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Why You’ll Fail If You Work With An SDR Agency

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B2B companies often believe that their lead generation efforts will scale up quickly once they start working with an SDR agency. They assume their calendars will be filled with sales meetings and they’ll have a steady stream of closed deals each month.

But that’s not how it works.

Your partnership with an SDR agency will fail if you don’t set the right expectations from the beginning.

The decision to partner with an SDR agency isn’t a one-size-fits-all solution. Before you make any important decisions, let’s talk about some key factors that can make or break your experience with a sales agency.

Consider this a reality check to make sure you’re on the same page with your potential sales partner and avoid a scenario where “failure” becomes your reality.

1. Know your stage: experimenting or scaling?

Is your company a seasoned leader in the B2B space or are you a startup still figuring out your ideal customer profile (ICP)?

Your stage in the business lifecycle plays a huge role in what you can expect from an SDR agency. Let’s look at both scenarios:

Startup Scenario

If you’re a young company, your sales agency will spend a lot of time experimenting to identify your sweet spot. They will spend a lot of time figuring out your market fit. That means you likely won’t close any deals in the first three to six months.

In simple words, don’t expect instant sales wins, especially if you have a long sales cycle. It might take months to close your first deal. This stage is crucial for understanding your market and refining your approach.

Seasoned Company Scenario

For more established companies, most likely you already have something that works and you’re just trying to scale it further with an agency. If not, you have an idea of what might work for you, but need outside help to figure it out. The agency’s job then will be to amplify your existing, proven sales strategies and generate a higher volume of qualified leads.

The bottom line is, be honest about your company’s stage. An SDR agency can be a great fit, but understanding your needs will determine the type of fit. Basically, determine what stage you’re in: do you have things figured out or are you still figuring things out? Your company’s stage will have an impact on the results the agency can potentially deliver.

2. Your definition of a ‘qualified meeting’ might be different for the SDR agency

Out of curiosity, we asked ChatGPT to give us its definition of a ‘qualified meeting’. This was the response:

Now, with that in mind, there are two big questions you need to ask yourself (and both answers need to be aligned):

“What does a qualified meeting mean to me?”
“What does a qualified meeting mean to the SDR agency?”

The definition of a “qualified meeting” often varies, leading to misaligned expectations. Companies expect Sales Qualified Leads (SQLs) from their SDR agencies. However, agencies often deliver Marketing Qualified Leads (MQLs), half of which will be SQLs. So if you want a higher number of SQLs, be prepared to invest more in your SDR agency to achieve these results.

Set clear expectations on what a “qualified meeting” is and what your agency can realistically deliver within a specific period of time.

3. Have a clear understanding of what you are selling

If your company offers multiple product lines, asking a sales agency to sell all of them is not the wisest decision.

You need to give the agency a focus. Focus is key. Identify 1-2 products or use cases with the highest sales potential and let them concentrate on these. This gives them a clear target and increases their chances of success, which also increases your chances of success.

Think of it this way: You wouldn’t send a salesperson to a meeting without a specific pitch, right? The same goes for your SDR agency. Give them a focused message and watch the results come in.

4. Cold and warm sales cycles are very different

An SDR agency does cold outreach (eg. LinkedIn outreach), which is fundamentally different from inbound sales. Cold sales cycles are much longer than warm sales cycles (or inbound sales cycles). If you’re used to quick closes from warm leads or referrals, get ready for a longer journey with cold leads.

Cold outreach takes time and a dedicated sales process specifically designed for this approach. If it usually takes you three months to close an inbound or a warm lead, it’s going to take you six to nine months to close a cold deal. This is only if you have a good sales process in place.

If you want to work with an agency, set realistic expectations: Closing deals from cold outreach will generally take twice as long as nurturing warm leads. Patience and a dedicated sales strategy tailored for cold outreach are important.

Conclusion: are you ready for an SDR agency partnership?

Starting a partnership with an SDR agency requires the right expectations. A successful partnership is about ensuring both sides are aligned on goals and strategies.

If you’ve evaluated these important points and are ready to invest in the work, an outsourced sales agency can help boost your sales efforts. However, if you’re looking for a quick fix, you will be setting yourself up for disappointment.

So, are you ready to work with an SDR agency?

If the answer is yes, FiveRings can help you reach your target market and fill your calendar with qualified meetings.

Want to know how we can help you? Check out our B2B success stories.

If you’re ready to talk to us, let’s have a chat.

Why You’ll Fail If You Work With An SDR Agency

1. Know your stage: experimenting or scaling?

Startup Scenario

Seasoned Company Scenario

2. Your definition of a ‘qualified meeting’ might be different for the SDR agency

3. Have a clear understanding of what you are selling

4. Cold and warm sales cycles are very different

Conclusion: are you ready for an SDR agency partnership?

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