Jan 26, 2024

4 Reasons Why Hiring A Demand Generation Agency Will Be More Cost Efficient In 2023

By Ethan Wade

As we navigate the 2023 global recession, businesses are finding creative ways to stabilize in an unstable market. Whether your business is B2B or B2C, marketing and demand expansion remains the backbone of any growing enterprise.

Put simply: no customers = no profit.

However, amidst a shrinking economy, businesses / customers are spending less.

Optimizing for a higher return on investment (ROI), while taking fewer monetary risks has become paramount.

For the time being, it simply isn’t smart to be taking risky moves for a chance at a higher ROI.

For the time being, reviewing your current sales funnel, customer acquisition methods, and prospect pipeline while “shaving off dead weight” is the most cost efficient method of maximizing your ROI.

One of these cost efficient creative methods we’ve been seeing in the market that is helping businesses optimize their sales while spending less is the implementation of demand generation agencies into their sales teams.

67% of potential dead weight.

Imagine if someone could take care of that 67% “downtime”. Imagine if that extra 67% is spent on selling. Imagine what a 67% increase in revenue can do for you and your business?

Here are the top 5 reasons why hiring a demand generation agency to take care of your 67% is the most cost efficient method of filling your 2022 pipeline.

1. Cost: Demand Generation Agency vs. SDRs

A demand generation agency can work as a supplement to your sales team, work as your sales team, or anything in between.

Regardless of where you want your demand generation agency to perform, here are some numbers and comparisons when it comes to agencies and in-house sales development representatives (SDR).

All statistics and numbers used in this comparison are from Glassdoor.


Figure 1 illustrates various factors when comparing hiring an agency versus hiring an in-house sales development representative. We can’t speak for other agencies, but figure 1 shows how Dreamline digital rates compare.

From a purely salary-based perspective ( not including any additional SDR costs), the agency seems like the way to go. But when you include other costs into the picture, the agency trumps the SDR in terms of costs in every way.

Agencies can mitigate a lot of costs because they usually already have an established system of generating demand. As a result, the agency usually covers the cost of the technology stack, overhead, and any necessary training for their account executives.

For example, In the case of Dreamline Digital, our automated and tested sequencing software allows us to bypass hiring and re-training sales reps, moreover passing the savings onto you as the business owner.

A question we often get when we show clients this comparison is: Dreamline digital costs less than an SDR… is Dreamline Digitals performance less than an SDR?

2. Efficiency: Why is hiring an agency more cost-efficient?

The short answer is No. Far from it, in fact ( more on this below ).

Hiring an agency is more cost-efficient because the ratio of money spent to qualified meetings booked is higher than the ratio of money spent to qualified meetings when paying an in-house SDR.

Figure 2 illustrates the average amount of meetings booked per two thousand prospects contacted. In blue is the average number of qualified meetings booked by Dreamline according to industry, and in red is the average industry number of meetings booked according to industry.

Figure 2

Ceteris Paribus, a higher volume of meetings will lead to a higher number of sales closed.

Dreamline Digital can leverage our outreach techniques and 250m prospects database to create an affordable (compared to SDRs) solution to your demand generation needs. In addition, we can offer our cost at substantially less because our software can leverage our network for multiple clients simultaneously.

Moreover, focusing your sales training solely on closing deals and dealing with objections rather than outreach and prospecting will save your business sales training capital and, more importantly, valuable time you could spend closing more sales.

3. Reach

Regarding reach, there are two factors: prospect reach and business reach.

Prospect reach refers to how many potential prospects you can access and contact.

If sales is “just a numbers game,” then upping the amount of prospect you’re able to sell to will inevitably increase the number of sales you make. So this begs the question…

How big is the pool of prospects you’re fishing from? One thousand potential prospects? Ten thousand potential prospects? One hundred thousand potential prospects?

Try 250 million.

We can't speak for the reach of other agencies, but Dreamline Digital has a pool of 250 million we can leverage to book meetings straight into your sales team’s calendar.

A 2021 study conducted by Hubspot research shows that of all companies trying to reach sales goals, 72% of these companies that have less than 50 opportunities a month don’t hit their sales targets.

This is followed by a drastic decrease of 15% at 51-100 opportunities and just 4% for those with 101-200 opportunities.

That makes sense, right? More opportunities to close inevitably leads to more sales closed.

To hit your sales objectives, your business must have the ability to contact a new pool of prospects.

Then there's business reach.

Business reach refers to the extent your brand is exposed to your ideal customer. According to the marketing rule of 7, customers need to see your brand or marketing message at least seven times before making a buying decision.

The rule of 7 can also be applicable when it comes to prospect outreach. Contacting / Nurturing your ideal prospects at all touch points of your sales process expedites not only the rule of 7 but also increases your brand exposure to possible new customers.

In addition, contacting your ideal customer via the channels (omnichannel outreach) they use the most / are most comfortable with is a fantastic way to increase engagement for your brand and product.

(read more about omnichannel outreach here)

Dreamline Digital can A/B test its 250m prospects database and leverage it against dozens of channel outreach methods for your benefit.

4. Strategy

Strategy is arguably the essential part of any demand generation campaign. The methods and mediums your business executes to conduct outreach to potential prospects can make or break your entire campaign.

That being said, consistently testing,  trying new outreach techniques, and writing new messaging structures can arguably be the most crucial factor in any successful campaign.

While SDRs might only be able to conduct one or two campaigns with varying methods. Dreamline Digital is able to perform dozens of campaigns for you in omnichannel mediums.

Dreamline Digital can quickly identify the best-performing channels in terms of the net return on investment and sales metrics such as open rate, click-through rate, cost per lead, and cost per acquisition.

By quickly identifying profitable sequences, we’re able to generate data that helps your business avoid losing valuable time and money.

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