Build or buy? The true cost of an effective SDR team
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Every sales leader wants to build a sales pipeline that delivers predictable revenue. That is why the top priority for experienced Business Development teams is to accelerate deals through the sales cycle and win new customers.
Unfortunately, focus can slip from proactive funnel activity. Without a consistent stream of highly qualified sales leads, the pipeline stops growing, leaving Business Development teams twiddling their thumbs. This is where expert SDRs enter the picture.
The Sales Development function drives outbound sales activity. It provides boots on the ground to engage with better-fit customers and uncover new business opportunities. It keeps the lead generation engine running and your BDMs busy closing deals.
The rising costs of building an SDR team
Building a Sales Development team is expensive and time-consuming. There is no two ways about it, but when done right, it pays off. However, with changes to employment costs on the horizon, understanding the true cost of building your own team is more important than ever.
In April 2025, employers’ National Insurance contributions will increase from 13.8% to 15%, with the threshold at which employers start paying NICs reducing from £9,100 to £5,000 per year.
According to the Office for Budget Responsibility, these changes will add 2% to employers’ payroll costs. For SMEs, where payroll often represents the largest cost, this rise could significantly impact cash flow, profit margins, and investment potential.
The true cost of hiring an SDR
The cost to hire, train, and manage a single SDR is already substantial – just shy of £104,000 in the UK – that’s almost €120,000 or $130,000 – in year one. This figure includes:
The Cost of Technology Infrastructure.
Coaching and Development.
Salary and Bonuses.
Overhead Expenses.
With the added burden of higher NICs and lower thresholds, the financial challenges of building an in-house SDR team will only increase.
SDR teams are only as good as their coaching
Your sales process will soon reveal low- and high-performers, exposing areas of weakness and highlighting opportunities for improvement. An effective team leader can increase the team’s capacity to consistently generate a sales pipeline with a focus on continuous development.
Yet training and coaching costs are higher than you might expect. In addition to recruitment, the initial training and ongoing shared management of one SDR costs approximately £27,239 (€30,886/$33,891) in year one.
Looking for growth outside of your domestic market? The capacity to sell in different geographies demands local specialists with multilingual skills – pushing up the price for hiring a multilingual SDR.
Why outsource your SDR team?
Outsourcing your SDR team offers a compelling alternative to the rising costs and complexities of building in-house teams. Here’s why:
Cost efficiency:
Outsourcing partners absorb many employment-related costs, including National Insurance contributions, coaching, and smart tools costs. This means you can access top talent and tools without increasing financial burden.
Scalability:
Outsourced teams can flexibly adapt to your business needs, enabling you to expand into new markets without the complexities of hiring additional staff (including multilingual reps).
Continuity:
With dedicated resources and contingency plans, outsourcing minimises disruptions caused by employee turnover, ensuring your pipeline remains active.
Expertise:
Outsourced SDRs come fully trained and equipped, reducing the learning curve and improving performance from day one.
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How durhamlane can help you achieve your growth targets
Choosing to outsource your SDR team with durhamlane can provide your business with the front-end sales support it needs to win more customers, whilst reducing the financial and administrative burden of hiring in-house.
Our SDRs do not build only qualified sales pipeline: we integrate seamlessly with your sales team and marketing function to accelerate new deals through the pipeline, and support your business growth.
Want to calculate the real cost of growing your sales team in-house? We’ve made it simple with our SDR Cost Calculator.
