Difference Between an Inside Sales and an Outside Sales

by Content Team | Jan 3, 2025 | Blog

In the world of sales, two main types of jobs help companies earn money and grow: inside and outside sales. At first, these two might seem the same because they both focus on selling, but they are quite different in how they work, what they do, and the skills they need. Understanding these differences helps businesses choose the best way to sell their products and make more money.

Inside Sales

Inside sales happen when salespeople work indoors, either from an office or at home, using phones, emails, or video calls to connect with customers instead of meeting them face-to-face. Their work usually involves sitting at a computer or making calls to communicate with people online. Inside salespeople often have a fixed salary, and they can also earn bonuses if they reach their sales targets, making it a steady and goal-oriented job.

Outside Sales

Outside sales involve salespeople traveling to meet customers in person, whether at their homes, offices, or stores, to sell products or services. This work takes place outside of an office, requiring salespeople to drive, walk, or travel to connect face-to-face with clients. Outside salespeople often earn a fixed salary along with commissions, which means they get extra money for each sale they make. The more they sell, the more they can earn, making it a rewarding job for hard workers.

What is an Outside Sales Representative?

An outside sales representative, often referred to as a field sales rep, is the kind of salesperson who spends most of their time away from the office. They go out into the field to meet potential clients face-to-face. Outside sales reps present the sales pitch to the potential customers. They might go to trade shows, visit businesses to introduce their products, or meet with current customers to keep good relationships. Most of the companies involved in home services work door to door to sell their services. Outside sales account executives work in designated sales territories assigned by their managers for maximum deals.

In essence, outside sales reps operate in the real world, making the effort to connect with clients in person. They’re the ones who bring the company’s products or services directly to the doorstep of their prospects. Often, these salespeople manage specific territories and are responsible for finding new leads, building customer relationships, and closing sales deals.

The key to success for outside sales reps lies in their ability to meet with clients and prospects in person. Face-to-face meetings allow them to build trust and rapport, a factor that can significantly increase the likelihood of closing a deal.

What is an Inside Sales Representative?

Inside sales reps, on the other hand, work remotely or from an office. Inside sales reps use phones, emails, video calls, and live chats to talk to customers. They don’t meet clients in person but use digital tools to find and close deals.

Since they aren’t limited to one area, inside sales reps can work with customers from anywhere in the world. This helps them connect with more people. They follow a clear process: they find good leads, stay in touch through emails and calls, and use special tools to keep everything organized.

What Does an Outside Sales Representative Do?

An outside sales representative’s day-to-day tasks are quite dynamic. They are constantly on the move, attending meetings, networking events, and conducting in-person demonstrations of products or services. The role demands a lot of travel, prospecting skills, and excellent communication skills. This means that outside sales reps need excellent time management skills to balance meeting with clients and keeping their schedules organized.

One of the key responsibilities of outside sales reps is lead generation. They are constantly on the lookout for new prospects and markets. This can involve cold calling, attending industry events, or reaching out to old contacts. Their focus is on quality over quantity, as they prefer to build strong, long-term relationships with a smaller pool of clients.

Another crucial aspect of the job is closing deals. Outside sales reps usually work with big clients or important accounts. This means they can make bigger deals, earn better commissions, and agree on better terms. However, their sales process can take longer because they need to meet with clients several times to build trust and finalize the deal.

Outside sales reps also handle door-to-door sales for various services like roofing, solar panels, pest control, and more. They meet customers in person, explain how their services can help, and work to build trust. While these sales can bring big rewards, it often takes time and multiple visits to close a deal.

What Does an Inside Sales Representative Do?

Inside sales representatives are responsible for generating leads, nurturing relationships, and closing deals, but they do all of this remotely. Instead of in-person meetings, they connect with clients through digital channels. Whether it’s making a phone call, sending an email, or scheduling a virtual meeting, inside sales reps have developed a set of tools and strategies that allow them to engage prospects from afar.

Inside sales reps tend to follow a more structured sales process. They focus on lead qualification and follow-up, leveraging CRM software to track each lead’s status and progress through the sales pipeline. Since they don’t need to travel, they can reach more clients in less time. Inside sales reps usually work with more leads than outside sales reps. They often close smaller deals quickly, making their work faster and more focused on handling many customers.

In many cases, inside sales reps use automated tools to help scale their outreach. They might send out email sequences, connect via social media platforms, or use chatbots on websites to initiate conversations. As a result, inside sales reps often work with more efficiency but may lack the depth of personal connection that outside sales reps enjoy.

