How do you pay an SDR? 4 steps for an efficient commissioning plan

Sales Development Representatives (SDRs) focus on a territory or market vertical in which they canvass and qualify prospects. 

This means that they have to initiate a conversation, get a decision maker to act, deal with objections and close by scheduling a meeting with an Account Executive, who will finalize the sale.

Thus, SDRs do not make any sales. So how do you pay them?

1. SDR: The split between fixed and variable pay

Before looking at the indicators to be taken into account of the variable remuneration of an SDR, it is first necessary to determine how much of their wage should be devoted to the fixed salary and how much to the variable part.

There is no single correct answer to the question! This distribution depends above all on the company's objectives. 

However, there are some common rules:

• Fixed salary: between 70% and 80% of the package 
• Variable: between 20% and 30% of the package

The variable remuneration of a SDR should not exceed the above threshold. Otherwise, the company would greatly reduce its attractiveness because the SDRs would be subject to too much pressure and instability. Nor should the variable pay portion be less than 20%, otherwise the company would be exposed to a strong loss of motivation on the part of its SDRs and, ultimately, to a high turnover.

As mentioned above, these rules are not universal, and it is important to adapt them according to the situation: 

• The maturity of the market. A company operating in a highly competitive market with a high volume of sales may offer a larger share of variable pay.
• The stage of maturity of the company. A fast-growing company may also offer a higher commission share in order to motivate its SDRs.
• The seniority of the employee. Employees at the beginning of their career are often more motivated by a high commission percentage. On the other hand, senior employees prefer a larger fixed salary component due to their family and financial situation (mortgage, etc.). Once again, this rule is not universal, as some senior employees prefer a high variable salary because they have knowledge of the business and/or the market and/or the company that is favorable to them in order to achieve their objectives.
• The sales cycle. Generally, the variable remuneration share is lower when the sales cycle is long because the sales volume is lower.

"The split between fixed and variable pay should be reviewed in line with the maturity of the business and the products."

Vladimir Ionesco, Director of Global Sales Performance at Doctolib

Once the variable component has been defined, it is a question of looking at the indicators to be taken into account to measure it!

2. SDR: Indicators to be taken into account for the commissions

By virtue of their role, SDRs are expected to generate qualified leads for Account Executives (AEs). In theory, their variable remuneration should therefore be based on the number of leads generated, the quality of those leads and the potential turnover generated. 

In reality, according to a Tribes survey, the following indicators are taken into account in the variable remuneration of SDRs in start-ups:

• The number of deals signed (39%)
• The number of meetings booked (33%)
• Turnover generated (33%)
• The number of meetings made (28%)
• The number of leads sent to Account Executives (11%)
• The value of the pipeline created (11%)

Theory and reality having been agreed, let's take a closer look at the leading indicators taken into account in the variable remuneration of SDRs.

Number of meetings booked

✅ Benefit: By paying the SDRs on the number of meetings they get, the company ensures that the maximum number of leads are generated for the Account Executives.   

❌ Disadvantage: SDRs are only encouraged to book meetings, without necessarily taking into account the quality of the prospects and their interest in the company's product(s) and/or service(s). Account Executives are therefore much less likely to close a sale. 

Turnover generated

✅ Benefit: Unlike the "number of meetings booked" indicator, compensating SDRs on the revenue generated by the leads they send to Account Executives, motivates them to generate leads that are inclined to buy the company's product(s) and/or service(s). 

❌ Disadvantage: Depending on the length of the sales cycle, it can take up to several months to close a deal. This means that there is no immediate reward for SDRs, so it is difficult to motivate them to generate as many leads as possible.

What if we take the best of both worlds?

The ideal commissioning formula for SDRs

Variable remuneration SDR = X € per meeting booked + % of revenue generated per lead

On the one hand, SDRs are motivated in the short term by the bonus meetings. On the other hand, they have an incentive to generate hot leads since they are also paid on the revenue generated.

⚖️ For a perfect balance, each of the indicators must have the same weight in the commission formula!

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3. SDR: Example of a variable pay plan

Let's take the example of a company selling customer relationship management software to other companies (B2B):

• Average basket: €10,000 
• SDR remuneration package: fixed salary (€30,000) + variable remuneration (€12,000)
• Target number of meetings booked per month: 15
• Account Executive conversion rate: 33% (5 new customers per month)

Variable remuneration SDR = (€12,000/12) = (15 x X € per meeting) + (5 x €10,000 x X % of revenue generated)

Each indicator has the same weight, so this gives : 

• (15 x € X per meeting = 5 x 10,000 x X % of revenue generated) and (€1,000 = 15 x € X per meeting + 15 x € X per meeting= 30 x € X per meeting)
• That is : X € per meeting = €1,000/30 = €33 per meeting
• And: X% of the income generated = (15 x X € per meeting) / (5 x €10,000) = 1.01% of the income generated

The formula for calculating SDR wages is therefore :

• Variable remuneration SDR = €33 per meeting + 1.01% of revenue generated

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4. Set the salary of an SDR based on the average salary

The salary of a Sales Development Representative (SDR) varies according to a number of factors, including country, experience and company size. Here is an overview of average salaries in different parts of the world, backed up by recent, reliable data.

