As your business grows, payroll costs are one of the most important and difficult expenses to manage. This is especially true in areas that are not fully understood in terms of their impact on the profit and loss (P&L). RevOps is one function that often falls into this bucket, especially for rapidly-growing start-ups.
Let’s start by digging into this misconception:
RevOps is the backbone of a company's revenue generation strategy, responsible for aligning sales, marketing, and customer success efforts to drive growth. It may seem like its effects are intangible to the naked eye, but it’s vital to understand that all reporting and data related to metrics like attribution, sales velocity, marketing ROI, etc., come from the foundational work of RevOps. These are some of the most important metrics for making budgetary decisions.
In an effort to manage costs, businesses often face the dilemma of whether to build an in-house RevOps team or outsource to a specialised RevOps agency. In this article, we'll explore the pros and cons of both options to help you make an informed decision.
The Case for Using a Revenue Operations - RevOps Agency:
Access to Specialised Expertise:
When you engage a RevOps agency, you gain access to a team of specialists with diverse skills and expertise. These professionals have experience working with various industries and businesses of different sizes, giving them valuable insights into best practices and innovative strategies. They can bring fresh perspectives and cutting-edge solutions to your business, helping you stay ahead of the curve. Not all RevOps agencies are created equal though. There are a lot of questions to ask regarding what members make up the team and is it a “team” or is it one person managing strategy, solutions, and project management?
Cost-Effectiveness:
Hiring and training a full-time RevOps team can be costly, especially for small and medium-sized businesses (SMBs). On the other hand, working with a RevOps agency allows you to access top-tier talent without the overhead costs associated with recruiting, salaries, benefits, and training. Additionally, you have the flexibility to scale your engagement with the agency based on your needs and budget, making it a cost-effective option. Specialised roles and the need for multiple experts within the team goes beyond just budgeting for a single full-time employee (FTE). These costs can quickly run rampant, especially if the RevOps function is not fully understood in regard to its purview.
Faster Implementation:
RevOps agencies are equipped with the tools, resources, and processes needed to hit the ground running. They have streamlined workflows and established methodologies that enable them to implement changes and improvements swiftly. This means you can see results faster, whether it's optimising your sales funnel, implementing new technologies, or aligning your teams for better collaboration. Think of it as going to the cinema and not having to sit through previews and adverts - the movie starts immediately.
Focus on Core Business Activities:
By outsourcing RevOps to an agency, you free up valuable time and resources that can be redirected to your core business activities. You no longer have to worry about managing an in-house team, dealing with hiring and training, or staying updated on the latest trends and technologies in revenue operations. Instead, you can focus on growing your business and serving your customers better. This is especially relevant for start-up CEOs that are still in the business and driving growth.
Flexibility and Scalability:
RevOps agencies offer flexibility and scalability to adapt to your business needs. Whether you're experiencing rapid growth, launching new products, or entering new markets, a RevOps agency can tailor their services to match your evolving requirements. They can ramp up or scale back their efforts as needed, providing you with the agility to respond to changes in the market quickly. This kind of flexibility is a requirement for businesses that are still growing into mainstream adoption, and finding the path to this destination requires a tactile approach.
The Case Against Using a RevOps Agency:
Lack of Company-Specific Knowledge:
One of the primary drawbacks of using a RevOps agency is the lack of intimate knowledge about your company's unique culture, processes, and goals. While agencies can bring in valuable expertise, they may struggle to fully understand the nuances of your business, leading to misalignment or suboptimal outcomes. This can hinder effective collaboration and long-term success, but choosing the right RevOps agency can minimise this issue through effective strategic meetings.
Communication Challenges:
Communication is essential for effective RevOps implementation, but it can be challenging when working with an external agency. There may be communication gaps or delays in sharing information, leading to misunderstandings or missed opportunities. Moreover, coordinating across different time zones or schedules can further exacerbate these challenges, especially for global businesses. The best RevOps agencies should have systems in place to overcome these barriers, ensuring that you are exploring these in your first conversations with potential partners.
Dependency on External Partners:
Relying on a RevOps agency means placing a significant portion of your revenue operations in the hands of an external partner. While this can provide short-term benefits, it also creates a dependency that may become problematic in the long run. If the agency's performance falters or if there are changes in their business, it could disrupt your operations and impact your revenue streams. Transparency and communication are key in these relationships to ensure that if a transition does come about, both parties are able to facilitate it seamlessly.
Limited Control and Customization:
When you outsource RevOps to an agency, you relinquish some degree of control over the process and outcomes. While agencies may offer standardised solutions, they may not always align perfectly with your specific business needs or preferences. Customization options may be limited, and you may find yourself compromising on certain aspects of your RevOps strategy to fit within the agency's framework.
Potential Security and Confidentiality Risks:
Sharing sensitive business data and information with an external agency comes with inherent security and confidentiality risks. You must trust the agency to handle your data securely and comply with relevant privacy regulations. However, breaches or leaks could have serious consequences for your business, including reputational damage and legal repercussions. Finding a partner you trust is key to mitigating this risk. You should do your homework prior to engaging a RevOps agency before signing on the dotted line.
Is there another way? How to get the best of a Full-time RevOps Employee and a Revenue Operations Agency.
If you want all the benefits, in terms of trust, real-time communication, and deep knowledge of your business, of hiring a full-time Revenue Operations Manager, plus the flexibility, affordability, and speed of working with a RevOps Agency - there is another way.
A Revenue Operations Consultancy with Revops Managed Services is the way to go.
These businesses, unlike RevOps Agencies, place skilled and highly trained professionals within your organisation. While they work remotely - like your remote and hybrid staff - they utilise the same communication channels your existing teams do and run your projects with a shared and collaborative project management programme. Manage the team the way that you want, as they have experience implementing Revenue Operations transformation. A consulting partner is invested in getting to know your business and working in partnership often means they are even more invested than a full time employee working on their own.
RevOps Automated is ready to step in and help no matter where in the RevOps journey your company finds itself. We specialise in helping with managed services AND helping your internal team develop more robust solutions across your techstack. Have a conversation with one of our consultants here.
In the debate between outsourcing your RevOps services versus hiring a full-time employee, there is no one-size-fits-all answer.
This is where a RevOps partner comes into play as opposed to a traditional agency. A consulting partner is invested in getting to know your business and working in partnership often means they are even more invested than a full time employee working on their own.
RevOps Automated is ready to step in and help no matter where in the RevOps journey your company finds itself. We specialise in helping with managed services AND helping your internal team develop more robust solutions across your techstack. Have a conversation with one of our consultants here.