Should you focus on inside sales or outside sales? Which one is better for your company?
Both inside and outside sales are insanely valuable, so the ideal answer is to take advantage of both. However, your industry, product or budget might dictate that you put your time and money toward building a sales team that sits in one category. So, how do you decide?
In this guide, we’re diving deep into inside and outside sales: why they might suit you, how to hire, how to structure your sales team, and much more.
- What is inside sales? The definition
- What is outside sales? The definition
- What does an inside sales representative do?
- What does an outside sales representative do?
- The salary of inside and outside sales reps
- The cost and scalability of inside and outside sales
- The sales experience requirements for inside and outside sales
- Inside sales vs. outside sales: key differences
- Structuring an inside and outside sales team
- Make the most of inside sales and outside sales
What is inside sales? The definition
Inside sales is the process of selling products and services remotely (as opposed to face-to-face). Inside sales reps don’t meet their sales prospects in person. Instead, they use phone calls, emails, video conferencing and more to maintain relationships with their leads, prospects and customers.
Inside sales is also known as virtual sales or remote sales. It usually takes place from behind a desk and has the benefit that reps are able to sell to anyone, regardless of how far they are.
In the 1980s, the term inside sales was used to differentiate telemarketing from high-value phone sales that were typical for B2B and B2C sales practices at that time. By the early 2000s, inside sales became a term to help differentiate sales conducted from an office and those that involved going out on the field.
What is outside sales? The definition
Outside sales is the process of selling products and services in person, through face-to-face meetings. Outside sales reps travel to meet their prospects. This can happen at industry events and trade shows, as well as the prospect’s office or a restaurant—it can even just be going from door to door.
Outside sales is also called field sales. Although they do have an office as their base, outside sales reps spend most of their time in the field.
Unlike inside sales reps that may close hundreds of sales without seeing their prospect’s face, the success of outside salespeople depends on their ability to build and maintain in-person relationships with their prospects.
Outside reps build trust through the power of in-person interactions, body language and deeper human connection.
What does an inside sales representative do?
Since inside salespeople don’t meet with their prospects in-person, they need reliable tools to connect with their potential customers.
The channels they’re using for their entire sales process include:
- Phone calls
- Video conferencing
- Live chat
- Text messages
In other words, they can take a cold lead and turn it into a paying customer without leaving their desk. They need a stable internet connection and a way to conduct phone calls with quality audio.
Because they usually can’t see the facial expressions of their prospect, they must be able to pick up verbal and audible cues in their sales conversations. Without this skill, inside sales reps will struggle to move their deals forward.
They have quite a predictable schedule. Based on their sales conversations, they can quickly identify their prospect’s position in the sales funnel. As a result, inside sales reps can plan their daily and weekly activities accordingly.
Let’s say the inside sales rep has a goal to close 10 sales. Their ideal pipeline in this case might include 200 incoming leads for this period. They know they qualify about half of all leads, which brings them 100 good leads to work with. If they usually close 10% of all their qualified leads, they know this is enough for them to hit their goal.
With this in mind, they can always see if they’re on track and focus on quality leads to correct course, instead of scrambling for any leads in fear of missing their quota.
And if you empower them with a CRM to track their efforts, they’ll be unstoppable.
As they are selling remotely, inside sales reps have the power to switch their focus from one sales funnel stage to the other quickly. Likewise, when they disqualify a lead based on the lack of needs or budget, they can move to a qualified one right away.
On top of that, they can communicate with dozens of leads on a daily basis and automate a lot of their communication.
Because they’re in an office (rather than on the field), they can get a clearer insight not only on their own results, but on the collective performance of the team. Working towards shared goals can strengthen unity and teamwork.
“The critical skills for inside sales reps include listening and rapport building over the phone or in video calls,” explains Jaakko Paalanen, Chief Revenue Officer at Leadfeeder. “Organization skills are crucial, too, since they’re probably handling a higher volume of accounts.”
These are the main benefits of having inside sales reps:
- A well-defined, strategic sales process
- A shorter sales cycle
- An opportunity to scale
- The power of teamwork
- More time to focus on selling (instead of admin, travel, etc.)
What does an outside sales representative do?
