Build a sales team from the ground up or outsource? That is the question!
Regardless of how you do it – every business wants the same thing: a sales team that smashes through KPIs and gets the job done.
In this article we’re going to cover:
- The common challenges all businesses encounter when building a sales team from scratch
- The Pros and Cons of building your own sales team in house vs. outsourcing to an experienced partner
- Where to start *IF* you’re considering hiring a Sales Development Rep (SDR) agency
Plus, we’ll end with how to get started if you’re looking to augment the sales team you’ve already begun building.
Beware the Pitfalls of Building Your Own Sales Team
Let’s call a spade a spade. Today, building a team from the ground up is more challenging than ever.
Major shifts in socioeconomic forces that aren’t slowing down.
“Your investment in onboarding a capable in-house SDR team is a risk, and may lead to few rewards with high employee turnover rates.”
Throughout the pandemic, employers in various fields have had to adapt to new demands and shifting expectations between in-house and remote work.
More prospective employees are searching for remote work than ever before, and employers are expected to get onboard with at-home working or get off the track, as this is a trend that is expected to continue for years to come.
Changing socioeconomic trends have forced many companies – especially startups – to ask themselves – what’s the best way to build my sales team?
Many big tech companies are looking at remote work as a bonus. No more purchase or rental fees on office space!
On the other hand, the costs of buying or renting office space can be seen as just a part of the costs associated with building a trusted team. On top of in-house space, as an employer you also need to budget for recruiting, hiring, managing and training a team to be experienced Sales Development Reps (SDRs) capable of outbound prospecting and nurturing qualified leads into conversion.
Even once you build such a team, you have to hope you can keep them.
Your investment in onboarding a capable in-house SDR team is a risk, and may lead to few rewards with high employee turnover rates. One in 10 companies experience yearly attrition rates of over 55%, and employers have to keep up with high levels of oversight and fresh employment perks just to keep the staff they have.
While trying to predict employee needs for recruitment, as well as plan for turnover rates after onboarding, businesses still need to reach their sales goals whether they have the staff to keep up with the work or not.
High-growth B2B software companies depend on their experienced SDR teams to strengthen their sales pipelines and identify qualified leads.
The trouble is that an increased demand for SDR teams in B2B software companies over the years has driven down expectations of experience in potential reps. The years of experience to enter an SDR role has decreased 45% since 2010.
Naturally, this has serious implications for software companies that rely on the experience of their teams.
So how do you grow the SDR team you need, at the moment that you need it?
The short answer: outsourcing.
Companies are increasingly turning to outsourcing for their SDR teams in order to get immediate access to experienced reps able to identify qualified leads and strengthen their sales pipelines.
Not only does this eliminate the stress of recruitment and training, it leads to quicker visible returns on your sales.
Building an SDR Team Yourself
Letting an Outsourced Partner Build an SDR Team For You
What is an outsourced sales development firm?
If you’ve been in the SaaS industry for a while, you know that a good sales rep is a huge asset to any company when they do their job well. They are your first point of contact between your business and your customers. They are experts at identifying how your services will solve your consumer’s needs, and how to promote the services you offer. They identify new markets for you to explore, and they bring your customers to appointments that get you the sales you need to meet your goals. But remember, here we’re talking about a good SDR…not an okay one.
A B2B software sales development agency employs sales reps with the experience and training needed to make them an asset to companies that need them.
A good outsourced SDR partner knows the industry. They know your company, they get to know your objectives, and they know how to help you meet them.
So now you know what outsourced sales reps do… is outsourcing to develop or augment your sales team the right choice for you?
Here are some things to consider as you develop your plan for hiring an SDR firm.
3 concerns you may have about outsourcing your SDR team
- Loss of control
Outsourcing your SDR team requires a degree of trust. You are trusting that the company you hire is going to work with you and allow you input on your goals and the strategies they use to meet them.
The best way to iron out this aspect of your professional relationship is to be transparent about your expectations and ask questions about your contract terms when you enter into negotiations.
- Tactical Diversity
SDR firms may work with a variety of SaaS companies with different objectives. Do they use the same strategies and methods with every client? How will you know if they can fit in with your company goals and values?
The easy answer: ask questions.
Get to know the company you’re thinking of hiring. Ask questions about the tools they use for outbound prospecting. Talk to them about their strategies for identifying qualified leads. Check their website and company reviews to learn more about their success with turning those leads into sales.
Don’t be afraid to learn more about the company you’re thinking of hiring. Outsourcing collaborations are relationships that benefit both of you and transparency is key.
- Not all SDR firms are the same
As with anything in life, there are good companies, great companies – and bad companies.
You may need SDRs to help you with your sales development yesterday, but it is important not to rush into a business relationship until you’re confident your choice won’t set you back even further.
Make phone calls, read reviews, shop around for word-of-mouth assurances that the SDR firm you’re thinking of hiring has a good track record.
3 PROS of outsourcing your SDR team
- Employment Costs
As previously mentioned, the costs associated with building an in-house team are admittedly high. When outsourcing your SDRs, you can count on your team having the space, tools and resources without having to build them and pay for them yourself. Remember, it’s not just the SDRs and expertise you get while working with an outsourced SDR team – you also get access to their tech stack, contact lists, campaign architecture, marketing reach, and the management provided by your outsourced partner.
Beyond that, you won’t need to worry about the costs of recruiting, training, purchasing expensive technologies, or employee benefits.
You can trust that your team is going to get things done quickly and expertly.
- Access to technology
Another cost-related benefit associated with outsourcing is the elimination of outfitting an in-house team with the technology they need.
An outsourced SDR company already has the tech they need – and they know how to use it!
- Experience & Strategy
SDR firms have the experience you need now, without the financial output of having to train them yourself. These are qualified professionals who have already been trained to identify the needs of your leads and turn them into appointments, leaving you with more time to focus on planning, marketing, and closing sales to keep your business growing.
What if I already have an SDR team?
So you already have an in-house and/or remote sales team and you’re not sure if outsourcing to augment your staff is a good idea.
Not to worry – SDR firms are designed to fit in where you need them. Whether you already have a team you want to add to, or you are starting from scratch, your SDR firm will fill in the gaps you identify without stepping on any toes.
Thinking of hiring an SDR firm, but not sure where to start?
We’re here for you.
Whether you’re ready to build a new team or augment your existing team, we’re here to help. We have over 35 years experience in B2B software sales – we’ve built teams from scratch, mentored the teams of others and worked with multiple outsourced vendors. Set an appointment and we will help you get started with your plans, or just reach out to chat with us – we’re passionate about what we do, and always love to talk about B2B software sales.. Talk to our team today.
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