The Future of the SDR is Outsourced

So you're ready to build or grow your sales team?

Building your sales team used to work like this:

1. Post a job advertisement for an SDR (sales development representative)
2. Have applicants go through a lengthy interview process
3. Hire an SDR
4. Train them for three or four months
5. Hope it all goes well

Oddly enough, some startups believe this is still the best way to build or grow a sales team today.

Fortunately, this is trending the opposite way. Companies are wising up and realizing that building a sales team no longer works this way.

Times have changed.

Let's go into the issues with hiring internal SDRs.

An outsourced Sales Development Representative (SDR) is a professional who works remotely through an external service provider to handle the initial stages of the sales process for a company.

These SDRs focus on lead generation, qualifying prospects, and setting up meetings for the internal sales team, allowing businesses to save on the costs and time associated with hiring and training in-house staff.

An outsourced SDR is a crucial player for SaaS startups, offering a strategic advantage in lead generation and nurturing sales pipelines.

Unlike traditional in-house SDRs hired directly by a company, outsourced SDRs work remotely via external service providers. They bring specialized expertise to tech and SaaS startups, helping to accelerate business growth by focusing on identifying potential leads and initiating the sales process without the overhead of hiring and training new staff.

The role of an outsourced SDR revolves around efficiently managing the initial stages of the sales cycle. They are experts at qualifying prospects and setting up valuable meetings for the internal sales teams. This not only saves time but also allows in-house sales representatives to concentrate on closing deals and building relationships with high-potential clients.

Outsourced SDRs are equipped with the latest tools and sales technologies, ensuring they can operate smoothly as an extension of your team.

For tech startups looking to make a mark, the decision to use outsourced SDRs can be a game-changer. Cost-effectiveness is a primary advantage. Instead of taking the financial obligation of recruiting, training, and maintaining an in-house team, startups can use the expertise of professionals who specialize in lead generation.

Scalability is another key benefit. As startups grow, their needs can change rapidly. Outsourced SDRs provide the flexibility to scale sales operations up or down without the pain of hiring or letting go of employees.

Outsourcing partners are equipped to address fluctuating demands, ensuring the sales pipeline remains robust and responsive to market conditions.

Additionally, outsourced SDRs bring a wealth of experience and specialized knowledge in sales outsourcing. These sales professionals are adept at navigating the complexities of different industries, offering insights and strategies that can significantly boost sales efficiency.

When considering the financial implications of traditional or in-house SDRs, startups often face significant costs.

Recruitment is the first burden, involving expenses for job advertisements, interviews, and onboarding processes. These costs can quickly add up, especially if the hiring process must be repeated frequently due to employee turnover—a common issue in sales roles.

Training is another significant expense. New hires need time and resources to become effective, investing in training programs, mentorship, and sometimes even external courses. During this period, productivity may lag, impacting the overall sales efficiency and delaying returns on investment.

Maintaining an in-house sales team also demands ongoing financial commitment. Salaries, benefits, and incentives are just the start; there's also the need for continuous professional development to keep the team motivated and up-to-date with the latest sales strategies. These operational costs can strain a startup's budget, diverting resources from other critical areas of growth.

According to a study by Betts Recruiting, the yearly total for an internal sales team can have quite the price tag.

The cost of building your sales team internally is underestimated.

In contrast, opting for outsourced SDR solutions can alleviate many of these financial pressures. Sales outsourcing provides the flexibility to scale without the hefty costs associated with recruitment and training.

Traditional or in-house SDRs are often seen as fleeting due to evolving career aspirations and the pursuit of immediate rewards. SDRs aren't as loyal to their organizations anymore, moving away from the typical sales career path that was once standard.

This shift is driven by the growing trend of new SDRs entering tech sales, attracted by the promise of rapid financial gain.

Many SDRs, particularly those drawn to technology companies, may display a shortsighted outlook, constantly on the hunt for the next lucrative compensation plan. It's not uncommon for them to train for several months and then transition to roles offering higher total compensation, even without meeting all performance benchmarks.

The traditional sales hierarchy, where SDRs would climb the ranks from an SDR to an Account Executive (AE) and beyond, is losing its appeal. Instead, some find it more desirable to remain in SDR positions for extended periods, enjoying greater earning potential and flexibility.

