Inside sales vs. outside sales: Which is right for you?

Selling software through a screen versus shaking hands over a contract—both approaches can drive results, but which suits your business best?

Some deals rely on quick, remote interactions (inside sales); others demand personal, face-to-face connections (outside sales) to build trust.

A McKinsey report highlights the surge of inside sales post-COVID, offering efficiency and scalability through digital tools.

However, outside sales hold their ground where trust and personal connections matter most.

In this blog, we'll break down inside vs. outside sales, explaining their core differences and guiding you on choosing the right model based on your business needs.

If you're new to these concepts, our next section will give you a clear understanding of both approaches.

What is inside sales? 

Inside sales refers to selling products or services remotely without needing in-person interaction. It can be selling digitally to inbound leads or reaching target prospects for deals.

The most common sales channels are phone calls, email, text messaging, or video chat. 

Inside sales reps are involved in activities like lead management, scheduling discovery meetings, sales qualification, negotiation, and closing. 

Here is what an inside sales process looks like:

This sales model is suitable for industries leveraging digital communication and efficiency, like SaaS, eCommerce, and education technology.

Insightful read: Check out the detailed guide on inside sales strategy!

What is outside sales?

Outside sales is the art of meeting prospects face-to-face, much like traditional door-to-door sales.

Chris Gardner, played by Will Smith, perfectly captures the spirit of outside sales in the movie "The Pursuit of Happyness."

He's constantly moving, meeting people, showcasing his product with unwavering persistence. Such determination and in-person interactions are what make field sales so powerful.

This approach focuses on relationship-building with prospective clients, often for high-value or complex deals like industrial machinery or specialized medical equipment sales.

Both inside and outside sales drive results, but their effectiveness depends on the industrial aspects and approach.

Let's move to understand the key difference between inside and outside sales.

Inside sales vs. outside sales: Key differences 

Understanding these differences can help businesses and sales professionals determine the most effective strategy for their goals.

Let's break down the key distinctions.

2. Customer interaction and relationship-building

Inside sales reps rely on regular touchpoints like follow-up emails, video calls, and timely responses to maintain relationships with potential customers.

While personal connections are important, the focus is on quick and consistent communication to keep the sales pipeline flowing. 

Outside sales reps thrive on building deep, personal relationships that require face-to-face meetings to connect more emotionally, especially for high-value or complex deals.

This approach concerns quality over quantity—fewer clients but stronger, long-term relationships. 

3. Sales cycle length and complexity 

Inside sales reps close deals quickly, often within days or weeks, which makes it ideal for straightforward, transactional products like software subscriptions or retail goods. 

In contrast, outside sales cycles are usually 30-40% longer than inside sales because they involve more complex deals and require in-person meetings.

4. Compensation structures and earning potential 

Inside sales reps usually have a steady base salary with bonuses or sales commissions tied to their performance. 

Compensation for outside sales often leans heavily on commissions, reflecting their deals' complexity and high value.

This means higher risk but also higher reward—especially for top performers. 

According to Glassdoor, the average annual salary for an Inside Sales Representative in the United States is approximately $51,095. For outside sales representatives, the average annual salary is about $77,361.

Note that these figures represent base salaries and may not include additional compensation such as commissions, bonuses, or other incentives, which can vary based on industry, company size, and individual performance.

While outside sales reps often earn more upfront due to commissions, inside sales roles provide faster career growth in high-demand industries like SaaS.

Inside vs. outside sales: Ideal team structure

Let's explore how inside sales vs. outside sales teams operate and the qualities that set their members apart. 

Inside sales team structure and roles

Inside sales teams focus on selling remotely, mainly leveraging communication tools to connect with prospects and customers.

Here's how the B2B inside sales team is typically structured: 

• Sales Development Representatives (SDRs): The key role involves reaching out through calls, emails, and qualifying leads before passing them to account executives. Their primary goal is to build a strong pipeline. 
• Account Executives (AEs): They take qualified leads and manage the sales cycle from presenting solutions to negotiating terms and finalizing contracts. 
• Customer Success Managers (CSMs): After a sale, CSMs step in to ensure client satisfaction, handle onboarding, and identify opportunities for upselling. They're key players in building long-term customer relationships. 

Note that SDRs may also take on an AE's responsibilities in some businesses, particularly smaller teams, handling lead generation and deal closure.

Outside sales team structure and roles 

Outside sales teams excel at face-to-face interactions, making them essential for industries where personal relationships drive business. 

Here's how these teams are typically organized: 

• Field sales representatives: They are the frontline professionals who meet potential clients in person to present demos and negotiate and close deals.
• Sales managers: They oversee the field team, set targets, and provide coaching to meet goals. They balance strategy with day-to-day operations to keep the team aligned. 
• Sales support specialists: These behind-the-scenes heroes handle logistics, prepare sales materials, and manage administrative tasks. Their work allows reps to focus on selling. 

Also read: How to build a sales team successfully in six easy steps

Inside vs. outside sales representative skills

Each sales model requires specific skills to excel. Here's grab the skills on inside vs. outside sales rep:

Inside sales skills:

• Clear communication: It ensures that your inside sales reps can effectively convey complex information over calls and emails. 
• Tech savviness: Comfort with CRMs, video conferencing tools, and sales automation platforms is critical for managing leads efficiently. 
• Time management: Poor time management leads to a loss in meeting sales quotas, and thus, you should hire reps with the skill of balancing multiple clients and tasks to maintain productivity. 

Outside sales skills:

• Interpersonal skills: Reps with this skill can build trust, ease concerns, and guide clients toward confident decisions, making all the difference in sealing the deal.
• Adaptability: Being flexible is crucial since outside sales reps often encounter changing environments and diverse client needs. 
• Self-motivation: Working independently requires drive, discipline, and a proactive attitude to meet goals. 

