The two biggest determining factors for companies choosing between hiring an in-house sales team or an outsourced sales development team are time and money. While the decision is a personal one as each company is different and has different needs, let’s take a look at a cost comparison of in-house vs. outsourced SDRs.

The bottom line to sales - no matter which you opt for - is customer acquisition and consistent sales. Making the decision to hire someone, whether in-house or outsourced, can help you stay on stop of your sales funnel, ensuring that your sales pipeline never dries up. 

In-House Sales Development

The true cost of hiring an in-house sales development rep can be broken down into four components:

·         Salary & benefits

·         Software

·         Data

·         Extras

Salary

According to Glassdoor, the average salary of a Sales Development Rep (SDR) is approximately $74,000.  Though the employee’s salary isn’t the only dollar sign that accompanies hiring an individual.  You’ll also need to factor into that price some additional costs, such as training costs, administration, management, employer payroll taxes, human resources, etc.  There’s certainly more cost to hiring a sales rep than that $74,000 price tag.

Software

Software is essential to the sales development process.  From CRMs to tools like LinkedIn Sales Navigator, Salesforce, Hubspot and more, those costs rack up fast.  Here are a few of the annual costs you can expect:

·         Hubspot - $14,000 (10 users)

·         Salesforce - up to $3,500+ (per user)

·         LinkedIn Sales Navigator - $1100+ (per user)

·         InfusionSoft - $3500+ (10k contacts)

Even if you look to minimize your software costs and choose to only use one or two, they still come with a hefty price tag when added up.  Now, let’s say you want to bring on more than one in-house SDR rep and your costs for software licenses have now doubled.

Data

No matter how you look at it, data drives sales. Of course, your SDR can go out and find all of their own leads, but if the goal is to call 50 prospects per day, finding that volume of leads can be extremely time consuming.  The other options here are to hire a research team to compile lists or even pay a company such as ZoomInfo to send you X number of prospects, which are unqualified and usually come with a hefty price tag.  A full-time research, according to Glassdoor, can cost around $50,000 and depending on the number of contacts you receive, the list building could cost more than $30,000 per year.

Extras

Now, there are also some hidden costs involved here as well.  Glassdoor reflects that the hiring process costs an average of $4,000 per new hire.  That price tag includes creating job posts, conducting interviews, negotiating salaries, etc.

Adding those together, we’re looking a price tag closer to $150,000 annually for an in-house sales.  It’s also imperative to note that it takes approximately three months for a sales rep to get fully into the swing of things and the average SDR tenure is only 14.2 months.  That’s not even a full year of hitting full quota for sales.

Outsourced SDRs cost only a fraction of the price and can be ready to launch your campaign in less than a month.  With access to cutting edge technology and data, outsourced SDRs can help you launch faster and with a lower cost per sale.

To learn more about outsourcing your SDR needs, get in touch with us today by sending a secure message via our website.