Hiring an SDR vs outbound agency in 2023?

Hiring an SDR vs outbound agency in 2023?

Does a modern outbound motion still require multiple SDRs to start? This blog explores the pros and cons of hiring an SDR or an outbound agency in 2023.

Sales Development Representatives have been crucial in bringing more business and increasing revenue creation due to their high level of expertise in bringing cold leads from the first point of contact to the moment they’re ready to be converted. A sales development representative is generally in charge of the initial phase of bringing in leads while account executives may focus on closing those deals. 

The global business landscape is witnessing a profound shift towards specialization and outsourcing, a response to the increasing competition and heightened standards of work. Traditionally, Sales Development Representatives (SDRs) have been integral to business development, forging relationships with cold leads to drive growth. However, the current trend indicates a transition, as companies now favor engaging outbound agencies to convert these cold leads into potential business opportunities. This strategic change enables organizations to concentrate on their core competencies, enhancing their efficiency and productivity.

If done effectively, outsourcing your company's lead generation may be quite successful in filling your sales funnel and improving turnover.

What will hiring an SDR look like?

Salary and Benefits

According to Glassdoor, an average SDR earns roughly $74,000 in salary and incentives. But that's not the whole story. Companies pay far more than that. Other expenditures associated with anSDR employment include

  1. Expenditures on Human Resources
  2. Employer Withholding Taxes 
  3. Benefits costs
  4. Licenses for software 
  5. Training Fees
  6.  Management and administration

An SDR might wind up costing your firm twice their compensation. That indicates that the average SDR might cost up to $150,000 each year. 

On the other hand, an outbound agency can cost you the equivalent of $42,000 per YEAR for the entire outsourced program. That makes it a third of the cost of doing it in-house. 


Costs of ramping and hiring

Nearly 75% of fast-growing businesses use SDRs with little more than a year of experience. Additionally, it takes a typical SDR three months to reach the full quota. Considering that the average SDR tenure is just 14.2 months, that doesn't seem so awful. You're putting in all that effort in anticipation of 11 months of quota-full sales. After that, you must be looking for a new hire to keep the sales process continuing.

With each new hire, you are guessing to add a new person to the company who may not fit into the culture. Additionally, a poor fit could result in a shorter stay.

On the contrary, it takes less than a month before the outsourced agency is ready to ramp up.


Expertise & Experience

The least preferred task for salespeople is outbounding. If an SDR is given any task that isn't prospecting or outbounding, they will inevitably gravitate toward that task. On the contrary, an outbound agency specializes in prospecting and outbound calling. Their expertise for your outbound strategy comes through when combined with millions of data points to guide decisions and a set of patented technologies for pinpointing the ideal prospects at precisely the right moment. 

SDRs try and test different strategies for prospecting and will take time to bring results. This may cost the company money and time. While outbound agency brings years of experience to the table and little to no room for mistakes. 

What will hiring an outbound agency look like?

Effectiveness and Efficiency

When you outsource to a qualified organization, the ramp-up phase is short. Outsourcing your appointment setup is like turning on a valve instead of doing it yourself. SDRs must only pass on leads to the sales team that they deem to be potential clients. Consequently, the sales staff spends no time and can concentrate only on sealing the deal without having to deal with consumers who may cancel at the last minute or waste their time.

Save money and time on training

SDR is being supported by a plethora of new technologies. Once you've assembled a team, you'll be able to obtain several product reviews for items such as dedicated CRMs, Sales Intel Tools, Automation Software, Analytics, and Tracking. Outsourcing to an SDR team will remove all your unneeded expenditures. It may assist you in keeping your sales stack basic and up to date. Moreover, it will save you time to train your SDRs for which the industry average is about 13 weeks.

Specialization and tested results

When you outsource the SDR team, you get a highly qualified and dedicated lead generation partner. If you select the greatest solution, you will most likely experience an increase in income. It all comes down to allocating your resources where they will be most effective. This often includes placing experienced salespeople in front of qualified prospects rather than keeping them in the office doing cold calls. In practice, the longer outsourced representatives stay, the more productive they become.

Improve scalability

The professional nature of outsourced teams makes them more flexible and adaptable than in-house teams. Outsourcing is capable of rapidly reacting to needed changes. Hiring an SDR team would not only assist you in resolving your lead-generating issues. It will also free you of the hassle of seeking recruits after each turnover since they are devoted individuals with the only goal of supplying leads to your firm and assisting you in filling your sales funnel. They are also well-versed in how things work and their technology, making them ideal for lead generation.

Final thoughts

Outsourcing sales development might be difficult, but it all comes down to asking the right questions. You'll be more able to make the appropriate choice if you know as much as you can about an agency's experience, area of specialization, and tools. Remember that just because an SDR is a good match for one firm doesn't indicate they'll be a good fit for yours.

Firms are moving towards hiring outbound agencies as compared to SDRs because of their added advantage in time, expertise, experience, and cost. Outbound agencies know what they are doing and have specialized strategies for different industries. They charge a flat rate, deliver instant results, have expertise in sales development, and can handle complex sales processes with their years of experience. They bring a great deal of value to the table and provide you with the help you need to amplify your sales development.

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