Average salary for an SDR in the United States in 2025

In the United States, the job of SDR is generally better paid than in other countries. According to the latest data from BuiltIn, RepVue, and Bravado, the average base salary for an SDR is between $50,000 and $60,000 a year, with performance bonuses and commissions significantly increasing total compensation.

• Average fixed salary: $50,000 to $60,000 gross
• Variable portion: typically $20,000 to $30,000 gross, with the best performers earning even more.

The average On Target Earnings (OTE, fixed + variable) is around $75,000 to $85,000, with total compensation at top companies often exceeding $100,000, and the very highest reported averages up to $125,000 according to Bravado.

Silicon Valley and New York are areas where salaries are often higher than the national average, reflecting the high demand and competitiveness of the market. For example, SDRs in these markets can reach base salaries above $65,000 and OTEs well into six figures.

SDRs' salaries differ significantly according to region and experience. Understanding these differences enables companies to adapt their remuneration policies to attract and retain the best talent, while remaining competitive in the global market. For candidates, this information is used to negotiate their salary in line with the standards of the sector and the target country.

Average salary for an SDR in France in 2025

According to the latest data from PayScale, RepVue, and HelloWork, the average annual salary of an SDR in France ranges between €35,000 and €46,000 gross, including a significant variable component. The typical breakdown is a fixed salary of around €38,000 to €42,000, supplemented by performance-based commissions usually between €5,000 and €15,000 gross per year.

• Average fixed salary: €38,000 to €42,000 gross per year.
• Variable commissions: €5,000 to €15,000 gross per year, depending on company and performance.

SDRs working in fast-growing technology companies or start-ups can expect to reach the top end of this range, with total on-target earnings (OTE) exceeding €60,000 and top performers earning up to €90,000 annually.

Average salary for an SDR in the UK in 2025

The average salary for SDRs in the UK is generally higher than in France. According to the latest data from RepVue, Payscale, and Jooble, the average annual salary for an SDR ranges from approximately £33,000 to £45,000 gross, including a variable component. This difference can be explained by a more mature market and increased competition.

Average fixed salary: £32,700 to £44,800 gross per year.
Bonuses and commission: typically up to £10,000 to £15,000 gross annually.

Major cities such as London offer the best opportunities, with salaries above the national average. In London and leading tech companies, SDRs can have base salaries around £40,000 to £50,000 with total OTE often exceeding £60,000 to £70,000.

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Ready to define your compensation plan?

Once your SDR commission formula has been established, it can be completed by :

• Adding commission accelerators for out-performance
• Assigning different weights to meetings booked according to the amount of the opportunity or the hierarchical level of the contact person

Although there are a multitude of ways to pay SDRs, it is important to define a commission plan that is aligned with the company's strategic objectives. 

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SDR compensation plan - FAQ

What are the key components of an effective SDR compensation plan?

An effective SDR compensation plan revolves around three core components : 

1. The optimal split between fixed and variable compensation, where the fixed salary should represent 70-80% of the total package while variable pay accounts for 20-30%. This distribution ensures stability while maintaining motivation through performance incentives. 
2. Focus on selecting the right performance indicators. The most effective approach combines the number of meetings booked, which provides immediate motivation, with revenue generated from leads, which ensures quality focus. This dual structure balances short-term activity with long-term value creation.
3. The commission formula itself should be structured as: Variable remuneration = X € per meeting booked + % of revenue generated per lead. For optimal results, each indicator should carry equal weight in the commission structure, creating a balanced approach that motivates both quantity and quality of lead generation.

How can companies ensure their compensation plans attract talent?

Companies must first ensure their compensation packages remain competitive within their respective markets. 

Beyond competitive base compensation, companies should adapt their plans based on specific contextual factors. Market maturity plays a crucial role, as companies operating in highly competitive markets with high sales volumes can offer larger variable pay components. The company's growth stage also matters, with fast-growing organizations able to offer higher commission shares to motivate SDRs during rapid scaling phases.

What metrics should be used to measure SDR performance?

The most commonly used SDR performance metrics include deals signed (39% of companies), meetings booked (33%), revenue generated (33%), and meetings completed (28%). Less common metrics include leads sent to Account Executives and pipeline value creation (11% each).

The most effective approach combines meeting-based metrics for immediate motivation with revenue-based metrics for quality focus. This balanced system prevents the common pitfall of pure meeting-based compensation, which can compromise prospect quality, while avoiding the demotivation that comes from pure revenue-based compensation due to long sales cycles.

How often should compensation plans be reviewed and adjusted?

Compensation plan reviews should be triggered by significant business changes rather than following rigid schedules. Key triggers include market maturity shifts, company growth stage transitions, product evolution, and changes in team composition. As businesses evolve from startup to scale-up phases, compensation structures must adapt accordingly.

The most direct indicator for review needs comes from performance data. Companies that use specialized commission management software see more employees exceed their targets than those that use basic tools such as Excel, suggesting that both compensation structure and management systems require regular evaluation for optimal results.