SDR Salary in 2025: How Much Do Sales Development Reps Earn and How to Optimize Costs

Major Takeaways: SDR Salary

SDR Base Salaries Average $50K–$60K Globally

• Most Sales Development Representatives in 2025 earn a base salary between $50,000 and $60,000, with U.S. markets leaning higher due to demand and cost of living.

On-Target Earnings Reach $75K–$85K for Strong Performers

• When commissions are added, average SDR compensation can climb to $80,000, assuming consistent performance and a balanced comp structure.

Commission-Only SDR Plans Often Fail

• Pure commission models lead to burnout, poor lead quality, and high turnover. Most effective plans include a 60–70% base salary component.

In-House SDR Teams Cost More Than You Think

• Beyond salary, companies spend an additional 40–60% on hiring, training, tools, and management—totaling up to $100K+ per SDR annually.

Outsourcing SDRs Cuts Costs by 25–30%

• Outsourced SDR solutions eliminate overhead and offer quicker ramp-up, saving companies tens of thousands per rep each year.

Entry-Level SDRs Start Around $45K and Scale Fast

• Entry-level SDRs typically earn $45K–$50K base with quick promotion potential and commissions pushing total compensation into the $60K–$70K range.

Multichannel Outreach Increases SDR Efficiency

• Teams using coordinated LinkedIn, email, and phone outreach consistently outperform single-channel models in lead conversion rates.

Outsourced SDRs Deliver Performance and Flexibility

• Fractional SDR teams provide expert-level output, better scalability, and reduced risk compared to hiring full-time internal reps.

Introduction

In today’s B2B landscape, hiring a Sales Development Representative (SDR) is a significant investment – and not just in salary. The SDR role sits at the front of your sales pipeline, so attracting and retaining talent often means offering competitive pay. But what exactly is a competitive SDR salary, and how can companies balance cost with performance? In this comprehensive guide, we dive into SDR salary benchmarks, commission structures, and cost breakdowns. You’ll learn how much SDRs make on average, why a base-plus-commission model beats commission-only plans, and how hidden costs (like training and tools) can make an SDR more expensive than the base salary suggests. We’ll also explore how outsourcing SDR functions – through fractional SDR teams or external agencies – can reduce costs by 25–30% on average (9) while increasing efficiency and pipeline results.

Whether you’re a CMO, CRO, VP of Sales, or SDR leader, this guide provides actionable insights to optimize your sales development strategy. Let’s break down the numbers and discover smarter approaches to getting the most value from your SDR investment.

SDR Salary Benchmarks and Average Compensation (What Do SDRs Earn?)

The average SDR base salary in the U.S. ranges from $50,000 to $60,000 per year.

Reference Source: Coursera 

How much do SDRs make on average? Various salary data sources show a fairly consistent range. Most reports put the average SDR base salary in the ballpark of $50,000 to $60,000 per year in the United States (1). For instance, a recent analysis compiled by Coursera found averages from five sources falling between $49K and $67K, with the median around the mid-$50K range (1). Glassdoor pegs the average base at about $51K, ZipRecruiter around $55K, and other sources (Payscale, Zippia) similarly in the high-$40Ks to mid-$50Ks (1). Salary.com was a bit of an outlier on the high end (nearly $67K) (1), but generally an SDR’s base pay gravitates toward the low-to-mid 50Ks annually.

It’s important to note these figures usually exclude commissions and bonuses. In sales development, base salary is typically supplemented by a variable component. On-target earnings (OTE), which combine base + commission if targets are 100% met, tend to be significantly higher. A common SDR OTE in tech sales is around $75K–$85K total. In fact, the median on-target earnings for SDRs is about $80,000, with roughly a 65–70% base / 30–35% variable split (2). For example, an SDR might have a $55K base and $25K in potential commission for hitting quota – aligning with that 70/30 compensation mix. Top performers can earn more; some reports note high-performing SDRs making $100K+ including commissions in a good year (14), though this is the exception rather than the norm.

