Outsourced SDRs: Should You Hire an Outsourced SDR Team?
The truth is the challenges surrounding hiring, training, and retaining an internal sales team are enough to make any revenue leader think twice about sifting through the application pile. But without stellar SDRs (sales development representatives), your business is missing out on sales opportunities, and your account executives aren’t hitting their sales goals.
That’s why outsourced SDRs are becoming an increasingly popular alternative to hiring in-house. Not only can an outsourced SDR ramp up 3x faster than a new hire, but the average business can save as much as 65% when partnering with an SDR firm.
Still, the decision to outsource your sales development takes careful consideration.
Together, let’s walk through the decision-making process of outsourcing sales as we explore:
- 6 reasons businesses hire outsourced SDRs,
- What outsourced SDR services include,
- The cost comparison between an in-house and outsourced SDR team,
- and how to find the best SDR outsourcing company for you.
What Is An Outsourced SDR?
An Outsourced SDR, or outsourced sales development representative, refers to a professional or an agency externally hired by a company to specialize in outbound sales efforts, predominantly focusing on identifying, contacting, and qualifying potential customers before passing them on to the sales team.
The goal is to streamline the sales process and increase efficiency, allowing the in-house team to focus on closing deals and other high-priority tasks. Outsourced SDRs are pivotal for businesses seeking scalable growth, offering expertise, and alleviating the workload and resource constraints of maintaining an in-house sales development team. They use a variety of strategies and tools, including cold calling, emailing, and social media outreach, to generate leads and set appointments, aligning their work with the company’s sales and marketing goals. By leveraging outsourced SDR services, companies can optimize cost, access a diverse skill set, and achieve enhanced sales outcomes.
6 Reasons Businesses Hire Outsourced SDRs
As you can see, outsourcing SDRs can be a beneficial strategy for any company, but it’s about more than offloading the most time-consuming tasks in your sales process. That’s just the cherry on top.
Outsourcing SDRs offers layers of benefits that can accumulate into a recipe for sales success. Let’s dig in.
1. Expertise Access:
Gaining a competitive edge is crucial in today’s market, and outsourcing SDRs offers just that. Businesses can tap into a wealth of seasoned sales professionals with diverse skill sets and specialized knowledge. This expertise is not just a luxury but a necessity, leading to improved lead generation and conversion rates and ultimately driving business growth and success.
Outsourced SDRs are boots on the ground from day one. You know they won’t get sick of the task because they have the resume and portfolio to prove it.
2. Scalability and Flexibility:
The demand for products and services can fluctuate dramatically in today’s fast-paced business environment, especially for seasonal products and services. The best outsourced SDR companies provide the scalability and flexibility needed to adapt to these changing demands swiftly. This adaptability ensures that your business can maintain optimal operation levels, responding effectively to market conditions and consumer needs, which is pivotal for sustaining growth and competitiveness.
3. Risk Mitigation:
Outsourcing SDRs can significantly alleviate the operational and financial risks associated with recruitment and management. It mitigates liability and ensures business continuity, even when faced with unforeseen challenges or volatile market conditions.
The time spent training alone is a risk to take.
And here’s the thing: when it comes to lead generation, there’s a high burnout rate. This means you’re taking a risk in hiring and training someone who may not even be with your company long enough to generate the quality leads you hoped to gain.
In fact, it can take up to four months to train a new employee. And that’s a long time to wait for a decent ROI.
This strategic approach to risk management enables businesses to focus more on core competencies and long-term goals, reducing the potential for disruptions and setbacks and, ultimately, increasing sales.
4. Cost Efficiency:
Did we mention the expense and risk of hiring an internal sales team?
Okay, but don’t forget about the “hidden” costs of an in-house sales team.
There’s just no getting around it; hiring and training an in-house sales team can cost a fortune.
We’re talking benefits, software, equipment, and even desk space. So, aside from the paycheck and the training expenses, simply having an employee on board is pricey. And remember, they may not get through all that training before they realize they’re already burnt out.
Sounds like a CFO’s nightmare.
Outsourced teams don’t need all those fancy benefits. And most of the time, they’ve got their own office, software, and equipment already tailored to their tasks and precisely what they need to succeed.
5. Enhanced Focus and Productivity:
If you have an in-house salesperson, it’s best to let them do their job — sell.
Good salespeople are talented, hard to come by, and expensive to keep. So, if you already have one of these diamonds in the rough, you should never waste their time prospecting.
In fact, qualified leads should be handed over to a salesperson with a bow and, in theory, ready to sign on the dotted line.
