1. Base Salary and Benefits:

The initial base salary for an SDR typically falls between $50,000 and $90,000 annually. However, the actual cost to the company is much higher once you add benefits such as healthcare, paid time off, and other perks. These benefits can increase the overall compensation by 20-30%. This means for an SDR earning $70,000, the total compensation package could easily reach $90,000.

2. Onboarding and Ramp-Up Time:

The initial base salary for an SDR typically falls between $50,000 and $90,000 annually. However, the actual cost to the company is much higher once you add benefits such as healthcare, paid time off, and other perks. These benefits can increase the overall compensation by 20-30%. This means for an SDR earning $70,000, the total compensation package could easily reach $90,000.

Training is a major component of SDR expenses, as it takes anywhere from 3 to 6 months for an SDR to reach full productivity. During this period, companies need to allocate resources for training, including manager time and external resources. The cost of onboarding adds up quickly, making the SDR's productivity delay a significant investment upfront.  

3. Tools and Software:

SDRs require various software tools to be effective, including CRM systems, email automation, prospecting tools, and LinkedIn Sales Navigator. These tools can cost $400 to $2,000 per month, per SDR. Without the right tech stack, SDRs struggle to work efficiently, making these tools an essential expense for achieving sales targets.

4. Turnover and Underperformance:

A significant hidden cost is the high turnover rate among SDRs, which is generally in excess of 40% annually. This leads to additional hiring, onboarding, and ramp-up expenses, as well as lost productivity. It’s not uncommon for companies to spend $10,000 to $15,000 on recruiting alone when replacing a departing SDR.