Geography and industry also influence SDR salaries. An SDR based in a high cost-of-living city or serving enterprise tech accounts may be on the upper end of the range (even $65K–$70K base) (4), whereas an SDR in a smaller market or less lucrative industry might start closer to $45K. Education can play a role (bachelor’s degree holders average about $57K vs. ~$45K for associate degree (1)), and certain industries pay a premium – e.g. biotech/pharmaceutical SDRs average ~$56K base, higher than fields like transportation or consumer goods (1). Location within the U.S. can be surprising: some surveys show states like Alaska or Massachusetts topping the list with average SDR pay in the mid-$60Ks (1), due to local market demand and cost-of-living adjustments.

Key takeaway: For 2025, plan on an SDR base salary in the $50K–$60K range for most markets, and an OTE (base + commission) around $75K–$85K for meeting targets. This ensures your offer is competitive enough to attract capable talent without overpaying. Next, we’ll examine entry-level SDR salaries and how quickly an SDR’s earnings can grow with experience.

Entry-Level SDR Salary and Earning Growth

Entry-level SDRs typically earn a base salary of $45,000 to $50,000, with potential total earnings exceeding $60K.

Reference Source: Indeed

Hiring an SDR with little to no experience? Entry-level SDR salaries still fall in a similar broad range, but typically toward the lower end. Many companies offer entry-level SDRs (new hires with 0–1 year experience) a base salary around $45,000 to $50,000 to start (4). Glassdoor data confirms that even fresh SDRs (0–1 year exp) average about $51K base pay in the U.S. (1). In other words, the floor for SDR compensation is relatively high compared to many entry-level roles, reflecting the demanding skill set (sales acumen, resilience, tech savvy) required.

Within the first year on the job, SDRs often have opportunities to earn more through performance. Hitting or exceeding quota can unlock commission payouts that meaningfully boost take-home pay. For instance, an SDR might start at $50K base with an OTE of $70K, implying up to $20K in commissions if they book enough meetings or qualified opportunities. Many organizations structure SDR comp so that on-target commissions are ~30–40% of the base salary for a new rep (4). That could equate to a $15K–$20K variable component available to an entry-level SDR for strong performance.

Experience brings rapid salary progression in this role. After ~1 year of success, an SDR might see a raise into the mid-$50Ks base. Industry benchmarks show SDRs with 1–3 years’ experience average around $54K base (1), climbing to ~$60K at 4–6 years. One dataset indicates SDRs with 3–5 years experience make about $71K on average (likely including some senior or team lead SDR positions) (15). However, very few reps remain in an SDR role beyond 5 years – top performers often get promoted to Account Executive (closing roles) or managerial positions, which resets their compensation structure.

It’s also worth noting that many companies have defined promotion paths for SDRs (e.g. SDR > Senior SDR > Team Lead or AE). Often an SDR hitting targets for 12+ months might advance to a higher-tier role with a bump in base pay (perhaps +10–20%). For example, an SDR who started at $50K could be earning $60K base by their second year if promoted to a senior SDR or small-business AE. This ladder is critical for retention: without growth, talented SDRs may leave for other companies offering a bigger paycheck.

Entry-level SDRs and commission: Do new SDRs get commission? Yes – almost universally, SDRs earn commissions or bonuses even in their first role. Typically, the structure for a junior SDR is simple: a flat bonus for each meeting set or each qualified lead passed to sales. For instance, a plan might pay $100–$200 per qualified meeting booked (4). If an SDR’s quota is 10 meetings/month at $150 each, that’s $1,500/month in commission when they hit 100% – roughly $18K/year, aligning with that 30% of base pay target. This piece-rate approach to variable pay is common at the entry level, ensuring new reps have skin in the game to hustle for appointments. We’ll discuss commission structures in detail next, including why a healthy base salary remains crucial even for junior sales roles.

SDR Base Salary vs. Commission: How SDRs Get Paid

A standard SDR compensation model is 60–70% base salary and 30–40% commission on average.

