Inside Sales vs. Outside Sales: How to Structure Your Sales Team
Inside or outside sales? There are often conflicts between these two strategies. As a business that has been in sales for a decade now, it's evident that the two roles need to merge, as both have become vital parts of sales.
Are the lines really blurred? Is inside sales just sales as usual? Are you unsure which go-to-market strategy to choose? A well-rounded sales plan should include both elements.
Let's compare inside sales and outside sales and examine how each fits into modern sales teams.
What Is Inside Sales?
Inside sales is the practice of selling remotely via phone, email, and other digital channels rather than face-to-face. SaaS and technology industries are particularly fond of it in the B2B sector.
Inside Sales vs. Outside Sales
A typical inside sales representative works from their office or home desk. Meanwhile, outside sales reps travel and broker deals face-to-face. Outside sales reps may have an employer with a physical office, but they often meet with prospects at trade shows, conferences, and industry events.
According to much-cited U.S. Census data, out of the 5.7 million professional salespeople in the U.S., approximately 45.5% are inside sales professionals. 52.8% of sales are made by outside sales representatives.
The Benefits of Inside Sales
Consumers are more likely to conduct online research on goods and services and communicate with sales representatives than to meet in person because of the popularity of digital channels. CSOs expect 60% of sales staff to work virtually, according to a Gartner study.
Besides meeting the needs of your customers, let's explore some of the other benefits of an inside sales model.
Wider Reach of Customers
Within a short period of time, inside sales teams can establish connections with a large number of prospects. According to Hubspot's 2024 sales report, 21% of sales representatives believe remote sales are somewhat more successful than in-person sales.
The use of CRM platforms, email automation, sales automation tools, and phones can help inside sales professionals manage and follow up on multiple leads simultaneously. Through technology, they can easily connect with many prospects and customers no matter where they are or what time it is.
More Affordable
Inside sales generally have lower costs than outside sales. By eliminating travel, lodging, and other associated expenses, inside sales operations can become more cost-effective.
With newer technology and methods, inside sales teams can also reach many prospects at a fraction of the cost of traditional outside sales. As a result, companies are able to maintain high levels of productivity and efficiency while saving money on overhead.
Adaptable and Saves Time
Inside sales allows businesses to quickly adapt to changing business requirements. A well-equipped inside sales team can interact with potential customers in a timely and personalized manner and provide them with the information they need to make an informed purchasing decision.
As a result, revenue increases, sales cycles are shorter, and conversion rates are higher. More than a quarter (28%) of sales professionals believe that lengthy sales processes contribute to prospects backing out of deals, according to Hubspot's recent sales report. Furthermore, you can avoid the logistical difficulties involved with outside sales, allowing teams to be scaled up or down in response to demand and making adjustments to sales plans in real time.
According to Chase McKee, founder and CEO of Rocket Alumni Solutions, they use inside-sales strategies to expand their client base to over 500 schools without the overhead and complexity of an external sales force. In addition to streamlining their operations, this approach resulted in a 50% increase in conversions.
A sales model that is based on inside sales can be very helpful when it comes to meeting your company's objectives. Depending on what you want to accomplish, you should decide which strategy to implement.
What Do Inside Sales Reps Do?
During the sales process, inside sales reps work remotely with their potential customers to ensure they find a product or service that will solve their problem.
What are inside sales activities?
An inside sales representative's responsibilities include:
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Answering customer questions and inquiries with superior product knowledge.
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In order to establish trust and rapport with potential customers, you need to build relationships with them.
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Convert leads into customers by nurturing them.
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Referral management from existing customers.
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Meeting their monthly quotas.
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Dealing with customers and closing them.
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Data reporting on relevant sales.
As inside sales reps rarely meet with prospects face-to-face, they rely on tools like phone calls, emails, video, and virtual meetings. It is more predictable for them, and they often have a target for how many activities they accomplish each day (e.g., number of calls, meetings scheduled, proposals sent).
You'll need a deep understanding of your product if you're interested in becoming an inside sales rep. Inside sales reps must be able to explain the functionality and value of their product to customers during a cold call, if necessary, as opposed to outside sales reps.
Inside sales is also a better fit for remote salespeople or teams.
What do outside sales reps do?
Typically, outside sales reps spend most of their time traveling to meet clients, connect with prospects, and nurture relationships.
