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Sales Strategy

When to Outsource Salesfor Your SaaS

ROI analysis of hiring external teams vs building in-house for geospatial vendors. Make the right decision based on your stage, resources, and market timing.

12 min readBy Justin GriffioenPublished May 22, 2024Updated December 10, 2024

One of the most critical decisions for geospatial SaaS companies is whether to build an in-house sales team or outsource to specialized agencies. This decision impacts not just your immediate revenue, but your long-term growth trajectory, cash flow, and competitive positioning.

In this guide, we'll break down the key factors, provide ROI calculations, and share specific considerations for the geospatial industry to help you make the right choice for your business stage and goals.

In-House vs Outsourced: Complete Comparison

In-House Sales Team

Advantages

  • Deep product knowledge and company culture alignment
  • Full control over hiring, training, and processes
  • Direct accountability and performance management
  • Long-term commitment and relationship building
  • Custom compensation structures and incentives

Disadvantages

  • High upfront costs: $150k-$300k per sales rep annually
  • 6-12 month ramp time before productivity
  • Recruitment challenges in competitive markets
  • Training and onboarding overhead
  • Risk of turnover and knowledge loss
Best For:

Established companies with proven product-market fit and >$2M ARR

Outsourced Sales Team

Advantages

  • Immediate access to experienced sales professionals
  • Lower initial investment and predictable costs
  • Faster time to market and lead generation
  • Built-in processes and proven methodologies
  • Easy to scale up or down based on results

Disadvantages

  • Less product knowledge initially
  • Shared resources across multiple clients
  • Limited control over day-to-day activities
  • Potential for less brand alignment
  • Dependency on external team performance
Best For:

Early-stage companies, market validation, or rapid scaling needs

Key Decision Factors

Current Revenue Stage

Your ARR level determines resource availability and investment capacity

  • Pre-$1M ARR: Consider outsourcing for market validation
  • $1M-$5M ARR: Hybrid approach often works best
  • $5M+ ARR: In-house becomes more viable
  • Scale considerations for geospatial market complexity

Time to Market Urgency

How quickly you need to start generating qualified leads

  • Immediate needs (0-3 months): Outsource for rapid deployment
  • Medium term (3-9 months): Plan in-house hiring pipeline
  • Long term (9+ months): Build internal capabilities
  • Market timing considerations for competitive advantage

Sales Process Complexity

Enterprise geospatial sales often require deep technical knowledge

  • Technical product demos requiring GIS expertise
  • Long sales cycles (6-18 months) needing relationship building
  • Multiple stakeholders from IT to end-users
  • Compliance and security discussions

Available Capital & Resources

Budget constraints and resource allocation priorities

  • Upfront costs: $200k-$500k for first in-house sales hire
  • Ongoing costs: Salary, benefits, tools, training
  • Outsourced costs: Typically $8k-$25k monthly + commission
  • ROI timeline and payback period considerations

ROI Comparison: Year 1 Analysis

In-House Sales

Upfront Investment:$250,000
Monthly Costs:$20,000
Time to Productivity:6-9 months
Annual Capacity:150-200 qualified meetings
Potential ARR Y1:$300k-$800k ARR generated Year 1

Outsourced Sales

Upfront Investment:$15,000
Monthly Costs:$15,000
Time to Productivity:30-60 days
Annual Capacity:200-300 qualified meetings
Potential ARR Y1:$400k-$1.2M ARR generated Year 1

Geospatial Industry Considerations

The geospatial industry has unique requirements that impact the in-house vs outsourced decision:

Technical Domain Expertise

High - Critical for credibility with technical buyers

Geospatial sales require understanding of GIS, mapping, and location analytics concepts.

Industry Vertical Knowledge

Medium - Can be learned but accelerates sales process

Different verticals (utilities, retail, logistics) have unique use cases and pain points.

Compliance & Security Requirements

High - Required for enterprise deals and government clients

Enterprise buyers often have specific data security and compliance needs.

Integration Complexity

Medium - Important for technical feasibility discussions

Understanding how your solution integrates with existing GIS infrastructure.

Making Your Decision

Recommended Decision Matrix

Consider Outsourcing If:

  • • You're pre-$2M ARR and need immediate lead generation
  • • You lack sales hiring experience or local talent access
  • • You want to validate market demand before major investment
  • • You need to scale quickly for market timing reasons

Consider In-House If:

  • • You're >$5M ARR with proven product-market fit
  • • You have strong sales leadership and hiring capabilities
  • • Your product requires deep technical expertise to sell
  • • You want full control over the sales process and customer relationships

Consider Hybrid Approach If:

  • • You're $2M-$5M ARR and transitioning to scale
  • • You want to test different market segments simultaneously
  • • You need geographic coverage beyond your core team's reach
  • • You want to supplement existing sales with specialized expertise

Need Help Making This Decision?

We can help you analyze your specific situation and recommend the best approach for your geospatial SaaS company.