The Key Differences: Inside Sales vs. Outside Sales

So, what’s the real difference between inside and outside sales? To put it simply: one is all about personal, in-person interactions, and the other revolves around automated outreach (e.g., outbound emails and social media messages) poses an opportunity to scale. But let’s break down the key differences in more detail:

1. Mode of Communication

• Outside Sales:

These reps meet clients face-to-face, making the relationship-building process more personal and often more effective in terms of closing larger deals.

• Inside Sales:

These reps use digital communication tools (phone, email, video, etc.) to connect with clients. While it can still be highly effective, the lack of face-to-face interaction may reduce the level of personal connection.

2. Sales Cycle

• Outside Sales:

The sales cycle tends to be longer because meetings are scheduled in person, and decisions often take more time. Outside sales reps might spend weeks or even months working with a prospect before a deal is signed.

• Inside Sales:

The sales cycle is generally shorter because interactions happen quickly through calls and emails, allowing for faster decision-making.

3. Lead Generation

• Outside Sales:

Outside sales reps often generate leads by attending industry events, conferences, door-to-door canvassing, and networking in person.

• Inside Sales:

Inside sales reps typically rely on digital tools for lead generation, such as social media, email outreach, and inbound marketing.

4. Role in Relationship Building

• Outside Sales:

Outside sales reps spend more time building and maintaining long-term relationships with their clients through face-to-face meetings.

• Inside Sales:

Inside sales reps build relationships over phone calls, emails, and virtual meetings, but the lack of in-person interaction can make it harder to establish deep personal bonds.

5. Compensation and Incentives

• Outside Sales:

Outside sales reps tend to earn higher commissions because they close larger deals. Their earnings are often directly linked to the size of the deals they secure.

• Inside Sales:

While inside sales reps may also earn commissions, the deals they close tend to be smaller, and the compensation structure is more stable with a predictable salary.

Here’s a more detailed comparison between inside and outside sales.

Understanding the Earnings Potential of Inside vs. Outside Sales Representatives

When evaluating the value of inside and outside sales roles, one of the most critical factors to consider is salary. The compensation for sales reps varies based on the role they play, their experience, and the sales model they operate under. Both inside and outside sales representatives have opportunities for lucrative earnings, but the structure of their pay can differ significantly.

Compensation for Outside Sales Representatives

Outside sales reps are typically compensated with base salary and commission. Outside sales reps are typically compensated with base salary and commission. Outside sales reps travel often and meet clients face-to-face, so they usually get a higher base salary than inside sales reps. Their job involves going to meetings, and events, and working long hours, which can be tiring.

They also earn a commission, which is a percentage of the deals they close. Since outside sales reps handle big deals with large clients, their commissions can be very high. For example, closing a big deal might earn them thousands of dollars in extra pay.

Some companies also give bonuses for meeting sales goals or signing big clients. These rewards encourage outside sales reps to work hard and close more deals.

Earnings for Inside Sales Representatives

Inside sales reps, on the other hand, tend to have a more stable salary structure. While they can also earn commissions, their base salary is typically higher compared to outside reps, as they do not have to travel or deal with the expenses that come with in-person meetings. This means that inside sales reps have a more predictable income, which can appeal to those who prefer financial stability.

Inside sales reps typically handle smaller deals, but they often close more of them in a shorter time. Because of this, inside sales reps can still earn substantial commissions, even if individual deals are smaller. The volume of transactions tends to be much higher, allowing inside sales reps to earn significant commissions through frequent sales cycles.

In some cases, inside sales reps may be compensated with performance bonuses or rewards for exceeding monthly or quarterly targets. While these bonuses may not be as large as those earned by outside reps, the steady flow of smaller commissions often makes up for it.

Inside Sales vs Outside Sales Salary Difference

Outside sales reps usually earn more commission because they work with big clients and handle harder deals. However their income can be less predictable, and the job can be more stressful.

Inside sales reps have a steadier income because of their regular salary and the ability to close more deals quickly. They don’t earn as much commission as outside sales reps, but their pay is more stable. While outside sales reps can make a lot of money, they also take on more risks and responsibilities.

Here’s the latest data on inside sales vs outside sales salaries for the United States, United Kingdom, Ireland, Australia, Canada, and Germany:

The Financial Considerations: Costs and Scalability of Inside vs. Outside Sales

Both inside and outside sales models come with their own set of costs, benefits, and scalability potential. These factors can have a significant impact on a business’s ability to grow efficiently and cost-effectively. Let’s break down how the cost structure and scalability compare for each role.

