what is inbound tourism definition

What is Inbound and Outbound Tourism?

by Hammad Ur Rehman | Oct 25, 2021 | Travel Guide | 6 comments

Don’t you just love traveling around the world and exploring different places? Staying or visiting different countries or states for the sake of fun-filled holidays or work-related visits, are termed tourism. Tourism can be of two types, Inbound tourism or Outbound Tourism. Now the question arises that what is inbound and outbound tourism?

Well, the difference between the two is just a matter of perspective, that is, from where and how you see it. In simple words, if we look from the USA tourism perspective, the outbound tourism would be Robert going to Pakistan, while inbound tourism would be, Ali coming to the USA. Similarly, if we look from a Pakistani tourism perspective, the outbound tourism would be Ali going to the USA, and the inbound tourism would be, Robert coming to Pakistan.

Let’s move on and further elaborate on these two types of tourism.

What is Inbound tourism?

Inbound tourism is economically significant for a country. The tourist countries economically rely on the inbound visitors to drive their maintenance, growth, and development.

What exactly is inbound tourism? In easy words, you can call it incoming tourism. Let’s move further to see the definitions, meanings, significance, drawbacks, and examples of inbound tourism.

Definition of inbound tourism

When someone travels to a country, other than their own country, for tourism, this is called inbound tourism.

Inbound tourism is frequently influenced by certain factors like:

• Season or Weather
• Public holidays
• School’s summer or winter vacations

According to WTO (World Trade Organization) and UN (United States Nation), inbound tourism can be defined as follows:

“ The act of traveling to another country for not more than one consecutive year for leisure, business, or other purposes .”

Importance of inbound tourism

Through foreign exchange, tourism may bring a lot of wealth into a country. This is especially advantageous in places where the local exchange rate is cheaper as compared to visitors’ native currency. Therefore, inbound tourism has high significance in many countries mainly because of the benefits it provides economically.

Mostly, countries target specific nations for advertising and promoting their inbound tourism. For instance, in today’s era, Chinese people tend to spend more on traveling every year as compared to any other nation, plus, the greatest outbound tourism markets are also produced by China. Therefore, Chinese inbound tourists are highly in demand by many tourist countries.

Drawbacks of inbound tourism

Depending entirely on income from the inbound tourism may cause problems. There are many places like Maldives, Goa, Fairy meadows, Greece, etc., whose economies rely on tourists from other countries.

The primary drawback of inbound tourism is that the place is at the hands of the transportation network. Many tourism industries have been ravaged as a result of airlines ceasing to operate a specific route. Cultural conflicts can also take place due to inbound tourism.

Some other disadvantages of inbound tourism include:

• Disposal, contamination, and emissions are all on the rise.
• Environmental and aquatic habitats are being physically harmed on a daily basis.
• Inappropriate buildings are being built next to historical places and monuments.
• Plenty of resources are being used up.
• Building infrastructure and utilization of land.

Inbound Tourism examples

Now that we have a basic understanding of inbound tourism, let’s look at some practical examples.

If a person from one country travels to another country for tourism, then it’s an inbound tourist. For example, Ali is having a summer break from his university and wants to go abroad. So, he decides to go for tourism to France and enjoys his summer break there. This is an example of inbound tourism because Ali is coming from Pakistan to France for his vacation, and it is a tourist activity for him.

Likewise, Robert is also having a summer break from his school and wants to visit another country. So, he decides to go for tourism to Pakistan and enjoys his summer break there. This is also an example of inbound tourism because Robert is coming from America to Pakistan for his vacation, and it’s a tourist activity for him.

Generally, some of the countries that are renowned for inbound tourism include Maldives, Goa, Greece, etc.

What is outbound tourism?

Leaving your homeland for the sake of gaining international tourism experience has wide importance for many countries.

Let’s jump into detail and find out what is outbound tourism, how do we define it, the importance of outbound tourism has it got any disadvantages, and a few examples of outbound tourism.

Definition of outbound tourism

When a tourist travels or visits outside his or her country for the sake of tourism, but not for more than a year. This type of tourism is called outbound tourism.

The WTO (World Trade Organization) and UN (United States Nation) define outbound tourism as follows, “The act of leaving your home country internationally for not more than one consecutive year for leisure, business or other purposes.”

