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.
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.
Dedicating Time and Training to OutsidersSales 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:
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.
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.
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.
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.
Employees can’t rely on job shadowing forever to gain new skills, however, so what happens when you need to figure out how to train sales reps in other ways? In the long term, it will be beneficial to assign someone a mentor when they start working at your company. This is an effective way to train sales staff since a rep can go to them with questions instead of the sales manager. They might even be more inclined to seek help from their mentor since they occupy more of a peer role than someone higher up.
Having a sales mentor also gives sales reps context into the larger organization. For example, if an SDR is paired with a seasoned Account Executive, they will be able to see how their sales development efforts impact the entire organization. The experienced AE can mentor the SDR on how to set high-quality, high-value meetings for other AEs. This sort of mentorship role also lets the new hires see a path they can take within the organization. Having context into how your role impacts the rest of the organization will allow them to have a better appreciation for their own role.
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:
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.
