Inside Sales vs Outside Sales: A Detailed Comparison

However, while the overall goal may be the same, most of the similarities end there. 

If you’re wondering what inside and outside sales are, then you will probably also be wondering which type is best for your company (hint: it can be both).

The actual answer will depend on numerous variables such as the nature of your business and your goals.

To help you decide which option is best for you it can help to understand the difference between inside and outside sales. We’ve created this article to help you choose the best option for your business.

What is Inside Sales?

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A definition of inside sales is selling products to other people remotely rather than in person (from “inside” the office).

Examples include telesales and email marketing where marketers rarely get to meet their prospects face-to-face.

Inside sales is, in fact, a very popular way of generating revenue - for every outside sales rep, there are another ten inside sales representatives. What Does an Inside Sales Representative Do?

Inside sales is a broad term. As such, inside sales teams have a wide range of roles to perform. 

Regardless of their specific role, inside sales reps tend to need good organizational skills and be able to follow complex sales scripts.

Inside sales representatives will also often use technology like customer relationship management (CRM) platforms to collect and use information about their prospects.

Inside sales require various skills, which also explains why at least 66% of inside sales reps in the US have a bachelor's degree.

Let’s see some of the more common roles carried out by inside sales representatives.

Lead Hunting

Any salesperson needs leads, but not just any lead will do. If you don’t have a well-targeted database, then your sales team will likely struggle.

The good news is that there are numerous ways to build a database that will be a gold mine if used correctly. 

Some of the most common inside sales lead-hunting methods include the following:

• Online Directories: Online directories make a quick and easy way for companies to collect vast numbers of leads at little cost. Most online directories are free, giving easy access to all the leads you could need. You will also find directories for many specific industries and other categories, helping target lead collection.
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• PPC Marketing: Pay-per-click marketing involves posting ads online, typically on platforms like Google and Facebook. PPC is preferred by many companies for reasons including flexible budgets and quick results. While there will be some expenditure, this method can gather high-value leads that help generate more sales.  
• Online Networking: Social media platforms are potent tools when it comes to finding and reaching out to people. As such, it becomes easier to develop relationships with people online, or at least gather their contact details. Platforms like LinkedIn in particular are excellent resources for professionals looking for others in specific industries or roles. 
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• Online Lead Magnets: One way to collect qualified leads is to ask people for their details directly. However, most are understandably reluctant to share personal information, but many will be happy to do so in exchange for something else. So, for example, if you offer your visitors a free E-book in exchange for their name and email address, many will be happy to comply. Leads obtained in this way can be particularly valuable because they are highly targeted and warm. 
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• Referrals: Approximately 65% of new business comes from recommendations. But getting referrals is easier said than done and you will need to encourage your customers to recommend you. There are numerous ways of encouraging referrals, such as offering future discounts on products. No matter which approach you take, remember the most important thing is to provide a genuine quality service that people will be happy to recommend.

Qualifying Leads

It might be necessary to qualify your leads, which is usually the job of an inside sales representative. The basic premise behind qualifying leads is to help ensure skilled salespeople close more deals by wasting less time on poor-quality prospects. 

There are various ways of qualifying leads, including:

• Cold Calling: Cold calling probably sounds archaic to some in this digital age, but it is still one of the most effective methods available. Cold callers typically need to be determined because they will experience frequent rejection. Depending on the setup, the qualifying stage might be skipped and a salesperson may be expected to make sales directly from a cold call. 
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• Drip Campaigns: A drip campaign is a type of email marketing campaign that helps nurture your leads. Lead nurturing builds your relationship with prospects so they get to understand and trust your business, thus preparing them for the close. Drip campaigns typically use automation tools to send the right materials to the right prospects at the right time, taking into account where individuals are in the sales cycle. Once the software identifies that a particular prospect is ready to close, it can signal a sales rep to get in touch.

You can find a great example of a simple yet effective inside sales model at the email marketing software developer, ActiveCampaign - a model that is focused on qualifying leads. 

When you sign up for ActiveCampaign, you’ll get an email and a call from one of their sales team soon afterwards.

This person, known as a “setter”, will gather information about you and your business. They will then arrange an appointment for a sales rep to call you again soon.

The sales rep, in turn, might offer discounts or similar incentives on products to help close the deal.

This super-effective system has played a significant part in ActiveCampaign’s growth that led to a $240m Series C at a $3b (as in billion) valuation.

Note how the system works well for all parties because marketers get access to a potent tool, while ActiveCampaign gets new customers - making a deal a win-win for both parties is always the best way to go.

Using CRM Platforms

Today’s inside sales teams often have access to sophisticated CRM software.

These platforms are essentially fancy databases that provide sophisticated tools that help sales reps work more efficiently and effectively.

For example, a good CRM platform will tell the rep about the prospect’s previous interactions with the company, helping them make the right move at the right time, so that they can close the deal.

CRM platforms can also gather vast volumes of analytical data that can help a business enhance its products and marketing campaigns.

Closing the Deal

Closing the deal is essential, regardless of which approach you take.

In many cases, a skilled salesperson will contact the prospect and convince them to make a purchase.

Closing deals is also sometimes done digitally, with automation software sending the appropriate sales materials to prospects.

Note that an inside sales rep will also often be expected to raise revenue in other ways, such as upselling.

What is Outside Sales?

