ProngedAunty

SDR

Why/when/would you outsource your SDR function?

I'm currently working at an outsourced SDR agency, selling on behalf of our clients in EMEA. We're pretty good at what we do, with a specific focus on cold calling.

I finished a campaign with a client and have now started doing cold outreach for our company - thing is, no one wants to talk.

Hoping the savages can give some insight on the circumstances you'd outsource appointment setters, if ever.

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SoccerandSales

Big Shot

Account Executive

I think smaller companies who don't have the resources to hire proper SDR/BDR's would be a great place to start (assuming you are cheaper than a full-time SDR equivalent)

ProngedAunty

Executive

SDR

We’re currently charging around $6000/month/SDR and typically generate 6 enterprise level appointments per month. A cost of $1000/qualified opportunity seems fair from our end.

However, it’s tough to convince smaller clients that it’s worth the investment. If you saw that price tag, would you be scared away?

SoccerandSales

Big Shot

Account Executive

72k a year is a big investment and probably above what smaller orgs would pay for an sdr w/o benefits. Could be tough to break in on second thought

CRAG112

Valued Contributor

Account Executive

Can you discuss the type of sales numbers clients see on average as a result when you are speaking about price? Got to show/prove an ROI as well too.

ProngedAunty

Executive

SDR

Yeah I like this type of approach, especially if you’re discussing CAC with a CRO and contrasting that to their marketing spend.

Our founder is a little sluggish to adapt the call script and VP he wants us to use

oldcloser

Arsonist

💀

When the offer comes with a performance guarantee.

ProngedAunty

Executive

SDR

Yeah I’ve seen some feedback from prospects to this extent.

I’d personally like to shift our model to a variable fee per appointment set because it would make new client acquisition easier for me but our owner doesn’t want that risk - it’s a very cash rich business because of the upfront fees.

oldcloser

Arsonist

💀

No doubt you’ve got weaker competition making such offers. Honestly have no idea how they pull it off - or if the offer is even real. Seems bait n switch to me, but I wasn’t shopping anyway.

ProngedAunty

Executive

SDR

I have a suspicion that part of the hurdle is convincing SVPs that our specialization makes us better/more efficient than their own SDRs.

Especially if they’re hiring first time SDRs

Thanks for the feedback though - it’s definitely a crowded space!

CPTAmerica

Opinionated

President/CRO

I've used agencies like yours several times. Usually as a temporary solution while a new team is being staffed/trained, or to test new market entries, segments, etc.

ProngedAunty

Executive

SDR

What did their pitch look like?

We’re not currently targeting US companies because working US hours is tough - but would you say there’s an opportunity for US companies to explore EMEA with one of our teams?

CPTAmerica

Opinionated

President/CRO

I would think there is a market for that. However, if you're not ready to support customers in US time zones I would hold off on that. Will likely put too much strain on your current process. Something to consider for future expansion though.

Diablo

Politicker

Sr. AE

So we experimented the similar activity and noticed that the outsourced company only calls and calls - not sure who they are calling, why they are calling, what business size are they calling. We see some success in Ent but in SMB/MM not at all.

ProngedAunty

Executive

SDR

Interesting - we do emails and LinkedIn touches as well but 60% of touches are dials. I think the availability of phone data (especially in EMEA) makes it very difficult to connect

CuriousFox

WR Officer

🦊

I hope you were able to get some help friend. I don't know anything about outsourcing sdr/bdrs.

BTQ

Politicker

Account Manager

Cost. An SDR costs a salary + bennies.
An agency (depending on contract/retainer) is a lot cheaper to use to set appointments vs a full-time SDR.

Maximas

Tycoon

Senior Sales Executive

Two main Factors I believe would a let a company outsourcing its business:
1)Competence in achieving sales metrics better than the insourcing employees based on their record.
2)Cash Saver,particularly when handling the task for a bit low-cost outsourcing reps.

pirate

Big Shot

🦜☠️ Account Executive

Outsource based on the figures shared in the comments

ProngedAunty

Executive

SDR

Which figures do you mean?

pirate

Big Shot

🦜☠️ Account Executive

I misread the post, apologies.
"We’re currently charging around $6000/month/SDR and typically generate 6 enterprise level appointments per month. A cost of $1000/qualified opportunity seems fair from our end"
My org has paid 3000 USD for 10 qualified meetings and we set the criteria. I don't know could be worth exploring the market and maybe have different sizing. Say 1000 per Enterprise level appointment is good but then you are losing a lot on the mid market and smaller SMB customers.
SMB are likely to take the call because their calendars are free. But say if the call was just 10 minutes and SMB was sizeable enough it would be better than Enterprise and months before the meeting actually turned into money

Account Executive

Selling outsourced SDR may be difficult due to the fact the cost savings approaches ( We are cheaper than doing in-house) are a tough sell. Some current research is showing that people typically want a revenue growth solution. Like Kent Summers (MIT professor on B2B Sales ) says you have two (2) jobs. Grow Revenue and all other roles.

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ProngedAunty

Why/when/would you outsource your SDR function?

21 comment

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