Building a scalable and successful outside sales function is crucial for businesses looking to expand their market reach and drive high-value deals. Whether you’re selling industrial equipment, enterprise software, or specialized services, face-to-face interactions can help establish trust and build strong relationships with clients. However, structuring an effective outside sales team requires careful planning, the right hiring strategy, and a well-defined sales model.
For small business founders who have scaled their operations to $5-10M in revenue, now is the time to formalize a structured outside sales department. In this guide, we’ll walk through the fundamentals of outside sales, key differences from inside sales, when it makes sense to implement, hiring strategies, and compensation insights to help you optimize your approach.
What Is Outside Sales?
Outside sales is the practice of selling products or services through in-person interactions. It typically requires sales reps to meet with potential customers at their offices, job sites, or events. Unlike inside sales, which is conducted remotely via phone, email, or video calls, outside sales prioritizes relationship-building through face-to-face engagement. This sales model is essential for industries where direct client interaction is crucial.
For small businesses that have scaled to $5-10M in revenue and are now looking to build a formal sales department, outside sales can be a crucial strategy-especially when targeting high-value clients or industries that prefer personal interactions. Understanding sales territories and field salespeople dynamics can help optimize the process. Additionally, incorporating communication tools, social media, and industry trends into your sales strategy can provide a competitive edge in a highly competitive world.
Responsibilities of Outside Sales Reps
While the specific tasks may vary by industry, outside sales reps typically handle:
- Prospecting and Lead Generation – Identifying and engaging potential clients using digital tools, LinkedIn Sales Navigator, email prospects, direct mail, and customer relationship management software.
- Client Meetings and Demos – Conducting in-person presentations and product demonstrations to good-fit prospects while considering the client’s office culture.
- Relationship Building – Developing long-term client relationships to drive repeat business and build trust, fostering happy customers.
- Negotiations and Closing Deals – Handling contract discussions and pricing agreements with attention to client needs and business cards in hand.
- Market Research – Understanding customer pain points, market conditions, industry trends, and competitor positioning.
- Account Management – Ensuring customer retention and repeat sales by addressing specific needs and providing ongoing support.
- Travel and Scheduling – Managing travel logistics, often with a company car, for meetings, trade shows, local businesses, and industry events.
Because outside sales are field-based, outside salespeople must be self-motivated, skilled in personal communication, and adaptable to different sales environments. Strong time management and first-contact techniques are essential for success.
Inside Sales vs. Outside Sales
Inside sales and outside sales serve different purposes and require different skill sets. Understanding their key differences can help businesses create a comprehensive sales strategy.
| Aspect | Inside Sales | Outside Sales |
| Sales Environment | Remote (phone, email, video) | In-person (meetings, site visits) |
| Sales Cycle | Shorter cycles, more transactional | Longer cycles, relationship-driven |
| Cost & Scalability | Lower costs, easier to scale | Higher costs, better for large deals |
| Industries | SaaS, tech, B2B services | Construction, manufacturing, field services |
When to Use Outside Sales
Outside sales isn’t a fit for every business. Here’s when it makes the most sense:
1. Industries Where Face-to-Face Sales Matter
- Construction and Contracting – Decision-makers expect on-site visits to understand project scope and office culture.
- Manufacturing and Industrial Equipment – Large-ticket deals often require in-person demos and a deep understanding of product value.
- Medical and Healthcare Sales – Relationship-driven field requiring direct engagement and knowledge of technical sales.
- Enterprise Tech and Software – Large-scale implementations often require personal consultations and tailored sales training.
2. Target Customers & Business Considerations
- If your buyers are C-level executives or decision-makers, they often prefer face-to-face meetings.
- If your market is regional or local, outside sales can build a stronger brand presence.
- In-person meetings and case studies are crucial if your product requires a high-touch consultative approach.
3. Deal Size & Sales Cycle
- Outside sales works best when deal sizes justify the higher costs of travel and field operations.
- If your average deal size is over $50,000-$100,000, outside sales can provide higher conversion rates and ROI.
How to Find and Hire Outside Sales Reps
Hiring the right outside sales reps is critical to building a high-performing sales team. These reps are responsible for forging relationships, managing in-person sales cycles, and closing high-value deals. Here’s how to find the right fit:
- Look for industry experience – Reps with prior knowledge of your field understand customer pain points faster and can ramp up more quickly.
- Prioritize soft skills – Outside sales is all about in-person engagement. Strong interpersonal skills, active listening, and the ability to read body language are must-haves.
- Use structured hiring processes – Use structured hiring processes to evaluate candidates through role-playing exercises, sales presentations, or case studies.
- Leverage referrals and industry networks – The best outside sales reps are often not actively job-seeking. Tap into your network and trusted industry contacts.
- Consider hybrid sales roles – Depending on your sales process, a mix of inside and outside sales might be more effective, allowing reps to engage remotely while still meeting key clients face-to-face.
- Use tech stack tools – Outside sales reps need CRM software, LinkedIn Sales Navigator, and digital communication platforms to stay organized and productive on the road.
Next Steps
For small business founders scaling beyond $5-10M in revenue, building an outside sales function can be a game-changer. To move forward:
- Assess whether outside sales aligns with your industry, business goals, and yearly sales goals.
- Start by hiring one or two experienced outside sales employees before scaling the team.
- Develop a structured sales process that includes CRM tracking, sales funnel optimization, conversion rate monitoring, lead qualification, and training.
- Keep refining based on feedback from customers, sales leaders, team members, and real-time insights.
- Utilize video conferencing, email prospects, and cold calling to complement in-person efforts and target audiences effectively.
- Consider buyer personas and case studies when refining sales strategies for personalized experiences.
- Monitor sales quotas and customer acquisition costs to ensure profitability and sustainability.
Visit The Peak Blog today for expert strategies and actionable insights on building and scaling a successful sales team.
