Wireless Sensor Networks (WSNs) based on Internet of Things (IoT) applications are increasing day by day. These applications include healthcare, infrastructure monitoring, smart homes, wearable devices and smart cars. However, considering the fact that many different application areas will emerge in next generation wireless communication systems, efficient use of frequency spectrum is important. Because the whole frequency spectrum is now very crowded, it is important to ensure maximum spectrum efficiency for effective WSNs based on IoT. This study sought to determine which mode more effectively achieves spectrum efficiency for the performance of effective IoT systems under given conditions with respect to the length of the pilot sequence, Time Division Duplexing (TDD) or Frequency Division Duplexing (FDD). The results were obtained by Monte Carlo simulations. To the best of our knowledge, a study of effective mode selection analysis for spectrum efficiency in IoT based systems has not been available in the literature yet. The results of this study are useful for determining the appropriate design conditions for WSNs based on IoT.