Throughout the years, the market for outbound tourism has grown significantly. However, different regions of the world have different growth rates of the tourism market, but the factors leading to progress are similar.

Importance of outbound tourism

Outbound tourism also has a positive impact on the economy of the county. It provides economic improvements in a variety of industries such as education, healthcare, business, and retail, etc.

For example, the more people travel to foreign nations, the more their demands for products and services increase. Thus, it is a source of economic growth and prosperity for many countries.

This direction of tourism helps in increasing employment opportunities, foreign currency earnings, and trade balance. Thus, it is a source of economic growth and prosperity for many countries.

Within a very short period, China has become the largest source of outbound tourists. The increasing number of Chinese outbound tourists opens the gate of opportunities for tour group operating companies, hotels, national government ad retailers.

Drawbacks of outbound tourism

Apart from the advantages, there are a few disadvantages of outbound tourism as well. These drawbacks include the following:

• Many outbound tourists spend a huge amount of money on international chains like KFC fast-food chains, which reduces the positive effects of tourism as the tourist is using money that has been taken out of his residence.
• ·Sometimes, a country relies far too much on its outbound tourism market. For example, some Caribbean island nations depend on money from tourists to fund their entire economy and government, but this is a risky move as the tourism market is highly inconsistent, and a small incident can lead to a large drop in tourism.

Outbound tourism examples

Let’s go through an example of outbound tourism from the USA point of view:

John is a US citizen and has a passport to the USA. He wants to go for tourism so he can explore the international culture and experience new things. So, he goes for a tour to Spain with his family and friends. This is an example of outbound tourism because John has applied for a tourist visa and is traveling outside his country, USA.

Another example of outbound tourism from Spain’s perspective:

Robert is a tourist from Spain who wants to go for tourism in the USA, but he has no American visa. So, he goes for a tour to the UK with his family and friends. This is an example of outbound tourism because Robert has applied for a tourist visa and is traveling outside his country, Spain.

What is domestic tourism?

Until here, we discussed international inbound and outbound tourism. However, tourism can also be domestic. Now you would want to ask what is domestic tourism ?

Well, it’s very simple. In domestic tourism, the tourist visits different regions, cities, or towns of the same country where he/she resides. In easy words, domestic tourism is vacations spent within the same country you live in.

Let me give you an example of domestic tourism, Sarah lives in California, USA, and for her vacations, she visits Pennsylvania, USA.

Domestic tourism is used by the government to eradicate poverty, economic development, production of employments, infrastructure upgrades, reduce the load from overcrowding. For instance, If the government of California promotes domestic tourism within its state, then more people would come to visit various places in California, which are less popular, and it would boost the economy of California by providing employment opportunities to the people.

Also Learn: Domestic vs International Travel

Final Thoughts

In general, tourism contributes significantly to international trade and the provision of job opportunities in many nations. I hope this article has provided you with a clear picture of what are the types of tourism and why are they significant. All types of tourism are important for the economic growth of any nation.

Check our article on: What is FIT And GIT in The Tourism

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Understanding Inbound Tourism: A Comprehensive Guide

Welcome to the world of travel and tourism, where the concept of inbound tourism plays a crucial role in shaping the industry. In this comprehensive guide, we will delve deep into the definition, significance, trends, and impact of inbound tourism on destinations around the globe. Whether you are a seasoned travel professional or an enthusiastic traveler, understanding inbound tourism is essential to grasp the dynamics of the travel industry.

What is Inbound Tourism?

Inbound tourism refers to the act of traveling to a destination by individuals who are not residents of that destination. In simpler terms, it involves tourists visiting a country or region that is different from their place of origin. This form of tourism encompasses a wide range of activities, including sightseeing, cultural exploration, leisure travel, business trips, and more.

One of the key characteristics of inbound tourism is that it involves foreign visitors who contribute to the economy of the destination they are visiting. These visitors bring in revenue through various means such as accommodation, dining, transportation, shopping, and other tourism-related activities. Inbound tourism is a significant driver of economic growth and development for many countries, making it a vital component of the global tourism industry.