Moreover, the notion of progressing from SDR to VP or even founder is becoming more viable, given that SDR skills are key for customer acquisition and business development. This presents a significant challenge for companies aiming to build and maintain in-house sales teams, as internal SDRs may leave prematurely, posing a risk to organizational stability.

Today's top SDRs are seeking roles that offer meaningful work and deeper connections, rather than sticking to a predefined corporate ladder. This behavior, along with current market trends, complicates the task for companies trying to establish a robust internal sales team. As a result, many organizations are turning to outsourced SDR solutions.

Sales outsourcing provides a strategic response to the fleeting nature of modern SDRs, offering the flexibility and expertise needed to sustain growth without the risk of sudden turnover.

When it comes to managing traditional or in-house SDRs, one significant challenge is the time-consuming nature of their integration and the impact this has on a company's resources.

The ramp-up period for new SDRs can be lengthy, often taking three to four months for them to become fully productive and contribute effectively to the sales pipeline. This initial training period is crucial but can drain the team's efficiency, and it is often not accounted for in the annual cost of maintaining an SDR.

The issue is compounded when an SDR decides to leave the company. Not only does their departure represent a loss of the months invested in their development, but it also necessitates finding and training a replacement. This process can easily take another thirty days, during which the sales team might operate at diminished capacity.

The productivity loss and potential demoralization of the remaining team members during this transition period can severely affect the overall sales performance.

In contrast, using outsourced SDR solutions can mitigate these issues.

Sales outsourcing offers a ready pool of experienced professionals who require minimal onboarding and can quickly adapt to the company's sales strategies. It will save valuable time, and ensure continuity and stability in sales operations, allowing tech companies to keep momentum and focus on achieving growth objectives.

Traditional or in-house SDRs often struggle to align with modern strategies, primarily due to a lack of mutual resonance between company objectives and SDR ambitions.

Many top SDRs today crave flexibility and autonomy in their roles, seeking diverse experiences that challenge them with compelling objectives. They are keen to learn and apply new techniques, with a strong focus on career growth and development.

When a company fails to offer these opportunities, it risks disengaging its SDR workforce. This is why many leading SDRs prefer external roles, where they feel their skills are better valued and utilized. For startups, turning to outsourced SDRs can be a strategic move to circumvent the challenges of managing an internal team that may not fit the company’s needs.

To build effective SDR teams, companies must prioritize the right match. This involves ensuring that both the company’s goals and the SDRs' career aspirations are in sync. Often, this alignment is not clear, leading to a disconnect that can interfere with employee engagement and organizational progress.

By adopting sales outsourcing, businesses can access talent that genuinely resonates with their objectives, creating a cohesive and effective sales force.

When it comes to sales outsourcing, SalesPipe is the go-to platform for SaaS businesses looking to connect with top-tier outsourced SDR talent.

Imagine having a marketplace where you can find skilled SDRs ready to step into your sales team with ease—that's SalesPipe. Whether you need someone full-time, part-time, or on a performance basis, SalesPipe offers flexibility to suit your specific needs.

What really sets SalesPipe apart is its smart matching system. This isn't just a random pairing; it combines tech savvy with human insight to find the perfect fit for your sales strategy. By handling talent acquisition, SalesPipe lets you keep your eyes on the prize—growing your business—while it takes care of integrating new talent smoothly into your team.

If you're looking to build an effective sales force without the usual headaches, SalesPipe is your best bet. It simplifies the process, offering flexible hiring options and a marketplace bustling with talent, all while boosting your sales efficiency.

Here is how to avoid trying to fit a square peg into a round hole.

Put the SDR function outside an organization by outsourcing external SDRs
through a managed outbound SDR company.

The SDRs that work at agencies are punching way above their weight class. They're a catch. They have demonstrated experience that allows companies to avoid the risks of hiring internally. And they are far more economical than internal SDRs.

With external SDRs, fit can be almost seamless.

For a reasonable monthly fee per outsourced SDR, you can remove the risk, avoid much pain, and get the right people and process.

It's a no-brainer that will allow you to achieve a great ROI on your SDR team and become a better, faster, and stronger company.

Ready to find your next outsourced SDR? Get started with SalesPipe.