Is an Outsourced SDR Right for Your Business?

Are you reaching your sales development and lead generation goals? If not, don’t worry; most sales teams don’t reach their quarterly targets - at least not in full. But if your sales reps are consistently struggling to source high quality leads and establish high revenue growth, it could be time to look into new possibilities. In many organizations, SDRs act as business development representatives, managing both inbound and outbound leads, qualifying prospects, and facilitating early-stage sales activities that are crucial for driving growth.

Partnering with an outsourced SDR company is one way many businesses boost their sales efforts by leveraging an outsourced service. A whopping 78% of sales leaders agree that outsourcing companies improve their lead generation, sales development, and sales process.

Numbers like those can be extremely tempting. But investing in an outsourced SDR team isn’t simply a matter of sending a cheque and receiving more leads. There are a ton of highly complex considerations you must take into account when deciding whether or not to outsource your sales functions. Acquiring new clients is often a primary goal of these strategies, as expanding your customer base is key to sustained business growth.

So today, we’re going to give you the lowdown on outsourced SDRs. We’re going to delve into everything you need to know before making your decision, from understanding types of outsourced SDR models and how they benefit your company to the potential drawbacks of using SDR outsourcing companies and key considerations you might need to think about.

Let’s learn more about outsourced SDRs!

Understanding the role of an SDR within the sales team

‘SDR’ stands for ‘Sales Development Representatives’. Essentially, an SDR’s job is all about lead generation; they’re responsible for sourcing and qualifying leads. SDRs engage with potential clients through personalized outreach, aiming to convert them into qualified opportunities for the sales team, as well as nurturing them through the sales pipeline and setting all-important appointments.

An SDR can be part of an in house team (or ‘internal team’) - when the company hires and trains its own Sales Development Representatives to work solely for them - or from an outsourced SDR company.

Either way, the Sales Development Representative plays a critical role in the sales process. In B2B SaaS companies, for instance, SDRs are responsible for producing almost half of the entire sales pipeline!

So what does it mean to 'outsource' Sales Development Representatives?

Some companies decide that building an in house team of SDRs is too expensive and time-consuming. Consider this:

• An in house SDR team can cost around $6,000 - $10,000 a month
• The average base salary for an SDR in the U.S. is $69,551 per year
• The base salary doesn’t include extra expenses like equipment and commission

Hiring and training an in-house SDR team can be expensive due to salaries, benefits, and overhead costs.

That’s why some businesses turn to specialized companies that fulfil sales functions on their behalf - these are outsourced SDR companies.

Outsourcing can reduce total sales development costs by 30–50% compared to an in-house team by eliminating expenses such as benefits and office space.

Such companies - companies like Leadium - offer an outsourced team of trained SDRs who perform lead generation, sales and marketing efforts for a fee. Many agencies charge a monthly fee as a recurring payment for ongoing services.

Types of outsourced SDR models

Of course, not all SDR outsourcing companies are the same. There are different outsourcing models out there. For instance:

• SDR agency (Full-service agencies)

Companies like Leadium act as an SDR agency, providing comprehensive sales outsourcing solutions. This means they perform every function, from sourcing potential customers and targeting them with multi-channel lead generation efforts to setting appointments. As part of sales outsourcing, an SDR agency brings specialized skills, flexibility, and cost-effectiveness to accelerate your sales process. Agencies can typically launch outreach campaigns in weeks, compared to the 3–4 months needed to hire and train an internal rep.

• Freelancers

An individual freelancer may take on a specific task on your behalf, usually for a daily rate. While their services aren’t as comprehensive as a full-service agency’s, they offer a degree of flexibility not found elsewhere.

• Hybrid models

Of course, it doesn’t have to be all or nothing. Some businesses find that combining the efforts of an SDR outsourcing company with an internal sales team offers the best of both worlds.

Which industries commonly outsource SDRs?

Industries defined by specialist skills and rapid scaling often favor an outsourced SDR service for their sales activities. These include:

• Technology
• SaaS
• Professional Services
• Pharmaceuticals

The benefits of using outsourced SDRs

So what’s all the buzz about? Why are so many companies choosing to outsource lead generation and sales development to SDR outsourcing companies?

Let’s take a look at some of the most important ways outsourced SDRs can boost your sales development process:

1. It’s a cost effective solution‍

As we mentioned before, a full-time in house SDR team can end up costing you an arm and a leg. Not only do you have to think about salaries, but training costs, equipment, software, and commission rates, too.