Outside salespeople are often on the go. The core of their job is to meet their potential customers at events such as conferences and trade shows. Other opportunities may include a meal at a restaurant or a game of golf. It could just involve visiting businesses in your target market or that match your current customers.
Unlike inside sales, outside sales has a lot less structure. Outside sales reps set their own schedule and work in a more autonomous way. Their working hours may differ from the standard 9 to 5, depending on the types of meetings they’ve arranged.
Like inside sales, outside sales follows a sales process and thrives on activity-based selling. On top of standard sales tools (like CRM and a calendar) and channels (like email, phone calls, and text messages), they also often use tools to map their sales territories and routes.
Outside sales reps invest a lot of time into each lead they choose to meet. This is why it’s useful to focus on deals of larger value, especially when there’s a number of decision-makers involved. Correctly qualifying leads (and breaking up with prospects that aren’t a fit for their offer) helps outside sales reps make the most of their time on the field.
Throughout their sales process, both inside and outside sales reps:
- Establish a personal connection with their lead
- Listen to their challenges and pain points
- Present solutions relevant to these pain points
- Address objections
- Close the deal by asking for business
The difference is that outside sales reps most often do all this in a single meeting, while inside sales reps usually split this between dozens of email, text, and phone call touchpoints.
Because of how hands-on this process is, outside sales naturally results in a longer sales cycle. Unlike inside sales, in-person relationships that outside sales thrives on can’t be scaled or automated. However, by working with less leads at once and focusing on the individual needs of each person they meet with, outside sales reps are likely to close a higher percentage of deals in their pipeline.
And by being at industry events, conferences, and customer offices, they can see industry changes, trends and reactions happening in real time.
To sum up outside sales, here are its benefits:
- Stronger customer relationships
- Higher close rate (as they focus on a smaller number of leads and spend more time and in-person effort on each)
- Keeping a finger on the industry pulse
- Motivated sales reps due to higher commissions
The salary of inside and outside sales reps
If you’re building a team of inside or outside sales reps, you want to make sure you’re offering compensation that will attract top performers.
And if you’re the one looking for a job in such a team, or you’re already in such a role, you want to make sure you get what you’re worth.
Let’s look at some key data for several countries (accurate as of 2 December 2019).
Inside sales vs. outside sales salary: United States
- Inside sales representative salary (US, Glassdoor): $47,557 per year
- Inside sales representative salary (US, PayScale): $43,604 per year
- Outside sales representative salary (US, Glassdoor): $49,560 per year
- Outside sales representative salary (US, PayScale): $49,426 per year
Inside sales vs. outside sales salary: United Kingdom
- Inside sales representative salary (UK, PayScale): £24,058 per year
- Outside sales representative salary (UK, PayScale): £28,003 per year
Inside sales vs. outside sales salary: Ireland
- Inside sales representative salary (Ireland, PayScale): €31,406 per year
- Outside sales representative salary (Ireland, PayScale): €34,521 per year
Inside sales vs. outside sales salary: Australia
- Inside sales representative salary (Australia, PayScale): AU$53,670 per year
- Outside sales representative salary (Australia, PayScale): AU$55,215 per year (AU$60,500 per year for the territory sales representative title)
Inside sales vs. outside sales salary: Canada
- Inside sales representative salary (Canada, PayScale): C$45,001 per year
- Outside sales representative salary (Canada, PayScale): C$50,142 per year
Inside sales vs. outside sales salary: South Africa
- Inside sales representative salary (South Africa, PayScale): R131,686 per year
- Outside sales representative salary (South Africa, PayScale): R161,986 per year
Salaries depend on the specific country, its standard of living and market fluctuations.
Shane Ronan-Duggan, head of business development for Dataships, a data privacy software company, has noticed that there’s a difference when selling into different markets:
“The biggest difference I have seen is a cultural one. For instance, here in Ireland people respond better to a face-to-face meeting—maybe once in the sales cycle. When selling into the UK, however, the end-to-end process can be done completely over the phone.”
“With new technologies, face-to-face interactions can now be achieved as inside sales through video calls,” he continues. “For me, the key to being successful is training all sales people, inside or field-based, in the same sales methodology.”
Take this cultural difference into account when hiring for either inside or outside sales roles in specific countries. Use the above numbers as a baseline for their respective countries. Notice that there’s a pattern? Outside sales professionals are paid slightly more than inside reps.
