Outreach or Salesloft costs you at least $10K. Then consider the expensive tech stack needed to help SDRs be productive.
#ZOOM INFO DEMO PLUS#
Add that plus any fully burdened costs like insurance, 401K, etc.
The average OTE for an SDR Manager is $128K according to The Bridge Group. While a great AE doesn’t necessarily need a full-time manager, the often younger SDRs need an experienced manager at the helm. Thus they think they can double the productivity of an AE without having to pay as much. Leaders often arrive at a false conclusion, apparently under the mistaken impression that SDRs are cheaper than AEs. This is surprising of course because the average SDR OTE (on-target earnings) is $76K and the average AE OTE is $160K. The SDR/AE sales model.įirst, customer acquisition costs (CAC) will go up as a result of employing an SDR/AE sales model. In reality, there are several hidden costs to consider before you make the jump. In theory, there are many benefits to employing this model. Proponents highlight how the model allows you to train reps with a fewer number of specific skills which then opens up the hiring funnel, reduces ramp time, and promotes AE retention. Consequently, SDRs are responsible for delivering qualified opportunities to the AE and the AEs are responsible for maximizing revenue. Now, why do leaders employ the SDR/AE model in the first place? This model seeks to split sales into two sections where the SDR initiates the qualification and sometimes discovery process and the AE drives targeted product demonstration, negotiates and closes. Now 10 years after the release of the book, I believe many are beginning to see the downsides of employing this model. In my opinion, too many startups employ this model without considering their business model, market or even if customers want to buy in this way. Unfortunately, the sheer popularity of the book has catapulted the SDR/AE sales model to almost legendary default status.
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I loved the book and, admittedly, it’s full of actionable insights to help any sales leader. The book is based upon his success there. In the early 2000s, Aaron worked at Salesforce and helped to develop the modern SDR/AE (Sales Development Rep & Account Executive) sales model which reportedly brought in $100 million in new business over three years. For those not familiar with modern revenue generation, Predictable Revenue by Aaron Ross is practically the sales Bible.
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