The Significance of Inbound Tourism

Inbound tourism plays a pivotal role in the economic, social, and cultural development of destinations worldwide. Here are some key reasons why inbound tourism is significant:

• Economic Impact: Inbound tourism generates revenue for the host destination through spending on accommodations, food, transportation, and other services. This revenue contributes to the local economy, creates jobs, and supports small businesses.
• Cultural Exchange: Inbound tourism promotes cultural exchange and understanding between different countries and cultures. Tourists have the opportunity to immerse themselves in the local customs, traditions, and way of life, fostering mutual respect and appreciation.
• Infrastructure Development: The influx of foreign tourists often leads to improvements in infrastructure such as airports, roads, hotels, and attractions. These developments benefit both tourists and local residents, enhancing the overall quality of life in the destination.
• Promotion of Heritage and Natural Resources: Inbound tourism can help raise awareness about the importance of preserving heritage sites, natural landscapes, and wildlife. Tourists often visit destinations to experience their unique cultural and natural attractions, creating incentives for conservation efforts.

Trends in Inbound Tourism

The landscape of inbound tourism is constantly evolving, influenced by changing consumer preferences, technological advancements, global events, and economic factors. Here are some notable trends shaping the world of inbound tourism:

• Emerging Destinations: As travelers seek new and authentic experiences, emerging destinations are gaining popularity among tourists. These destinations offer unique attractions, cultural heritage, and natural beauty, attracting visitors looking for off-the-beaten-path experiences.
• Digital Transformation: The rise of digital platforms and online booking systems has transformed the way travelers research, plan, and book their trips. Online travel agencies, review websites, and social media influencers play a significant role in shaping travelers' decisions and preferences.
• Sustainable Tourism: There is a growing emphasis on sustainable tourism practices that minimize the environmental impact of travel and support local communities. Eco-friendly accommodations, responsible tour operators, and conservation initiatives are becoming increasingly important for travelers seeking ethical travel experiences.
• Personalized Experiences: Travelers are increasingly looking for personalized and customized experiences that cater to their interests and preferences. From tailored itineraries to unique accommodations, the demand for personalized travel experiences is driving innovation in the tourism industry.

The Impact of Inbound Tourism

The impact of inbound tourism extends beyond economic benefits, influencing various aspects of destination development and community well-being. Here are some key areas where inbound tourism has a significant impact:

• Employment Opportunities: Inbound tourism creates job opportunities in sectors such as hospitality, transportation, retail, and tour operations. These jobs provide income for local residents and contribute to the overall prosperity of the destination.
• Cultural Preservation: Tourism can help preserve and promote the cultural heritage of a destination by showcasing traditional crafts, performing arts, cuisine, and festivals. Cultural tourism initiatives support local artisans, performers, and cultural institutions, preserving traditions for future generations.
• Infrastructure Development: The demand from tourists drives investments in infrastructure projects such as airports, roads, public transportation, and tourist facilities. These developments benefit both tourists and local residents, improving accessibility and quality of life.
• Environmental Conservation: Sustainable tourism practices promote the protection of natural resources, wildlife habitats, and ecosystems. Responsible tourism initiatives aim to minimize the environmental footprint of travel activities and raise awareness about conservation efforts.

Inbound tourism is a dynamic and multifaceted aspect of the global travel industry, influencing economies, cultures, and communities around the world. By understanding the definition, significance, trends, and impact of inbound tourism, stakeholders in the travel industry can make informed decisions and contribute to sustainable tourism development. As the world continues to evolve, inbound tourism will play a vital role in shaping the future of travel and creating memorable experiences for travelers worldwide.

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What is Inbound Tourism? And How Our API Solution Boosts It

Inbound tourism, a key driver of economic growth and job creation, has become essential for many countries worldwide. In this article, we will explore what is inbound tourism and how embracing an API platform like Travel Trade Ready can help tourism organisations boost their visitor numbers and revenue.

What is Inbound Tourism?

Inbound tourism involves the various pursuits and events experienced by tourists visiting a foreign country for leisure, work, or other reasons. This includes an array of travel adventures, such as cultural excursions, thrilling expeditions, high-end retreats, and professional gatherings. As a crucial aspect of the worldwide tourism sector, inbound tourism substantially impacts a nation’s economy, job market, and infrastructure growth.

As global tourism sees the number of international visitors return to form, understanding the answer to “ what is inbound tourism ?” and identifying creative methods to improve it has emerged as a primary objective for tourism agencies across the globe.

