How Outsourced SDR Teams Drive Business Growth

Ever wondered why some businesses struggle to develop effective marketing programs and outreach methods?

One reason is that they have to ensure a consistent flow of leads into their pipelines while also managing ongoing customer acquisition.

Numerous studies show that salespeople spend most of their time battling prospecting and research rather than focusing on what they do best—holding meetings and completing deals. Given this, any service that can guarantee a consistent flow of leads so that sales can close more deals can greatly benefit your company.

This is where outsourced sales development representatives (SDR) services fit in.

This article will discuss why you need to outsource SDRs and how much they will cost you.

Let us get started!

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What is an Outsourced SDR?

An outsourced Sales Development Representative (SDR) is an external professional or team hired to oversee the first stages of the sales process. These experts concentrate on lead qualification, prospecting, and setting up first meetings with possible customers.

As the first line of defense for your sales efforts, outsourced SDRs effectively nurture prospects before transferring them to your own sales team. With this strategy, businesses may use seasoned salespeople without committing to full-time employees for an extended period.

The objective is to improve productivity and streamline the sales process so the internal team can concentrate on closing deals and other high-priority work. 

Businesses looking for scalable growth can greatly benefit from the experience that outsourced SDRs can provide and the reduction of burden and resource constraints associated with maintaining an internal sales development team. 

Reasons to Outsource Sales Development

Any company can benefit from outsourcing sales development representatives, but the idea goes beyond simply unloading the most labor-intensive parts of your sales process.

That's merely the icing on the cake.

Outsourcing SDRs has several advantages, which combine to create a winning formula for closing deals. 

Let's go through seven reasons why you should outsource SDRs

Scalability 

The corporate world can experience significant fluctuations in the demand for goods and services. The top outsourced SDR service providers offer the scalability and flexibility to quickly adjust to these shifting demands. 

This flexibility allows your company to continue operating at peak efficiency and successfully respond to customer demands and market conditions, both of which are essential for maintaining growth and competitiveness.

Affordability

Recruiting and preparing an internal sales staff is an unavoidable necessity that is sometimes expensive. On the other hand, SDRs who work remotely don't require unnecessary perks. Additionally, they typically already have their workspace, software, and tools specifically designed for their jobs and what they need to succeed.

Risk Mitigation 

Outsourcing SDRs can greatly reduce operational and financial risks related to hiring and managing staff. It reduces liability and guarantees business continuity in unforeseen difficulties or erratic market circumstances.

The fact is that lead generation professionals experience a high rate of burnout. This implies that you risk employing and training someone who might not even stay with your company long enough to produce the high-quality leads you planned to obtain.

With this strategic approach to risk management, businesses may concentrate more on long-term objectives and core capabilities, which lowers the possibility of interruptions and setbacks and eventually boosts sales.

Specialized Expertise

SDR outsourcing gives you the competitive edge you need in today's industry. Companies have access to a large pool of seasoned salespeople with various skill sets and in-depth knowledge. This knowledge is not a luxury—rather, it is essential since it improves lead generation and conversion rates, which in turn spurs business expansion and success.

Increased Productivity

If you have an internal salesperson, it's better to let them do what they do best: sell.

Talented salespeople are difficult to retain, hard to find, and expensive. Therefore, you should never waste their time prospecting. Qualified leads should be given to a salesperson prepared to sign on the dotted line.

By outsourcing SDR tasks, businesses can enhance productivity and streamline their sales processes. For example, one of our clients in the HR sector saw a remarkable increase in qualified appointments and sales conversions after partnering with us.

Fast-Tracked Sales Pipeline

A prospect will go through your pipeline more quickly as you're working with experts.

This indicates that converting a prospect won't take as long because:

1. Warm prospects can have conversion-focused communication because they have already been qualified.
2. Ineffective leads are eliminated to avoid wasting the closers' time.
3. Rapid process improvement results in an even more efficient qualifying procedure.

Outsourced sales teams can move leads through the sales pipeline easily, saving months in the process.

To further enhance your sales strategy, consider integrating appointment setting outsourcing with your outsourced SDR services, ensuring a streamlined and efficient sales pipeline."

Innovative Sales Strategies

While certain tactics are acceptable, it would be best to save time and hire experts to handle lead generation.

Trial and error are not necessary when you outsource through an agency. An SDR outsourcing company based on proprietary procedures has a higher success rate than the norm.

