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Inside Sales vs Outside Sales: What's the Difference?

Key Differences Between Inside and Outside sales explained- process, deal size, sales cycle, and more.
Utkarsh Srivastava
4
min read
July 24, 2025

Key Takeaways

  • Inside sales refers to selling remotely via phone, email, or video; outside sales involves in-person, field-based selling.
  • Inside sales teams typically work in SaaS, tech, and B2B environments; outside sales is still preferred in high-touch, enterprise, or industrial sales.
  • Each model comes with its own pros, cons, use cases, and compensation structures.
  • Many modern sales organizations use a hybrid model to balance cost efficiency with personalized outreach.
  • Choosing between inside and outside sales depends on your industry, deal size, sales cycle length, and buyer preferences.

What Is Inside Sales?

Inside sales refers to a selling model where reps engage with prospects remotely- typically over phone calls, emails, video conferencing, or chat tools. Sales development reps (SDRs), business development reps (BDRs), and account executives (AEs) working in B2B SaaS are common examples.

Inside sales teams operate primarily from an office or remotely, relying heavily on CRM systems, data, and automation tools.

Key Characteristics of Inside Sales

  • Reps rarely meet customers in person.
  • Conversations are fast-paced and metrics-driven.
  • Often used for mid-market or SMB sales.
  • Scalable and cost-effective for companies.

When Should You Use Inside Sales?

Inside sales is ideal when:

  • Your product has a short sales cycle.
  • You sell to multiple stakeholders across geographies.
  • Your pricing model supports high-volume outreach.
  • Your target buyer prefers digital-first communication.

What Is Outside Sales?

Outside sales, also known as field sales, involves reps meeting prospects and customers face-to-face. These reps travel to client sites, attend events, and build in-depth relationships- often over a longer period.

While more resource-intensive, outside sales remains a preferred strategy for complex, high-value deals, especially in sectors like manufacturing, enterprise tech, healthcare, or real estate.

Key Characteristics of Outside Sales

  • Involves travel and direct client meetings.
  • Strong focus on relationship-building and trust.
  • Often tied to larger deal sizes or longer cycles.
  • Less reliant on automation; more on personal rapport.

When Should You Use Outside Sales?

Outside sales is best suited when:

  • Your product requires demos or physical inspections.
  • You’re selling in traditional industries.
  • Your deal sizes are large and require C-level buy-in.
  • Trust and personal connection influence decisions.

Inside Sales vs Outside Sales

Difference Table Between Inside Sales and Outside Sales

1. Compensation Structures

Inside Sales Compensation:

Inside sales reps generally receive a lower base salary than outside reps, but their variable pay (commission) tends to be higher in proportion to total earnings. According to Glassdoor and RepVue:

  • Average Base Salary: $45K–65K/year in the U.S.
  • On-Target Earnings (OTE): $70K–100K/year in the U.S.
  • Typical split: 60:40 or 50:50 base to variable.

Since performance is easily trackable through CRMs and sales engagement tools, inside reps are often put on activity-based quotas: number of calls, booked demos, meetings held, etc.

Outside Sales Compensation:

Outside sales roles often come with higher base salaries and larger deal-based commissions, reflecting their longer sales cycles and deeper involvement in high-value deals. Key benchmarks:

  • Average Base Salary: $75K–100K/year in the U.S.
  • OTE: $120K–180K/year in the U.S.
  • Typical split: 70:30 or 80:20, with lower quota frequency.

Outside reps often have quarterly or annual quotas, tied to revenue closed rather than activity. Some roles include travel allowances or field visit stipends.


Also Read: Guide to 10 SaaS Sales Commission structures

2.  Deal Size and Sales Complexity

Inside Sales:

Inside teams typically handle mid-market or SMB accounts, where the deal value ranges between $2,000 to $25,000 per year. These deals usually:

  • Involve 1–2 decision-makers
  • Require fewer touchpoints (3–7 average)
  • Have short to medium sales cycles (2–6 weeks)

Because inside reps work remotely, their ability to scale outreach via cold calls, emails, and demos gives them leverage in high-volume scenarios.

Outside Sales:

Field reps are reserved for high ACV (Annual Contract Value) customers. Deals here may exceed $100,000 to $1M+, particularly in enterprise software, manufacturing, or capital goods.

These deals often involve:

  • 5+ stakeholders (finance, legal, C-suite)
  • Custom demos, security reviews, legal negotiations
  • 3–12 month sales cycles, sometimes more

Outside reps focus less on quantity and more on relationship depth, stakeholder alignment, and strategic account planning.

3. Sales Cycle and Conversion Time

Inside Sales Cycles:

Inside reps often close deals within 30–60 days, especially in product-led or low-complexity environments. Tools like Zoom, Gong, HubSpot, or Outreach enable a fast, digital-first experience.