Outsourcing, on the other hand, is usually cheaper in the long run. Whether you pay a fixed fee, daily, or on a project-by-project basis, the long-term costs are generally lower. Outsourced SDR-as-a-service helps businesses save money by reducing expenses related to lead generation software and tools, and by allowing you to pay only for qualified leads.

2. Gain access to experience and expertise

Established outsourced SDR firms bring with them a wealth of experience and industry-specific know-how. Rather than training your own Sales Development Representatives, why not gain access to experienced ones instantly? Outsourced SDRs are typically experienced sales professionals who understand the lead generation process and have solved similar pain points for other clients.

3. Scale easily

Outsourcing allows businesses to quickly scale their SDR efforts up or down based on demand without the complexities associated with managing in-house staff. This ensures your lead generation efforts always reflect your business status. Outsourced SDR services provide access to enterprise-grade tools, including AI-assisted personalization and predictive analytics.

4. Focus on core business activities

When you don’t have to worry about managing an entire in-house SDR team, companies find that they gain extra time to focus on their core competencies (such as product development and customer service) while the outsourced SDR professionals handle lead generation. When top-of-funnel prospecting is offloaded to outsourced SDRs, internal Account Executives (AEs) can focus exclusively on high-value tasks like closing deals.

5. Access to valuable insights and analytics

Outsourced SDRs can provide valuable insights and analytics into the effectiveness of different sales and marketing strategies, helping businesses make data-driven decisions. They can help businesses understand their target audience and develop tailored outreach strategies. Outsourced SDR services can enhance the effectiveness of sales efforts by providing access to proven methods, data-driven strategies, and industry insights.

The potential drawbacks of outsourcing SDR services

As great as outsourcing can be, it's not the perfect solution for everyone. Here are some of the potential drawbacks you may find with an outsourced sales development team:

1. You give up some control
   
   • Although a good SDR outsourcing company will stay in regular contact with their client, outsourcing does mean giving up some level of control over the lead generation and sales development process.
2. You could face communication barriers
   
   • When your sales team isn't part of your in-house community, and is therefore operating on different CRM and messaging platforms, there's the possibility of miscommunication and slow response times. That's why establishing clear communication protocols is a must.
3. Brand representation issues
   
   • An outsourced SDR may not fully grasp your product, service, or even your company culture. So if that Sales Development Representative is representing your company, it's possible they may fail to hit your target audience with your preferred messaging points.

Key considerations before choosing an outsourced SDR company

By now, you may have been wooed by the idea of outsourcing your sales team. And why not? It's often cheaper, faster, and more effective (outsourced SDRs convert an average of 40% of qualified leads).

But there are some important questions you need to ask before jumping in the deep end. For example:

What are your business goals?

What's your sales team's main objective right now? Is it to reduce the sales cycle? Achieve more sustainable growth? Cut costs? Access more specialized skills?

It's crucial to decide whether the benefits of outsourcing align with your business development goals.

What's your budget?

At some point, we have to talk money. While outsourcing lead generation is a cost effective option, it still involves paying out relatively large sums of money at once. Evaluate your budget to ensure you can afford outsourcing without compromising other critical areas of your business.

Which SDR outsourcing company should you choose?

There are many reputable lead generation and sales development agencies on the market right now. But not all are made equal.

As well as your budgetary considerations, you should look for companies that have experience, a great track record, multi-channel engagement programs, active founders, and good pricing models. Also see what their customers are saying about them.

Does your chosen agency offer a trial period?

You're investing a lot of money, so it's only natural to request a trial period. After all, you can't say for certain how well external sales representatives are going to integrate with your sales teams and boost your lead generation a year into the future.

See what's on offer at Leadium here!

Best practices for working with an outsourced SDR

To get the most out of your partnership with an outsourced SDR company, it’s crucial to establish a strong foundation from the start. Begin by setting up clear communication channels between your internal sales team and the outsourced SDR team. Define specific goals and objectives for your sales development process, so everyone is aligned on what success looks like—whether that’s generating high quality leads, expanding into new markets, or shortening your sales cycle.

Regular progress updates and feedback sessions are essential. These check-ins allow you to review lead generation efforts, share industry insights, and fine-tune your approach based on real-time results. Don’t hesitate to provide your outsourced SDR team with access to your sales and marketing efforts, including detailed information about your target audience and value proposition. The more context your SDR team has, the more effectively they can tailor their outreach and generate leads that truly fit your business needs.