Reference Source: The Bridge Group (via Kalungi)

An SDR’s compensation typically has two components: a base salary (fixed) and a commission or bonus (variable). Striking the right balance between the two is key to motivating SDRs while providing stability. Most SDR comp plans use a base + commission model, often with a ratio around 60/40 or 70/30 (i.e. 60–70% of OTE is base, 30–40% is variable) (5). For example, if the on-target earning is $80K, the base might be ~$50K and the commission at target ~$30K. This mix gives reps a dependable income so they can pay their bills, but also significant upside for hitting goals.

Do SDRs get commission on every sale? Not exactly – since SDRs usually aren’t closing deals (Account Executives close the sale), SDR commissions are typically based on activity or pipeline milestones. Common SDR commission metrics include:

• Meetings or demos set – e.g. $X per qualified demo or sales meeting booked with a prospect.
  
• Sales Qualified Opportunities created – a bonus when a lead is accepted by the sales team as a legitimate opportunity.
  
• Deals that close from SDR leads – sometimes a small percentage of revenue or a flat bonus if an SDR-sourced lead converts into a sale (to encourage quality over quantity).
  

The most prevalent approach is a flat-rate per SQL (Sales Qualified Lead or meeting) (4). As mentioned, many companies pay on the order of $100–$200 per meeting set that meets the lead qualification criteria. There may also be accelerators (higher payout per meeting after exceeding quota) or tiered bonuses (e.g. an extra lump sum for every 5 opportunities that turn into closed deals). For example, an SDR could earn $125 per meeting up to quota, $150 for each meeting above quota, plus a $500 bonus if 5 of their meetings in a quarter result in wins (4). These incentives ensure SDRs remain focused on quality outcomes, not just volume.

Why include a base salary at all? Because SDR work involves a lot of non-commissionable effort: researching lead lists, sending email follow-ups, lead nurturing, training and meetings, etc. A base salary provides income stability and rewards the overall responsibilities of the role, not just the deals that materialize (5). If a sales executive only earned per meeting, they might neglect important but less-tangible activities (like thorough research or personalization) that don’t immediately pay. Most companies find the base salary motivates consistent effort and collaboration, while the commission component drives reps to achieve specific targets (3).

Indeed, industry practice suggests keeping the commission portion in check: one rule of thumb is to avoid making commissions more than ~40% of total comp, because if variable pay dominates, SDRs may feel too much pressure to only churn out meetings at the expense of lead quality (3). A sales consulting study noted 64% of SDR compensation on average is base salary vs. 36% commission/bonus (3) – reinforcing that roughly two-thirds fixed vs one-third variable is a sustainable mix.

In short, SDRs do get commission – almost all SDR roles have performance-based pay – but it’s blended with a solid base salary. A well-designed plan might look like: “Base: $55,000, OTE: $80,000, Commission: $500 per qualified opportunity (uncapped).” This gives an achievable path to the OTE while ensuring the SDR has a comfortable base income. Next, we’ll discuss a crucial pitfall to avoid: the temptation of commission-only SDR compensation plans and why we advocate against them.

The Case Against Commission-Only SDR Compensation

SDRs in commission-only roles experience 34% average annual turnover, with the majority being voluntary exits.

Reference Source: SalesHive 

It might sound enticing to some budget-conscious CEOs: “What if we make our SDRs 100% commission – that way we only pay for results?” In practice, a commission-only SDR plan is a recipe for problems. We take a firm stance (based on industry evidence and experience) that SDRs should not be on a purely commission-based compensation. Here’s why:

• High Turnover and Low Retention: Commission-only roles offer no income security, which drastically narrows the pool of candidates willing to take the job. Those who do accept are often either extremely confident or unable to find a base-salary job – a risky mix. It’s no surprise that commission-only compensation leads to higher rep turnover. Reps who struggle will quickly leave since they “can’t produce the income they need,” and even strong reps may jump ship for a better offer when a slump hits (5). High churn means constant rehiring and retraining costs (more on that cost later). In fact, sales orgs with heavy emphasis on commission tend to see an exodus of reps in hard times, whereas a base salary encourages people to stick through rough patches.
  
