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So you need to hire 10 SDRs. Well guess what, it might cost you 255 hours (including your recruiters), 147 of which are from your SDR leadership team, and $36,643 of the company’s budget to get it done. Today we’ll dive into the numbers because I know how much everyone loves big, juicy numbers. Paid subscribers have access to the template as always. But first! Let’s talk about SDRs.
Why do we need SDRs?
Sales Development Representatives (SDRs) can be a valuable asset for generating pipeline, as they are responsible for identifying and qualifying potential leads for the sales team. One of the main benefits of using SDRs is that they can help to increase the efficiency of the sales process. By identifying and qualifying leads, SDRs can help to ensure that the sales team is only spending time on qualified opportunities, rather than wasting time on unqualified leads. This can lead to a higher close rate and ultimately more revenue for the company.
Another benefit of using SDRs is that they can help to increase the number of leads that the sales team is able to generate. SDRs are typically responsible for outbound prospecting, and can therefore reach a larger number of potential leads than a sales rep alone. This can help to fill the pipeline with more opportunities, and ultimately lead to more closed deals.
In addition, SDRs can also help to improve the quality of leads that the sales team is working on. By conducting research and qualifying leads before passing them on to the sales team, SDRs can help to ensure that the leads are a good fit for the company's products or services. This can lead to a higher close rate and a more efficient sales process.
Finally, using SDRs can also help to improve the scalability of the sales process. As the number of leads and opportunities grows, it can be difficult for a sales team to keep up. By having dedicated SDRs working to generate leads, the sales team can focus on closing deals, while the SDRs work to keep the pipeline full. This can help to ensure that the company is able to maintain a consistent level of revenue growth.
Overall, using SDRs to generate pipeline can be a cost-effective and efficient way to increase the number of qualified leads, improve the quality of leads and ultimately increase revenue.
How much do SDRs cost?
The average On-Target Earnings (OTE) for Sales Development Representatives (SDRs) can vary depending on several factors such as the city, the company, and the industry. However, here are some estimates of the average OTEs for SDRs in some of the top major US cities:
San Francisco: $90,000 - $110,000
New York City: $80,000 - $100,000
Boston: $75,000 - $95,000
Chicago: $70,000 - $90,000
Los Angeles: $70,000 - $90,000
Seattle: $70,000 - $90,000
It's important to note that these are estimates, and actual OTEs can vary widely depending on the specific company and industry. Additionally, it's important to keep in mind that OTE is a performance-based metric and SDRs who perform well can earn much more than the average figures mentioned above.
It's also important to note that many companies offer a base salary plus commission, so it's important to take that into account when evaluating OTE. Additionally, some companies may offer other incentives or bonuses, such as stock options or equity, that can greatly increase a SDR's overall earning potential.
What does the typical SDR recruitment process look like?
The number of interviews it takes to receive an offer as a Sales Development Representative (SDR) can vary depending on the company and the hiring process. Some companies may only require one or two interviews, while others may require several rounds of interviews before making an offer.
It is common for companies to have at least two interviews, one with the hiring manager and one with a member of the sales team. Some companies may also include a third interview with a senior leader or a panel interview with multiple members of the team. Since the COVID pandemic moved everyone to a work-from-home setup the interview has shifted from the phone and in-person to Zoom calls.
The interview process for an SDR role can also include the following:
A skills assessment
Behavioral interview
Testing for business acumen
Role play
This is to evaluate the candidate's ability to communicate effectively and handle objections, which are key skills for an SDR.
It's also worth noting that the process can vary depending on the company size, industry and location. A startup or a small company may have a shorter and less formal hiring process, while a large corporation may have a more complex and longer process.
On average, the interview process for an SDR role can take from a few days to a couple of weeks. After the last round of the interview, the company usually takes a few days to a week to make a decision and extend an offer.
Working backwards from the traits you’re looking for
This is a page right out of Mark Roberge’s The Sales Acceleration Formula. Fantastic book. I suggest you check it out. But let’s say you put together a view of the top characteristics you’d like in a rep. So you write down “fuzzy” qualities such as coachability, curiosity, work ethic, intelligence, and prior success. Now imagine you could literally quantity these traits. Wouldn’t you want to add up all of those scores together somehow to see how it back tests against actual success?
Of course you would!
So here’s how that would work. First, design a scorecard. Like so…
Second and third, give definitions and a testing method for each one of these traits. Like so…
Whenever you're ready, there are 2 ways I can help you:
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→ Sales Ops Masterclass. A six-week virtual, live instruction SalesOps course designed to take your sales operations skills to the next level. https://www.revopscoop.com/learn/salesops-masterclass
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