The Importance of Inbound Tourism

The definition of inbound tourism is international traffic entering a country – so, for example, any non-British citizen entering the UK for the specific purpose of tourism.

Inbound tourism is a significant driver of economic growth, offering multiple benefits to countries and local communities. The influx of international visitors creates employment opportunities, supports local businesses, and generates tax revenue for governments. Additionally, inbound tourism promotes cultural exchange and global understanding, fostering positive relationships between countries and their citizens.

As the global travel market continues to expand, understanding what is inbound tourism and how to increase it is critical for tourism organisations aiming to thrive in this competitive industry.

What is Inbound Tourism? – Travel Trade Ready

The importance of an api platform in inbound tourism.

An API (Application Programming Interface) platform is a game-changer in the travel industry. By embracing an API platform, such as the solution offered by Travel Trade Ready , tourism organisations can streamline their operations, increase data efficiency, and ultimately attract more inbound tourists. Some of the key benefits of using an API platform in inbound tourism include:

Real-Time Availability and Pricing

API platforms offer real-time availability and pricing information, enabling travellers to make informed decisions and tourism organisations to optimise their revenue management strategies.

Enhanced Customer Experience

Via the API methodology of integrating various travel services and offering personalised recommendations, an API platform can significantly enhance the overall customer experience, which is crucial for attracting more inbound tourists and fostering repeat business.

The Benefits of Travel Trade Ready API for Tourism Organisations

Travel Trade Ready is an innovative API platform designed specifically for the travel industry. It offers a wide range of features and benefits that can help tourism organisations increase their inbound tourism numbers. Some of the key advantages of using Travel Trade Ready API include:

Global Distribution

One of the key benefits of the Travel Trade Ready API is its ability to connect tourism organisations with travel trade partners worldwide. By establishing these connections, organisations can expand their global reach and promote their offerings to a larger audience. This increased visibility is crucial in driving inbound tourism growth, as international travellers are more likely to book trips when they have easy access to information and booking options.

Travel Trade Ready API enables tourism organisations to tap into a global network of travel agents, tour operators, and online travel agencies, increasing their visibility and reach to potential customers worldwide.

Advanced Booking Management

Another important aspect of what is inbound tourism and how to increase it involves streamlining the booking process for international travellers. The Travel Trade Ready API simplifies this process by allowing travel trade partners to access real-time availability, pricing, and product information. This enables them to offer seamless booking experiences for their customers, making it easier for travellers to plan and book trips to your destination.

With Travel Trade Ready API, tourism organisations can manage bookings, cancellations, and modifications in real-time, ensuring efficient operations and a smooth customer experience.

Enhancing Your Online Presence

In today’s digital age, having a strong online presence is essential for attracting inbound tourism. The Travel Trade Ready API helps organisations achieve this by providing high-quality, up-to-date content for their online platforms. This includes detailed product descriptions, images, and videos, ensuring that your offerings are presented in the best possible light to potential visitors.

Comprehensive Inventory

Travel Trade Ready API provides access to an extensive inventory of travel products and services, including accommodation, transportation, tours, and activities. This allows tourism organisations to offer a diverse range of options to their customers, catering to various preferences and budgets, at a far lower cost than traditional networking.

Customisable Solutions

Travel Trade Ready provides dedicated customer support to assist with any technical issues or queries, ensuring a seamless experience for both tourism organisations and their customers.

In conclusion, understanding what is inbound tourism and implementing an API platform like Travel Trade Ready can significantly boost a tourism organisation’s performance and competitiveness in the global market. By simplifying the booking process, providing real-time availability and pricing information, and offering a wide travel service range, Travel Trade Ready can help attract more inbound tourists and drive economic growth in the tourism sector. Don’t miss out on the opportunity to leverage this innovative solution to take your tourism organisation to new heights – check out our demo website section today.

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A compilation of data on inbound tourism by country, including data on international tourist arrivals, international tourism receipts and international tourism exports.

COUNTRY PROFILE – INBOUND TOURISM

In order to better understand inbound tourism, the World Tourism Organization (UNWTO) has launched a dashboard on country profiles with data on inbound tourism. The dashboard includes data on:

• International tourist arrivals
• International tourism receipts
• International tourism exports
• Comparison of destinations
• Ranking of indicators on inbound tourism

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Glossary:Tourism

Tourism means the activity of visitors taking a trip to a main destination outside their usual environment , for less than a year, for any main purpose, including business, leisure or other personal purpose, other than to be employed by a resident entity in the place visited.

