Outsourced B2B Lead Generation – What Are The Pros & Cons?

By: Jack Reamer |
 February 24, 2025 |

Deciding whether or not to outsource lead generation can be a pretty big decision.

Especially when you read that outsourced lead generation when compared to in-house lead creation, produces 43% more outcomes.

But, at the same time, you might have read reviews of companies who have spent a ton of money on lead generation services and hardly received any high-quality leads.

If you’re sitting at a crossroads, and aren’t quite sure yet whether or not to outsource your lead gen, then this article will help.

In it, we will share both the pros and cons of outsourcing lead gen, as well as what to look out for when hiring an agency (just to help you make the right hire.)

(Interested in a 15-minute free consultation with our b2b LinkedIn lead generation agency? Let’s help you find one qualified sales lead per day.)

What are the pros of outsourcing lead generation?

There are many reasons why a lead generation contractor could be worthwhile for your company, from saving money to having more time to do the things you enjoy doing for your business.

Instead of worrying about finding qualified leads, you can concentrate on closing sales.

Lead generation outsourcing is also 43% more efficient than generating leads in-house because lead generation companies have more expertise ( source

Hiring an outbound lead gen team will also get you quicker results than waiting for inbound results, such as SEO or social media marketing. 

You Could Save Money

According to ZipRecruiter, the average salary of a sales representative per year in the USA is $76,681. ($37 per hour)

Infographic showing a sales representative salary

This means that you could end up paying, on average, $6,390 per month for 1 sales rep.

Stats show that outsourcing lead generation services is 63% cheaper than hiring someone in-house; This is based on hiring, for example, an SDR from Boston at $83,306 per year.

On top of this, you might also need to pay bonuses, and benefit costs, such as medical and training costs. 

Other costs that you might also incur when hiring an SDR are:

  • Employer taxes

  • Software licenses

  • Management and admin costs

  • Training costs

  • Human resources 

  • Data costs 

You might also need to rent or buy extra office furniture, computers, and not to mention things like extra milk, coffee, or tea if this is something that you offer to your employees. 

You Won’t Have To Stress About Training A New SDR

Training someone in-house takes time.

On average, most trainees take at least three months to really find their footing. And in some cases, it might take even longer for your trainee to develop the skills they need to be proficient in your business. 

By outsourcing a professional prospecting team, you won’t need to spend valuable time training someone new. 

Professional lead generation teams deal with finding new leads every single day. This ensures that they know exactly what they are doing and that they can focus solely on your business. 

They can jump on board immediately and get you the leads you want from the word go.

This also means that you will have the extra time you need to close more deals.

Outsourcing Lead Generation = More Flexibility for YOU

Flexibility is a big positive for outsourcing lead generation.

If your business is rapidly expanding, outsourcing allows you the flexibility to choose how big a team you want. If your business is quiet, then you can also downscale your outsourcing needs. 

By being open about your company’s needs, the lead gen outsourcing service can adapt to your business changes.

Whether your needs are hiring a bigger lead gen team or scaling down to a smaller one. 

Lead Generation services will boost sales performance

ack and his team at Salesbread is second to none when it comes to lead generation. We’ve worked with them on multiple occasions, multiple campaigns, multiple industries, and plenty of AB testing.

Jack and his team are incredibly nimble, efficient, and effective at getting interested people to talk to you about your product. At one point, we actually had the slow the lead generation down because it was producing so many interested potential customers, we needed to ramp up our ability to accept the leads!

I am highly selective about who I approach and the messaging, Jack managed to identify the right companies, the right titles, and the right messaging that was highly personalized to ensure I didn’t appear like a spam bot. Investing in Jack and his team is absolutely worth it and will pay for itself.

Mary Kopczynski

CEO, RegAlytics

When you outsource a lead generation agency, you are hiring a team of professionals who dominate their niche. Their job is to live and breathe lead generation.

Which inevitably means that your number of leads will increase.

If you are a start-up company, you can’t afford to waste time because time equals money. Therefore when you hire an outsourced SDR company, you are allowing your business to flourish from the start.

The best part is that most agencies ensure that they are only giving you the best high-quality sales leads. This means that your conversions will increase.

So there is no time-wasting, just more sales-qualified leads that close.

A lead gen agency can handle high pressure in sales

If your business is flourishing exponentially, a qualified outsourced lead gen team will be able to handle the pressure of mounting sales and leads.

They are used to handling large accounts and dealing with different prospects every day.

In some cases, these b2b lead-generation companies have been around for years;

Therefore, they can handle the pressure of companies that have an excellent growth rate.

Increased data optimization for your business

When you outsource a professional team of sales development representatives, you are also taking on a team that knows how to manage data. 

They might offer other services that your business would find helpful. They could create new potential client lists or clean up your existing database.