The Cost Structure for Outside Sales Teams

One of the most notable costs associated with outside sales teams is travel. Outside sales reps spend a large portion of their time on the road, attending client meetings, industry events, and conferences. The expenses associated with travel—flights, hotels, transportation, meals, and other allowances—can quickly add up. Companies must factor in these costs when deciding whether to employ an outside sales model, as the overhead can be substantial.

In addition to travel, outside sales reps may also require specialized tools for their work, such as mobile devices, software for tracking sales activity, and materials for presentations. All of these additional expenses can increase the overall cost of running an outside sales team.

However, the benefit of these higher costs is the potential for greater revenue generation. Outside sales reps are often working with larger clients and closing more significant deals. These high-value sales can justify the increased costs of running an outside sales team, particularly for companies targeting enterprise-level clients.

The Cost Structure for Inside Sales Teams

In contrast, inside sales teams tend to have lower overhead costs. Since inside sales reps work remotely or from an office, there are fewer travel expenses. This makes it much easier for companies to scale their sales teams without incurring the same level of financial strain that outside sales teams face.

Inside sales teams also have access to technology that streamlines their sales processes. CRM systems, email automation tools, and other sales software enable inside sales reps to handle multiple leads at once without requiring significant extra resources. This allows businesses to run leaner operations and manage a larger volume of prospects.

Because inside sales reps rely more on technology and remote communication, companies can employ a greater number of reps without significantly increasing operational costs. This can make inside sales a more scalable model, especially for companies looking to rapidly expand their sales efforts.

Scalability: Inside vs. Outside Sales Teams

When it comes to scalability, inside sales generally have a clear advantage. Inside sales reps don’t need to travel or meet clients in person, so they can work with more leads and customers. This makes them a great choice for growing businesses.

As a company gets bigger, it’s easy to add more inside sales reps without spending too much money. They can also use tools like email software, CRM systems, and AI programs to work faster and smarter. These tools help them handle lots of leads at once, making inside sales teams very efficient and easy to grow.

On the other hand, scaling outside sales teams can be more expensive and less efficient. Each new outside sales rep requires significant investment in travel and resources. Additionally, the personal nature of the role means that outside sales teams can only handle a limited number of clients at once, as each relationship requires individual attention. Expanding an outside sales team can therefore lead to diminishing returns if not carefully managed.

Despite these challenges, outside sales teams can succeed when targeting large enterprise clients or markets requiring in-person engagement. In these situations, the deep personal relationships that outside sales reps develop can result in long-term, profitable partnerships that far outweigh the cost of operating an outside sales model.

How to Build an Inside and Outside Sales Team

Creating a sales team that works well together depends on your goals, industry, and customers. There’s no one perfect way to do it, but here are three common setups you can try.

1. Keep Inside and Outside Sales Separate

In this setup, inside and outside sales teams work on their own leads without much overlap. Each team has its own goals and focuses on different types of customers.

For example:

• Inside sales reps handle smaller businesses that move quickly through the buying process.
• Outside sales reps work with bigger companies that need more time and in-person meetings to close deals. They also visit door to door depending on the nature of the business.

By keeping things separate, each team can focus on what they do best.

2. Inside and Outside Teams Work Together

Here, inside and outside sales teams stick to their jobs but help each other when needed.

For instance:

• Inside reps might start by talking to customers far away and learning about their needs.
• They share this information with outside reps, who then visit the customers in person to finish the deal.

This teamwork helps everyone save time and close more sales.

3. Hire Hybrid Sales Team

A hybrid sales rep does both inside and outside sales. They spend part of their time working from the office, and the rest visiting customers.

Here’s how they make it work:

• In the office, they follow up on leads, organize their tasks, and get ready for their meetings.
• When they’re out, they meet with the most valuable customers and use what they learned in the office to close deals.

Hybrid reps are flexible and can adapt to many situations, making them a great choice for some companies.

These three setups can help your sales team succeed. The best one depends on your company’s needs and the way your customers like to do business.

Which is Better for Your Business?

The choice between inside and outside sales depends on your business model, target audience, and resources. For businesses with a highly targeted, niche market, outside sales may be the better option. The ability to meet with clients in person, build rapport, and close large, high-value deals can be a huge advantage. Sometimes, your sales funnel is not defined, and you need visits door to door to generate leads.

On the other hand, if your business deals with a broader audience or offers products or services that are well-suited to remote selling, inside sales may be more efficient and cost-effective. Inside sales teams can grow quickly and manage many leads, which is great for businesses that want to sell more without spending too much money.