Three types can be distinguished, according to the origin and destination of visitors:

• domestic tourism means visits within a country by visitors who are residents of that country.
• inbound tourism means visits to a country by visitors who are not residents of that country.
• outbound tourism means visits by residents of a country outside that country.

Derived groupings:

• national tourism means domestic and outbound tourism.
• internal tourism means domestic and inbound tourism.
• international tourism means inbound and outbound tourism.

Further information

• Methodology for tourism statistics and Tourism Satellite Accounts (TSA)

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What Is the Difference Between Inbound and Outbound Tourism?

In the simplest terms, inbound tourism occurs when a foreigner or non-resident visits a particular country, and outbound tourism occurs when a resident of a particular country leaves it in order to visit another one.

As an example from an American perspective, if an American visits Germany, that is considered to be outbound tourism. However, if a German visits the United States, that is considered to be inbound tourism. Inbound and outbound tourism have an important impact on a country’s financial health.

The Benefits of Inbound Tourism

When a country attracts a lot of inbound tourism, the tourists spend money on hotels, dining, attractions, souvenirs and other amenities. This creates jobs, and through consumption taxes, it adds additional money to that country’s coffers. As the inbound tourism increases, so does the job market in that country in order to cope with the increased traffic. New hotels are needed to accommodate the influx of tourists, new attractions spring up to offer something enticing for visitors, the need for taxis and hired cars increases and so on.

Inbound Tourism in the United States

Tourists flock to the United States to see natural wonders, such as the Grand Canyon and Niagara Falls, and historic landmarks like the Statue of Liberty, the White House and Mount Rushmore. Theme parks attract millions of tourists each year, including Walt Disney World and Universal Studios Hollywood. There are famous annual events, such as Mardi Gras in New Orleans and Comic-Con International in San Diego. Generally speaking, foreign tourists are known to spend a considerably higher amount of money in the United States than domestic tourists. This investment helps the economy thrive.

Outbound Tourism

Outbound tourism also generates some money in the country of origin even though the residents are leaving to visit elsewhere. Outbound tourists make purchases that include plane tickets, travel insurance and new travel clothing from their home country. As travel trends change and people look for specialized vacations, such as adventure tourism or wellness tourism, tourism companies benefit from sourcing and booking customized packages. Ultimately, however, outbound tourism takes financial resources out of the home country and gives them to the destination country. As an example, travel exports (inbound tourism) for the United States in 2016 reached $246 billion, while its travel imports (outbound tourism) reached $159 billion.

Travel Trade Surplus

If a country has more inbound than outbound tourism, as in the above example, it has a travel trade surplus. A country with a travel trade surplus can consider tourism to be a very lucrative export. For the United States, international travel as a whole continually enhances American job growth and helps balance the country’s trade, being its largest service export. In 2016, over a million U.S. jobs were supported by international travel and the country’s travel trade surplus ran into tens of billions of dollars. Benefiting from a high level of inbound tourism doesn’t mean that a country shouldn’t encourage outbound tourism, however. There are intangible effects of both inbound and outbound tourism, and these include learning about the surrounding world and fostering positive relationships between countries. Outbound tourism includes business trips as well as vacations, enhancing ties between other nations and boosting the economies of each participating country.

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What Is Inbound and Outbound Tourism With Example?

By Robert Palmer

Inbound and outbound tourism are two terms that are commonly used in the travel industry. Both of these terms refer to the movement of people from one place to another for the purpose of tourism. In this article, we will take a closer look at what inbound and outbound tourism means, along with examples.

What is Inbound Tourism?

Inbound tourism refers to when tourists visit a country that is not their own. In other words, it refers to the arrival of visitors from overseas into a country.

This type of tourism is also known as international tourism. The visitors could be traveling for various reasons such as leisure, business or visiting friends and family.

Inbound tourism can have a significant impact on a country’s economy by generating revenue through spending on accommodation, food, transport, and other tourist activities. For example, when tourists visit India to see the Taj Mahal or Singapore to experience its unique culture, they contribute significantly towards the local economy.