By fostering collaboration and transparency, you’ll empower your outsourced SDR team to deliver better results and ensure your sales development process is always moving in the right direction.

Common challenges and solutions when outsourcing SDR services

Outsourcing your sales development can unlock tremendous value, but it’s not without its challenges. One common hurdle is ensuring that your outsourced SDR team is fully trained and equipped to represent your brand and engage your target market. To address this, partner with an experienced SDR outsourcing company that invests in comprehensive onboarding and ongoing support for their sales representatives.

Maintaining consistent communication between your internal sales team and the outsourced team is another frequent challenge. Scheduling regular check-ins, sharing updates, and using collaborative tools can help bridge any gaps and keep everyone on the same page. It’s also vital to clearly articulate your value proposition and define your ideal customer profile. This enables your outsourced SDR team to focus their efforts on generating qualified leads and improving conversion rates.

By proactively addressing these challenges, you can build a seamless partnership with your SDR outsourcing company and maximize the impact of your sales development efforts.

Measuring the success of your outsourced SDR program

Tracking the right metrics is key to understanding the effectiveness of your outsourced SDR program. Start by monitoring core KPIs such as the number of leads generated, conversion rates, and meeting attendance rates. These indicators provide a clear picture of how well your outsourced SDR team is fueling your sales pipeline and moving prospects through the sales development process.

It’s also important to assess the quality of leads and the impact of personalized outreach efforts. Regularly reviewing these metrics will give you valuable insights into what’s working and where there’s room for improvement. Use this data to refine your sales strategy, optimize your SDR team’s performance, and ensure your sales development process is driving real results.

By making data-driven decisions and continuously evaluating your SDR program, you’ll be able to maximize your return on investment and achieve your sales goals more efficiently.

Case studies and real-world examples of outsourced SDRs

Many businesses have experienced impressive results by leveraging outsourced SDR services. For example, a leading software company partnered with an outsourced SDR company and saw its sales pipeline grow by 30% in just six months. By tapping into the expertise of a dedicated SDR team, they were able to generate more high quality leads and accelerate their sales cycles.

Another success story comes from a fast-growing startup that implemented a personalized outreach strategy with an outsourced SDR team. As a result, they achieved a 25% increase in conversion rates and significantly boosted their revenue growth. These real-world examples highlight how outsourced SDR companies can help businesses of all sizes improve their sales performance, generate more qualified leads, and close more deals.

By choosing the right outsourced SDR services, you can unlock new opportunities, streamline your sales process, and drive sustainable growth.

The future of outsourced SDR services

The landscape of sales development is rapidly evolving, and outsourced SDR services are at the forefront of this transformation. As businesses seek more cost-effective and scalable solutions for lead generation, outsourced SDR companies are increasingly adopting advanced technologies like AI-powered tools and data analytics to enhance their sales efforts. These innovations enable more targeted, personalized outreach and help generate higher quality leads.

The rise of remote work and digital collaboration is also making it easier for companies to work seamlessly with outsourced SDR teams, regardless of location. As a result, businesses can access top-tier sales development talent and expertise without the overhead costs of building an in house team.

Looking ahead, outsourced SDR services will continue to play a vital role in helping companies achieve sustainable growth, expand into new markets, and stay competitive in an ever-changing sales environment. By embracing these trends and partnering with forward-thinking SDR outsourcing companies, your business can stay ahead of the curve and drive more sales than ever before.

See what outsourcing sales can do for your business today

There are no shortcuts to qualified leads and sales success – but outsourced SDR companies are as close as you can get. By leveraging key outbound lead generation methods such as cold calling and social media outreach, SDRs can effectively reach potential clients and drive engagement. Outsourced SDR services are a type of outsourced service that helps generate qualified opportunities by targeting and nurturing top-priority accounts. Sales outsourcing is a strategic approach to scaling your sales efforts and acquiring new clients, allowing you to cut costs, access better expertise, reduce your sales cycle, and reach business goals faster – though of course, it’s not always the right path for everyone. Some companies find that hybrid offers the best combination.

If you’d like to learn about more ways to improve your sales efforts, head over to the Leadium blog. It’s packed with industry insights and expert takes that’ll help you reach potential customers and develop your sales funnel.

Or, reach out to Leadium today to see how our founder-led, multi-channel programs can help skyrocket your sales process. We look forward to hearing from you!