A sales development representative (SDR) is a sales professional focused on outbound prospecting and lead qualification, generating pipeline for account executives to close.
SDRs are the first point of contact for many prospects. They research accounts, conduct outbound outreach (email, phone, LinkedIn), qualify inbound leads, and book meetings for account executives. The SDR role is typically the entry point for a sales career, with most reps spending 12-18 months in the role before promoting to account executive. Average SDR OTE ranges from $65K-$85K, with top performers at well-funded companies earning $100K+.
SDR vs BDR
The terms SDR and BDR are often used interchangeably, and the distinction varies by company. When companies do distinguish them, SDRs typically handle inbound lead qualification (following up on demo requests, content downloads, and website inquiries) while BDRs (Business Development Representatives) focus on outbound prospecting (cold email, cold calling, and LinkedIn outreach). In practice, most modern SDR roles include both inbound and outbound responsibilities. The title choice often reflects the company's bias: companies that generate most pipeline through marketing tend to use 'SDR,' while companies relying on outbound tend to use 'BDR.' The actual work is increasingly the same.
The Future of SDRs
AI SDR tools are automating parts of the SDR workflow: prospecting, email personalization, and initial qualification. However, complex enterprise sales still require human SDRs for relationship building and nuanced qualification. The role is evolving from volume-based outreach to strategic, account-based prospecting.
Common Mistakes with SDR Teams
Measuring SDRs purely on meeting volume instead of meeting quality. An SDR who books 20 meetings per month that convert at 10% to qualified pipeline is less valuable than one who books 12 meetings that convert at 40%. The shift toward quality metrics is accelerating as AI tools take over the volume play. Companies still paying $1,000 per meeting booked regardless of outcome are incentivizing the wrong behavior.
Real-World Example
A $25M ARR company had 8 SDRs booking an average of 15 meetings per month each (120 total). AE feedback was brutal: 'half these meetings are garbage.' The VP Sales implemented a 30-day quality score. SDRs only got credit for meetings where the AE confirmed the prospect met ICP criteria and had confirmed budget or pain. Meeting volume dropped to 85 per month. Qualified pipeline from SDR-sourced meetings increased 35%. Three SDRs who couldn't adapt to quality standards were replaced. The remaining five outperformed the original eight.
In Practice
SDR team economics follow a fairly standard model. Average SDR fully loaded cost: $80K-$100K per year (base + variable + benefits + tools). Expected output: 8-15 qualified meetings per month. If 30% of those convert to qualified opportunities with $50K average deal size and 25% win rate, each SDR generates roughly $450K-$675K in annual pipeline and $112K-$169K in closed revenue. That's a 1.5-2x return on the fully loaded cost before accounting for management overhead. The math works at mid-market ACV. Below $15K ACV, the SDR model often breaks because the deals aren't big enough to justify the prospecting cost.