Examples of Inbound Tourism

• A family from Germany visiting Disneyland in California
• A group of backpackers from Australia traveling across Southeast Asia
• A businessman from Japan attending a conference in New York City

What is Outbound Tourism?

Outbound tourism refers to when tourists leave their home country to visit another country. It’s also known as domestic tourism when people travel within their own country for leisure or business purposes.

Outbound tourism can have an impact on both the traveler’s home country and the destination they are visiting. When people travel abroad from their home countries, they spend money on flights, accommodation and other tourist activities which can contribute significantly towards the local economy of the visited country.

Examples of Outbound Tourism

• A family from Canada taking a vacation to Hawaii
• A group of friends from the United States traveling to Europe for a backpacking trip
• A couple from Australia taking a romantic getaway to Bali, Indonesia

Inbound and outbound tourism are two important aspects of the travel industry. While inbound tourism refers to tourists visiting a country that is not their own, outbound tourism refers to people leaving their home country for leisure or business purposes.

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SaaS Marketing Strategy: Inbound vs Outbound?

Keith Holloway on April 12, 2024

Table of Contents

More articles.

Key Takeaways:

• Your Go To Market (GTM) Strategy must match your business model
• Most SaaS businesses start with outbound and are in denial that this is a scalable long-term strategy for their business
• At least 50% of marketing efforts should be inbound once you have your first referenceable customers and have found product market fit
• Transitioning to inbound later on doesn’t always happen, and it can delay potential results and momentum 
• Start inbound early, prioritizing bottom-of-the-funnel content that will continually support both inbound and outbound efforts

When choosing between inbound and outbound campaigns to solidify your SaaS marketing strategy, the goal is to balance fast-acting campaigns with long-term and sustainable growth potential. 

The ratio between inbound and outbound will be different for each business. However, while working with over 50 successfully scaled SaaS businesses in the last five years, we’ve seen firsthand that at least 50% of your SaaS marketing strategy should be focused on inbound campaigns. 

While each channel has its merits, the first decision you must make as a SaaS business leader is how much effort you must put into inbound vs. outbound sales and marketing campaigns.

Knowing what to invest in upfront can help you make smarter choices with your marketing budget and efforts. 

Let’s discuss why. 

The Pros & Cons of Inbound vs. Outbound Marketing 

When choosing your overall SaaS marketing strategy, it’s helpful to understand the differences between inbound and outbound marketing and the pros and cons of each. 

Inbound Marketing 

Inbound marketing is any marketing campaign designed to draw customers in , attracting customers to your business and website. It almost always centers around creating value through content and resources. Examples include search engine optimization (SEO), pay-per-click ads (PPC), content marketing, and social media marketing. 

The pros of inbound marketing are:

• In the long term, costs can be much lower, especially once the engine starts producing
• Content provides evergreen resources with long-term results; once you’ve created and published a blog post, it can continue to live on your site for new customers to find, even for years to come 
• Inbound leads tend to close much faster because they were actively looking for a solution when they became your lead
• It can increase brand awareness, affinity, and customer trust, which is invaluable for SaaS businesses facing a hyper-competitive market and long buying cycles
• Customer reception is stronger; they sought out the information you’re providing, and you’re offering value upfront 
• Leads who have made it through an entire content funnel are likely more familiar with your product and brand, increasing their odds of converting 
• Results grow and compound over; it’s a little like an investment account, so the best thing you can do is start ASAP 

The disadvantages can include:

• It requires some momentum; SEO and content efforts aren’t going to work overnight, so ongoing work and investment are needed to see significant results. The ramp up period can range anywhere from three to twelve months
• SEO (Organic) traffic can be considered free, but it takes significant effort to get it. It’s often most effective when working with experts like SEO agencies, content marketers, and social media marketers; this requires a financial investment
• You may have to sort through more inquiries that aren’t in your target market because your visitors aren’t pre-qualified. However, even after discounting unqualified leads, the cost per qualified lead is still typically much lower than outbound
• While inbound pay-per-click (PPC) campaigns can be fast and effective, like outbound, the results dry up as soon as you stop paying

Outbound Marketing 

Outbound marketing is any type of marketing campaign where you initiate contact proactively with potential leads. Examples include cold outreach, tradeshows, conferences, and outbound sales calls.