If you need to know your company’s conversion rate, then an outsourced company can do this for you. Did you know that 25% of marketers have no idea of their conversion rates? 

By knowing and understanding your conversion rates, you will be able to develop a marketing plan that leads to success. 

You will have more time to focus on what you enjoy

Let’s be honest.

Lead generation isn’t everyone’s favorite pastime.

When you know that your business is in safe hands, it frees up time for you to focus on the aspects of your company that you enjoy.

You don’t need to micromanage an internal team of lead generators but rather sit back, relax, and allow the agency to take care of the sales process.

Your employees will have more time

If you decide to use someone in-house as a sales rep, you might be putting pressure on them to perform when it comes to finding leads, which might not be their expertise.

When you outsource a lead gen company, you free up time for your current employees to focus on their current roles and customer relations. 

You will have access to specialized technology

Instead of buying specialized programs for lead generation, the company you choose to find your prospects already has access to all the specialized tech you will need.

You also won’t need to pay licensing fees, as they will cover the costs. This saves you money and allows you to leave everything in the capable hands of your outsourced team.

These are some of the lead generation tools we use at SalesBread:

Zoominfo 

Which is used for prospect data  

Price: On average, $24,995 per year for their advanced plan

LinkedIn Sales Navigator  

Which is a tool used for outreach and sales data

Linkedin Sales Navigator Pricing: $99,00 per month

Crunchbase.com  

Is a specialized form of tech for account data and targeting.

Price: $49 per user per month, billed annually ($588 annually).

Expandi.io  

A tool used for LinkedIn outreach

Price: $99 per LinkedIn account per month

Quickmail.io 

This is used for email follow-ups

Price: $89 per month. for their pro plan.

Zapier.com

Is used for automating and reporting

Price: Their professional plan starts at $49 per month.

If you had to purchase these tools for your in-house team, it could cost you a pretty penny.

Most of these tools have different plans that you can choose from, but having to purchase all of them can eventually add up even for their basic plans. 

Quick Growth And More Leads

One of the best reasons why you should outsource lead generation is that it ensures the quick growth of your business.

The metrics are proof that you will get quality leads with the right lead-generation strategy. 

With a specialized team behind you, all you need to do is wait for new business to come in and close those sales. 

What are the cons of outsourcing lead generation?

As with anything in life, there is always a negative to a positive.

When it comes to outsourcing an SDR team, you will need to choose one of the best to make it really worth your while. 

For example, if you decide to hire a less experienced outbound lead generation company, you might get a negative outcome.

Some companies might lack experience

Brand-new outsourcing companies might lack the experience and resources to get the right leads.

Because there are so many different b2b lead generation companies out there, they might lower their costs to have a competitive edge, but remember that cheaper doesn’t necessarily mean better. 

If you find yourself unsure of whom to hire, take your time and interview a few different lead generation companies. 

Instead, take your time and choose the right company, because if you choose the wrong one, you could end up losing money. 

You could also find out if they do an appointment setting, as this will also be an added benefit.  

Some outsourced lead gen companies also lack transparency. Ensure that you understand the process, and if you need to sign a contract, read through it carefully.

They Might Not Understand your Brand

Some agencies might not understand your brand, value proposition, or target audience as well as an in-house team. This might mean that they create messaging that doesn’t align with your company values. The messaging could feel generic and misaligned with your company.

Poor Lead Quality

Unfortunately, many agencies prioritize the quantity of leads over quality. This means that you could end up spending a ton of money and receive leads who are a bad fit, or just bad quality in general. You want to hire an agency that focuses on high-quality outreach. At SalesBread we ensure that our prospecting lists are ultra-refined; We only go after prospects who need what you’re selling, and who have the budget AND who have the buying power.

There Might Be Hidden Costs

There are some companies out there that have unclear pricing structures. This could lead to unexpected costs that might not be in your budget. Long-term contracts can also become a problem, especially if the return on investment is lower than expected.

Communication Issues

Unfortunately, in some situations, b2b outsourcing companies might have poor communications skills. This could lead to delays in response time, misalignment in strategy, or misunderstandings. Another issue could be, that time zone differences or language barriers could cause more problems.

Some other cons

  • Cheaper doesn’t always mean better. There are a few bad companies out there, so spending time researching the right lead gen company is critical. 

  • Some companies don’t offer transparency, which might mean that information could get lost. Sales Development reps know a lot of details that could be used against competitors. They deal directly with potential customers, so see if they will provide the extra info for you to get a competitive edge.

  • “One size fits all” might also be the go-to for some outsourced companies. Unfortunately, this does not work. Hire salespeople who have a personal touch and who recognize your business’s individuality. 

What is B2B Sales Outsourcing?

HubSpot's definition of outsourced b2b lead generation.