Wrapping up a warm lead should be a cinch for your salesperson. Giving them qualified leads will not only increase your ROI on lead gen, but it will also motivate your sellers to win more clients.
5. Fast-Tracked Sales Pipeline:
Because you’re working with professionals, a prospect who enters your pipeline will move through it much faster.
This means it won’t take as long to convert a prospect because:
- Warm prospects have already been qualified, and communication can be laser-focused on conversion.
- Poor leads are removed to prevent muddying the water and wasting the time of closers.
- Procedures are quickly refined to create an even more streamlined qualification process.
Instead of spending months in the sales pipeline, outsourced sales teams can move leads through it as if you were turning on a brand-new, rust-free water faucet.
6. Innovative Sales Strategies:
There’s nothing wrong with a little DIY strategy, but when it comes to filling a sales funnel, why not just save time and leave the lead gen process to the professionals?
When you outsource through an agency that has its process cranking like a well-oiled machine, there’s no reason for trial and error.
Agencies that build their strategies around proprietary processes have a higher-than-average success rate.
So why waste any time on guesswork?
Your team and closers should never have to spend time searching for leads. An outsourced SDR sales team recognizes chinks in the chains and knows how to quickly pivot by implementing a more refined lead-gen and sales process.
Outsourced SDR Services: What to Expect
Now you know exactly why hiring an outsourced SDR team is just about the best thing since sliced bread, but we’ve left you in the dark about the actual services they provide.
So, let’s shed some light on the situation.
What are Outsourced SDR Services?
While Outsourced SDRs are individual sales representatives externally hired to handle lead generation and qualification, Outsourced SDR Services encompass a broader range of strategic sales development solutions provided by external agencies. These services not only include lead generation and qualification but also extend to appointment setting, customer onboarding, and account management, all tailored to enhance and streamline the overall sales process for businesses.
The 3 Most Common Outsourced SDR Services
- Lead Generation and Appointment Setting:
This service is fundamental to sales development, where the outsourced team conducts targeted outreach to potential customers, identifies qualified leads, and arranges meetings for the in-house sales team. This approach allows businesses to focus on conversion, leaving the initial, often time-consuming, phases of the sales process to seasoned professionals.
- Customer Onboarding:
A step beyond appointment setting, this service involves guiding sales-qualified leads through the entire sales pipeline, ensuring a seamless transition from potential prospects to long-term clients. The outsourced SDR doesn’t just stop at setting appointments but extends their role to encompass activities that fortify the customer’s relationship with the company, facilitating sustained engagement and loyalty. This comprehensive approach to onboarding is pivotal in maximizing customer lifetime value and enhancing overall client satisfaction and retention.
- Account Management:
Some outsourced services extend to account management, focusing on maintaining and nurturing existing client relationships. This involves understanding client needs, resolving any issues promptly, and identifying opportunities for upselling or cross-selling, aiming to maximize the value delivered to and derived from each client.
These services, when executed correctly, can significantly contribute to a company’s sales efficiency, allowing internal teams to concentrate more on core competencies and strategic activities.
In-House VS. Outsourced SDR Team: The Cost Breakdown
Now, we can continue to tell you that outsourced SDR companies can save you tons of money, and you will most likely agree because, in general, outsourcing is synonymous with cost-effectiveness.
Then again, DIY is also often synonymous with cost-effectiveness — barring any major mishaps.
So, to further clarify just how much savings you can expect, we have compared the cost of hiring an in-house sales team vs. hiring an outsourced sales team like Martal.
(You can gain a more complete breakdown of these numbers and calculate your estimated ROI with our interactive calculator.)
To keep the numbers manageable, let’s say you are considering hiring one SDR and want to calculate the annual expenses. After recruitment, training, base, bonus, and overhead, you are looking at about $162,750 for the first year’s investment.
That same SDR needs a sales ops manager as a mentor and accountability coach to be successful, but that sales manager can realistically manage four SDRs, so we’ll cut the cost into quarters. Twenty-five percent of a sales ops manager’s base, bonus, and overhead cost would be $36,950.
To wrap up our staffing costs, we have the IT and back-office employee who also would be able to support multiple SDRs. Again, we’ll calculate one-fourth of the costs, which would be $18,750.
Finally, no matter the experience of the SDR or sales ops manager, you will need sales software and tools. For outbound sales, this includes a CRM, a prospect database, email accounts, email warm-up and deliverability platforms, an SMTP server, a Sales Navigator account, and a predictive dialer. Yearly, these tools cost $11,730.
