Don't Pay Your SDRs Wrong: The Definitive Guide to BDR & SDR Compensation

This is Part 2 of our "Plan Design Series." Read Part 1 on AE Plans.

Designing an SDR plan is a balancing act between Volume (Activity) and Value (Revenue).

If you pay strictly on "Meetings Booked," your AEs will hate you because their calendars will be full of unqualified prospects.

If you pay strictly on "Closed Revenue," your SDRs will hate you because they have to wait 90 days for a check, and they have no control over whether the AE closes the deal.

The solution is the Hybrid Model. Here is how to build it.

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Step 1: Benchmarking OTE & Pay Mix

SDRs are typically entry-level roles. They need more stability than a seasoned AE.

2026 Benchmarks:

• SDR/BDR: $75k - $95k OTE

The Pay Mix: Do NOT use the 50/50 split you use for AEs. It is too risky for a junior employee living paycheck to paycheck.

• Best Practice: 65/35 or 70/30.
• Base Salary: 65-70% (Stability).
• Variable: 30-35% (Incentive).

This ensures they can pay rent even in a bad month, but still gives them a reason to pick up the phone.

Step 2: The "Metric" Debate (Quantity vs. Quality)

What is the trigger for payment? You have three options.

Option A: The "Meeting" Model (High Velocity)

You pay $X per "Qualified Meeting Held."

• Pros: 100% controllable by the SDR. Fast feedback loop.
• Cons: Incentivizes weak meetings. AEs spend all day disqualifying bad leads.

Option B: The "Revenue" Model (High Alignment)

You pay % of "Closed Won" revenue sourced by the SDR.

• Pros: Perfect alignment. SDRs only hunt "good" deals.
• Cons: Lag time. An SDR books a meeting in Jan, it closes in April, they get paid in May. This "cash gap" kills motivation for junior reps.

Option C: The Hybrid Model (The Gold Standard)

This is what modern high-growth teams use. You split the Variable Pay into two buckets:

• Bucket 1 (60%): Paid on Qualified Meetings Held (The Grind).
• Bucket 2 (40%): Paid on Deals Closed (The Gold).

This gives the SDR immediate cash flow for doing their job (booking meetings) but a significant upside for finding good deals.

Step 3: Calculating the Payouts

Let's model a Hybrid Plan for an SDR with a $30,000 Variable target.

Bucket 1: Meetings (60% = $18,000)

• Goal: 15 Qualified Meetings / Month.
• Math: $18,000 / 12 months / 15 meetings = $100 per Meeting.

Bucket 2: Closed Deals (40% = $12,000)

• Goal: $500k Sourced Revenue / Year.
• Math: $12,000 / $500,000 = 2.4% Commission on Closed Deals.

Now the SDR has a clear mission: "I get $100 for every door I open, and a 2.4% kicker if the deal closes."

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Frequently Asked Questions (FAQ)

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