Outside vs. Inside Sales

Outside vs. Inside Sales Explained | Choosing the Right Sales Strategy

A quality sales rep needs strong communication skills, a persuasive personality, and the ability to listen to a customer’s pain points while pushing the value of a product or service. But while these essential skills are a prerequisite for sales success, their implementation can differ drastically. 

It all depends on whether the rep works on an outside or inside sales model. 

Inside and outside sales differ greatly from one another. 

Whether your company should implement an inside or outside sales model depends solely on your specific circumstances. But unless you understand both inside and out, you won’t be able to make informed decisions for the betterment of the entire organization.

Simply put, the sales model you adopt should present the greatest opportunity for increased sales while setting your sales reps up for success. 

In the following sections, apply what you learn about inside sales vs outside sales and their key differences to your target audience. Everything you need to know about the difference between outside and inside sales is below — read on to learn more.

Tables of Contents

• What is inside sales?

• What is outside sales?

• Outside vs inside sales models

• Outside vs inside sales reps

• How to become an outside or inside sales rep

• Inside sales or outside sales: How to choose the right sales strategy

• Tools for your inside sales and outside sales teams

• The future of inside and outside sales

What is inside sales?

Inside sales is a team dedicated to a sales approach where reps sell remotely from an office. 

Instead of traveling to meet with prospects in person, inside sales representatives talk with leads over digital channels. This includes the phone, direct message chat campaigns, email, and video chat.

A variety of industries benefit from having an inside sales team. Still, they're best suited to selling lower-priced, transactional products in shorter sales cycles where you can close deals faster, especially when using a CPQ quoting tool to streamline and automate the quoting process. For example, inside sales reps will make cold calls to a list of target accounts. They gauge their need, interest, and budget for office furniture.

Examples & use cases for inside sales

Inside sales are appropriate for businesses with little to no need for direct face-to-face interaction.

These companies are in industries like: 

• Insurance sales

• Office supplies

• Furniture sales

• Vacation offers

• Health plan offers

Let’s take the insurance industry as an example. 

Suppose your company sells health plans to businesses. Your sales reps reach out to potential clients through long-range outreach methods like cold calls and email. 

When reps find viable prospects, they continue to confer through phone calls and video conferencing. Sales presentations can happen via online tools like Zoom with screen sharing and video call functions.

The prospect negotiates and ultimately signs with your company over the phone. Contracts went out via email and signed via electronic signature. Services begin automatically, and any future correspondence occurs via phone call or email.

What is outside sales?

Outside sales refers to sales reps "in the field." While they may still spend time in an office, outside sales reps meet with clients face-to-face, often traveling to do so.

Outside sales teams are best suited for industries where: 

• The product is expensive or complex

• The buying process involves multiple decision-makers

• The sales cycle is long

For example, an enterprise company selling automation software may use outside sales reps to meet with customers, explain the product, provide in-person demos, and build relationships.

Examples & use cases for outside sales

A company implementing outside sales for its customers relies on in-person meetings and face-to-face interactions to sell a product. These interactions may include one-on-one meetings, in-person product demonstrations, or lunch meetings with the potential customer and their staff. 

While this often involves the sales reps traveling outside to meet with prospective customers, it sometimes means customers come to you. 

That’s more common when your site is part of the rendered services. A great example would be a health club or event venue. 

Some industries that achieve success with outside sales include: 

• Pharmaceutical sales

• Health club memberships

• Software sales

• Tech sales.

Let’s take pharma-sales as a prime example. 

A pharmaceutical sales rep travels to doctor’s offices throughout their territory. Once there, they speak with office managers or doctors to sell new medication. 

Sometimes, the rep brings lunch for the entire office or takes the doctors out for dinner to make their pitch. Another popular tactic can be a golf outing. The social environment creates a more laid-back atmosphere wherein the prospect might be more willing to listen. 

Someone selling software could also lead in-person demonstrations of their product. This sales tactic presents opportunities for the reps to answer questions that come up while the prospect uses the service.

Outside vs inside sales models

In this section, let’s examine how inside sales models differ from outside sales models. 