That brings our final annual expenses for one SDR to $230,180. (ouch!)
However, all those extra expenses are included when outsourcing, making your annual cost when partnering with an SDR firm like Martal’s just $138,000. That’s a sizeable chunk of change back in your company’s pockets — $92,180, to be more accurate.
5 Steps to Finding the Best SDR Outsourcing Company for You
- Define Your Needs:
Clearly outline your business needs, objectives, and expectations from the SDR outsourcing company, focusing on your total addressable market, product/service complexity, and desired level of involvement.
- Research Potential Partners:
- Evaluate Expertise and Services:
Assess the expertise and range of services offered by the shortlisted companies, ensuring they align with your business needs, industry, and target audience.
- Request Proposals and Quotes:
Approach the selected companies for detailed proposals and quotes, comparing their offerings, pricing models, and contractual terms to identify the best fit for your budget and requirements.
- Conduct Interviews or Consultations:
Arrange interviews or consultations with the final contenders to gauge their understanding of your needs, evaluate their communication skills, and ensure cultural compatibility before making the final decision.
So, Should You Hire Outsourced SDRs?
To outsource or not to outsource, that is the question.
In all seriousness, If unlocking new potentials, optimizing sales processes, and transforming your business resonate with your aspirations, then the answer is a resounding yes.
Martal Group, your partner in sales excellence since 2009, empowers businesses across over 50 sectors to elevate their sales endeavors, secure quality clients, and close more deals. With our wide range of services, we’re here to guide your journey, ensuring that every step is a leap towards unparalleled success and sustainable growth.
Explore a partnership with Martal Group, and let’s collaboratively craft a future where your business not only grows but excels.
Can an Outsourced SDR Team Outperform an In-House Team?
“Outsourcing sales to a reputable partner is often an excellent way to close more deals without exhausting your budget. When you combine sales expertise with flawless communication and new technologies, the only possible outcome will be faster progress and improved sales numbers.
So yes, outsourced SDRs can help you get better results when compared to an in-house team. However, that will not be the case if you hire the wrong sales outsourcing firm. That’s why it’s essential to first assess your sales needs and do your research if you want to find successful partners to collaborate with.”
Vito Vishnepolsky, Founder and Director
“Having an in-house sales team does have its advantages. However, the reason why most successful companies outsource today is exactly that outsourced SDRs have a high potential to perform better. Outsourcing is the only model where businesses can have instant access to a large pool of quality talents at a reasonable cost.
In addition to their wide set of skills, an outsourced sales team with long experience will bring along a streamlined process to increase productivity and boost sales. Even when it comes to sales control, communication, and alignment — expertise will play a major role in ensuring that everything will run smoothly and according to plan.”
Edward Young, VP of Sales Operations
FAQs: Outsourced SDRs
What Do Sales Outsourcing Companies Do?
Sales outsourcing companies specialize in bolstering businesses’ sales processes to enhance revenue. They provide a spectrum of services, including prospecting, lead generation, sales outreach, appointment setting, and sales closing, tailored to the level of control a business prefers to retain. Many possess advanced expertise in marketing and customer management, offering comprehensive solutions for all sales-related needs. While complete sales outsourcing can be resource-efficient, initiating services with a trial period and maintaining an in-house team during the transitional phase can ensure alignment with business objectives and gradual trust-building.
How Much Does an Outsourced SDR Cost?
The cost of an outsourced SDR can vary greatly, depending on factors like expertise, industry, location, and required services, along with the chosen pricing model—whether hourly or project-based. It’s challenging to provide a precise figure because of these variables, but generally, costs can range from several hundred to thousands of dollars per project. It’s crucial to note that price doesn’t always correlate with effectiveness or success in reaching sales goals. What’s essential is recognizing the value of well-executed sales outsourcing—it can be a cost-efficient strategy for companies aiming to maintain sales growth while managing expenses.
When Shouldn’t You Outsource Your SDR Team?
Sales outsourcing may not align with every business’s operational strategy, especially if there is a stringent budget or a preference for maintaining absolute control over all aspects of the sales process. It’s pivotal for businesses, especially those operating on limited budgets, to meticulously evaluate whether the investment in outsourcing aligns with their financial strategy and operational needs. (Self-service options, such as Desonto, might be a great alternative for businesses on a budget.) However, the potential for enhanced efficiency, expertise access, and strategic insight that outsourced partners bring should be weighed against budget limitations.
A thorough assessment of business needs, fiscal capacity, and the benefits of outsourced SDRs will guide businesses in determining the suitability of such engagements.