So why waste time speculating?

Your sales team should never need to spend time looking for leads. When leads are identified, an outsourced SDR firm knows how to quickly pivot by implementing an effective lead generation and sales process. 

Outsourced SDR vs. In-House SDR

Understanding outsourced and in-house SDR roles is crucial in knowing what will best serve your business. 

Let us examine the challenges companies face when working with In-house sales development representatives compared to outsourced SDRs.

1. Demand for resources: You need to assemble, train, and manage a sales crew. This is particularly challenging for startups and small enterprises with tight budgets.
2. Overcoming obstacles: Scaling up or down requires more time and resources, making it more challenging. For most internal teams, it is unfeasible to scale quickly while remaining sensitive to market situations.
3. Continuous learning: Specialization is growing in sales development. This means that you also need to invest in highly qualified individuals in addition to continuing education and training for your workforce.
4. Resource allocation: Small enterprises have the most challenges. Members of startup teams frequently take on many roles. Since everyone has limited time and energy, sales development distracts from the company's main operations.

Now, let's look at a tabled difference between the two.

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Costs of Outsourced SDR Teams

Businesses that oppose SDR outsourcing usually think insourcing is more economical. But this is different when you factor in the cost of hiring and training new employees, salary, commission, and other employee benefits, not to mention the additional expense of staff turnover, which has been increasing recently.

Let's break down the cost that involves outsourcing sales development representatives.

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Retainer

Most agencies use a monthly retainer. Each SDR's usual monthly price range is between $3,000 and $10,000. Why such a wide range? Various aspects come into play, such as the SDR outsourcing company's past performance, the complexities of your services, and the volume of calls or emails they receive.

Pay for Performance

A performance-based model is one way that certain businesses prefer their payment method. This is when you see the basic pay and bonuses for hitting specific targets. If you love the results, you'll have to pay more. If you are not impressed, it will cost you less. This keeps everyone on their toes.

Hourly Work

Hourly rates are less common, but still important to note. The range for these is $25 to $150 per hour. It's similar to hiring a consultant, except you get real leads.

The Long Game

Here's a professional tip: Longer contracts typically translate into more favorable rates.

How?

For example, purchasing a product in bulk gives you a better bargain per unit. Similarly, a 6-month or 1-year contract could save you significant money, as opposed to month-to-month.

Hidden Costs?

Certain agencies may charge extra fees for using their high-tech tools. Though this is not always a bad thing, you should be able to know all the costs upfront.

Final Thoughts

As the article shows, outsourcing SDRs is crucial in boosting overall revenue. However, before opting for outsourced SDRs, ensure that they align with your business goals.

Remember to choose an SDR outsourcing company that understands your needs and has a record of producing outcomes. An effective outsourced SDR team is ultimately an investment rather than a cost. They're worth it if they bring in quality leads that convert to sales.

Are you looking for an established agency with a record of delivering results?

AI bees is the solution for you!

Book a demo today, and let us help you scale your business.

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FAQs About Outsourced SDR Team

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1. What is an outsourced SDR team?

An outsourced SDR team refers to an external group of sales development professionals whose job involves prospecting, qualifying leads, and setting up meetings on behalf of a company. Thereby, the top of the sales funnel gets taken care of, allowing the sales teams to focus on closing deals.

2. What does an outsourced SDR team do for business growth?

Outsourced SDR teams increase revenue by providing a consistent stream of qualified leads, boosting the speed of the pipeline, and decreasing the time the sales team spends on prospecting. This makes lead generation faster for businesses with outsourced SDR teams, hence increasing revenue for the company.

3. How is an outsourced SDR different from an in-house SDR?

Another major reason why organizations should outsource the SDR model is because the outsourced SDRs can be quickly mobilized and accessed, as opposed to in-house SDRs. In-house SDRs require hiring and training.

4. How much does it cost to outsource an SDR team?

The cost involved in outsourcing an SDR solution may range from $3,000 to $10,000 per month for each SDR, based on experience and services to be rendered. Some vendors also provide options in terms of performance-based or hourly pricing options among others.

5. When should a company outsource its SDR function?

The decision to outsource SDRs may be considered if the company finds itself with sales teams taking too much time identifying leads or if the company decides to expand quickly. Additionally, companies can benefit from outsourcing if they are start-ups or B2B businesses.

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