The pros of outbound marketing:

• The results can be nearly immediate if your campaigns are successful
• You can connect with leads who might not have discovered you otherwise
• If your research is good, almost all of your leads will be in your ideal customer profile (ICP), because you would have pre-vetted the list 
• You can personalize campaigns using targeting or personalization features combined with audience research to create relevant messaging that can increase conversion rates

The downsides of outbound marketing:

• Campaign results stop the second you stop putting effort and money into them, so there’s no long-lasting evergreen impact
• Outbound campaigns are not always enthusiastically received by potential leads
• Just because a lead or account is in your target market, doesn’t mean they are ready to buy now. In fact, only 10-15% of potential customers are in their buying cycle at any given time
• Reaching new leads can require a great deal of trial and effort with different platforms
• Personalized outreach requires extensive research for individual leads 

Most SaaS Companies Start with Outbound 

Many SaaS businesses start their go to market strategy focusing on outbound marketing campaigns, and it’s easy to understand why. 

It’s easier to sell to your network

Founder-led companies often get their first sales from existing relationships in the founder’s network. Outside of that, initial outreach is important to gaining traction for many startups.

It’s faster, at least at first

Outbound is ultimately low-yield but faster, which is critical at the beginning when you’re starting at nothing. With strong campaigns, you can take a relatively small budget and acquire leads and customers quickly. 

That said, hiring the first salespeople for a company is often a challenge. Few people can sell as well as the founder, often despite a lack of sales expertise, so initial outbound marketing campaigns often stall once additional salespeople are involved and first learning the ropes. 

As startups begin relying on outbound marketing campaigns, they run into a common problem. They realize that all the results they’re getting stop the second they press pause on those outbound campaigns. 

Match Your GTM to Your Business Model

The bottom line is, your go-to-market (GTM) strategy must be supported by your business model.

Typically, this means the GTM strategy, or balance between inbound and outbound, is based entirely on your annual contract value (ACV) or product price point.

To get more specific: If your ACV is less than $10,000+ it’s almost certain you need to focus on your inbound strategy, as your outbound will be prohibitively expensive.

For a lower ACV product, you need high volumes of leads and self-serve sales to make the business model work in the long run. When you consider the cost of sales staff, it’s often not possible to close enough deals with a low ACV to pay for the cost of the large teams with expansive tech stacks.

You might think that some types of outbound marketing, such as email outreach, are high-volume, but that’s only in the top of the marketing funnel, not in the bottom, where it counts:

Outreach typically doesn’t translate to high-volume results; it’s high-volume activity and impressions to realistically get a low (though hopefully solid) number of people in the door. Once you factor in open rates (5-40%), click-through rates (0.5-2%), form conversion rates (1-4%), it becomes a low volume output. 

Many startups are in all stages of denial about this , spending the money and putting faith into the idea that it will pay off, whether they’re paying for pre-built lead lists or shelling out major dollars to SDR agencies. We’ve also found that many believe they’ll make the transition to inbound eventually, not realizing it can be hard to do without the proper groundwork.

As already discussed, Inbound does take some time to ramp up, but the dollars you spend on organic content compound over time. 

You must consider your total addressable market, your ACV, your expected sales cycle, and the competition when weighing how to balance the inbound vs. outbound ratio for your GTM strategy. 

That said, we do have one strong recommendation.

You Should Have At Least 50% Inbound Marketing 

If you neglect inbound marketing upfront, you’ll regret it for plenty of time to come. It might even mean you run out of money and your business fails. Inbound marketing compounds, so the best time to start was last year, but the second best time is now. 

Because of this, we recommend that at least 50% of your marketing efforts focus on inbound campaigns. The exception is product-led growth models, in which case you need to rely entirely on inbound campaigns.

When done correctly, your content helps the buyer and offers extensive value upfront. That value isn’t automatic or free during outbound campaigns. It can help you generate trust, answer customer questions, and demonstrate how your product can resolve a customer’s core pain points or problems. If you don’t have the content, you will have to address all of your customer questions and objections one-on-one on sales calls, at considerable cost but not at scale.

As an additional note, if you have 5,000 or fewer potential customers worldwide, you do want to leverage outbound marketing techniques to reach out to each one. Inbound should also just be a strong part of that picture (again— at least 50%).  