• Misaligned Behavior and Burnout: With their entire livelihood at stake, commission-only SDRs may resort to desperate tactics. They could push unqualified meetings just to earn a payout, leading to wasted AE time and damaged prospect relationships. A make-or-break commission structure can even breed a “every rep for themselves” culture with little teamwork (5). Collaboration suffers if every SDR is solely focused on their next commission. Moreover, the stress of living without a stable paycheck can hurt morale and performance – even top performers can burn out under the constant pressure of “sell or don’t eat.” As one sales training firm noted, lacking a base salary can trigger unwanted behavior to hit short-term goals that ultimately damage the brand and team environment (5). In a team sport like sales development, that’s detrimental.
  
• Difficult Ramp and Inefficiency: SDRs typically require a ramp-up period (often 2–3 months of learning and building pipeline) before they start hitting full stride. Under a commission-only plan, those first months may yield almost no income – which is simply not tenable for most people. You’ll have reps either fail to pay their bills or cut corners to book meetings at any cost. Plus, some critical SDR activities don’t have immediate commission attached (training, researching new markets, etc.), so a pure commission model undervalues those tasks and they may get neglected. Companies that tried commission-only often find that SDRs either flame out quickly or spend too little time on long-term pipeline building – both of which hurt revenue more than any short-term payroll savings.
  

In summary, commission-only SDR roles should be avoided. They tend to attract the wrong candidates, suffer extremely high turnover, and incentivize behavior that can harm your sales pipeline’s quality and your team culture. A base + commission structure is far more effective, providing a safety net that keeps SDRs engaged in all aspects of the job, not just chasing the next commissionable event. The goal is a sustainable team that can steadily generate qualified sales ready leads – something best achieved when reps feel supported and fairly compensated, not in a constant state of financial anxiety.

Instead of zeroing out base salaries to cut costs, a smarter approach is to look at the broader cost picture of an SDR. In the next section, we’ll uncover the often hidden costs of hiring and maintaining in-house SDRs – costs that far exceed just salary and commission. This will set the stage for why many organizations are looking to outsourced lead generation and SDR solutions as a cost-effective alternative.

The Hidden Costs of In-House SDRs (Beyond Salary)

The fully loaded cost of one in-house SDR can reach up to $110,000 to $150,000 annually.

Reference Source: Charlie AI

When budgeting for an SDR, it’s easy to focus on the salary and commission numbers. But seasoned sales leaders know that the true cost of an in-house SDR is much higher once you factor in overhead. In fact, one in-depth analysis found that the fully loaded cost per SDR typically ranges from $110,000 to $150,000 annually – about 2–3× the visible salary expense (7). This “SDR cost iceberg” comes from multiple hidden cost centers:

• Recruiting, Hiring & Onboarding: SDRs notoriously have high turnover (more than many roles). The average SDR annual turnover is around 34% – and nearly two-thirds of SDR departures are voluntary resignations (6). Many companies report even higher churn; 12% of firms surveyed had SDR turnover above 55% per year (6). Some analyses even suggest that, in a given year, a company might have to replace 75% of its SDR team due to churn and promotions (7). Each new hire incurs recruiting costs (job ads, recruiter fees or internal HR time), interviewing time by managers, and then onboarding admin and paperwork. These hiring costs can add up to thousands of dollars per SDR hire. For example, using an external recruiter might cost 20% of first-year salary, or ~$10K on a $50K hire. Even internal hiring efforts have a time cost: it’s estimated recruitment and interviewing account for 15–20 hours of management time per hire (7). All told, hiring an SDR can easily cost $5,000–$10,000 in direct and indirect expenses before the rep even starts (7).
  
• Training & Ramp-up: Once onboard, an SDR isn’t fully productive on day one. You pay their salary during weeks or months of training, learning the product, and practicing sales skills before they can consistently hit quota. During this ramp period (often ~3 months), the SDR might operate at, say, 50% productivity while earning 100% of their paycheck. One report quantified this as 3–4 months of below-target output that companies must absorb (7). Additionally, managers or senior reps spend time coaching and shadowing new SDRs (diverting the veterans from producing their own results). Conservatively, the value of lost productivity and training resources in ramp-up is 10–15% of a year’s cost. In dollar terms, that could be another $10,000+ expense in getting a new SDR up to speed. Until an SDR is fully ramped, you’re effectively paying for pipeline that hasn’t materialized yet – a hidden cost of building an internal team.
  
