Outsourcing can be a valuable strategy for many parts of a business. It makes sense for certain roles and functions like IT support or payroll processing. However, when it comes to sales, things get a bit trickier. These aren't just any roles; these are the people who will have direct contact with your customers and shape their initial experience with your product. At the end of the day, your sales team is the face of your company.
While outsourcing your sales development might seem convenient to free up resources and focus on other areas, this decision could backfire in the long run. Not investing in your team from the get-go means you're potentially hurting your business down the road. Let's dive into why keeping your sales development in-house is the smarter move for your business.
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Companies might see a few risks when it comes to outsourcing their sales development, like lack of brand familiarity or quality control. These potential issues could arise right away, or over time. There is no limit to when these risks might exist, so it's crucial to weigh them carefully before deciding to outsource your sales development.
Firms that handle outbound prospecting or sales development for B2B companies are often more focused on quantity than quality. Many appointment-setting firms are trying to use AI to set appointments and schedule qualified sales meetings. While this technology has potential, it still has a long way to go before it can consistently set high-quality sales meetings.
Even when a human is involved, ensuring quality in initial sales appointments is challenging. It requires careful assessment to determine if it's the right time for a prospect to meet with an Account Executive (AE). External partners rarely have the incentive to go the extra mile in qualifying leads, as they're typically paid per lead or appointment set.
Although many companies strive to provide quality work, when it comes down to choosing between quantity and quality, a firm paid based on the number of meetings set will almost always prioritize quantity.
One of the big disadvantages of outsourcing sales is giving up internal knowledge and control.
When an external party handles your sales development, they’re the ones learning all the nuances of your business, not your internal team. This means that valuable time and training are being dedicated to an external firm instead of your own employees.
Forgoing the opportunity to learn more about your targeted customers and best practices is a significant drawback. An external firm might gain crucial knowledge about effective messaging and outreach strategies for your solutions, but this is the kind of insight you need to cultivate internally with your own sales team.
An external partner often lacks the ability to mitigate issues quickly. Your in-house team, on the other hand, can address problems in real-time, ensuring a smoother and more responsive sales process.
Sales development is full of nuances. Different verticals and prospect personas react differently to various outreach methods and messaging. When you outsource your sales process and prospecting function, you’re placing these critical nuances in the hands of someone who isn't part of your company.
For example, outsourcing means relying on individuals who might not fully understand or appreciate your company’s unique value. Further, it is crucial to ensure that all the proper routines are met and followed. External firms may not always adhere to the specific practices that best align with your brand and goals.
Despite paying for this service, external partners typically have less motivation to go the extra mile to retain quality leads. Their primary focus might be on hitting quantity targets rather than ensuring the quality of each lead.
An alternative to outsourcing your SDR function is to invest in your own team and build the function internally. Training your team and establishing a sales development process internally has long-lasting benefits.
Internal sales development means SDRs working within your company have a stronger incentive to see deals through to closure. Here are a few ways to achieve this:
Sales leaders can offer SDRs commissions on deals that close as a result of their initial meetings. This directly ties their success to the quality of the leads they generate.
Instead of just focusing on the number of appointments set, SDRs can be measured on close rates. This encourages them to prioritize the quality of each meeting over sheer quantity.
Providing clear paths for career advancement within the company can motivate SDRs to perform better. Knowing that their hard work and successful lead generation can lead to promotions and greater responsibilities incentivizes them to put in their best effort.
These structures ensure that SDRs within your company are genuinely invested in the success of the meetings they set up for Account Executives (AEs). They will dig deeper and qualify leads more thoroughly to ensure that the meetings are valuable for both parties. Achieving this level of accountability and dedication is challenging with external partners.
Training an existing team member is usually more cost-effective than paying for a single meeting set by an outside firm. Over the long term, even the expense of hiring and training a new team member can be lower than continuously outsourcing your prospecting needs.
While the initial investment in your sales team of hiring and developing an in-house SDR might seem high, it typically yields a much higher return on investment (ROI) than relying on an external partner.
In addition to the upfront costs of working with an outside partner, there are hidden costs to consider. These include the inability to build your own internal processes, develop tailored messaging, and accumulate valuable institutional knowledge. Building your own team offers significant long-term benefits and a higher ROI because it fosters the growth of your internal capabilities and expertise.
When you build and train your own team, you're also creating a talent pipeline. SDR roles are often entry-level positions, and many individuals will stay in sales, eventually becoming your future AEs or Sales Managers.
The SDR job also serves as an excellent introduction to your company, and some SDRs may transition into roles beyond the sales team. Either way, you’re developing a pool of talent that can grow and advance within your organization.
This internal promotion structure fosters longer tenure and a strong sense of company culture. When sales reps start as SDRs and work their way up, it’s easier to establish a culture of mentorship and coaching. These elements are the hallmarks of a great sales culture, contributing to a more cohesive, motivated, and effective sales team.
Creating an in-house sales development team fosters a culture of growth, mentorship, and accountability. Investing in your own SDRs not only ensures higher quality leads but also builds a pipeline of talent ready to advance within your organization, enhancing long-term success and cohesion. Here are some steps to enhance internal sales development while investing in your sales team:
Hire individuals who are enthusiastic, eager to learn, and fit well with your company culture. Look for candidates with strong communication skills and a genuine interest in sales. Conduct thorough interviews to ensure they align with your company values and long-term goals.
Provide thorough onboarding and continuous training to ensure your SDRs understand your products, processes, and messaging. Start with a robust onboarding program that covers your company's offerings, sales techniques, and CRM systems. Regularly update training materials and conduct workshops to keep skills sharp and knowledge current.
Create commission-based incentives and measure SDRs on close rates to motivate high-quality lead generation. Set clear and achievable targets, and offer bonuses for exceptional performance. Regularly review and adjust these incentives to keep them aligned with both individual and company goals.
Offer clear paths for advancement within your organization to encourage long-term commitment and growth. Develop personalized development plans for each SDR, including milestones and skill-building opportunities. Provide regular feedback and support to help them reach their career goals within your company.
Establish a supportive environment where experienced sales reps mentor new SDRs, promoting a culture of coaching and continuous improvement. Pair new hires with seasoned professionals for hands-on learning and advice. Encourage open communication and regular check-ins to ensure continuous development and team cohesion.
Trust the expertise of our qualified team to lend a hand in building the knowledge of your internal SDR team. To learn more about our B2B training courses or consulting, reach out to us.
Tyler Vance works closely with the participants and managers of Funnel Clarity’s training programs to ensure they achieve their expected results. Throughout Tyler’s career, he has experienced both a seller’s and buyer’s point of view bringing a unique perspective when working closely with Funnel Clarity clients. Whether Tyler is answering questions from participants, running a coaching session, webinar series, or working with managers to develop a reinforcement plan, he brings a unique and fun element into every part of his role.
