Article
Guide: Crafting the ideal Outbound SDR Compensation Plan
newsletter.outbound.kitchen
Quoted on this wiki
Every place a page here uses this source, in the order the words come in it.
Without proper follow-ups, 20-30% of meetings end in no-shows. “With best practices (reminders, reschedules), that drops to 8-12%.” Meetings Held
The short answer? “There’s no perfect plan, it depends on your company’s stage, goals, and current setup.” That said, there are proven principles and components that consistently work.
Quality Metrics “Deal Size: Incentivize SDRs to pursue larger, more valuable opportunities.” Decision-Maker Involvement: Reward efforts to engage key stakeholders.
Deal Size: Incentivize SDRs to pursue larger, more valuable opportunities. “Decision-Maker Involvement: Reward efforts to engage key stakeholders.” End-User Team Size: Encourage targeting accounts with broader potential impact.
Decision-Maker Involvement: Reward efforts to engage key stakeholders. “End-User Team Size: Encourage targeting accounts with broader potential impact.” Quantity Metrics:Number of Opportunities or Meeting Volume.
End-User Team Size: Encourage targeting accounts with broader potential impact. “Quantity Metrics:Number of Opportunities or Meeting Volume.” A great comp plan balances talent retention and business results.
1: Attract and retain top talent “Your compensation plan should be competitive enough to draw high-potential SDRs to your organization.” Structure the plan to reward consistent performance and encourage long-term commitment.
Your compensation plan should be competitive enough to draw high-potential SDRs to your organization. “Structure the plan to reward consistent performance and encourage long-term commitment.” 2: Driving Business Outcomes
The short answer? “There’s no perfect plan, it depends on your company’s stage, goals, and current setup.” That said, there are proven principles and components that consistently work.
Your compensation plan should be competitive enough to draw high-potential SDRs to your organization. “Structure the plan to reward consistent performance and encourage long-term commitment.” 2: Driving Business Outcomes
Supports training programs, prospecting courses, and coaching, enhancing skills and career growth. “Most companies, adjust their base salary for cost of living for the local market.” At Chili Piper, we only adapted the comp plan for France because labor costs there are higher than in other countries.
Base salary “Fixed salary provided regardless of performance. Ensures financial stability for SDRs.” Variable comp
On-target earnings (OTE) “OTE is the total cash compensation, including base salary and variable commission, paid at 100% quota attainment. It's your promise to potential SDRs about their earning potential.” Base salary
Keep it Simple: If you can’t explain it on a napkin, it’s too complicated. “Avoid Confusion: Reps shouldn’t need a PowerPoint to understand their pay.” 2️⃣ Quick Payouts:
Regular Review: Reassess your OTE structure quarterly or bi-annually to stay competitive. “Transparency: Clearly communicate OTE structure to candidates and existing SDRs.” The target pay mix is the ratio of base salary to variable compensation that makes up the On-Target Earnings (OTE). For example, a 70/30 mix means 70% of OTE is base salary, and 30% is variable compensation.
Quotes are verbatim and belong to their publishers. Where a quote has been translated, the original wording is kept below it.