Cost of an In-House Sales Person

Building an in-house sales team might seem ideal for some companies, but it is essential to understand the full cost. Here are the main expenses involved:

• Salary of an SDR (Sales Development Representative): On average, an SDR can cost between €30,000 and €50,000 annually, depending on location and experience. Besides the salary, companies must incur in costs with Social Security tax (let's consider an average of 20%).

• Benefits and Bonuses: Beyond the base salary, companies must cover benefits (such as health insurance, performance bonuses, and retirement plans), which can add an extra 20-30% to the total cost per employee.

• Tools and Infrastructure: CRM software, email automation tools, and other technologies can cost between €2,000 and €5,000 annually per salesperson.

• Recruitment and Training Costs: Hiring an SDR can take months and cost up to €5,000 in recruitment fees and training.

  
  

Estimated Annual Total Cost for a SDR:

• 1 SDR: €36,000 - €60,000

• Benefits: €7,200 - €18,000

• Tools and Infrastructure: €2,000 - €5,000

• Recruitment and Training costs: €5,000

• Total Annual Cost: Approximately €50,200 - €88,000

Advantages of an In-House Sales Team

1. Full Control Over Sales Processes: When you have your own team, you control every aspect of the sales process—from lead generation to closing deals.

2. Easier Integration with Other Departments: Having an in-house team makes collaboration with other departments—such as marketing, customer support, and product development easier. This synergy ensures that the sales team has access to up-to-date information, insights, and resources, leading to a more coordinated approach in acquiring and retaining customers.

3. Continuous Improvement and Skill Development: In-house salespeople are a long-term investment. Companies can train, coach, and develop their skills over time, creating a high-performing team that understands the business inside out.

4. Aligned with Company Vision and Values: An internal sales team is inherently aligned with the company’s mission, vision, and long-term goals.