SDR Comp- Base/Spiffs/Bonuses.... How?

Hi Savages!

What are different SDR compensation structures for an 8-16 mth sales cycle where the SDR hands off the lead after the first meeting? I am curious about comp structures that are motivating to the SDR.

Thank you for your help!

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salesnerd

WR Officer

Head of Growth

So I follow the rule of thumb that if your sales cycle is <100 days, you can comp an SDR on revenue generated and if your sales cycle is >100 days, you shouldn't.

I say "can comp" above intentionally. The closer your sales cycle is to 0 days, the more you can compensate based on the actual deal value.

Which brings me to Control. SDRs (and everyone, really) should be compensated on something they can control. If I have a single meeting then 18 months later a deal may or may not close... I don't have much control over that.

So what do you comp them on? Well, the short answer is # of meetings. If you have a very select group of companies and titles that your SDR can set meetings with, then you made it easy on yourself, comp on number of meetings held. If you have some variety in titles, quality of companies, etc. then comp based on # of qualified meetings.

What's a qualified meeting? You need to define it, but you're looking for a meeting that has a higher likelihood of generating revenue for your organization. Make sure you give a very specific, well documented definition. Otherwise you end up with pissed off SDRs because they aren't getting paid and pissed of AEs because they aren't getting good meetings.

thegreatestsalesperson

Tycoon

Typically you would comp SDRs on either meeting held or Opportunities qualified or a blend of both. Also you sometimes see an incentive for .5-1% of the final deal closing.
Personally, I like a model where you have a point system and the quota might be say 10pts a month and a typical deal is worth 1pt but a larger than normal might be worth 2pts. This keeps SDR's aligned with trying to set the larger deals that the AE wants
Big fan of Repvue- which provides insights on commission for sales roles
https://blog.hubspot.com/sales/sales-compensation

ColdCallPro

Valued Contributor

Account Executive

Currently I am comped on qualified meetings and AE closings. The entire BDR team gets a percentage of AE closings even if they are inbound leads. I don’t love this structure because I got into sales so I could have more control over my pay.

my previous company paid X for meetings set and 3X if the meeting qualified. I loved this structure. It incentivized us to set great meetings and make more.

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streaming_n_sales

SDR Comp- Base/Spiffs/Bonuses.... How?

3 comments

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