This example SDR plan pays $120 per qualified meeting held and 0.3% of sourced pipeline, so an SDR who hits 20 meetings and $200,000 of pipeline in a month earns the $3,000 monthly variable target, with total variable capped at 150% of target. Meetings carry 80% of the target and pipeline 20%. You can reproduce every payout below in the SDR commission calculator.
All figures are illustrative and chosen for easy arithmetic. They are not pay benchmarks for SDRs or BDRs.
The role
A sales development representative (inbound) or business development representative (outbound) qualifies leads and books first meetings for account executives. The SDR does not run the sales cycle or close deals, so the plan pays for what the SDR controls: qualified meetings that take place, and the pipeline those meetings create.
Measures and definitions
| Measure | Weight at target | Monthly target | How it pays |
|---|---|---|---|
| Qualified meetings held | 80% | 20 meetings | $120 per meeting |
| Sourced pipeline | 20% | $200,000 | 0.3% of pipeline amount |
Write the definitions into the plan:
- A qualified meeting is held (not just booked), with a contact who matches the agreed profile, and accepted by the AE within five business days.
- Sourced pipeline is the amount of opportunities created from the SDR’s meetings once they reach the agreed sales stage, at the value in the CRM at the end of the month.
- Disputes go to the sales development manager, whose decision is recorded.
The $120 rate comes from the target: $2,400 (80% of $3,000) ÷ 20 meetings. The 0.3% comes from $600 (20% of $3,000) ÷ $200,000.
Pay mix
The variable target here is $3,000 a month, or $36,000 a year. The base salary is your own market decision; we do not publish SDR salary or pay-mix figures because we have no sourced data for them. The share of variable pay should reflect how directly the SDR’s activity drives the measures, which is high for meetings and lower for pipeline value.
Worked payouts
Each row assumes meetings and pipeline at the same attainment.
| Attainment | Meetings held | Meetings pay | Sourced pipeline | Pipeline pay | Earned before cap | Paid (cap $4,500) |
|---|---|---|---|---|---|---|
| 50% | 10 | $1,200 | $100,000 | $300 | $1,500 | $1,500 |
| 100% | 20 | $2,400 | $200,000 | $600 | $3,000 | $3,000 |
| 150% | 30 | $3,600 | $300,000 | $900 | $4,500 | $4,500 |
| 200% | 40 | $4,800 | $400,000 | $1,200 | $6,000 | $4,500 |
The cap is 150% × $3,000 = $4,500. It binds exactly at 150% attainment; at 200%, $1,500 is removed. An uncapped version of this plan would pay $6,000 at 200%. Whether to cap is a trade-off between cost certainty and the incentive to keep prospecting late in the month; see the commission structures library for how caps behave.
Variant: paying per qualified opportunity
A plan can pay on qualified opportunities instead of meetings, to tie pay closer to pipeline quality. With a target of 10 opportunities a month and the same $2,400, the rate becomes $240 per opportunity. The SDR commission calculator has a “paid per” setting for both bases.
Ramp and career path
A new SDR needs time to learn the product, the profile and the tools. A simple approach is a reduced meetings target for the first months with the same unit rates, so each meeting is worth the same whatever the tenure; the sales ramp calculator builds the ramped targets month by month. Also decide what happens to an SDR’s sourced pipeline when they are promoted to AE: whether pipeline component payouts continue on opportunities created before the move should be written into the plan, not decided case by case.
Interaction with the AE plan
The SDR and the AE are paid on the same deal, at different stages. That is intended, but it adds to the cost of each dollar of new business. Check the combined cost of all roles with the total commission rate calculator. If several SDRs contribute to one opportunity, use a written split rule; the commission split calculator shows the effect.
Pitfalls to avoid
- Paying on meetings booked. It rewards volume over attendance and quality. Pay on meetings held and accepted.
- Vague qualification. If “qualified” is not defined in writing, every month ends in negotiation between SDRs and AEs.
- Inflated pipeline. Opportunities created at an optimistic value pay the SDR even if they never progress. Pay at a defined stage, or on closed-won amount for the pipeline component.
- Targets out of line with lead flow. An inbound SDR cannot hit a meeting target if marketing volume drops. Review targets when lead volume changes, and check coverage with the pipeline coverage calculator.
- Too many measures. Activity counts (calls, emails) are easy to inflate and say little about outcomes; keep them in coaching, not in pay.
- Using SPIFFs as a permanent fix. A short contest can lift a slow month, but a SPIFF that runs every month is really part of the plan. Size them with the SPIFF calculator.
For other roles, go back to the plan examples by role.
Key takeaways
- Pay SDRs for outcomes they control: qualified meetings held and the pipeline they create.
- Derive unit rates from the target: $2,400 ÷ 20 meetings = $120; $600 ÷ $200,000 = 0.3%.
- At 50/100/150% attainment this plan pays $1,500 / $3,000 / $4,500 a month; the cap holds 200% at $4,500.
- Write precise definitions of a qualified meeting and of sourced pipeline.
- Check the combined SDR + AE cost on each dollar of new business.
Frequently asked questions
Should SDRs be paid on meetings booked or meetings held?
Meetings held is harder to game: a booked meeting that never happens creates no value. A stricter option pays only on meetings the AE accepts as qualified, using a written definition both teams signed off on.
Should SDRs earn commission on closed-won revenue?
A small component tied to sourced pipeline or closed-won revenue keeps SDRs focused on quality. Because SDRs do not control the close, and deals can close long after the meeting, most of their variable pay is easier to tie to measures they control within the month.
Monthly or quarterly SDR targets?
Monthly targets give fast feedback and match the short cycle of SDR work; quarterly targets smooth out seasonality. This example uses monthly targets and pays the month after.