Here’s the case for higher salary for field reps:
- Outside sales reps are likely to have a higher close rate
- Deals closed through outside sales are often larger than inside sales (as outside sales reps usually work on higher-value deals)
- Field reps often have more years of sales experience
Being out on the field requires lots of adaptability from a sales rep’s perspective. The more experienced he or she is, the easier it is to handle any curveballs and unforeseen circumstances.
Based on the PayScale reports mentioned earlier, outside sales vs. inside sales commissions seem to reflect this, too. For example:
- In the US, inside reps get an average $9,822 commission, while outside reps get an average $15,123 commission
- In the UK, inside reps get an average £5,000 commission, while outside reps get an average £5,500 commission
Salaries and commissions for sales reps should reflect the value of their skillset, talent and the results they create for their team.
The cost and scalability of inside and outside sales
As well as the salaries associated with hiring inside and outside sales reps, there are also costs to consider around commissions—and the growth potential that comes when hiring for these roles.
The cost and scalability of an inside sales team
With an inside sales team, your budget can go a long way. All these reps need are a computer, a solid internet connection and a CRM to help them always stay on track.
As you add more inside reps to your team, the cost of running your sales operations doesn’t skyrocket. New costs include a new hire’s salary, an additional CRM seat, and sales training.
With a bigger team that operates from your office, or even their own home if they work remotely, you can now reach more prospects and upscale your sales. On top of that, with a great CRM tool your inside sales team will be able to:
- Streamline lead generation and scoring
- Automate reminders to check in and follow up with leads
- Visualize their sales pipeline
- Focus on the right deals at the right time
In other words, you’ll be able to multiply your sales results at a lower cost, with minimum risk.
The cost and scalability of an outside sales team
Growing your outside sales team will usually cost you more than just salaries and CRM seats.
Your field reps rely on the quality of their in-person meetings. This means that for every new rep, you must ensure the budget for flights, dinners, meeting rooms, accommodation, a company car and more.
On top of that, face-to-face conversations can’t be automated. Your rep can’t have the same conversation with more than one lead at the same time. These conversations also last longer than a typical phone call or an email exchange.
In other words, an outside salesperson can only be closing one deal at a time. They spend significantly more time switching (i.e. traveling) between two leads than an inside sales rep does.
Outside sales means managing a single relationship at a time.
If you’re selling high-ticket products or services, investing in outside sales reps can yield returns for many years to come.
“Match your offering’s lifetime value to the customer acquisition cost and make sure it’s over three times higher,” suggests Jaakko Paalanen. “If you can accomplish that ratio with a repeatable process, outside sales could work for you.”
Deeper customer relationships are often behind higher customer lifetime value and loyalty. Steven Benson, the founder and CEO of Badger Maps, a route planner app for field sales reps, describes a trick to maximize outside sales performance despite the scalability challenge:
“Identify the skills that a rep needs to be successful on your team and figure out who has the deepest expertise in each of those skills. Then, prepare your top reps to ‘clone’ themselves—in other words, transfer those skills to the rest of the team.”
Benson continues by saying that “group sessions are a great way to get everyone on the same page. Top-performing reps can show the rest of the team how to utilize their techniques as part of weekly or monthly training sessions. Make learning an ongoing part of the job and maximize knowledge retention.”
“With the right cloning strategy, your entire outside sales team will start closing more deals,” he concluded.
Outside sales is harder to scale because of the higher costs that come with hiring more reps, so this sales strategy is a smart approach when you’re aiming for slower, long-term growth. When you need to grow faster, inside sales may be a good, cost-effective initial focus. Expanding your outside sales team will suit you when you’re ready to invest more into in-person customer relationships.
The sales experience requirements for outside sales vs. inside sales
Looking for superstar salespeople? If you want to hire for specific roles in inside and/or outside sales, there’s one truth to keep in mind: all high-performing sales reps are great communicators who are driven by understanding their prospects and focused on results.
But the way they’ll have to use these skills in an inside sales model compared to the outside sales environment is quite different. Let’s look into both.
Inside sales experience requirements
When reviewing the CVs of potential candidates for an inside sales job, here’s what you’ll want to look for and ask about in your interviews.
