Compensation of Sales Development Representatives: A Comprehensive Analysis

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August 1, 2023

In today’s ever-changing sales landscape, understanding the compensation structure and technology adoption among Sales Development Representatives (SDRs) is crucial for both businesses and professionals. At Alariss Global, we’ve conducted an in-depth analysis to shed light on key insights and trends in the world of SDRs.

On-Target Earnings and Compensation Structure: 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 more than a decade, showcasing a notable contrast with other financial indicators. While median home prices have increased by 62% and median household income by 38% during the same period, the SDR compensation landscape has experienced limited growth.

Technology Adoption and Sales Tech Stack: The median sales tech stack for SDRs includes CRM and an average of 4.5 additional tools. As the average selling price (ASP) of products rises, the number of tools in use also increases, albeit marginally. High-growth companies, which represent 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: Comparing Laggards and High-Growth companies, we observe differences in the adoption of specific technologies. High-Growth companies show a more extensive deployment of tools, such as email templates, tracking, LinkedIn Premium, and sales navigators, as well as contact data and account intelligence.

Sales Engagement Platforms (SEPs): SEPs play a pivotal role 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. At Alariss Global, we are committed to assisting companies in optimizing 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. Dive deeper into the technology landscape as we unveil the average sales tech stack consisting of CRM and 4.5 additional tools. High-growth companies are leading the charge in adopting cutting-edge technologies, deploying an average of one more tool compared to Laggards. 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!

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