Outside sales model

When implementing an outside sales model for your business, here are a few things to remember: 

• Your sales reps will spend most of their time out of the office, traveling to meet with potential clients face-to-face. 

• The sales cycle typically takes more than 90 days on average for a sale to close.

• Your reps will build closer relationships with prospective customers and nurture them over time

• There’s more overhead built into every sale since travel costs ‌figure into your sales plan.

Inside sales model

When implementing an inside sales model for your business, here are a few things to remember: 

• Your sales reps will spend their workdays in your office or at home, creating connections to prospects through digital communications like phone and bulk emails. 

• It’s easier for prospects to ignore incoming communications from inside sales reps.

• The sales cycle is much faster, with contracts closing in less than 90 days on average.

• You’ll have far less overhead to worry about since you won’t have to cover travel accommodations for the sales team. 

Hybrid sales model

A hybrid sales model combines the strengths of both inside sales and outside sales. 

During the COVID pandemic, businesses started leaning back on remote inside sales strategies when outside sales weren't possible. Once it was possible to meet face-to-face again, they combined this adjusted approach with traditional in-person outside sales. 

The result was a sales model that focused on remote engagement while also meeting with customers when necessary. 

In other words, a hybrid sales model.

The hybrid sales model allows companies to personalize the sales experience based on each prospect’s unique preferences. This agile approach to sales can drive revenue up by as much as 50%. It’s expected to become the top sales strategy model in 2024.

Outside vs inside sales reps

One of the biggest differences we highlighted above comes down to the roles and responsibilities of inside sales reps and outside sales reps, along with their skill sets. 

Let's break that down slightly as we examine the inside vs. outside sales rep. 

Outside sales reps

Outside sales teams are mostly deployed for longer sales cycles. They sell products that buyers find complex, which carry higher-priced deals. 

Roles & responsibilities

Outside salespeople are always on the hook for handling prospects' objections on the fly. They must know what competitors offer and the general market conditions around the product.

An outside sales professional must be on the ground to meet with prospects face-to-face, usually at the prospect's office. Outside reps often attend trade shows or industry events to win new business.

Outside sales reps update the company's CRM with details on meetings, sales stages, next steps, and other valuable details. This valuable step keeps leadership in the know and guarantees sales are moving forward.

Field sales reps tend to sell more complex, newer, or less intuitive products. They often conduct demos in person. From there, the rep explains benefits, handles objections, and answers questions face-to-face before closing deals.

Key skills

The relationships outside sales reps handle are long-term. 

That makes relationship-building a core competency for outside sales reps, along with building trust, navigating complex situations, and creating a positive relationship.

The outside sales rep should have a driver’s license, a solid sense of direction, and an outgoing personality. They should be personable and confident. 

It’s also a major plus when an outside sales rep is an expert in their industry — this can help them handle objections and answer questions on the spot. 

Salary expectations

According to salary.com, the average salary for an outside sales representative in the United States is $62,354. 

Compensation is usually dependent on performance. It’s common to have a small base salary, commissions from each sale, and annual bonuses for meeting quotas. There’s typically also a stipend to cover travel expenses like fuel and wear and tear on a rep’s vehicle. 

Measuring performance

In outside sales, you judge performance based on quarterly and annual sales targets. Leadership is often less concerned with activity benchmarks and more interested in sales closed and quota retirement.

Inside sales reps

Since inside sales reps aren’t out in the field, their roles and expectations differ from outside sales reps in several ways. Let’s explore that below. 

Roles & responsibilities

Since they primarily sell over the phone or via email marketing, inside sales representatives need to develop a deep understanding of the product(s) they sell. Their knowledge should be deep enough to quickly and clearly explain the functionality without an in-person demo to lean on.

For digital products like software, inside salespeople are often responsible for running virtual demos, typically over video conferencing. Reps must also answer prospect questions on the fly during these demos.

Trust is the foundation of sales today. It falls to inside sales teams to build initial trust with new prospects and potential clients interested in their product. 

*Pro-Tip: Encourage sales reps to think of themselves more as advisors to prospects, offering educational resources and answering questions rather than going for the hard sell.