• Benefits, Taxes, and Overhead: Employing an SDR full-time means you’re paying more than just their salary and bonus. Companies have payroll taxes, benefits contributions (health insurance, retirement matches, etc.), and often perks or equipment costs. These typically add roughly 20–30% on top of base salary for a full-time employee. For a $55K salary, that’s an extra ~$11K–$16K in annual cost. Add in a laptop, software licenses, travel stipends or office space allocation if on-site – the overhead can climb further. A study by Growth Orbit estimated a fully-loaded in-house SDR costs about $7,500 per month (≈$90K/year) when you include benefits and overhead, even if their base salary is only $50K (8). This aligns with other estimates that peg a $50K base SDR at ~$85K–$100K total cost after all benefits and overhead are included (6).
  
• Sales Tech Stack and Data: To do their job effectively, SDRs need tools – and good prospecting tools aren’t cheap. Think sales engagement platforms (for sequencing emails and calls), CRM seats, data providers (lead databases or LinkedIn Sales Navigator), dialing software, etc. Outfitting one SDR with a fully equipped tech stack can run $3,000–$5,000 per year (7). For example, a CRM license might be $100/user/month, a sequencing tool another $150/month, data providers and phone systems another few hundred per month in total. That easily tops $300–$500 per SDR per month in software, which annualizes to ~$4K. These expenses often hide in the “Sales Ops” or IT budget, but they are directly attributable to each rep on the team.
  
• Management & Leadership Overhead: SDR teams require hands-on management. Typically, you need one SDR manager per 8–10 SDRs to train, monitor, and coach them (7). The cost of that manager (salary + benefits) should be apportioned across the team. A fully loaded SDR manager might cost $130K–$150K/year (10); per SDR, that is an extra $15K–$18K of management cost on average (7). Even if the sales manager oversees a larger team, a portion of their time (and salary) dedicated to SDR supervision is part of your SDR program cost. There’s also the time other leaders spend in pipeline meetings, report analysis, etc., related to SDR output – all of which is rarely accounted for in the “salary” line, but indeed a cost of having in-house SDRs.
  
• Turnover and Opportunity Cost: As mentioned, high SDR turnover creates a cycle of disruption. Every time an SDR leaves, all the investment in hiring, training, and ramping that person walks out the door – and you have to spend it all over again for their replacement. Meanwhile, territories or lead queues go uncovered, and potential leads grow cold. One survey by The Bridge Group found the average SDR tenure is only about 16 months (and often shorter at tech startups) (7). That means many SDRs barely stay long enough to become fully proficient before moving on. The lost opportunities from constantly “resetting” the ramp with new hires are hard to quantify, but very real. Some companies find they are never operating at full capacity because a portion of the team is always new or about to leave. This is an intangible cost in missed pipeline that doesn’t show up on a budget sheet, but it hits your revenue. (Not to mention the impact on team morale when turnover is high – remaining reps may feel demotivated seeing colleagues cycle in and out.)

All these factors illustrate why the real cost of an in-house SDR can be far higher than the simple salary + commission. To put it in perspective, let’s imagine a typical SDR earning $50,000 base, $15,000 in commissions. You might initially budget $65K for that role. But add 20% benefits ($10K), ~$5K in tools/data, ~$15K management share, and perhaps $5K in annualized hiring/training costs – suddenly the true annual cost is closer to $100,000. This aligns with industry estimates that fully burdened SDRs cost in the high five-figures, even approaching $100K+ each year (6).

Understanding this full cost picture is crucial for sales leaders and CFOs. It explains why many organizations, especially in B2B tech, are rethinking the traditional fully in-house SDR team model. The next section will explore that alternative: outsourcing inside sales and SDR functions to reduce or eliminate many of these hidden costs while still improving pipeline management and driving growth.

