Outsourced SDR vs In-House SDR vs Agency: UK Cost Comparison (2026)

At some point, most growing B2B businesses hit the same wall. The founder is still doing most of the selling, referrals have slowed down, and there's no time to build a proper pipeline.

The obvious answer seems to be hiring a sales development rep (SDR), someone whose job is to find prospects and book meetings. But hiring one is more expensive, slower and riskier than most founders expect.

This guide breaks down the real cost of the three main options in the UK in 2026: hiring in-house, using an outsourced SDR, or handing it to a managed agency. It also covers when each one makes sense.

The short version

• In-house SDR: often around £55,000 to £65,000 in the first year once everything is counted, plus your management time. Expect about three months before they're fully productive.
• Outsourced SDR: a dedicated rep provided by a specialist company. Typically a few thousand pounds a month for one rep, more for a team. Faster to start, but quality depends heavily on the provider.
• Managed agency: a team runs the whole process for you, from targeting and messaging to sending, replies and booking. Commonly £3,000 to £10,000 a month in the UK, with some offers below that.

The cheapest option on paper isn't always the cheapest in practice. What matters is the cost per qualified sales conversation and how quickly you get there.

Option 1: Hiring an SDR in-house

What it really costs

Salary is only part of it. Here's a realistic first-year breakdown for a UK SDR on a mid-range package. Your numbers will vary, but the shape is typical.

That's around £4,700 to £5,200 a month, before counting the time it takes to manage them.

Where those numbers come from: UK SDR base salaries typically sit between the high £20,000s and the mid £30,000s according to Payscale, with more for experienced reps and a premium in London. Employer's National Insurance is 15% on earnings above £5,000 for 2026/27. Tool and recruitment costs are typical estimates and vary by setup.

The hidden costs

Ramp time. New SDRs aren't fully productive on day one. Industry research from the Bridge Group puts average ramp time at around three months. You're paying full cost for reduced output in that time.

Management time. Someone has to train them, write or approve messaging, review their activity and coach them. In a small business, that's usually the founder, which is exactly the time you were trying to free up.

Turnover. SDR roles have high turnover. The same Bridge Group research found median annual attrition of around 40%, with average tenure under two years. That data is mostly from US companies, but the pattern is familiar in the UK too. When a rep leaves, you pay to recruit and ramp again.

One person's skills. An SDR brings one set of strengths. If they're great on the phone but weak at writing, or good at volume but poor at research, you get that.

You still need the system. The SDR needs good data, sending infrastructure, a clear target list and a process. If you don't have those, the rep spends their first months building them.

When in-house makes sense

• You have a proven sales process and know exactly who you sell to.
• Someone experienced can manage and coach the rep.
• You plan to build a sales team, not just fill one seat.
• You need someone deeply embedded in your product, for example in complex technical sales.

Option 2: An outsourced SDR

An outsourced SDR is a rep employed by a specialist company and assigned to your account, either full time or shared.

What it costs

Pricing varies a lot. For one dedicated rep, expect a few thousand pounds a month. Team-based programmes with several reps and a campaign manager run much higher.

Pros

• Faster to start. No recruitment process.
• No employment risk. If it doesn't work, you end the contract rather than going through a dismissal.
• Experience. Good providers use reps who have already done this many times.
• Tools included. Data and sending tools are usually part of the price.

Cons

• Quality varies. Some providers are excellent. Others put junior reps on your account and rotate them often.
• Less product knowledge. An outsourced rep won't know your business as well as an employee.
• Activity, not outcomes. Many contracts pay for a rep's time, not for results.
• Shared infrastructure. Some providers send from shared domains, so another client's poor practices can affect your deliverability.

When an outsourced SDR makes sense

• You want a person working your accounts but can't justify or manage a full hire yet.
• You have clear messaging and target lists already.
• You can hold the provider to clear targets.

Option 3: A managed agency

A managed agency doesn't just give you a rep. It runs the whole process: working out who to target, finding the right contacts, writing messaging, setting up sending, handling replies and booking meetings.

