What type of success fees are you seeing for outsourced direct outreach?
July 11, 2024
by a searcher from INSEAD in San Francisco, CA, USA
I recently engaged with a firm to conduct cold emails on my behalf in hopes of building my direct outreach pipeline. I plan to give this individual a set of NAICS codes + tags and then have them (a) research companies, (b) build an email list, (c) create alternate domains and email them on a regular basis, and (d) send me warm leads.
They are hoping to get paid $5k upfront + the following success fees if I close the deal:
a. 3% flat for Total Enterprise Value up to $3M ($3,000,000)
b. 2% flat for Total Enterprise Value between $3M - $10M ($3,000,001 to $10,000,000)
c. 1% flat for Total Enterprise Value over $10M ($10,000,001)
The numbers are way too high IMO since the bulk of the work will come after you start the seller conversation. Good thing is I believe there is a lot of wiggle room for negotiation.
Has anyone used these types of services in the past, and if so what did the fee structure look like? I've seen 1% up to $20k but don't have a ton of experience in this space. Would it make more sense to try a flat fee structure?
in Jaipur, Rajasthan, India
The kind of costing that we are looking to have is: $3000 upfront and a 1% success fee up to $30K
In which we would do:
• Technical Setup • Email Warmup (Minimum 2-weeks) • Email Marketing Strategy • Buyer Persona • Email Lead List • Email Verifications • Email Copies • Email Campaign Management • Campaign Reporting
• Adding Leads in CRM Tool.
There are several other costs that would be involved for the clients, such as:
• Email Marketing Tool
• Domain Purchase Cost
• Email Cost Addresses Cost
I am still refining it just to be sure that we are not underpricing our service as we can do things at scale.
Would you like to discuss this, and see what can be worked. I can be found at redacted
in Rindge, NH 03461, USA