As inside sales reps talk with prospects, gather information, and qualify or disqualify leads, they report customer data. They often use CRM software with AI-driven insights to keep track of everything.

Key skills

Inside sales teams are potential customers' first point of contact. That’s why reps need to know how to develop positive relationships with new prospects. 

Inside reps should represent the company well. They should be friendly and professional, speak competently about the product, and confidently answer prospective client's questions.

Inside sales reps should also have persuasive personalities that come across well over the phone. They also need excellent written communication skills since they often communicate with prospects through text-based platforms like email or social media. 

Inside sales reps need to be comfortable with cold calling. They can’t lose focus when someone hangs up on them or never returns a message. 

Salary expectations.

According to salary.com, the average inside sales representative in the United States sees a salary of $53,947. The salary is typically performance-based, with a small base and commissions earned from every sale. Annual or quarterly bonuses are also commonly tied to performance. 

Measuring performance

Inside sales teams are often held accountable to monthly sales goals for the number of small and large deals they close. 

Other quotas could include the meetings they book or the sales-qualified leads (SQLs) they pass on to account managers. There are also activity-based benchmarks for the number of calls made and emails sent.

How to become an outside or inside sales rep

Anyone looking to become either an outside or inside sales rep will have to start small and work their way up. Entry-level telemarketing or health club sales positions help prospective salespeople get their proverbial feet wet in the industry. 

Let’s look closer at how to become an outside or inside sales rep.

Training

Both inside and outside sales reps learn by doing. Of course, there are sales courses that you can and should take when seeking a career in these fields. However, experience is also a trememndous teacher. 

Cold-calling over time gets easier as you learn how to navigate objections, sell based on value, and learn to handle rejection emotionally. 

Most businesses offer sales training as part of their new-hire onboarding, and even seasoned sales reps attend training workshops annually. These training sessions typically involve a sales leader or manager walking reps through strategies based on sales analytics. Training also involves one-on-one roleplay sessions so reps can practice. 

As AI and advanced sales tools like CRMs become more common, prospective reps need training on these platforms to hit the ground running when they land a job. 

Certifications

There are outside certifications that aspiring sales reps can complete when trying to further their careers. Sometimes, the company you work for will help with the cost of these certification courses, but that’s not guaranteed. 

Courses like the Certified Professional Sales Person (CPSP) certification through the National Association of Sales Professionals are well-respected. The CPSP costs $795 and encompasses 45 days of classwork.

Work experience

There are entry-level positions available for both inside and outside sales. This could be something like telemarketing for inside sales or selling gym memberships for outside sales. 

For larger companies, like SaaS corps looking to close big-money contracts, sales reps should have 5-10 years of successful professional sales experience.

Inside sales vs outside sales: How to choose the right sales strategy

"I've always approached inside and outside as two sides of the same coin," Evan Tarver, co-founder and CEO of Selling Signals said.

"Ultimately, if you're building relationships with prospects and customers, a lot of that can be done inside an office over the phone, Zoom, and email. But it often pays (quite literally) to have your salespeople meet with prospects and customers in the field when a face-to-face interaction will help.

If you find your sales process requiring a lot of lead nurturing, consider a blended approach as I've outlined above," Evan advised.

There are many things to consider when determining if your company needs an inside or outside sales team (or both!). Let's talk through a handful of the most important ones.

Product & industry

The product you're selling is the most important consideration for building an outside or inside sales team. 

For instance, high-priced and high-complexity products sell best via in-person outside sales reps or field sales. Lower-priced, easy, intuitive-to-understand products sell more efficiently with inside or remote sales teams.

For example, an enterprise technology company selling a brand new software category would benefit from having an outside B2B sales team to help explain and demo the product in person and answer prospects' questions.

As Kristaps Brencans, CMO at On The Map, explained …

"As a digital marketing agency, inside sales has always been the preferred avenue for us because we sell to our leads entirely online. Because the way we work with clients functions completely in the online space, it wouldn't make sense to begin the selling process with an outside sales strategy," 

Tools & resources you can invest in

Consider what you can realistically afford when choosing a sales structure for your team. 