Outside teams engage in 25% more calls and over 50% more emails, according to the Xant.ai report for 2021.
Industry events, conferences, and speaking engagements are common venues for them to sell their products. Those who like to manage their own schedules and work independently will enjoy this type of sales position.
There is really no difference between inside and outside sales anymore because the tools they use are so similar - CRMs, emails, social media. It's all about sales.
Inside Sales Team
You'll need the following roles to build an inside sales team:
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Sales development representative (SDR). Qualifies the lead.
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Account executive (AE). Closes deals.
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Account manager. Manages customer relationships.
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Customer success manager. Oversees customer support.
Your sales team should have one SDR for every two or three AEs.
Should you outsource your inside sales team?
It is important to evaluate your company's current situation in order to figure out the best setup for it.
Small businesses and startups may benefit from outsourcing their inside sales teams to reduce overhead costs. You may be better off investing in an in-house team if you're a larger company.
Imagine your sales team is currently focused on acquiring new leads rather than closing deals. It takes a lot of time for sales reps to connect with prospects, nurture relationships, and qualify leads.
Consider outsourcing an inside sales team and having your in-house team focus on qualified and purchase-ready leads.
As McGee agrees, outsourcing sales allows for geographic expansion and consistent brand messaging, adding, “When we partnered with an educational technology provider, strategic negotiation and inside-sales support secured a 40% above initial offer, demonstrating financial gains and improving credibility.”
Outsourcing has many benefits, but it's only effective when it's done by a reputable vendor. Your vendor should have a clear understanding of your brand, product, and messaging.
Additionally, your vendor should be transparent about:
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Their sales process.
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What they’ll deliver (pipeline building, number of qualified leads a month, etc.).
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Progress reports.
Inside Sales vs. Outside Sales Salary
Companies must pay market value for salespeople in order to retain top talent.
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According to Glassdoor, the median salary for an inside sales rep in the U.S. in 2024 will be $82K.
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The median salary for a sales development representative (SDR) is $79K.
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The median salary for an inside sales account executive (AE) is $96K.
Sales leaders often demand a higher base salary for outside reps because they believe they bring more experience.
According to our data, companies with the majority of outside sales reps had a higher base salary than those with the majority of inside sales reps. However, the OTE for outside sales was only 9.2% higher.
It is reasonable to assume that OTE is a good indicator of expected earnings, so inside sales positions earn about as much as outside sales positions.
Inside Sales vs. Outside Sales Quota Attainment
In 2024, 70% of sales reps missed quota, according to the 2024 B2B Sales Benchmark Report from EBSTA and Pavilion Found. The average quota of outside sales reps is 10% higher than that of inside sales reps, according to Spotio.
Companies often allow inside sellers to close smaller deals on their own - and support outside sellers when working on strategic accounts - even though territories are sometimes assigned based on specific roles (inside/outside).
Inside vs. Outside Sales Models
Here’s a breakdown that will help you visualize the structure of an inside versus outside sales team.
Inside Sales Model
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Sales rep connects with prospects, leads, and clients using digital channels.
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Focuses on acquiring leads.
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Faster sales cycle (<90 days).
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Costs less and is more scalable.
Outside Sales Model
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Sales rep travels to meet clients face-to-face.
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Focuses on nurturing and converting leads.
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Slower sales cycles (>90 days).
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Costs more and is less scalable.
In addition, you will always be at the mercy of your customer when choosing a sales organizational structure. What is the best way to contact your customers? In what ways do they allow you to close a deal? Is it possible to close a $1M deal over the phone? Ultimately, your customer will decide - but your salespeople will still need effective training.
A Balanced Sales Model Is Key
We don't believe that a field sales model is necessary for any particular vertical, industry, or product. The field sales model is prevalent in some industries. However, this does not imply that it is the best sales model for the current market.
Digitally savvy buyers are becoming more prevalent today. Because they're buying more goods for personal use on Amazon and other websites, they'll naturally expect this model to work seamlessly in B2B environments as well. With a solid digital sales model, you must be prepared to meet their needs - and this means including inside salespeople.
When it comes to inside and outside sales, there is no manual. Companies are trying different models and testing various organizational structures to find the right fit for their product, buyer, and market over the years.
We have learned through this debate that there is no one-size-fits-all strategy. As the digital landscape continues to evolve, you'll need to find a balance between the two.