are hatched in offshore call centers. The problem, aside from a language barrier, is these performance based companies push too hard, don’t disqualify poor prospects, use sub-par callers, waste a lot of your time and leave an indelible ugly mark on your company image.


A pay for performance telemarketing company oft-times is poorly equipped to put your best business foot forward. It makes haphazard calls from a noisy room with no real structure in place. The only goal is to get lots of appointments with no regard for quality or planning. The caller who is working on your account today may not be tomorrow and on day three it is someone different again perhaps with no knowledge of the intricacies of your project.


To achieve success when outsourcing your sales appointment setting strategy, you have to select a firm that has a solid management team with a strong sales background. This team will be responsible for putting you in front of the accounts you want most, but also in helping you better understand your market. Leading call centers will know the best prospects on whom to call, why they buy and how to set and appointment with them. The right appointment setting company should be an important, natural extension of your sales department focused on your ROI.


The best way to find the right telemarketing firm is to perform due diligence by asking the following questions:


May I see the bios of your management team?
What is included in your service?
How are your calling agents compensated?
Will I have a caller or two assigned exclusively to my project?
How do you monitor progress on my project?
How do you report results and market trends to me?
How often will you communicate with me and by what form?
May I speak with and confer with the callers assigned to me?

Marketing is an ongoing testing process and a telemarketing center is an important part of it. A call center's ability to be proactive, change direction when needed, and carefully track the strategy will give you a clearer view of your successes.


When you next consider a telemarketing company know that your best results will come from a company that has solid management, meaningful reporting and educated, well-paid callers. Don’t be tempted by the seemingly low priced offerings of pay for performance plans. They will cost you more than you could ever imagine.

9 comments:

Anna said...

As my sister would vouch for it, shedding a few extra dollars isn't bad, if you are able to benefit greatly from it. Two years ago, when her business was on the verge of closure, I came across Blue Zebra (http://www.bluezebraappointmentsetting.com/).With their highly professional and effective lead generation as well as appointment setting services, my sister was able to get her business on track again and now she is doing really well. I recommend that you should definitely visit their website and check out their services as well.

David Regler said...

It's an interesting perspective on the "pay for performance" model. I recently posted a blog with a vendor's perspective, Is pay-per-appointment a good fee model for appointment setting?. In the current economic climate a reverse-risk model always sounds attractive, but it's not suitable for every client engagement.

Alexander said...

Great blog, sounds interesting. I have my own company and think it is well worth it.

roggernrogger said...

Now a days there are many company which are pay for performance. I have experience with Intelemark company. They are expert in [url=http://www.intelemark.com/]Appointment Setting[/url], Sales LEad Generation and many more. They are believe in quality work rather than quantity.

Anonymous said...

When a sales appointment setting clear, some clients pay temptation performance models. This is interesting.

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appointment setting services said...

Pay for performance on appointment setting is really interesting rule adapted by some firms these days. Really interesting article you have published here.

Anonymous said...

When searching for a sales consultation establishing company, some customers are enticed by the pay for efficiency style. It is fascinating.

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ovei bardhan said...

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ovei bardhan said...

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