A good compensation plan for SDR combines 70-80% fixed and 20-30% variable based on balanced KPIs (fixed appointments, conversion rate). Salaries vary from €30K (junior) to €70K (senior). Beyond the financial aspect, career prospects, caring management and corporate culture are essential to retain these talents who represent the commercial future of your organization.
Attracting and retaining the best sales talent has become a real challenge. As in a game of chess, each piece is important, but the SDRs represent your strategic pawns, the ones who open the game and prepare the decisive moves. How do you motivate these very particular profiles? What chemistry can be found between a reassuring fixed and a stimulating variable? Between quantitative and qualitative objectives? Together, let's dive behind the scenes of an effective compensation plan for your Sales Development Representatives, that valuable resource that fuels your sales pipeline and shapes your future growth.
What is a good compensation plan for an SDR?
The key role of SDR in the sales team
Let's start with a quick reminder of the key role Sales Development Representatives play in a sales team.
SDRs are at the forefront of prospecting in a territory or a sector, identifying qualified leads and triggering business opportunities. Their main mission is to book appointments with prospects with real potential, which senior sales representatives (Account Executives) can then transform into customers.
This role of opener and hunter requires a specific profile: energy, persuasion but also resilience in the face of denials. To attract and motivate the best talent, companies must therefore design an attractive compensation plan that takes these issues into account.
The fair distribution between fixed and variable
The first question to ask yourself is the distribution between the fixed and the variable part of the package. It is generally considered good market practice to offer:
- 70 to 80% of the fixed salary
- 20 to 30% variable, indexed to objectives
The idea is to ensure a motivating and secure remuneration base, while integrating a dose of performance incentives to challenge salespeople.
Attention, too large a variable part (beyond 30-35%) can become counterproductive by putting excessive pressure. Conversely, a variable that is too weak (less than 15-20%) may not stimulate energies enough.
Performance indicators to follow
But what goals should be set to calculate this famous variable? Here it is necessary to find the right balance between the indicators:
- Quantitative : the number of appointments booked, the number of calls made, the pick-up rate... KPIs that are easy to follow on a daily basis that value activity and effort.
- Qualitative : the conversion rate into an opportunity, the turnover influenced, the value of the pipeline generated... More ambitious KPIs that measure the real contribution to business results.
The challenge is to find the right balance to empower both actions (in the short term) and their impact (in the longer term).
Challenges and bonuses to boost motivation
Finally, to strengthen this system, nothing prevents it from being supplemented by specific challenges or bonuses.
For example, by setting up accelerators every quarter to reward outperformance. Or by creating a collective challenge to promote team spirit.
The idea is to constantly renew motivation by playing on levers complementary to the “classic” variable.
The salaries charged for a SDR position in France
Ranges that vary according to the profile
But in concrete terms, how much does an SDR earn today? Remuneration naturally varies according to profile, experience, but also the sector of activity and company culture. However, here are some wage benchmarks and ranges (fixed and variable included):
- A junior SDR (0 to 2 years of experience): 30 to 40 K€
- A confirmed SDR (3 to 5 years of experience): 40 to 50 K€
- A senior SDR (over 5 years): 50 to 70 K€
Of course, these averages hide significant disparities between companies. In fast-growing tech scale-ups, it is not uncommon for packages to climb 20 to 30% above these market standards. Because the competition is tough to attract the best SDRs!
The French market vs the international market
For comparison, salaries are significantly higher in Anglo-Saxon countries with equivalent positions, whether in the United Kingdom or the United States:
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For a salesperson, this is a fact to take into account when negotiating salaries. Do not hesitate to find out about the practices in your employment area and your sector of activity to best enhance your profile.
Beyond the salary, the other criteria of the package
Not to mention that the salary is only one element among others in the package: take an interest in additional benefits (health insurance, restaurant tickets, bonuses, etc.), career prospects and the overall work environment. Sometimes it is better to choose a company offering a real project and a fulfilling environment.
Evolve and progress in the SDR position
Career prospects
Exactly, what are the career prospects when you are an SDR? After the first years of proving yourself in the field, several evolutions are possible to continue to grow:
- Take managerial responsibilities by becoming a Team Lead then Sales Manager and managing a team of salespeople
- Evolve into an Account Executive position, this time by participating directly in the negotiation and signing of contracts
- Specialize in a sector or a type of accounts (major accounts, SMEs, etc.) to become a recognized expert
Testimonial from Camille, SDR for 3 years: “After 2 years as an SDR where I learned a lot about prospecting and qualifying, my manager offered me the opportunity to move into an Account Executive position. I had proven myself and it was time to take the next step! It's a great opportunity to change dimensions while capitalizing on my experience. And with an attractive package at the end of the day!”
The keys to progress
To succeed in these evolutions and to take up the stripes, several paths exist. The most important thing is to show commitment, a team spirit but also a real mastery of your job through:
- In-depth knowledge of its sector and its interlocutors
- Expertise in prospecting techniques (social selling...)
- Mastering digital tools (CRM, commercial tools, etc.)
- Relational skills and the sense of contact
These are all qualities that can be worked on and acquired on a daily basis, with the support of a caring manager and the support of dedicated training courses. This is the challenge of a corporate culture that values the development of skills.
In summary: the secrets of a motivating remuneration policy
The 5 pillars of a winning strategy
As we have seen, remuneration is only one of the pillars of a strategy to retain salespeople. To create a stimulating environment over time, nothing beats a good cocktail between:
- An attractive and legible salary package
- Prospects for development and skills development
- Benevolent management close to the field
- Renewed incentives and challenges
- The pride of contributing to a collective adventure
In short, the recipe for success is to consider the commission plan not as a mathematical formula set in stone, but as a tool for managing performance and for the development of teams. This means bringing this system to life and evolving over time, by involving those first concerned.
Best practices to adopt
Bonus advice if you are a manager or director: regularly ask your salespeople about their level of motivation and communicate transparently on the results to maintain the commitment over time. Individual and collective points are essential to stay on track while adapting to the aspirations of each individual.
This is the whole meaning of a culture of recognition, well beyond simple financial issues. So, are you ready to rethink your remuneration policy to make it a real driver of sustainable performance?
