Inside Sales Reps vs
Outsourced SDRs
Understanding the differences.
Are you debating between using your own internal SDRs or outsourcing with a company to increase lead generation?
This can be a tough decision, so it's essential to consider all the benefits and drawbacks before making a final decision.
This blog post looks at both approaches: hiring inside sales reps and partnering with outsourced SDRs. We'll discuss the advantages of each option and share some insight into how one type may be better suited for your business than the other.
By understanding the nuances of both approaches, you can make an informed, data-driven decision that serves your organizational goals best.
This can be a tough decision, so it's essential to consider all the benefits and drawbacks before making a final decision.
This blog post looks at both approaches: hiring inside sales reps and partnering with outsourced SDRs. We'll discuss the advantages of each option and share some insight into how one type may be better suited for your business than the other.
By understanding the nuances of both approaches, you can make an informed, data-driven decision that serves your organizational goals best.
What is an Inside Sales Rep?
An inside sales rep is a sales professional involved in remotely selling products or services via digital channels, such as phone, video conferencing, or email.
They are distinct from outside sales reps, who usually travel to meet customers in person.
Inside sales reps generate leads, cultivate relationships, and move prospects along the sales funnel.
They are typically employed by companies that sell technology, software, or other sophisticated products or services that do not necessitate many personal consultations or presentations.
Aside from sales skills, inside sales reps must also have strong communication skills to build rapport with clients virtually using CRM software, email platforms, and various sales tools to monitor their sales pipelines and track their progress.
They are distinct from outside sales reps, who usually travel to meet customers in person.
Inside sales reps generate leads, cultivate relationships, and move prospects along the sales funnel.
They are typically employed by companies that sell technology, software, or other sophisticated products or services that do not necessitate many personal consultations or presentations.
Aside from sales skills, inside sales reps must also have strong communication skills to build rapport with clients virtually using CRM software, email platforms, and various sales tools to monitor their sales pipelines and track their progress.
When is In-House Hiring the Best Option?
Hiring in-house means sales reps can be absorbed in the company culture faster. They are committed to your business's growth and success, reflecting this through brand voice, values, and mission consistency in their outreach.
Working alongside Product Managers and Operations Directors, the in-house team can continuously train on offerings, messaging, and benefit clarity to create an advantage for their day-to-day tasks.
With these points in mind, if a business is well-established, with a committed in-house team, top-notch outbound sales processes, and a skilled Sales Manager, it's usually advisable to opt for internal hiring.
Although, there may be scenarios where outsourcing sales could be the better option for your business.
Working alongside Product Managers and Operations Directors, the in-house team can continuously train on offerings, messaging, and benefit clarity to create an advantage for their day-to-day tasks.
With these points in mind, if a business is well-established, with a committed in-house team, top-notch outbound sales processes, and a skilled Sales Manager, it's usually advisable to opt for internal hiring.
Although, there may be scenarios where outsourcing sales could be the better option for your business.
What is an Outsourced SDR?
An outsourced SDR (Sales Development Representative) is a person or a team of people outsourced by a company to conduct outbound prospecting and lead generation activities on their behalf.
This means that instead of having an in-house team of SDRs, a company can contract with an outside firm to handle these sales-related tasks.
Typical outsourced SDRs conduct research on potential clients before initiating communication. The objective is to identify sales-qualified leads that match the predetermined ICP of the company they're working for.
The SDR oversees leads until the meeting is booked, at this point, the lead is transitioned to the company's account executive for further action.
This means that instead of having an in-house team of SDRs, a company can contract with an outside firm to handle these sales-related tasks.
Typical outsourced SDRs conduct research on potential clients before initiating communication. The objective is to identify sales-qualified leads that match the predetermined ICP of the company they're working for.
The SDR oversees leads until the meeting is booked, at this point, the lead is transitioned to the company's account executive for further action.
You Need an Outsourced SDR If…
You Want to Boost Sales Operations Without Increasing Your Team
Businesses often outsource their SDRs to bolster sales efforts without allocating time and resources to in-house recruitment. There are a variety of reasons for this approach.
Perhaps the business is new and lacks the budget to build an in-house team, or the existing sales team exclusively focuses on warm leads, necessitating SDRs for customer acquisition.
Alternatively, the business may have only one salesperson and can not yet add new employees.
According to BuiltIn, BDRs earn an average annual salary of over $54.000 in the US.
Besides salary, employers must factor in commission, onboarding and training costs, required equipment, holiday pay, pensions, and other benefits. Furthermore, new hires may expect a promotion within a couple of years or move on, forcing the recruitment process to repeat.
Hiring even a few SDRs in-house can rapidly drive up costs.
An external SDR unit is available to aid in sales expansion, acceleration, and optimization, increasing conversion rates and establishing an anticipated sales pipeline.
Outsourcing sales ensures cost-efficient recruitment for businesses in need of support.
Perhaps the business is new and lacks the budget to build an in-house team, or the existing sales team exclusively focuses on warm leads, necessitating SDRs for customer acquisition.