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A definition of outside sales is sales typically made in person, away from the office.

Most outside salespeople will work alone, although they will usually have some support from the office. 

What Does an Outside Sales Representative Do?

The outside sales environment can be far more dynamic than the inside one. As such, outside sales reps need to be adaptable and quick thinking, while charisma is also beneficial.

Outside sales is another broad term that covers a wide range of roles, including:

• Door to Door: Door-to-door selling involves visiting people in person, usually without having made an appointment first. In some cases, it will mean going from business to business, while others go from house to house. Door-to-door sales can be hard, frustrating work, but with high potential rewards. 
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• Smooching: The sales process doesn’t end once a transaction has been completed. Instead, it’s best to continue to work with your customers and let them know you appreciate them. For example, your businesses might have sales reps smooch your long-term clients so will happily continue doing business with you.  
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• Attend Events: Many outside sales reps will be expected to attend events like seminars and trade shows. Their roles can range from collecting information for sales reps to selling directly. Attending events is also a great way for salespeople to network, helping them build relationships that could result in future business. 

Inside Sales vs Outside Sales

Understandably, many people will try to compare inside sales vs outside sales to see which one is best. However, there is no single correct answer because different approaches work for different businesses.

For example, an inside sales model is often best for digital products, while an outside sales model might be best for companies selling commercial or industrial products, especially if they are high-ticket. 

Here’s a closer look at the difference between outside and inside sales:

Inside vs Outside Sales Models

Of course, the specific setup of an inside sales model will vary from company to company. Regardless, most will adopt a standard approach that looks something like this:

• Gather leads and qualify them in some cases.
• Use the phone, social media, email, and other digital channels to develop relationships with prospects.
• Develop that relationship until the prospects are ready to buy.
• Go for the close.

On the other hand, a typical outside sales model would look more like this:

• Travel in person to meet potential prospects, sometimes without an appointment or introduction.
• Pitch products and services in person and answer questions about the product.
• Close the deal when the prospect is ready, which can take several visits.

Overall, inside sales solutions are easier and less costly to set up, although this varies from business to business.

Inside & Outside Sales Statistics

Some statistics give valuable insights into the inside sales vs outside sales debate, and here are some of the most helpful.

• Outside sales team will pay between 40% to 90% more than inside sales teams to gain new customers.

• On average, an outside sales professional will earn 14% more than their inside sales counterparts.
• On average, an inside sales call costs $50, which rises to $308 for outside sales calls.
• Only a small percentage of a salesperson's working day is spent talking to prospects.
• The average inside sales rep can make 33 cold calls per day.
• On average, outside sales reps close approximately 40% of their prospects.
• Companies can expect 20% more sales on average if they nurture their leads before trying to close them.
• Only about 21% of leads will convert into sales. This figure would improve significantly if more companies nurtured their leads.

Inside Sales vs Outside Sales Salary

According to Glassdoor, the average US inside sales professional will earn just over $64,000/annum, while the average outside sales rep will make just over $100,000.

These numbers will vary considerably on an individual level and many inside sales reps will make more than outside representatives do. 

How To Build an Inside Sales Team

Building an inside sales team can give your business a very welcome boost in revenue. It can also offer other benefits, such as having your sales team support your customer service team, and vice versa.

However, building a team means recruiting and training the right talent. This process can be costly and time-consuming.

You will also need a suitable location for the team to work from (or good equipment if they work from home), and you will need to invest in the latest CRMs and other software for maximum results.

Whether or not this is a good option for you depends on numerous factors, such as your budget and how much time you’re willing and able to commit to building a team. 

Should You Outsource Your Inside Sales?

A popular alternative to building your own sales team is to outsource the role. This option offers numerous benefits over doing it yourself, including:

• Reduce Costs: Building a sales team yourself requires investing in the right talent, equipment, office, and other resources. However, you can outsource your operation to a sales company that already has personnel and infrastructure in place and can spread their costs over numerous clients. As such, your costs are reduced without sacrificing effectiveness. 

• Get Results Faster: Setting up a sales team takes time. Not only will you need to find and recruit the right people, but you will also need to train them. As such, it could be some time before you start getting results. A professional sales company will already have everything in place, helping them hit the ground running. 
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• Tap Into Experience: An experienced sales company will have the skills and know-how to get the best results. And not only will they have talented salespeople, but they will also have industry insights into getting the best results. 
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• Save Time: In addition to spending time setting up a team, you will also need to manage the department. This can take time that could be spent on other important aspects of your business. If you outsource your inside sales management, much of the work will be taken off your plate. 

FAQ On Inside & Outside Sales

Here are some of the most commonly asked questions about inside sales vs outside sales.

What Is Inside Sales?

Inside sales is the process of selling products/services remotely, such as over the phone or by email. Inside sales teams will often work together in an office, although some will work remotely. 

What Is Outside Sales?

Outside sales involve making sales in the field. This typically involves traveling to prospects to build relationships and close deals. 

Which Method Is Best?

Inside sales is the most popular option, but that doesn’t necessarily make it the best choice for you. You need to define your requirements and goals before you get started, so you can choose the option that works best for you.

Can I Outsource My Inside Or Outside Sales Operations? 

Yes, you can. You will find numerous professional sales companies that will manage your sales operations for you. Doing so has numerous benefits such as reducing costs and giving you more time to focus on other important tasks.