Compensation of Sales Development Representatives: A Comprehensive Analysis

Untitled design

August 1, 2023

Understanding the compensation structure and technology adoption among Sales Development Representatives (SDRs) for both businesses and professionals is pertinent. At Alariss Global, we’ve conducted an in-depth analysis to shed light on key insights and trends in the world of SDRs.

According to a recent study done by our team on the salaries and commissions that one can expect in sales, the median on-target earnings (OTE) for SDRs stand at $76,000, with a 65:35 base-to-variable pay split. Interestingly, the OTE has remained relatively flat for over a decade, showcasing a notable contrast with other financial indicators. While median home prices have increased 62% and median household income 38% during the same period, the SDR compensation landscape has experienced limited growth.

Technology Adoption and Sales Tech Stack

SDRs’ median sales tech stack includes CRM and an average of 4.5 additional tools. As products’ average selling price (ASP) rises, the number of tools in use also increases, albeit marginally. High-growth companies, representing the early adopters, tend to utilize one more tool on average compared to Laggards.

Technology Adoption Lifecycle

Our research highlights the stages at which various technologies are embraced. For example, email automation, tracking, and cadence tools are commonly used by Laggards (16%) but dominate the late majority (34%). Innovators, a smaller percentage, are at the forefront of implementing cutting-edge technology.

Tech Stack Gap

We observe differences in adopting specific technologies by comparing Laggards and High-Growth companies. High-growth companies show a more extensive deployment of tools, such as email templates, tracking, LinkedIn Premium, sales navigators, contact data, and account intelligence.

Sales Engagement Platforms (SEPs)

SEPs are pivotal in the sales tech stack, spanning multiple categories. Surprisingly, only 43% of Laggard companies report using SEPs, while the adoption rate increases to 70% for Mid-Range companies and 76% for High-Growth companies with revenues above $5 million.

Our findings emphasize the need for businesses to align their sales technology with industry trends to stay competitive. We are committed to helping companies optimize their sales development strategies by leveraging cutting-edge technologies and best practices. We empower SDRs and sales teams to navigate the dynamic market and drive success. Our research showcases the median on-target earnings of $76,000 for SDRs alongside a 65:35 base-to-variable pay split.

Unlock new possibilities for your sales team with Alariss Global’s expertise in optimizing sales strategies. Book a demo today and let’s chart a successful path forward together!


Schedule a call to learn how Alariss can help you hire top American BD & Sales Talent