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A sales development representative (SDR) can cost anywhere from $30,000 to $89,000. An SDR is a type of sales professional who acts as the link between your product and service and your closing professionals (people who finalize sales with your customers). SDRs focus on identifying qualified leads (or potential customers) and nurturing them before handing them off to the closers.
In short, SDRs are an important part of any company’s revenue generation pipeline. You need to hire an SDR if you want your business (and revenue) to grow.
While $30,000 to $89,000 is the typical range for an SDR salary, their actual cost depends on several factors. In this guide, we talk about the average sales development representative salary across seniority, location, and industry.
According to data from ZipRecruiter, the median average sales development representative salary in the U.S. is $55,018 a year. This comes out to $26.45 an hour, or $4,584/month.
This is, however, only the median range, which means the actual SDR salaries fall anywhere between $28,500 and $89,000.
Even within the U.S., SDR costs vary from one state to another. ZipRecruiter’s data identified 16 states where a sales development representative's salary is typically higher than the national average. Here are the top 10 states with the most expensive SDR costs:
Keep in mind, though, that this is just the base salary. Since SDRs are sales professionals, they often earn a commission (on top of their base salary). As reported by Payscale, this commission can vary between $5,000 and $27,000 per year according to their performance.
When hiring a full-time SDR, you’ll also incur additional costs, such as benefits, insurance, paid time off, and bonuses.
Let’s say you hire an entry-level SDR for $29,000, who ends up earning a modest $3,000 in sales commissions. This means you’ll pay them an annual salary of $32,000, which should be your minimum budget.
The exact sales development representative cost, though, depends on a number of factors, which we’ll explore below.
A more experienced SDR integrates quickly into your lead generation pipeline, helping you cut costs by reducing the onboarding time and training needed. Their years of experience also help them identify strong leads, hone in on customers’ pain points quicker, and nurture leads faster. All of this combined makes your revenue generation pipeline move forward faster, helping you generate more revenue quickly.
This explains why more experienced sales development representatives cost more. The sales development representative salary data from ZipRecruiter paints a clear picture of the difference in costs between entry-level and senior-level SDRs.
Apart from experience, location is one of the most determining factors when it comes to calculating sales development representative costs. SDRs living in countries with a high cost of living attract more salaries than those living in countries with a low cost of living.
Here’s an overview of the areas (apart from the U.S.) where the base sales development representatives are the highest:
On the other hand, here are some of the countries where the base sales development representatives are the lowest:
So, if your budget for hiring an SDR doesn’t stretch too far, then you should consider hiring a remote SDR from overseas. At Pearl Talent, we help US/EU companies hire the top 1% of sales development representatives from the Philippines, South Africa, and Latin America at 60% less payroll. Get handpicked candidate profiles now.
Your sales development representative's salary also depends on whether you hire them as in-person, hybrid, or remote staff. In-person SDRs incur a higher cost because you’ll have to pay for their office space, in-office meals, and other things. If your office is located in a country or city with a high cost of living, then the base salary of your in-person staff will be on the higher end as well.
Alternatively, hiring remote SDRs from low-cost-of-living areas can help you save up to 60% on payroll costs (especially if you partner with Pearl Talent). This is because offshore SDRs can maintain a decent standard of living at a fraction of the cost when compared to countries like the U.S. and the UK.
Since SDRs are directly involved in revenue generation, they typically get paid a commission for each qualified lead they identify and move through to the next phase. This could be a percentage (typically 2-5%) of the revenue you earned from the lead they nurtured, or a flat fee per meeting booked.
The better your SDR is at their job, the more leads they’ll generate for you, which means the higher the commission you’ll pay them.
Tech, cybersecurity, and software industries often pay SDRs a higher salary when compared to other industries. According to Built In, the average sales development representative salary for a remote professional in the tech and startup space is $63,275 a year, which is nearly $8,250 higher than the average median SDR salary across all industries.
The salary for senior SDRs in the tech space can reach as high as $165,000 per year.
The cost of hiring an SDR with Pearl Talent starts at $3,000/month, which will save you up to 60% in payroll costs without sacrificing on quality.
To calculate the exact costs, use Pearl Talent’s salary savings calculator. It compares national averages across the U.S. with actual salaries paid out to Pearl Talent candidates.
Here’s an example of how much it’ll cost you to hire a mid-level sales development representative in the U.S. versus in Latin America and the Philippines:
At Pearl Talent, we not only help companies like you hire the top 1% of SDRs, but we also manage the end-to-end hiring process for you. Each of our SDRs is handpicked and goes through a rigorous vetting and assessment process, which means they come to you ready to be integrated into your workflow.
Here are the benefits of partnering with Pearl Talent:
Get paired with the top 1% of sales development representatives who outperform themselves from day one, while saving up to 60% in payroll costs. Get handpicked candidate profiles now.
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