Alternatively, the business may have only one salesperson and can not yet add new employees.
According to BuiltIn, BDRs earn an average annual salary of over $54.000 in the US.
Besides salary, employers must factor in commission, onboarding and training costs, required equipment, holiday pay, pensions, and other benefits. Furthermore, new hires may expect a promotion within a couple of years or move on, forcing the recruitment process to repeat.
Hiring even a few SDRs in-house can rapidly drive up costs.
An external SDR unit is available to aid in sales expansion, acceleration, and optimization, increasing conversion rates and establishing an anticipated sales pipeline.
Outsourcing sales ensures cost-efficient recruitment for businesses in need of support.
You Want Flexibility
The most significant advantage of hiring SDRs from external sources is the ability to ramp up or down quickly as per requirement.
Let's assume you want to boost sales before the fiscal year-end or in the run-up to the festive seasons. You can bring in additional outsourced SDRs temporarily to ramp up capacity and release them once the surge is over.
As your business expands, outsourced sales can also help you adapt quickly.
Outsourcing SDRs means you can contact and sell to a larger customer base, generate more sales, and increase average revenue per customer, bridging the gap before you build an internal team.
Many businesses that outsource their sales processes are SMEs, with one in three opting to outsource.
Flexibility is a key advantage of outsourced SDR teams who are highly adaptable to changes in a company's products and can pivot quickly.
Let's assume you want to boost sales before the fiscal year-end or in the run-up to the festive seasons. You can bring in additional outsourced SDRs temporarily to ramp up capacity and release them once the surge is over.
As your business expands, outsourced sales can also help you adapt quickly.
Outsourcing SDRs means you can contact and sell to a larger customer base, generate more sales, and increase average revenue per customer, bridging the gap before you build an internal team.
Many businesses that outsource their sales processes are SMEs, with one in three opting to outsource.
Flexibility is a key advantage of outsourced SDR teams who are highly adaptable to changes in a company's products and can pivot quickly.
You Want to Embrace Change & Test a New Approach
When it comes to trying out new things in your sales department with minimal risk, an outsourced team of SDRs can be an excellent choice.
They can be seen as a team of sales scientists, ready to experiment on behalf of your company.
To sell a new product, you have a few options available.
One is to move one or two of your in-house SDRs, which can be risky as it might lead to a loss of sales on your existing products. Alternatively, hiring new staff requires time and money for recruitment and onboarding, and if the product doesn't do well, you may have to let go of your new hires.
Another option, the one that we recommend, is to outsource the sales and test the product's success with an external team. If the product sells well, you can use the evidence to hire new staff in-house, and if it doesn't, your in-house sales team won't be affected, and you can go back to your old way of doing things.
Outsourced sales teams can also offer valuable insights and ideas that you might be able to apply to your in-house processes.
A good outsourced sales agency will be more than happy to share their knowledge and experience with you.
They can be seen as a team of sales scientists, ready to experiment on behalf of your company.
To sell a new product, you have a few options available.
One is to move one or two of your in-house SDRs, which can be risky as it might lead to a loss of sales on your existing products. Alternatively, hiring new staff requires time and money for recruitment and onboarding, and if the product doesn't do well, you may have to let go of your new hires.
Another option, the one that we recommend, is to outsource the sales and test the product's success with an external team. If the product sells well, you can use the evidence to hire new staff in-house, and if it doesn't, your in-house sales team won't be affected, and you can go back to your old way of doing things.
Outsourced sales teams can also offer valuable insights and ideas that you might be able to apply to your in-house processes.
A good outsourced sales agency will be more than happy to share their knowledge and experience with you.
Conclusion
The bottom line is that both outsourcing and establishing an in-house team of inside sales reps can be viable options for your sales operations.
While hiring an in-house team has many advantages, outsourcing your SDRs can provide valuable customer data, enable you to leverage advanced technologies, support flexibility and scalability, and ultimately drive income growth.
Find what works best for you to get the most out of your sales staff and operations. SalesPipe can help simplify this process – we have a massive global reach and provide reliable, trained SDRs with extensive knowledge of what is needed when engaging prospects.
Our SDRs are here to assist companies, big or small, develop efficient & cost-effective sales strategies without hiring additional employees.
Get started by contacting us today and see how SalesPipe could help transform your business!
While hiring an in-house team has many advantages, outsourcing your SDRs can provide valuable customer data, enable you to leverage advanced technologies, support flexibility and scalability, and ultimately drive income growth.
Find what works best for you to get the most out of your sales staff and operations. SalesPipe can help simplify this process – we have a massive global reach and provide reliable, trained SDRs with extensive knowledge of what is needed when engaging prospects.
Our SDRs are here to assist companies, big or small, develop efficient & cost-effective sales strategies without hiring additional employees.
Get started by contacting us today and see how SalesPipe could help transform your business!
Post by Mattes Wöstemeier.
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