Interesting read: Top 16 sales associate skills that you must have

Outside sales vs. inside sales: Tools and software 

For both inside and outside sales teams, having the right technologies ensures smoother processes, better client engagement, and higher productivity. 

The right tools ensure efficiency and precision at every sales process step.

Let's explore some of the most crucial tools for inside and field sales teams:

1. Customer Relationship Management (CRM)  

A CRM is the go-to tool for managing leads, tracking conversations, and scheduling follow-ups. It keeps everything organized in one place, helping inside sales teams handle large volumes of prospects efficiently.

You can get a complete overview of your lead's interaction within a CRM; here's how it looks like inside the Salesmate CRM:

For outside reps, mobile CRMs are critical. They provide access to client details, deal histories, and updates in real-time, ensuring reps are always prepared while on the move.

Salesmate, HubSpot, and Salesforce are top-rated options on G2 and Capterra that you can consider if you invest in inside sales software.

2. Email automation tools

Inside teams rely on these tools to send personalized email sequences, monitor responses, and schedule timely follow-ups, saving time and boosting engagement.

While not a primary tool, email automation helps outside reps follow up after meetings and keep prospects engaged.

3. Video conferencing software

A key tool for virtual demos and pitches, video conferencing software allows inside reps to connect professionally with prospects from anywhere.

While outside reps typically meet clients in person, video tools can serve as a helpful backup for remote or hybrid meetings.

Zoom and Microsoft Teams are top choices for video communication. Zoom excels in virtual demos with features like screen sharing, while Microsoft Teams is ideal for hybrid meetings with seamless Office Suite integration.

Read in detail: 16 Best inside sales software & tools

4. Route planning and mapping software 

Travel is a big part of field sales, and every minute on the road counts. Route planning tools ensure reps spend less time navigating and more time meeting clients.

You can try Badger Maps, Map My Customers, or Route4Me to optimize travel routes and maximize client visits efficiently.

5. Expense management apps 

Fieldwork often comes with travel costs; managing receipts or expense reports can be a hassle.

Effectively managing travel expenses can boost return on investment by up to 20%, so reps use apps like Expensify or Certify to make this process seamless, letting them focus on sales instead of paperwork.

Insightful read: 21 AI sales tools to boost sales in 2024 [Reviewed & tested]

Inside sales vs. outside sales: Measuring performance & success 

Inside and outside sales teams have distinct workflows, so the sales KPIs (Key Performance Indicators) used to track their success must reflect those differences.

Let's explore how performance is measured for each. 

Metrics and KPIs for inside sales 

Inside sales teams operate in a digital space, focusing on high-volume outreach and efficiency.

Here are the key metrics that indicate their success: 

Metrics and KPIs for outside sales

Outside sales teams focus on face-to-face interactions and often work on longer more complex sales cycles. Here are the KPIs that matter most to them: 

How do inside and outside sales models affect business outcomes?

Deciding between inside and field sales models impacts key aspects of a business, from costs and efficiency to customer preferences and relationship building.

Understanding these differences helps align your sales strategy with your goals and target audience.

Choosing the right approach: Inside sales, outside sales, or both 

Use the questions below to determine the right fit for your business between outside and inside sales.

When to prioritize inside sales?

1. Is cost a concern for your business?

Inside sales is more cost-effective, eliminating travel and lodging expenses while enabling teams to reach a wide audience remotely.

2. Do you need a scalable solution?

With tools like CRMs and video conferencing, inside sales teams can manage more leads without additional resources, making it easy to scale quickly.

3. Is your product easy to sell with a straightforward process?

Inside sales works well for products that don't require in-depth explanations, and communication can be managed via virtual demos, emails, and calls for deal closing.

Must check: 9 Sales Strategies Revealed by Top Entrepreneurs and Sales Experts

When to prioritize outside sales?

1. Are you dealing with high-value transactions?

In-person meetings are important for building trust and nurturing relationships, especially when multiple stakeholders are involved in decision-making. You might need an outside sales representative if you have multiple people dealing with a sales conversion.

2. Does your product require detailed explanations or demonstrations?

An outside sales approach is ideal for products that benefit from hands-on demos or technical walkthroughs that virtual tools can't replicate effectively.

3. Do you need to foster long-term relationships?

For industries that depend on repeat business, face-to-face meetings strengthen loyalty and ensure clients remain engaged over time.

From our latest: How is AI revolutionizing sales roles? 

When should businesses use a hybrid model?

A hybrid approach allows businesses to use inside sales for efficiency and outside sales for more personal engagement. 

These two questions will help you get clarity of introduction to an inside + outside sales model:

1. Are your sales cycles diverse?

A hybrid strategy allows inside sales to handle high-volume leads and outside sales to focus on closing high-stakes deals.

2. Do you need flexibility to meet customer preferences?

Combining both models ensures you can adapt to customer needs—inside sales for efficiency and outside sales for personalized, relationship-driven engagement.

Let's understand the need for a hybrid model by using an example: Retail chains often use inside sales for bulk orders and general inquiries.

Outside sales teams visit flagship stores or meet with big clients to discuss custom solutions or pricing strategies.

Wrap up on inside sales vs. outside sales 

Inside and outside sales bring unique strengths, but the right choice depends on your business needs and customer expectations.

With technology bridging the gap, both approaches are becoming more efficient, empowering sales teams to adapt and thrive. 

Whether you're leveraging the scalability of inside sales positions or the relationship-driven nature of outside sales, the key is aligning your strategy with your goals to drive results.