What it costs

UK retainers for lead generation agencies commonly fall between £3,000 and £10,000 a month, depending on channels and volume. Some charge per meeting instead, and some combine the two. Our full breakdown of lead generation pricing goes into each model.

Pros

• The whole system, not just a person. Strategy, data, copy, infrastructure and reply handling are covered.
• Low management time. You approve targeting and messaging, then review results.
• No ramp-up of a new hire. There's still setup time, usually a few weeks, but no recruitment or training.
• Outcome-based options. The better agencies agree a target and a plan for what happens if it's missed.

Cons

• Quality varies widely. Some agencies send high volumes of generic emails to static lists, which damages your brand.
• Less direct control than an employee.
• Contract terms. Watch for long minimum terms with no performance clause.

When an agency makes sense

• You want meetings without building a sales function yourself.
• You don't have time to manage a rep.
• You want results in weeks rather than months.
• You'd rather pay for outcomes than headcount.

Side-by-side comparison

Working out which is cheaper for you

Compare the options by cost per qualified sales conversation, not monthly cost.

Say an in-house SDR costs £5,000 a month and, once fully ramped, books eight qualified meetings a month. That's about £625 per meeting, and more in the first few months while they ramp up.

Compare that against any outsourced or agency option by dividing the monthly cost by the qualified meetings you can realistically expect. Then ask how many of those meetings will be with the right people. A cheaper meeting with someone who'll never buy isn't cheaper.

Where Go7 fits

We built Managed Growth for B2B businesses that want a steady flow of sales conversations without hiring, managing or ramping up a rep.

Acquisition is the goal. Authority is what makes it work harder: when prospects can find you in the press, more of them reply and they take the conversation more seriously. So our Managed Acquisition plan, at £2,500 + VAT a month, includes both:

• An agreed target: 20 qualified sales meetings in 90 days, with "qualified" defined with you before we start.
• A guarantee: if we miss it, we keep working with no management fee until we hit it.
• Signal-led outreach: we find companies with a live reason to buy, such as hiring, growth, new leaders and contract wins, rather than emailing a static list. Our guide to buying signals explains how this works.
• PR signals and article press, so prospects find something credible when they look you up, and your outreach has coverage to point to.
• Your own sending infrastructure, never shared with other clients.
• Reply handling and clear reporting.

Over a year, that's £30,000 + VAT, roughly half the first-year cost of an in-house SDR, with no recruitment, ramp-up or management time. Plans start from £1,500 + VAT a month for a focused pilot, and the Acquisition + Authority plan adds deeper PR. See all plans and pricing.

If you'd rather keep it in-house but make it easier, Go7 Radar finds signals for your business every morning and drafts outreach for each one. It works well alongside a small in-house team.

Not sure which route fits? Get a free Growth Report and we'll show you where your best opportunities are right now.

FAQs

How much does it cost to hire an SDR in the UK? Base salaries typically range from the high £20,000s to the mid £30,000s, with more for experienced reps and in London. Once commission, employer's National Insurance, pension, tools and recruitment are added, the first-year cost is often around £55,000 to £65,000.

How long does it take an SDR to ramp up? Industry research puts average SDR ramp time at around three months, and it can be longer in complex or enterprise sales.

Is an outsourced SDR cheaper than hiring? Usually, especially in the first year, because there are no recruitment fees, no employment costs and less ramp-up time. But quality varies, so compare providers by qualified meetings delivered, not hours worked.

What's the difference between an outsourced SDR and an agency? An outsourced SDR is a rep assigned to your account, often working to your process. A managed agency runs the whole process for you, including targeting, data, messaging, infrastructure and reply handling.

When should I hire an SDR in-house? When you have a proven sales process, someone experienced to manage the rep, and a plan to build a wider sales team. Before then, outsourcing usually gets results faster with less risk.

Can I use an agency and an in-house team together? Yes. Many businesses use an agency to build pipeline quickly, then hire in-house once the process is proven. Others keep the agency for new markets while their team handles existing ones.

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Figures are based on publicly available data, including UK salary data from Payscale, 2026/27 employer National Insurance rates, and SDR ramp and attrition research from the Bridge Group. Tool and recruitment costs are typical estimates. Your costs will vary.