Building a sales team is costly. Recruiting, training, managing, and paying your new hires adds up fast. How much does building a modern sales team cost, and is an outsourced sales team less expensive than you may think?

Our estimate is $131,120 per hire with a modern process, tools, and management.

And this cost will increase each year with the addition of each new sales development rep. We can do it for less and save you the headache and hassle at the same time.

5 Internal Sales Team Costs

It starts when hiring a sales development rep (SDR). Like any employee, you are responsible for paying their base salary, which averages about $46,000 annually, and much more.

Recruiting

To get high-quality talent you have to invest in your recruitment efforts. Expect to spend close to 20 percent of your prospect’s base salary on recruitment alone.

You are paying for your recruiter or HR team’s time, as well as other items like external job postings, possible agency or finders fees, and – when the time comes – background checks.

Training and Development

On average, companies spend $1,075 per new hire for training and development. This number includes both virtual and in-person training courses, the technology needed to complete training, instructional materials, and the trainer’s time.

It can take up to nine months of training for your sales rep to get fully up to speed and be competent enough to start generating revenue.

Sales teams need management

Whether a dedicated sales manager is already in place, or a new manager is promoted or hired, you must take into consideration the salary adjustments made for managers taking on new responsibilities.

If you are choosing to leave remote work behind and return to the office, take into consideration the cost of office space, office supplies, and other necessities your new hire might use.

Sales Tools

Think computer, phone, CRM license, and the cost of other sales enablement software. Your sales tech stack per employee can surpass $8,000, according to our estimates.

Payroll, Taxes, Benefits, and Bonuses

We mentioned earlier that you can expect to pay an average salary of $46,000 per SDR. On top of that, you will pay a 6.2 percent social security tax, 1.45 percent Medicare tax, your state’s minimum unemployment tax, and a 6 percent federal unemployment tax.

Add health insurance contributions to 401(k) or savings plans, paid holidays, vacations, and sick time. If you have a bonus or commission structure in place, be prepared to pay out based on your SDRs’ performance.

Additional costs may appear, depending on the needs of your company.

The hidden cost of turnover

Another thing to consider: turnover in sales is fairly high. According to a Deloitte survey, 25 percent of new sales hires plan to leave their current job within a year, and 44 percent plan to leave within two. High turnover rates mean a bigger investment for your company because the hiring and training process starts over again.

During this downtime, be prepared for a dip in revenue that will result from the job being vacant.

An outsourced sale team can give you more for less.

Companies like ours give you a valuable option. An outsourced sales team can cut down on the cost and eliminate the complexity of doing it yourself.

With our turnkey outsourced sales development service, you receive:

• Sales Playbook – a clear explanation of why your customers buy, supported by a clear selling process
• People – your choice of a few people to add to your existing team or a dedicated team of sales specialists who can deliver results in weeks, not months
• Environment – positive team energy that fosters productivity in the remote workspace
• Training – programs that start from scratch or add new skills to your existing team
• Technical Stack – the equipment and know-how your team needs to reach prospects including outreach sequences, call recording analysis, and more
• Dashboards – a live performance of your sales team
• Weekly huddles – regular discussions on the state of your sales cycle and overall performance
• Account management – one-on-one communication to ensure you receive the desired outcomes

Let’s start a conversation.

With outsourced sales you can extend your existing team, win new markets, and develop new channels. You gain new, actionable insight, higher conversion rates, and more won deals. What’s not to like?

But if you are not yet sure outsourcing should be part of your B2B sales operation, this article explains why it is not only normal but a best practice.

Ready to advance your outsourced sales initiative? Our tips and tricks article will help you pick the right vendor partner for your business.

Book an appointment with one of our sales consultants to learn more.