Hubspot defines lead generation as: “The process of attracting and converting strangers and prospects into someone who has indicated interest in your company’s product or service.”

But what does it mean to OUTSOURCE lead generation?

This means, that instead of training an employee to take care of lead gen, you will hire an external company to build your company’s sales by:

  • Creating a lead generation strategy
  • Building prospecting lists
  • Finding and reaching out to prospective customers
  • Following up with prospects
  • Nurturing current clients
  • Closing deals

(We will discuss the pros of outsourcing in further detail below.) 

This “nurturing” of the client is exceptionally important because stats show that 96% of website visitors are not ready to purchase from the first page visit.

Therefore, keeping tabs on these potential leads is key to your business’s growth, and personalization has a huge impact on closing the deal quicker.

The graph below shows that you will have a 26% faster closing rate when content is personalized.

Sadly, this is where many businesses fail; generating quality leads is the lifeblood of any business, and when this is done incorrectly, it’s like flushing money down the drain.

Notice what Statista says about how important personalization is for lead generation:

Statista on personalization in marketing

What would B2B lead generation services be in charge of?

If you choose to partner up with a lead generation agency, they might do the following (depending on their field of expertise) to generate leads for your business:

  • Cold emailing

  • LinkedIn outreach

  • Cold Calling/ telemarketing

  • Networking

  • Social Selling

  • Inbound lead generation

  • Social media marketing

How much does b2b lead generation cost?

It really depends on which agency you choose. But you can expect to pay anything between $3000 per month and $25,000 per month.

At SalesBread we charge $3000 per month plus a 1 time set-up fee for our done-for-you LinkedIn lead generation service.

….But Does This Mean That In-House Is Always Going To Be A Bad Idea?

Nope, it doesn’t.

We suggest starting with an outsourced lead generation team and then building an in-house sales team eventually.

When you are a start-up company, outsourcing initially would be the best option because it is more affordable, but as time goes on and you hit your financial targets, you could afford to start your own in-house lead gen team.  

You also get the shortened learning curve and immediate results of hiring an expert team outsourced.

Over time, once the system has been built, tested, and fine-tuned, you can bring the process in-house;

This gives you control, slight cost savings, and the ability to scale as large as you want to. 

Frequently asked questions about outsourcing lead generation

Can you outsource lead generation?

Yes, you can outsource lead generation to third-party companies or freelancers.

Many businesses choose to outsource lead-generation activities to save time and resources.

Outsourcing lead generation allows companies to focus on their core operations while experts handle the task of identifying and qualifying potential leads.

However, it is important to carefully select the right outsourcing partner to ensure the quality and effectiveness of the lead generation efforts.

Communication, transparency, and clear goals are key factors in successfully outsourcing lead generation.

How profitable is lead generation?

Lead generation can be a highly profitable venture for businesses, as it helps to identify and connect with potential customers who have shown interest in a product or service.

According to recent statistics, companies that excel at lead generation can see a 10% or more increase in revenue over the course of a year.

Additionally, businesses that actively nurture their leads experience a 50% increase in sales productivity and a 33% reduction in marketing costs.

With the right strategies in place, lead generation can be a lucrative investment for companies looking to grow their customer base and increase their bottom line.

Are lead generation companies worth it?

Lead generation companies can be worth it for businesses that do not have the time, resources, or expertise to effectively generate leads on their own.

These companies have the tools and strategies in place to target specific audiences, generate quality leads, and ultimately drive sales for their clients.

By outsourcing lead generation activities to a specialized company, businesses can save time and money while seeing a higher return on investment.

However, it is important for businesses to carefully research and choose a reputable lead generation company that aligns with their goals and target audience to ensure a successful partnership.

This article: Is Lead Generation Worth It? 67 Qualified Leads In 8 Weeks, goes into more detail on why lead gen is worth it if you hire the right agency.

Looking to hire the best B2B outsourced agencies?

If you’re not sure where to start, take a look at this article: Outsourced SDR: Discover the Top 10 Agencies to Scale Growth.

In it, we share some of the best agencies to work with, testimonials, and pricing.

In Conclusion

So whether you decide to outsource lead generation is totally up to you.

Still, the facts show that doing so (even if it’s just initially) for your business, will be the best way forward to generate high quality leads that convert to sales. 

When you partner up with Salesbread you can expect 1 lead per day.

Hop on a free 15 minute strategy session to learn more.

Jack Reamer Lead Generation Specialist

Jack Reamer

CEO of Salesbread.com

Jack Reamer is the CEO of SalesBread. Salesbread helps B2B companies get 1 qualified sales lead per day, by using ultra-personalized outreach messages on LinkedIn. Jack is also the co-host of the Cold Outreach Podcast. Read his articles on Mailshake.com, Reply.io, QuickMail.io, and SalesBread.