Outside Sales

Outside Sales: What It Is and How It Works

Outside sales (also called field sales) refers to sales activities conducted face-to-face in the customer’s environment rather than from an office. Outside salespeople travel to meet prospects and existing customers, build relationships, present solutions, and close larger or more complex deals that typically require personal interaction.

Key Characteristics

• Work performed predominantly in the field, often with flexible or irregular hours.
• High degree of autonomy and self-management (scheduling, travel, follow-ups).
• Frequent travel and in-person meetings with prospects, existing clients, and decision-makers.
• Emphasis on appearance, relationship-building, and entertainment/networking.
• Compensation often includes a base salary plus commission tied to the business generated.

How Outside Sales Operate

Outside sales reps arrange and attend client meetings, product demos, and strategy sessions—often with senior-level decision-makers. They manage travel logistics and adapt to changes such as delays or cancellations. Because interactions are in person, reps must be prepared to present professionally, tailor pitches on the spot, and nurture long-term client relationships.

Costs and Compensation

Maintaining an outside sales force is more expensive than inside sales due to:
* Travel (mileage, car rentals, plane tickets)
Lodging and meals
Entertainment and client events

However, outside sales often generate higher revenue per rep. Typical industry observations indicate outside sales can out-earn inside sales by roughly 12–18%, and orders from field efforts tend to be larger. Many companies balance higher costs with commission-based pay to align incentives.

Outside Sales vs. Inside Sales

Inside Sales
Work from an office or remotely, using phone, email, video conferencing, and other digital tools.
More structured hours, team supervision, and higher focus on volume (cold calling, rapid outreach).
* Lower travel and overhead costs; scalable through technology.

Outside Sales
In-person meetings and relationship-driven selling.
Suited to complex, high-value transactions and strategic engagements with C-level stakeholders.
* Higher per-rep cost but often higher revenue per sale.

Trends: Advances in communication technology have created hybrid models—inside/outside combinations that use field visits only when necessary, reducing costs while preserving personal engagement for high-value deals.

When to Use Outside Sales

Outside sales is most effective when:
* Products or services are complex and require demonstrations or customization.
Purchases involve multiple decision-makers or strategic business changes.
Trust and relationship-building are critical to closing deals.
* The expected order size justifies the travel and entertainment investment.

Advantages and Disadvantages

Advantages:
* Deeper relationships and stronger trust with clients.
Better access to senior decision-makers.
Higher deal sizes and revenue potential per sale.

Disadvantages:
* Higher operational costs (travel, lodging, entertainment).
Less predictable schedules and potential work-life imbalance.
Reliance on face-to-face meetings can be disrupted by travel issues or external events.

Managing an Outside Sales Force

• Track return on investment by comparing revenue generated to travel and compensation costs.
• Use technology (CRM, mobile tools, video calls) to reduce unnecessary travel and support hybrid workflows.
• Provide clear territory plans, expense policies, and performance metrics.
• Train reps on relationship management, executive-level selling, and time/expense management.

Takeaways

Outside sales is a relationship-focused approach best suited for complex, high-value transactions that benefit from in-person interaction. While costlier than inside sales, it often yields larger deals and higher per-rep revenue. Many organizations now combine inside and outside strategies to optimize cost and effectiveness.