- Process-driven selling: Inside sales benefits from a well-defined sales funnel and clear sales activities that move a deal from one stage to the other, often quite fast. A sales rep that can show you how and why a CRM drives their daily and weekly action items is a valuable one.
- Genuine excitement about working in a team: Unless it’s a remote role, inside sales jobs involve spending 40 hours a week in an office. The more comfortable your reps are being around a team—and the more driven and energized they are by them—the better their results.
- Ability to communicate clearly, both in writing and over the phone: Inside reps have a limited window to deliver their message to the decision maker they’re talking to. There’s no room for fluff or vague promises. Whether they’re having their sales conversation through email, social media, live chat, or web conferencing they have to articulate their messages well.
- Readiness for fast-paced selling and openness to change: A short sales cycle can mean frequent switching between various sales funnel stages, leads and tools. It also means that as the team shifts priorities, the rep needs to be open to changes in quotas or sales strategies that may happen as a result.
Outside sales experience requirements
Here’s what to look for when hiring a high-performing field sales rep.
- A self-starter who enjoys working on their own, outside of the office: Field sales can be quite lonely, but for the right person, that’s not a bad thing. A great outside sales rep will thrive working on their own, focusing on one relationship at the time.
- Efficient time management and appointment setting: If they don’t arrange their own meetings, routes and goals for the day in the field, outside reps don’t get anything done. Their schedule depends on their prospecting skills, and a good field sales rep know they have limited time and energy—they won’t waste it on the wrong leads.
- Openness to new environments, people and roadblocks (literal and figurative): No two days are the same in outside sales. Every person, meeting and location is unique, and that can be a challenge on its own. Look for a rep who will make the most out of every situation, including a delayed flight and a last-minute cancellation.
- Charisma and the ease of building in-person rapport: These are arguably the most difficult skills to test for, but you’re looking for a person that can make their leads feel good after speaking with them in person. They’re great at active listening, reading non-verbal cues and facial expressions, as well as the tone of voice. Making instant connection comes easy to them.
Inside sales vs. outside sales: key differences
If you want to quickly review the key differences between inside and outside sales, we got you covered.
“For us at Cognism inside sales is our predominant approach, due to the locations we target and our relatively small deal size, so we build trust online,” says Jonathon Ilett, Sales Director at Cognism.
“However, outside sales is beneficial for larger deal sizes and we actively promote face-to-face engagement for these deals, so the sales team are actually doing a hybrid role: for more transactional deals, our reps use the phone or give remote demos (inside); for complex solution sales we encourage face-to-face engagement (outside).” he adds.
Structuring an inside and outside sales team
Earlier, we talked about the cost and scalability of inside and outside sales teams, but what about when you need both teams to work together? How can you ensure they work in sync instead of stepping on each other’s toes?
The current impact of inside and outside sales in companies
The State of Sales report from InsideSales.com revealed that:
- In the US, there’s nearly a 50/50 split between inside and outside sales reps (47.2% versus 52.8%)
- In Europe, there are more outside sellers (62.9%)
- Globally, companies report the ideal internal split of inside and outside sales should be 50/50
On top of that, the apparently clear distinction between inside and outside sales is becoming a bit blurred—outside sales spend almost half of their time selling remotely.
The same report revealed how companies approach inside and outside sales based on their size:
- Large organizations (more than $500M in revenue) are dominated by field sales reps (71.2% of their sales force is made up of field sales)
- Small organizations (less than $50M in revenue) have the highest percentage of inside sales reps (47% of their sales force is made up of inside sales)
Your current company size may help you see which sales approach fits you better, but let’s look into ways you can combine both.
Three ways you can structure inside and outside sales
There’s no one-size-fits-all solution to structuring your sales team—it will always depend on your market, company goals, industry, and many other factors.
However, there are only a few ways you can approach inside and outside sales for your team:
- Separate inside and outside sales reps
- Inside and outside sales teams working together
- Hybrid sales reps that work on inside and outside sales
1. Separate inside and outside sales reps
In this setup, there’s no real overlap between your inside reps and field reps. Everyone works on their own leads. Each team has separate daily, weekly and monthly quotas.
