When scaling a technology company, there comes a moment in time where go-to-market leaders need to increase pipeline generation and subsequently face the dilemma of building a sales development function internally, or outsourcing to a specialist agency.
There are pros and cons to both options depending on many variables, but also advantages in running the two along side each other.
Unfortunately, often sales and marketing leaders say they've had their fingers burnt with agencies who promise the world and spectacularly underdeliver.
In this blog, we look at how to choose an outsourced sales development agency that is the right fit, complements your overall strategy and enables you to get the best results.
Your Objectives
When choosing a Sales Development Agency it is important to be clear on your objectives and what success looks like from an engagement. For instance, are you a start up that is taking its value proposition to market from an outbound perspective for the first time, or are you an experienced scale up that is seeking more volume and an additional source of pipeline.
A small start up may be more interested in market feedback, the voice of the customer and how messaging is resonating, where as the scale up probably already knows this and just needs more bandwidth to penetrate accounts.
Being clear on your objectives allows you to understand what is key from an agency.
The People
One of the most important cogs in the wheel of a success outsourced sales development agency is its people.
There is a believe that SDRs should have a number of years experience, although this doesn't always align with the best results. Typically, the natural next step and often the goal for a SDR is to be an AE, so you may find they are looking at making that transition, or alternatively perhaps they haven't progressed due to their performance so far.
We recommend resources that have had enough time to onboard, ramp and find their feet in the company, but also still are motivated, energized and have something to prove. Often, the best SDRs are someone who has some experience in some form of sales capacity and are transferring those skills to sales development.
Other things to consider should be:
How they are recruited
How they are onboarded
How they are continuously trained and educated on sales techniques
Their knowledge of your industry and target market
How the agency incentivizes SDR performance
Collaboration and Partnership
A successful outsourced sales development initiative hinges on the relationship between the client and the agency.
It is imperative that the agency works as an extension of the client's sales and marketing teams, and therefore it should not be viewed as a set and forget - you can't just hand over the messaging and expect pipeline.
The agency are your eyes and ears in the market, and should therefore feel as though they can explain any problems and openly make suggestions.
In order to drive positive collaboration and a healthy partnership you should think about:
A structured onboarding process to understand your business, target audience and objectives?
Detailed weekly, monthly and quarterly reports that include key metrics, call recordings, campaign performance insights and market feedback.
A feedback loop between the client and agency to share meeting feedback, lead hand over process, what is working and areas to improve
A single point of contact to ensure clear communication, alignment and as a point of escalation
Their Approach
When choosing an outsourced agency for sales development, it is important to choose a company that not only aligns with your objectives, but more so with the desire approach you want to implement.
For example, many GTM leaders want an SDR to take a multi-channel approach via telephone, email and LinkedIn, where as some agencies generate meetings and pipeline through email and automation.
We recommend an outsourced Sales Development company that takes an account based approach to outbound, and therefore is proficient across telephone, email and LinkedIn. A key factor in this is having a team operating in your prospects time zone, as well as having a relatable accent for your target market for phone-based outreach.
Alignment on KPIS
Traditionally, revenue leaders have measured SDR performance on the number of meetings that are booked. However, not all meetings hold the same value, and this can incentivize the wrong behaviour if the right processes and expectations are not set.
If your outsourced provider relies on aggressive sales tactics to target poorly matches prospects, you may end up with plenty of meetings that have little impact on your revenue number.
To promote a more effective strategy, its important to align ahead of time on expectations of how many meetings will be generated, the percentage that should convert to pipeline, the attendance rate, in addition to other KPIs to drive collaboration.
Other points to consider:
Transparency in reporting - does the agency offer detailed insights, call recordings, meeting attendance etc.
Can the agency scale outreach efforts without compromising quality as your business grows
Ensure the agency continually improves its approach based on performance data, feedback and market trends.
Investment models
As we've discussed earlier, it is important to ensure the outsourced SDR company is aligned in your desired approach, which will ultimately have a knock on effect to the price and investment model.
For instance a team of local SDRs will be more expensive than a heavily automated approach, although will likely drive better quality meetings and pipeline.
Ensure you understand what's included in the pricing. Hidden costs can add up over time.
Don't just look at the cheapest option. How does the company align with the approach you want, your long term goals and consider the ROI.
Some agencies offer shorten engagements to prove out value before committing to longer-term contracts. Whilst this has positives, it also limits the amount of value and return you'll see in the short amount of time.
Red Flags to Avoid
Guaranteeing a specific outcome, or offering unrealistically high returns.
Lack of regular updates or slow response times could indicate wider issues.
Constantly changing SDRS, or SDRs leaving the company can disrupt continuity, kill momentum and impact results.
Operates in a "black box" and doesn't share processes or data, it could be a sign of trouble.
Lack of industry experience (especially with long and complex value propositions)
Lack of visibility into the process of finding the right SDR for the campaign.
Focus on quantity over quality
Conclusion
While outsourcing can unlock efficiencies, bring in fresh expertise, and allow you to scale faster, choosing the wrong agency can waste resources, damage your reputation, and leave you frustrated.
By being clear on your objectives, understanding the people and processes behind the agency, fostering collaboration, and aligning on KPIs, you can position your outsourced SDR initiative for success. Look beyond just cost; focus on long-term value, strategic alignment, and the agency’s ability to represent your brand effectively.
Finally, remain vigilant for red flags such as overpromises, lack of transparency, and aggressive or outdated approaches. The best partnerships feel like an extension of your team, working toward a shared goal of driving meaningful pipeline growth.
By investing time upfront to vet agencies thoroughly and build a strong relationship, you can avoid the pitfalls many sales and marketing leaders have experienced, and instead, create a lasting partnership that drives sustainable results.
