TL;DR
A strong SDR compensation plan has a 60/40 split (base/variable), with variable tied to meetings booked that show and qualified opportunities created — not just emails sent. Entry-level SDR base salary ranges from $45,000-60,000 in most US markets, with $15,000-25,000 variable OTE, for total comp of $60,000-85,000.
SDR compensation is simpler than AE compensation but still requires careful design. Incentivize the right behaviors (qualified conversations) not just activity (emails sent).
The base/variable split Standard for SDRs: 60-70% base, 30-40% variable. Lower base/higher variable motivates high performance but creates anxiety for new hires still ramping. Higher base/lower variable is safer for early hires who are learning your product and ICP. At entry level: $50,000 base + $18,000 variable OTE = $68,000 total. At experienced level: $60,000 base + $25,000 variable = $85,000 total.
What to incentivize Meetings booked is the most common SDR metric — but only meetings that actually show AND are qualified. Incentivize shows and qualifications, not just bookings. Otherwise SDRs game the metric by booking any meeting regardless of fit. Recommended structure: $50-100 per qualified meeting that shows, + quarterly bonus for meeting quota consistently, + accelerator for exceeding quota (1.5x payout above 110% quota). Add a small bonus for meetings that convert to opportunities — this aligns SDR incentives with pipeline quality.
Setting quota Entry SDR quota: 8-12 qualified meetings per month. Experienced SDR: 12-20 qualified meetings per month. Adjust based on: ACV (higher ACV = harder to book meetings, lower quota), inbound vs. outbound mix (inbound SDRs have higher quotas because they're working warmer leads), sales cycle complexity.
Ramp period Don't put new SDRs on full quota immediately. Typical ramp: Month 1: 25% quota, full base. Month 2: 50% quota, full base. Month 3: 75% quota. Month 4+: 100% quota. During ramp, SDRs are learning your product, ICP, and messaging — setting unrealistic expectations causes early attrition.
From Cactus: Cactus advises on SDR compensation design as part of our GTM engagements — the most common mistake we see is founders setting activity-based quotas (emails sent) rather than outcome-based quotas (qualified meetings booked), which leads to SDRs optimizing for quantity over quality.
Cactus Marketing embeds with B2B tech startups to turn strategy into pipeline. We've worked with 60+ companies, supported 12 exits, and contributed to $7B+ in client valuations.
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Book a free strategy call →How do I hire my first SDR?
Hire your first SDR only after you've personally closed 5–10 customers and can articulate exactly what messaging, ICP, and objection handling worked. An SDR hired before the founder has figured out the sales motion will fail — they need a playbook to follow, not to build one from scratch.
What should an SDR quota be?
A typical SDR quota in B2B SaaS is 8–15 qualified meetings booked per month, or $150–300K in pipeline generated per quarter. The right number depends on your ACV, lead source, and market. Set quota based on what's achievable from proven activity metrics, not what would be convenient for the business.
How do I onboard an SDR?
Build a structured 30-60-90 day plan with clear milestones: product mastery in week 1, ICP and messaging training in week 2, supervised calling in week 3, and independent ramping with quota from day 31. Document everything — the SDR should have a playbook on day one, not six weeks later.
What is a good SDR conversion rate?
A good SDR conversion rate is 2–5% of outbound contacts to qualified meeting, and 25–40% of qualified meetings to SQL (sales accepted opportunity). Below these benchmarks suggests targeting, messaging, or qualification issues — not necessarily SDR execution.