PRO TIP: We strongly recommend starting with content at the bottom of the funnel, which helps you attract and convert leads most effectively and support later outbound efforts as you expand your marketing campaigns. 

According to Dave Shanley, founder of Content Camel , organizations of all sizes often aren't effective closers. 

“Spending a lot of money on outbound amplifies this pain. Effective bottom-of-the-funnel inbound content helps late-stage buyers close themselves, and that investment provides residual value. Businesses of all sizes can use improvement here – even if you are 50M or 100M business, there is an inbound opportunity. Do it right, and you address buyers’ pain points and speed up the sales cycle, lifting your bottom line.”

Real-world Examples: Inbound vs. Outbound

Theory is great, but genuine evidence is worth a lot more when making decisions. So, let’s look at some real-world examples that back up our argument that SaaS businesses and startups need at least 50% of their marketing strategy to focus on inbound campaigns.

1. Inbound Only: A sales enablement software startup with low ACV

Content Camel is a sales enablement startup offering content management systems designed to improve access to and collaboration on sales resources for both internal and external use.

Content Camel’s GTM strategy has been purely inbound. Because of the price point of the product, outbound just didn’t make sense. And with inbound marketing alone, we’ve helped them grow site traffic by 300% in the last year . 

“With past companies and advising other startups, I’ve seen a lot of cases where GTM strategy didn’t match the business model and organizations really struggle to generate meaningful revenue as a result. Working with PureSEM has been critical to our success in building our strategic inbound pipeline. It’s a partnership we’re excited to expand”, - Dave Shanley , founder, Content Camel.

2. Inbound/Outbound Mix: Mid-market, high-ACV logistics software company

Another one of our clients has an Annual Contract Value (ACV) of high 5, low 6 figures. That kind of price point can certainly support outbound sales, so that was initially their primary focus. 

They hired an outbound SDR agency, built a significant outbound sales team, and invested in all the major tradeshows and conferences. They were putting in the work (and the budget) but weren’t seeing the results they felt they should given their investments.  

When we started working with this company, their inbound marketing was practically non-existent. Once a strong inbound marketing system and marketing attribution system were in place, the company found that most of their pipeline and revenue were being generated by inbound at a fraction of the cost of their outbound campaigns. 

The result? 

The company drastically slashed outbound sales expenses, shifting resources and efforts towards inbound marketing, which is now accounting for up to 70% of the company’s new annual revenue. 

Outbound marketing is okay to get started or for quick hits and key customers, but if you’re looking to rely heavily on it for the long term, it really needs to be a high-ticket item with a minimum $25K ACV. 

The moral of the story? 

Start inbound early , and start with bottom-of-the-funnel content that will continually support both inbound and outbound efforts. It builds the foundation necessary for your marketing campaigns to thrive, and inbound is required for long-term growth and momentum.

Keith Holloway

Keith Holloway is the CEO and Founder of PureSEM, a software and services consultancy focusing on digital lead generation for B2B SaaS companies. He’s spent the last 20 years working in search engine marketing, consulting on marketing strategies, and scaling profitable SEM campaigns into millions of dollars.

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Leiper, N. 1979 The Framework of Tourism: Towards a Definition of Tourism, Tourist, and the Tourist Industry. Annals of Tourism Research 6:390-407.

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UNWTO 2010b Tourism Satellite Account: Recommended Methodological Framework, 2008 http://unstats.un.org/unsd/publication/Seriesf/SeriesF_80rev1e.pdf (10 March 2015).

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2 dead, 1 hurt in wreck on inbound I-57 near Posen

A man and woman were both ejected from the car, and a third passenger was taken to a hospital with serious injuries..

Just before 2 a.m. Tuesday, Illinois State Police responded to a crash on northbound Interstate 57 near Posen.

Sun-Times file photo

Two people were killed and another was injured in a car crash on northbound Interstate 57 in south suburban Posen Tuesday morning, police said.

Just before 2 a.m., Illinois State Police responded to a crash near 147th Street in which a man and woman were both ejected from the car. The woman was dead on the scene and the man was taken to a nearby hospital, where he died, according to state police.

Neither victim has been identified, and the circumstances surrounding the crash are under investigation.

A third person was taken to a hospital with serious injuries that aren’t believed to be life threatening, police said.

All lanes were shut down and traffic was being diverted at 159th Street.