Outsourcing SDR Roles for Cost Efficiency and Greater ROI

Outsourcing SDR functions can reduce total SDR costs by 25–30% compared to in-house teams.

Reference Source: Revnew 

Given the mounting costs and challenges of building an in-house SDR team, it’s no surprise that many B2B companies are exploring outsourced sales services as a solution. Outsourcing your sales development – whether through a fractional SDR team or a specialized agency – can dramatically lower your cost per lead and relieve management headaches. In fact, a recent industry survey (via SalesHacker) found that businesses outsourcing SDR work reported an average cost reduction of 25–30% compared to in-house (9). No wonder 59% of companies are now using “SDR-as-a-service” models specifically to save costs (9).

How do outsourced SDR providers achieve these savings? Essentially, outsourcing converts many fixed costs into a flexible service. You’re not hiring individual employees; instead, you pay a monthly fee or contract rate for a fully-equipped SDR team (or part of a team) provided by the vendor. This fee typically covers the personnel, training, management, and lead generation tools needed to run outbound campaigns – all baked into one price. Let’s break down the key efficiency gains:

• No Recruiting or Training Burden: When you partner with an outsourced SDR firm, they handle recruiting and training the reps. You get access to ready-to-go talent. This means no time spent on job postings, interviews, or rookie ramp-up on your end. For example, at Martal, our fractional SDR teams come battle-tested – many of our reps have years of experience in B2B sales, so they ramp up in days, not months. (In 2024, over 72% of fractional SDRs had 15+ years of experience (11), bringing veteran skills without the usual learning curve.) As a result, outsourced teams can deploy quickly. While an in-house SDR might take 3–6 months to hire and fully ramp, outsourced SDR teams can be fully operational within a few weeks (10). Faster ramp means faster ROI on your lead generation efforts.
  
• Lower Labor and Overhead Costs: An outsourced SDR provider can often deliver services at a lower effective cost because they spread overhead across many clients and may leverage cost efficiencies (like offshore or remote sales talent). You aren’t paying payroll taxes, benefits, or idle time – you pay only for the service output (meetings booked, leads qualified). For instance, one comparison found a typical in-house SDR might cost ~$9,500 per month fully loaded, whereas an outsourced SDR service could be ~$7,000 per month for the equivalent output (12). That’s roughly a 30% cost saving right off the bat. Additionally, infrastructure and tools are provided by the vendor, so you avoid those direct expenses. As one report highlights, outsourced SDR teams allow you to “avert costs related to tools and equipment” because the provider uses their own tech stack (9). No need to buy extra CRM seats or sales engagement software licenses – it’s included in the service.
  
• Expertise and Multichannel Outreach: Outsourced SDR agencies specialize in prospecting, so they come with refined processes and expertise that an internal team might take long to develop. They often operate multichannel outreach campaigns (LinkedIn, email, phone, etc.) with proven cadences that maximize engagement. For example, Martal’s outbound programs combine B2B cold email, LinkedIn outreach, and phone calls in coordinated cadences to ensure your message touches prospects on multiple fronts. An omnichannel marketing approach has been shown to outperform single-channel efforts – combining calls, emails and LinkedIn can dramatically boost engagement rates and pipeline conversion (10). Because outsourced SDRs are doing this across many clients, they continuously optimize best practices and messaging, which your company benefits from immediately. It’s like hiring a whole team of seasoned prospectors and strategists at once.
  
• Scalability and Flexibility: With an outsourced model, you can scale your sales development effort up or down on demand. Need to accelerate lead generation this quarter? Add another SDR or increase the call volume – without the delays of hiring. Conversely, if budgets tighten, you can scale back the engagement or pause with typically far less complication than laying off staff. This flexibility means you’re never overpaying during slow periods or capacity-limited during peak opportunities. We often engage with clients who use Martal’s fractional SDR teams to test new markets or handle seasonal campaigns – they get expert coverage for a few months without a long-term hiring commitment. The ability to “dial in” the exact level of SDR resources you need, when you need them, is a huge cost efficiency compared to the all-or-nothing of permanent hires.
  