Tools Used in Outside Sales

As an outside salesperson, your job is to meet with potential customers, talk about your product or service, and build relationships that lead to sales. To do this successfully, you’ll need some helpful tools. Many of these are similar to what inside salespeople use, but outside sales reps also rely on tools for meeting customers in person. Here’s what can make your work easier:

• Tablet or Smart Phone for Presentations:

A tablet or phone is great for showing presentations, filling out sales forms, or sharing videos about your product right in front of your customers.

• Reliable Transportation or Comfortable Shoes:

Whether you drive to appointments or walk from place to place, having a reliable car or comfortable walking shoes helps you stay on schedule.

• Printed Materials:

Carry brochures, price lists, and other sales materials. These help explain your product or service to customers in a clear and professional way.

• Samples of Your Products:

If your product can be shown or touched, bring samples! People love seeing and trying things before buying.

• Business Cards:

A business card is an easy way to share your contact details with potential customers. It’s professional and helps them remember you.

• Sales Canvassing Software:

Special canvassing software like Knockio or other sales canvassing tools can help you plan your day, find new leads, and keep track of your sales visits. It makes you more productive by organizing your work in one place.

• Notebook and Pen:

Sometimes, writing quick notes or sketches during a meeting can make a big difference. It shows you’re paying attention and helps you remember key details later.

These tools make outside sales easier, more organized, and more professional. With the right tools, you’ll be ready to impress customers and close more deals!

Knockio: The Best Helper for Your Outside Sales Team

If you’re a business owner, you know how important it is for your sales team to do their best work. Knockio is a smart tool that makes outside sales faster, easier, and more successful. It helps your team stay on track, find more customers, and close deals while giving you a clear picture of how they’re doing.

Amazing Features of Knockio

Here’s how Knockio makes life easier for your sales team:

1. Smart Route Planning:

Knockio helps your team plan the fastest way to visit all their clients in a day. This saves time, cuts down on travel, and ensures they never miss a meeting.

1. Assign Sales Territory:

With Knockio, you can easily assign areas to each sales rep. Everyone knows where to go, and no leads get missed.

1. Organize Leads:

Knockio keeps track of all the people your team talks to. It shows where each customer is in the sales process, so your reps never forget a step.

1. Get Proposal Signed on the Go:

Sales reps can present and get signed proposals right from their phones. This helps close deals faster and impresses clients.

1. Get Real-Time Updates:

Things change quickly in sales, and Knockio keeps everyone updated. Whether it’s a new lead or a change in the schedule, your team will know right away.

1. Performance Metrics and Tracking:

Knockio shows how your team is doing with easy-to-read reports and lead statuses. You can see what’s working, fix what’s not, and celebrate wins.

1. Learn About Customers:

Knockio gives helpful details in notes about what your customers like and need. This helps your sales reps give a personal touch and close more deals.

1. Save Time with Automation:

Knockio can handle tasks like scheduling follow-ups and sending reminders. This gives your team more time to focus on selling.

Why Your Business Needs Knockio

Knockio is like a personal assistant for your sales team. It takes care of the busy work, so your reps can focus on meeting customers and growing your business. From planning routes to sending proposals, Knockio has everything your team needs to succeed.

If you want to help your sales team work smarter and sell more, Knockio is the perfect tool. Give it a try and watch your business grow!

Tools for Inside Sales Reps

Inside sales reps have lots of sales tools to make their jobs easier, too! These tools help them stay connected with customers while working from the office.

Here are a few popular tools:

1. CRM Tools:

 These tools, like Salesforce or HubSpot, organize customer information and help reps track emails, calls, and follow-ups.

1. Email Tools:

Tools like Mailchimp or Constant Contact make it easy to send emails to a large audience and see who’s interested.

1. Calling Tools:

 Dialpad and Aircall help sales reps make and record calls and provide tips on improving phone conversations.

1. Video Tools:

Zoom or Microsoft Teams let inside reps meet with customers face-to-face, even if they’re far away.

1. Automation Tools:

These tools, like Zapier, help reps save time by automating repetitive tasks like sending reminders or updating contact lists.

Both inside and outside sales reps have incredible tools to help them do their best. Choosing the right ones can make their work easier and help them close more deals!

Conclusion

Both inside sales and outside sales reps are super important for a great sales plan. Outside sales reps are awesome at meeting people in person, building strong connections, and closing big deals. Inside sales reps are great at working quickly, handling lots of customers, and reaching people everywhere.

By learning how they’re different, businesses can decide the best way to set up their sales teams. Whether you choose inside sales, outside sales, or a mix of both, each can help your business grow and succeed!