Outsourcing Inside Sales vs Direct Hires

Are you panicking right now?

You’re not hitting your sales goals and you have no idea how to fix it.

When you’re looking for a growth strategy, you’ll inevitably get to a place where you have to decide between a direct hire and outsourcing inside sales.

Here’s a breakdown of the pros and cons of each option that can help you make the decision that’s best for your organization’s sustained growth.

Direct hire for inside sales

Pros

There are a lot of reasons to keep inside sales inside.

• Your organization owns the process from start to finish.
• Employees are more tuned into the company’s culture, goals and mission. This makes it easier for them to identify opportunities with prospects that don’t yet know they need you compared to someone who isn’t as well-versed in the company vision and solutions.  
• Sales leadership has more direct interaction with the team. It’s easier to collaborate, coach, manage and engage with in-house salespeople. 
• There’s a deeper knowledge base of the business to draw from when prospects and customers have questions, so it’s easier to overcome objections.

Cons

There’s always a flip-side to every coin. 

There are some downsides to a direct hire that shouldn’t be ignored when you’re trying to make as informed a decision as possible.

• It’s more expensive. This is one of the biggest deterrents for an inside sales organization. There are a lot of costs in going this route, including:
  • Salary.
  • Benefits.
  • Commission.
  • Office space.
  • Time and resources invested in onboarding, direct supervision, coaching, performance development and ongoing training.
• Speed of implementation. It takes a lot longer to get the process up and running with a direct hire.

Outsourcing inside sales

Pros

Take a look at the benefits of an outsourced inside sales team.

• It’s less expensive per seat.
• Some services provide contingency-based results. For example, the service may offer a lower fee, a cut of every successful lead, or a bonus when a qualified lead is delivered.
• The option to outsource inside sales often provides faster and more cost-effective access to a broader range of data, such as better automation tools and the ability to move through data more quickly.
• The company does inside sales all day, every day. When one strategy isn’t working, they’re able to make the necessary changes on the fly.
• Deep experience in function. While a direct hire will develop a deeper knowledge of the business, an outsourced inside sales team has a better understanding of HOW things should be done to get results.
• Work is done on a month-to-month basis. Avoid the risks associated with W-2 employment – you can simply go another direction when your monthly commitment is up.
• Speed of implementation. That’s right – it’s a pro AND a con. The familiarity with function means it doesn’t take long for new strategies to be put into action.

Cons

Let’s get into the nitty-gritty of the disadvantages of a choice to outsource inside sales. They include:

• No deep experience in the business. Because an outsourced inside sales team will work with a variety of organizations, they don’t develop the understanding that a direct hire would acquire.
• Lack of awareness of company culture. It’s difficult for a contracted salesperson to acclimate to your company’s way of doing things.
• There’s a steep learning curve. Anyone who is speaking for your company needs to do so intelligently and in a way that effectively represents your brand. It’s not an easy task for someone who isn’t invested in your organization full-time and for the long haul.

Outsourced inside sales vs direct hire

Don’t risk an OMG moment that could damage your brand.

Put a lot of consideration into your decision to outsource inside sales or to go with a direct hire.

Think through the pros and cons and make the choice that will bring the greatest results for your business.