Inside sales vs. outside sales: what’s the difference?

The main difference between inside vs. outside sales is that the former is conducted primarily through technology and the latter takes place in person. An inside salesperson sells products or services via email, phone and video conference, while an outside sales person meets prospective clients face-to-face at industry events, trade shows or by going door to door.

Below is a deep dive into each structure to give you a clear idea of how they could help you reach your target market.

The inside sales role

The first skill an inside sales rep needs to develop is fast research. They need to be able to source the leads that are most likely to convert using a variety of technological methods. A strong knowledge of social media and a personable, engaging writing style is crucial.

Inside salespeople should be able to understand a company from brand research they conduct online. Quickly identifying pain points and shaping their pitch around a unique brand is a must. Because most communications take place online or via phone, they should be able to read the most subtle cues and take initiative at speed.

What they do

Let’s break down the ways this type of sales rep contributes to customer acquisition and revenue growth:

• Develop strategy:Inside selling requires a broad scope of skills, from strategizing to research and execution. Each day, they’ll need to develop a sales strategy to sell services or products from an office or even their own home. The role differs from telemarketing because there’s no prewritten script to follow. Instead, the salesperson tailors their pitch for the specific company they target. As such, being able to negotiable, communicate, think fast and read people are vital skills.
• Source leads:This begins with prospecting, which involves doing plenty of research to determine the individuals and companies most likely to convert. They send emails, social media messages and use cold calling to help your business reach a new audience. Their aim is to court leads, make a great impression, demonstrate how they can solve the prospects’ problems and ultimately, convert them to loyal clients. The goal is to make as many sales as quickly as possible, and commission is often used to motivate them.
• Use technology to meet key performance indicators: Inside sales teams tend to use customer relationship management software to organize leads. This provides them with all information they need about each prospect in one place. The savvier they are with using technology, the better they’ll likely perform in this role. Most leaders use KPIs to ensure salespeople reach as many people as possible to maximize growth.

Operational model

• Connects with prospective clients, leads and existing clients using technology
• Focus on acquisition
• Speedy sales cycle, usually less than 90 days
• More scalable and affordable

The outside sales role

Outside sales is usually the go-to with big ticket items such as cars, houses and B2B manufacturing. Interpersonal skills, immaculate presentation, charm and confidence underpin excellence in the role of field sales. Being able to think fast and problem solve under pressure are crucial skills, since most interactions are conducted face-to-face and answers expected instantly.

An outside sales team should thrive on challenges and enjoy working long hours, and the majority of team members’ time is spent out of the office. Often, field sales team members are social butterflies who are great at making interpersonal connections.

What they do

Outside salespeople are highly independent and driven employees with tons of patience and experience interacting with high-level business people. They tend to handle expensive accounts and invest a lot of time in forming, maintaining and strengthening relationships with key clients. Some important facets of outside sales include:

• Operate within a territory:Outside sales teams are usually divided into regional subgroups, where they source leads. They set their own schedules and often work long hours, but they must be on-hand to meet a prospect at a moment’s notice in case they get the chance to close a deal or answer questions from a client in their territory.
• Meet in person with leads:In large organizations, there’s typically a team that sources leads for outside sales reps to meet with. They go on to meet the lead and develop a connection in view of convincing them your product or service is the best solution to their problem. In many instances, they’ll meet with an employee lower down in the operational hierarchy before gaining enough trust to meet with decision-makers. Outside sales teams may also meet prospects at events related to their industry.
• Fostering strong relationships: Long-term relationship-building skills form the foundation of an outside sales representative’s responsibility. In the initial stage, they’ll usually meet in a formal setting. However, as time goes on, they might start entertaining clients at restaurants, golf courses or bars to strengthen that crucial personal bond.

Operational model

• Travels to various locations to meet clients
• Nurtures leads in addition to closing deals
• Sales cycles are typically long-term
• Less scalable and more costly than inside sales

Advantages of inside sales

When thinking about whether to prioritize inside sales vs. outside sales, it’s important to take a look at the benefits of both. Let’s start with inside selling:

• More affordable:Making telephone calls and sending emails and DMs is significantly faster than meeting leads in-person, so inside sales can be a more cost-effective approach. The cost of each acquisition is also generally cheaper. What’s more, a majority of an inside sales rep’s time on the clock is spent selling, while outside salespeople spend a lot of time schmoozing, traveling and doing admin.
• Faster:Inside sales teams can source leads and respond to questions faster than outside sales reps, who take the time to meet in person. Field sales requires travel time and potentially entire days or evenings socializing with prospects before the sales process even begins.
• Scalable:Expansion is slower with outside sales because the individual needs to establish themselves within their territory and learn your operation inside out. With a greater reliance on technology and no limitations regarding location, an inside sales team can scale up more easily.
• Team-driven:Inside selling is more of a collaborative process, giving team members the potential to learn from each other and spread work among them.

Advantages of outside sales

Now, a look at the advantages of outside sales for business growth:

• Stronger relationships:As human beings, we’re highly social, and nothing beats face-to-face when it comes to establishing a bond. With phone calls and messaging, facial expressions and other visible demeanor cues aren’t present, and it’s much easier to say no to someone on the phone than a real person standing in front of you.
• Better closing percentage:Outside sales reps tend to have a higher attaining quota than inside sales reps. So while it might be faster to use inside sales, the long-term approach of outside sales is more effective.
• Higher pay for employees: According to Indeed Salaries, outside salespeople have a significantly higher salary and potential for commission than inside sales reps. The main reason for this might be the nature of the industries and size of the companies outside salespeople usually represent.

Should your company choose inside vs. outside sales to drive growth?

Deciding on which sales structure to implement in your company is challenging. If you’re a startup at the beginning of your journey, you might consider outsourcing an inside sales team and conducting outside sales yourself or delegating the task to a qualified key employee. Larger organizations might have in-house inside and outside sales teams, and divide tasks between the two.

If your product or service is mainly online, inside sales is likely the most relevant strategy. More traditional, big-ticket products and services may require a greater reliance on outside sales. For many sales-led companies, a hybrid approach is becoming the norm.