A sales development representative (SDR) researches accounts, starts conversations and qualifies interest before handing opportunities to an account executive. You can employ SDRs or engage an external provider. The right answer depends on how proven your outbound motion is, how much management capacity you have, and how long you need the capacity.
1. The fully loaded cost of an in-house SDR
Salary is only part of the cost. We deliberately do not quote market salary figures here: they vary widely by city, seniority and year, and you should use current data for your market (for example, your recruiter, payroll provider or a salary survey you trust).
A transparent way to estimate annual cost:
- Recruiting and onboarding: agency fees or internal hiring time, plus training.
- Ramp-up: new SDRs typically take months to reach full productivity; use your own historical ramp data if you have it.
- Attrition risk: if an SDR leaves, recruiting and ramp costs recur.
2. The cost of an outsourced SDR program
External programs are usually priced as a monthly fee or per-project fee. Compare like with like: is the capacity dedicated or shared, who supplies data and tools, and what reporting is included?
For reference, Shrava's published pricing starts at $3,250 per month for shared managed capacity. That is not a like-for-like replacement for one dedicated employee; it is a different model.
3. Dedicated staff versus shared managed capacity
| Factor | In-house | Outsourced |
|---|---|---|
| Management | You coach, QA and measure | Provider manages delivery; you review |
| Messaging control | Direct and immediate | Through approvals and feedback loops |
| Product depth | Grows over time | Depends on onboarding quality |
| Flexibility | Hard to scale down | Defined terms; easier to adjust |
| Data and tools | You choose and own | Agree ownership in the contract |
4. Prospecting quality and meeting qualification
Volume metrics are easy to inflate. Insist on a written definition of a qualified meeting — ICP fit, the attendee's role, explicit acceptance of a commercial discussion, actual attendance and a minimum duration — and separate reporting for activity, meetings, opportunities and closed business.
5. Data protection and outreach compliance
B2B outreach rules differ by country (for example, US commercial email rules and UK/EU data-protection and electronic-marketing rules). Whoever does the work, you remain responsible for your brand. Ask how contacts are sourced, what lawful basis applies, how opt-outs are handled and where data is stored. Take legal advice for your specific markets; this article is not legal advice.
6. When to hire internal SDRs
- Your outbound motion is proven, with repeatable messaging and conversion.
- You have managers with time to coach and measure SDRs.
- You need long-term dedicated capacity and deep product knowledge.
7. When to use external sales development
- You want to validate a segment, message or market before hiring.
- Your founder or account executives are stretched and need structured support.
- You need capacity quickly without a long employment commitment.
8. How to evaluate an outsourced SDR vendor
- Do they publish pricing and say clearly what is excluded?
- Will you approve ICP, accounts and messaging before outreach?
- Is there a written qualified-meeting standard and a remedy process?
- Are guarantees realistic? Be cautious of guaranteed revenue or meeting volumes.
- How are data, tools and contact lists owned when the engagement ends?
- Can they show sample reports before you sign?
Summary
Build in-house when the motion is proven and you can manage it. Use external support to validate, add capacity or enter new markets with less fixed commitment. Either way, model costs with your own figures and define quality before you measure volume.
Weighing the decision for your team?
A Pipeline Feasibility Review will tell you whether outsourced sales development is likely to fit — including when it isn't. See also our Delivery Assurance Commitment.