• Performance and Accountability: Reputable outsourced SDR partners will work on performance-based agreements, aligning their incentives with your results. Internally, if an SDR struggles, you might not realize until months of poor performance (while still paying salary). With an outsourced team, underperformance can often be addressed by the provider quickly – they might replace a rep, adjust strategy, or provide additional coaching at no extra cost to you. Essentially, the provider absorbs management duties and the risk of performance issues. And if the partnership isn’t delivering, you have the leverage of a contract to course-correct or terminate, which is simpler than firing an employee. All of this means you’re likely to see more consistent output for the dollars spent. In fact, many companies report that outsourced SDRs produce equal or greater pipeline results at a lower cost than their in-house teams, thanks to specialization and focus. One study noted companies using outsourced SDR services often see higher lead conversion rates and shorter sales cycles compared to those managing everything in-house (13) – indicating quality can go up even as cost goes down with the right partner.

To illustrate the cost difference clearly, consider a quick comparison:

• In-House SDR (Fully Loaded): ~$90K/year (base $50K, plus ~$15K benefits, ~$5K tools, ~$5K training, ~$15K management overhead). And that’s if they stay the whole year – turnover could drive this higher (7).
  
• Outsourced SDR Service (Equivalent): ~$60K–$70K/year in service fees for a dedicated SDR resource, which typically covers all compensation, tools, management and a set number of leads/meetings delivered. Plus, if the SDR leaves, the provider replaces them at their cost, not yours.

By outsourcing sales and marketing, you’re essentially converting fixed costs into a variable cost tied to performance. This often results in spending less for the same (or better) outcomes.

Of course, outsourcing SDRs requires choosing the right partner. Quality and approach matter. You want a sales agency or fractional team that acts as a true extension of your sales team – representing your brand well and integrating with your processes. At Martal, for example, we embed our fractional SDRs into our clients’ workflow: our reps use your messaging and value propositions, coordinate with your account executives for hand-offs, and provide detailed reporting and feedback. We combine outbound lead generation, appointment setting, and even AI-driven prospecting as part of our service offerings, so our clients get a turnkey SDR function without the headaches.

Most importantly, outsourced SDR does not mean sacrificing quality. If anything, it can enhance quality because you’re leveraging specialists. Our SDR teams are managed by experienced sales leaders who refine outreach and lead generation strategies across industries – so you benefit from a breadth of knowledge. And because it’s our core business, we stay on top of the latest tools and techniques (from LinkedIn algorithms to email deliverability hacks) so you don’t have to.

Bottom line: Outsourcing SDR roles can significantly reduce cost and increase efficiency. You save on recruiting, training, salaries, and infrastructure, while gaining a flexible, expert-driven engine for pipeline development. It’s a compelling alternative for many B2B companies, from startups needing quick market traction to mature firms seeking to optimize expenses.

In the final section, we’ll summarize the key takeaways regarding SDR salaries and costs, and outline how you can take action – including how to evaluate if outsourcing with a sales partner like Martal Group is right for your organization.

Conclusion: Optimizing SDR Salary Spend and Next Steps

SDR salaries and the broader cost of sales development are critical factors in scaling a B2B organization. Let’s recap the key insights:

• Average SDR Compensation: Expect to pay around $50K–$60K base salary for a competent SDR in 2025, with on-target earnings in the ~$75–80K range when commission is factored in. Top markets and industries may command higher, but those benchmarks will keep you competitive (1).
  
• Smart Compensation Structure: The best practice is a base + commission plan (approximately 60–70% base, 30–40% variable). This rewards SDRs for results (e.g. paying $100–$200 per meeting set) but also provides stability to encourage quality work (4). Avoid commission-only plans – they might look cost-efficient on paper but lead to high turnover, low morale, and poor pipeline quality in reality (5).
  
• Hidden Costs of In-House SDRs: The true cost of an SDR is much more than their salary. Recruiting, training, benefits, tools, and management can roughly double the expenditure per rep. Many firms end up paying $90K+ per SDR per year once all costs are accounted (7), and high turnover only amplifies these expenses (6). Being aware of these factors is crucial for budgeting and ROI calculations.
  
