Blog > Sales Management

The Pros and Cons of Hiring In-House vs. Outsourcing Sales Professionals

As a business owner, do you prefer hiring in-house or outsourcing sales professionals? Perhaps you’re still stuck on figuring out what the right decision is. The best approach is to learn how these strategies can bring your business more growth and fewer costs.

If you’re comfortable working with in-house sales professionals, then this might not be an easy switch for you. It’ll be hard to trust salespeople when you don’t get to see them as often as before. You may have less communication with them too. “How did that morning call go with yesterday’s lead?” “Can we have a meeting at the conference room in 10 minutes about your sales report?” “I’m busy at the moment. Can you please leave a note on my desk?” These are some of the questions you’ll no longer ask when you’re not with an in-house sales team.

If you’re already working with outsourcing sales professionals, you experience more time in other areas of your business. Since your sales team is less dependant on you, you won’t have to hold their hand through every process. You don’t have to worry about training them as much either. They’re more independent, and you rely on them to only produce results for you.

Every business may be different, depending on your industry. Maybe you won’t achieve as much without having at least some in-house sales professionals. Whatever it may be, we want to help you make the right decision for your business.

We’ve listed out the pros and cons of hiring in-house and outsourcing sales professionals: 

In-House Sales Team

Pros:

You’ll have full control of whoever works for your business in-house. They know your story and are loyal to your mission. You can train and manage your sales team. You could assign other responsibilities to salespeople if you wanted to. And anyone who works close to you will understand your company culture and vision better. They’re more knowledgeable of what goes on with your business’s organizational structure. That gives them the advantage of helping you solve problems easier.

You can get a more precise idea of how your in-house salespeople’s performance is in comparison to outsourcing sales professionals. But if you have an in-house sales team, you need to make sure they’re capable of their skills, knowledge, and attitude. Every salesperson needs to be skillful enough and do the job well so you can be confident to trust them. They should be on the same page as everyone else and not expecting too much guidance from you. Only then will you have a dream in-house sales team you can rely on to make more revenue for you.

Cons:

Let’s say that not all your salespeople are experts in their field. There might be some who produce results slower than others and aren’t as qualified as you thought they were. You would need to go through another recruitment process and train new salespeople until you feel positive about your sales team. Quality sales professionals might be hard to find for hire, or they could be expensive (depending on your budget) if you want them to work in-house.

Hiring an in-house sales team comes with an investment. Here are some of the costs:

  • Employer taxes
  • Benefits costs
  • Software license
  • Human resources expenditures
  • Training costs
  • Administration and management

It sounds expensive and challenging to manage your sales team if you don’t have all the right people. On top of that, you’re paying for other expenses to hire and keep them around. So it’s a lot more than paying the average salary for every in-house salesperson.

Outsourcing Sales Professionals

Pros:

If you don’t have enough expertise and resources to manage your sales team, then you should consider outsourcing sales professionals. You’ll cut the time training and supervising them. They’re already experts in their field, which makes it more efficient for you to hire them. Let’s face it -  you need to focus on other areas of growing your business too. Your part is to choose who you want to work with, so you can trust them to create results without your help. You'll even save more on resources such as office space and marketing tools.

When you’re looking to hire outsourcing salespeople, you don’t have to pay them by salary or any extra fees. You can offer to pay commission instead. That means they only get paid if they can bring you more clients. If they don’t produce results, you don’t have to pay them. There won’t be a decrease in productivity either. There’s less risk for you, and it’ll motivate them to work harder. And success is achieved by those who are the most hungry for it.

Cons:

The biggest issue with outsourcing a sales team is you having less control. There are less communication and meetings. Some business owners have more regulations and prefer to be closer to their salespeople. For example, there might be some sensitive information you wouldn’t feel comfortable revealing to people who aren’t working in-house.

It could take some time for outsourcing salespeople to learn your products or services. They must know how your funnel works and get familiar with all the possible questions or objections from leads. Do they know your business inside out?

Outsourcing salespeople could also choose to work with more than one business owner. You might not be the only business they’re helping to close deals. They may decide to invest more time in whichever business that’ll compensate them more. 

Can’t Decide? How About Both?

You might consider another approach if the previous two options don't fit well with your business. As a business owner, you may feel the need to be closer to your salespeople for ongoing projects. But you also want to outsource a sales team in different timezones for more sales opportunities. You could have both an in-house sales team and outsourcing salespeople.

“Not only do we not have to be in the same spot to work together, we also don’t have to work at the same time to work together.” - Jason Fried and David Heinemeier Hansson, authors of Remote: Office Not Required

You could have the best of both worlds and delegate different sales tasks to different teams. Maybe you can have your outsourcing sales team close sales while your in-house sales team focuses more on your marketing efforts. Your needs and goals may vary but keep in mind how you can maximize performance for the best solutions. 

Summary

We’ve listed out the pros and cons of hiring in-house and outsourcing sales professionals. We hope you gained a more precise idea of what’s the best decision for your business. Whichever strategy you decide to go with, we hope you’ll choose what makes you more revenue and helps you save on costs. If you’re looking to make the switch from having an in-house sales team or needing some outsourcing salespeople, you can always hire sales pros here