Inside sales reps benefit from:

  • Short discovery-to-close timelines
  • Automated follow-ups and sequences
  • High win-rate on warm leads via SDRs

Outside Sales Cycles:

Outside reps work deals that last 3 to 12 months, depending on ticket size and buyer org maturity. Field sales involves more face-to-face engagements, site visits, POC setups, and extended procurement cycles.

Their timelines are longer, but their average contract values are higher, and win rates can be stronger when relationships are well-nurtured.


Also Read: What is a Sales Cycle?

4. Geography and Travel Requirements

Inside Sales:

Inside reps can cover multiple geographies from a single location. This model is scalable, allowing organizations to build follow-the-sun teams and centralized sales hubs.

Remote communication tools allow:

  • Global outreach
  • No travel costs
  • Higher productivity per hour

Outside Sales:

Outside reps are geographically anchored. Their presence is needed at client offices, trade shows, or on-site assessments. Travel is a built-in part of their schedule.

Challenges include:

  • Cost of travel, lodging, and time lost in transit
  • Limited client reach per day/week
  • Scheduling constraints and regional territory ownership

5. Tools and Tech Stack

Inside Sales Tools:

Inside sales relies on a digital-first tech stack that includes:

  • CRM (e.g., HubSpot, Salesforce)
  • Sales engagement (Outreach, Salesloft)
  • Email automation (Apollo, Lemlist)
  • Video calling (Zoom, Google Meet)
  • Conversation intelligence (Gong, Chorus)

Outside Sales Tools:

Outside sales uses a more hybrid tech + scheduling stack:

  • CRM with mobile access
  • Calendar booking tools
  • GPS routing/planning apps (e.g., Map My Customers)
  • Event or trade show platforms
  • Sales collateral tools (e.g., Highspot)

While outside reps do use CRM and sales enablement tools, much of their edge comes from personal connection and presence.

Key difference in metrics: Inside sales metrics are activity-based and easier to quantify. Outside sales metrics are outcome-based and take longer to show results. (Calls made vs in-person meetings attended for example)

How Are Inside and Outside Sales Reps Compensated?

While both roles earn a mix of base salary and variable commission, their compensation plans often reflect their working styles.

Inside Sales Compensation

  • Typically includes a lower base but higher variable incentive.
  • Quotas are based on volume metrics-calls, demos, pipeline.
  • Accelerators often tied to high activity or MRR goals.
  • Easier to measure performance via CRM data.

Outside Sales Compensation

  • Higher base salaries due to travel and time investments.
  • Quotas often tied to quarterly or annual revenue.
  • Larger commissions due to bigger deal sizes.
  • Longer ramp-up and recovery periods are common.

💡 Tip: Many companies use an On-Target Earnings (OTE) model to define total comp. Learn more with our OTE Calculator.

Pros and Cons: Inside vs Outside Sales

Inside Sales

Table describing Pros and Cons of Inside Sales

Outside Sales

Table Describing Pros and Cons of Outside Sales

Can You Combine Inside and Outside Sales?

Yes- most companies today use a hybrid sales model that blends both. For example:

  • SDRs qualify leads remotely (inside).
  • Account Executives close large deals on-site (outside).
  • Customer Success teams engage post-sale through virtual channels.

This model ensures high efficiency while still offering personal attention where needed.

TL;DR: Choosing Between Inside and Outside Sales

  • Inside sales is efficient, scalable, and ideal for digital-first buyers.
  • Outside sales is personalized, high-impact, and better for strategic deals.
  • Most modern orgs use a hybrid model for cost-effectiveness and flexibility.
  • Your ideal sales structure should depend on deal size, industry, cycle length, and buyer expectations.

FAQs About Inside vs Outside Sales

What are the main differences between inside and outside sales?

Inside sales is remote and software-driven, while outside sales involves in-person meetings and travel. Both aim to close deals but use different approaches and timelines.

Which model is more cost-effective?

Inside sales tends to be more cost-efficient due to lower travel expenses and faster cycles. However, outside sales may yield larger deals that justify the investment.

Can inside sales close big enterprise deals?

Yes, especially in digital-native industries. But complex, multi-stakeholder deals still benefit from in-person attention, making outside sales more effective in some cases.

Is outside sales becoming obsolete?

No, but it’s evolving. Many outside reps now use hybrid methods- initial remote contact followed by strategic visits- especially post-COVID.

Final Word

There’s no one-size-fits-all. The best sales model is the one that aligns with:

  • Your target customer profile

  • Your product complexity and price point

  • Your internal resources and tech stack

Evaluate both models not as opposing forces, but as complementary strategies in a modern go-to-market motion.

Looking to automate your sales commissions for both inside and outside teams?

Check out Visdum-  the commission management platform that supports hybrid teams with real-time data, integrations, and payout transparency.

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