• Outsourcing as a Cost-Effective Strategy: Outsourced or fractional SDR teams offer a way to reduce those costs by 25–40% on average (9). By partnering with a provider, you eliminate hiring overhead, enjoy economies of scale on tools, and gain instant expertise. Outsourcing converts fixed costs into a flexible service that can scale with your needs, often at a lower total cost and with equal or better performance results.
  
• Quality and Efficiency Gains: A great outsourced SDR partner (like our team at Martal Group) not only saves you money but can increase sales and your pipeline output. With multichannel outreach, experienced reps, and quick ramp-up, you get more meetings and sales leads with less internal effort. It’s a way to boost growth while controlling payroll and operational complexity.

For sales and marketing leaders, the mandate is clear: invest wisely in SDR talent, but also be diligent about the true costs and alternatives. If you choose to hire in-house, use the data here to structure a fair comp plan with base salary and achievable commissions that will attract strong candidates and keep them motivated. Budget beyond salary for the support and tools they’ll need. And keep a close eye on retention – losing SDRs frequently will hemorrhage both money and sales opportunities.

If, on the other hand, the cost or hassle of expanding an internal SDR team is holding you back, consider tapping into an outsourced SDR solution. Many companies are finding they can get better results at lower cost by leveraging a partner specialized in outbound sales, lead generation and appointment setting.

Ready to explore this option? We invite you to book a free consultation with Martal to discuss your sales development goals and challenges. As one the top lead generation companies, we offer fractional SDR teams that act as an extension of your salesforce – handling outreach via LinkedIn, email, and phone to deliver qualified meetings with your ideal customers. We’ll walk you through how our model works, what kind of results you can expect, and how we tailor our approach to each client’s industry and target market.

Don’t let budget constraints or hiring roadblocks slow down your growth. With the right strategy – whether optimizing in-house salaries or leveraging outsourced expertise – you can build a high-performing SDR function that fills your pipeline and fuels revenue. Contact us for a consultation to see how we can help you hit your targets while keeping your SDR costs under control.

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References

1. Coursera 
2. Kalungi 
3. Vouris 
4. Bentega 
5. Janek Performance Group 
6. SalesHive 
7. Charlie AI 
8. Growth Orbit 
9. Revnew 
10. Martal Blog – “SDR Manager in 2025: Outsourced vs In-House”  
11. Martal Blog – “Future-Proofing B2B Sales: Fractional SDRs”  
12. MemoryBlue 
13. Stealth Agents 
14. Ryan Walsh, RevpVue 
15. Activated Scale 

FAQs: SDR Salary

1

Who gets paid more BDR or SDR?

While both roles often overlap, SDRs typically earn slightly more than BDRs due to their direct impact on pipeline generation. SDRs are often focused on outbound prospecting and are tied more closely to quota-related performance, which can increase commission opportunities. BDRs in some organizations handle broader responsibilities, including inbound qualification or partner outreach, which may be compensated differently. That said, differences are usually marginal—title and responsibilities vary by company, so compensation depends more on sales team structure and expectations than just the role name.

2

Is SDR a tough job?

Yes, being an SDR is one of the most demanding roles in sales. Reps face frequent rejection, high outreach quotas, and must balance efficiency with personalization. The role requires resilience, strong communication skills, and consistent performance under pressure. However, it also offers rapid career advancement and skill development, especially in B2B tech. Companies that provide proper training, coaching, and fair compensation reduce burnout and turnover. When supported well, the SDR role can be both challenging and highly rewarding.

3

Can you make a lot of money as an SDR?

Yes, but it depends on your performance, location, and career stage. While the average total compensation (base + commission) for SDRs is around $75K–$85K, top-performing reps can earn six figures if they consistently exceed quota. Promotions into senior SDR or Account Executive roles also come with significant salary increases. Entry-level SDRs typically start lower but can grow quickly within 12–18 months. The key to maximizing earnings is hitting or exceeding metrics tied to qualified meetings, pipeline created, or successful handoffs to closers.