If you choose to go this way, you enable everyone to do their best work without depending on the other team. You can assign leads based on their size, which is quite an expected approach in B2B sales.
You can assign small and medium-sized companies as leads to the inside sales team. These deals move through the sales pipeline faster and fit the nature of remote inside sales.
Large companies—potentially large deals—can then be assigned to field reps who can invest more time into relationship building that requires face-to-face interactions.
2. Inside and outside sales teams working together
This approach still keeps the sales teams separate—i.e. all the reps still only do inside or outside sales—but they collaborate and help each other move leads forward and close deals.
For example, your inside sales team can work with leads that are located far from your office before outside sales reps plan to visit them. Inside sales reps have a refined process to identify more specific pain points and potential objections and help your field reps prepare—or save them a trip if the lead turns out to be unqualified.
3. Hybrid sales reps that work on inside and outside sales
With outside sales teams spending almost half of their time selling remotely, a hybrid sales team seems to be the direction many sales organizations are taking.
So how do hybrid sales reps organize their time and take proper action with their leads?
When they’re in the office, hybrid sales reps make the most out of their time at their desk.
- They keep an eye on their pipeline and follow up in a timely manner.
- They monitor their inbound leads and prioritize reaching out to the hottest ones.
- They automate repetitive tasks and streamline their sales process to free up time for outside sales.
When they head out, they focus on the leads of highest value. They’re well prepared based on the pain points they uncovered when qualifying these leads, and they have a plan on how to approach them. They’re adamant about tracking their activities on the field the same way they do in the office.
Brian Forrester, the co-founder of Workshop Digital, an SEO and digital marketing agency, describes their hybrid approach to inside and outside sales this way:
“We don't need dedicated inside sales reps and we don't need dedicated outside sales reps, so consolidating the responsibilities allows us to operate a very lean sales team and still hit our sales goals. For our small business, this hybrid model is more cost-effective. Our internal sales are scalable as we close them entirely over the phone or via web conferencing, and we do this for about 80% of our new business prospects.”
“However, certain key accounts, as well as local businesses near Richmond, VA, require outside sales functions including more in-depth and personalized strategies and face-to-face meetings,” he added. “While we aren't "pounding the pavement" and knocking on doors to generate prospects, some of the prospects do require an outside sales approach. We've become more adept at assessing those needs and layering on the right approach over time.”
The tools to empower your inside and outside sales reps
Whichever team structure you decide is right for you, you need the tools that will allow your sales reps to work at their best and collaborate efficiently.
As Stan Masseueras, Intercom’s sales director for European region explained: “The democratization of productivity and communication tools has been extraordinary over the past five to seven years. It has never been easier and cheaper to sell to, manage and support your customers wherever they are and connect with them at a deeper level.”
“We’ve evolved toward a world where inside sales reps travel to meet customers strategically and field reps are boosting their productivity by making the most out of modern communication solutions,” he adds.
Here’s a list of our tool suggestions:
- CRM: With Pipedrive, you can work from a visual sales dashboard that enables everyone, both in the office and on the field, to keep track of their work and their goals. Our mobile CRM is a dream, even when offline.
- Lead generation: LeadBooster, Leadfeeder and Prospect.io are tools that allow your sales reps to react quickly to the warmest of prospects—those that visited key pages on your website—and make the most of their outreach.
- Sales calls: Streamline your call workflows easily with Aircall or Pipedrive’s Caller feature, which lets you avoid busywork and focus on engaging with customers.
- Email marketing and automation: With Autopilot, design and build customer journeys for specific leads in your team’s sales pipeline. They can use any channel where they talk to their leads to deliver personalized messages and close more deals.
Make the most of inside sales and outside sales
With everything you know about your company, lead types, deal sizes and industry, you can use this guide to identify the budget and skills you need to build a high-performing sales team that suits your business.
If you’re low on budget and want to scale, or have a shorter sales cycle, you should consider hiring inside salespeople. If, on the other hand, you sell a product or service that would benefit from face-to-face engagement with prospects, where your salespeople build long-lasting relationships, consider hiring outside salespeople.
You may think that you would benefit most from the both of best worlds, with a hybrid sales team able to kill it on their cold calls and charm potential clients in person. The important thing is that you focus on the most valuable goals for your company and create a sales team that will enable you to achieve them.