For instance, if you don't have the resources to cover travel for an outside sales rep, then you're better off starting with inside sales. Or, if you don't have an office space for inside sales reps to work in, you may opt for an outside sales team or offer a remote working environment instead. 

Sales cycle length

Longer sales cycles typically involve many decision-makers and customer relationship management is even more critical. 

This is when outside sales representatives are your best option.

On the flip side, many SaaS products have low prices and self-service signup processes, making the sales cycle very short. In this scenario, inside sales reps may be all a company like that needs. 

Budget

To compensate for travel, job complexity, and expertise, outside sales representatives command higher salaries and commissions.

Always consider your budget before opting for an outside sales team. 

Scalability

The expertise required for outside sales reps, along with the budget and resources you need to build an outside sales team, affects your company's scalability.

For instance, if you're expecting to scale quickly after closing a new funding round, an inside sales process may be the better option.

Tools for your inside sales and outside sales teams

Here are some of the tools different types of sales models will need to be successful for your company.

Sales calling tools

Both inside and outside reps will need a way to call prospects on the phone. 

A great sales calling tool tracks and records calls and lets reps view context and notes while on the phone. It also offers analytics for management to track. 

Call masking is also helpful for both inside and outside sales reps to show their personal phone number, a number local to the customer, or the company's number.

*Pro-Tip: With Freshsales CRM, you can enable reps to call from anywhere using Cloud Telephony and even mask calls with their phone number.

Sales prospecting tools

Consider using virtual sales tools like LinkedIn Sales Navigator to help inside sales reps prospect, discover new potential opportunities, find contact information for leads, and pull details from a web form to inform and tailor pitches.

You can also use Freshsales CRM for cold calling and emailing to track your cold prospects' responses and nurture them with emails. 

Sales email tracking tools

Track the emails reps send to prospects so that both reps and sales leaders can keep track of the sales process. 

Sales metrics, such as the number of emails sent, opened, clicked through, and bookings resulting from each email can help both reps and their managers track, and improve email selling.

*Pro-Tip: You can integrate Freshsales for two-way tracking of emails sent to and received from prospects.

Sales automation tools

From new emails, follow-ups, and data entry to sales cycle tracking, both inside and outside sales teams benefit from automating repetitive tasks and workflows. 

Some automated tasks might include:

• Entering data in your CRM

• Scheduling emails and triggered campaigns

• Reporting sales and analytics

• Setting up follow-up reminders and sales cycle tracking

• Qualifying leads

*Pro-Tip: Empower outside reps when they're on the go by using the Freshsales mobile app  — give them access to all their data and workflows right on their smartphone.

Video calling tool

Both inside and outside sales reps need a video calling tool.

In this category, you need something simple that just works. We recommend using Zoom, since it's reliable and most prospects will be familiar with the software.

Calendar and booking tool

Regarding sharing availability and booking sales calls and meetings, we recommend Google Calendar. 

It's easy to use on the go and works seamlessly with other calendar tools like Outlook and Apple.

The future of inside & outside sales

The future for both inside and outside sales involves taking a more balanced hybrid approach backed by technology. 

More than ever, customers want omnichannel, personalized engagement in the B2B world.

That means they want inside and outside sales elements through a hybrid model. That model should prioritize personalized strategies that appeal to the preferences of each prospect. AI will make this hybrid model more achievable, assisting with everything from client outreach to deal management and automating complex calculations. 

When AI works through a CRM, sales reps can see predictive models that point to shifting consumer trends, access notes on each prospect for outreach purposes, and work with different currencies and languages. They can also automatically pull data on prospects with each conversation. 

Wrapping up

Both inside and outside sales reps have many responsibilities and skills in common that can complement any sales pipeline. 

They both also benefit from a great CRM system. Outside sales reps need a CRM they can reference and update on the road to prepare for in-person meetings. Inside sales reps need a CRM that gives them the proper context for customer calls, simplifies tracking many prospects, and helps monitor and improve their close rate.

The bottom line: Evaluate your core business needs to select the right sales strategy and CRM for your team.

*Pro-Tip: Freshsales CRM and its wealth of useful sales features is a great option to help power and track the sales cycle for both inside and outside reps.