The last 7 years of my career I have had the opportunity to build out two different digital sales teams. One for a previous employer who had no inside sales function at all and one for my current employer who had a team in place but needed to enhance the performance. Each time I approached this task the question of the best model for the Business Development Team was an item of discussion. Should we continue to build out an internal team or is outsourcing the BDR function a good option. There are all kinds of opinions about this subject, in this article I will share my thoughts.
My bias in building out the BDR function has always been to do it in-house, outsourcing was not an option. Outsource companies all seem to have a similar story. You pay the fee based on resources or number of meetings set. There is always a disclosure that they will not guarantee a number of meetings and/or convertible opportunities, they utilize systems/process/tools that are readily available, the staffing is rarely able to be enabled in the same depth of internal employees, in house employees are dedicated to building the organizations pipeline, you control incentives and staffing/messaging is more adaptable as it is all handled in house.
In my current company I was brought on originally to build out the BDR function to optimize the build of pipeline. There was a need to enable, build out process, optimize the tech stack, and evaluate the current staff or upskill. As it turns out there was another request to analyze an outsourcing option about 6 months ago. A co-worker of mine led the search and we met with several different companies. Turns out there was not much change in the concerns I listed above, but then he found a group called The Pipeline Group (TPG). Before I proceed, I want to make it clear that opinions expressed in this article are my own personal take and is not intended to represent either The Pipeline Group or my current employer’s view. Now that I have covered myself, I will tell you that The Pipeline Group is different from any other BDR outsource company I have come across. TPG is totally dedicated to building pipeline through their BDR team. As we looked into the company they had a custom technology process that has a great mix between AI, Automation, and Personal outreach. Their approach for implementation allows for visibility into teams performance, messaging outcomes, and allows for constant changes where needed to messaging. They worked very closely with our marketing team to make sure they targeted the right persona and company profile. I can honestly say they changed my perspective on outsourced BDR teams and feel now there is a place for this in some companies.
So now that I have gone on about TPG, let me try and express my new view on In-house vs Outsource. It is my opinion that if you are a company that meets one of the following criteria you should at least consider outsourcing your BDR function:
- If you don’t have the necessary funds to properly build out a tech stack to support the BDR team
- You are rapidly expanding your sales team and need BDR support for these new reps
- You are a startup and time is of the essence to get your GTM engine going
- You do not have the funds or headcount to enable, monitor, and manage the BDR team
I would just say to make sure you take the time to evaluate the outsourcing company you go with, they are not all created equal.
Although, my preference is still to build out a BDR function in-house for larger organizations, I would now take a closer look to see if outsourcing to the right company might supplement the in-house function. The results I have seen with TPG has changed my perspective on the topic. That being said, whether you build in-house or outsource there are, in my opinion a few things that you must do for success:
- Invest in your BDR teams training of your products and the ecosystem around your technology
- Invest in training around proper outreach, persona, message adaptation, and prospecting principles
- Make sure you have a good tech stack that supports accelerated outreach, follow up, and verification of potential prospect contact information
- Where possible tie the BDR directly to 1-2 reps and have reps become deeply involved with coaching and identifying prospect targets
- Build incentive programs that are not just focused on KPIs like # calls, meetings set, or prospects added to systems, instead focus on pipeline generation and influenced booked revenue
- In-House or Outsourced BDRs should feel like they are part of the sales team
- Don’t be afraid to have them staff events to get some outside sales experience F2F with customers
- Invest in training them to become an Account Executive (This not only keeps them happy, but also provides you with a potential hiring pool)
- Know that the BDR function will always be needing replacement reps (Either the BDR will advance their career, or will not perform at expected level)
If you want to discuss my experiences further, please feel free to reach out to me directly here. Whatever model you decide to go with, good luck and good hunting.
