Short answer: An SDR, or sales development representative, is a salesperson who finds and contacts potential customers and books meetings for closers. They do not usually close deals. Hire one when you have a proven offer, a clear buyer, and a manager who can train and coach them. Until then, outsourcing or a small outbound test is often cheaper and faster.
- Job: research prospects, reach out by email, phone and social, and set meetings.
- Pay: a base salary plus commission or bonus, with wide variation by market.
- When to hire: after your pitch works and someone can manage them.
What does SDR mean?
SDR stands for sales development representative. The role sits at the front of the sales process. The SDR starts conversations, checks whether a prospect is a fit, and passes good ones to an account executive or the founder. Some companies call the role an appointment setter or lead development rep.
The idea is a split of labor. Closing deals takes skill and time. Finding prospects takes persistence and volume. An SDR handles the second part so the closer can focus on the first. For how the pieces fit, see our post on the B2B sales team structure.
What does an SDR do all day?
- Researches companies and decision makers.
- Sends cold emails and follow-ups.
- Makes calls and sends messages on LinkedIn.
- Replies to interested prospects and books meetings.
- Updates the CRM and reports activity.
- Hands over qualified opportunities with notes.
The work is repetitive and has a lot of rejection. Good SDRs are organized, resilient and coachable. Turnover is common because the job is demanding and is often a stepping stone to closing roles.
How much does an SDR get paid?
Pay depends on the city, industry and company size, so we will not give you a number. In general, SDR pay combines a base salary with variable pay tied to meetings held or opportunities created. Beyond pay, you carry the full cost of the seat, including benefits, taxes, software, training and management time, and the SDR cost calculator lets you add up your own.
When should you hire an SDR?
Hire when these things are true:
- You have closed deals from outbound before, even if you did it yourself.
- You know who your buyer is and what to say.
- Someone can manage, train and coach the SDR weekly.
- Your closers have time to take the meetings the SDR books.
- You can afford a long enough runway for the SDR to ramp up.
Do not hire an SDR to find out what works. A new hire will not discover your pitch for you. If you are still learning your market, run a small test first, either yourself or through an outsourced team. See outsourced SDR for how that model works.
SDR in-house or outsourced?
| Factor | In-house SDR | Outsourced or agency |
|---|---|---|
| Control | High: your person, your process | Lower: you share the process |
| Ramp time | Hiring plus training, often months | Weeks, since the team already has a system |
| Cost shape | Fixed salary and overhead | Monthly fee, often with a term |
| Management | You manage and coach | The provider manages |
| Risk | Turnover and a bad hire cost you | Provider quality matters most |
| Channels | Email, phone and social if trained | Depends on the provider; ours is cold email only |
Neither model is always better. An in-house SDR makes sense when volume is high and the process is mature. Outsourcing makes sense when you want a faster start and less management. Our guide to outsourced SDR options and the post on AI SDRs cover other routes.
What are the risks of hiring an SDR too early?
The common failures are predictable. The company hires before the offer is proven. The SDR gets vague targets and poor lists. Nobody coaches them. Meetings get booked with people who cannot buy. Sales leaders then blame the SDR. After six months, the company has spent real money and learned little.
To avoid this, define the target buyer, the script, the goal for meetings, and what counts as qualified before the first day. Our post on the ideal customer profile helps with the first of those.
What should you look for when hiring one?
Look for curiosity, resilience and the ability to take feedback, more than a perfect resume. SDRs spend most of their day being ignored or turned down, so attitude matters. Ask candidates to write a short cold email for your product, and to explain how they would research a prospect. Their answers show how they think.
Be clear about the numbers from day one: how many meetings you expect, how fast they should ramp, and what you will do to help. Share a sample of good emails, a clear target list and a simple way to log activity. Check in weekly during the first months. A hire with no structure usually flounders, no matter how talented they are. The structure you give them is what turns effort into booked meetings.
Finally, plan the next step for the role. Many SDRs want to move into closing within a year or two. If you can offer a path, you will keep good people longer. If you cannot, expect turnover, and budget for it.
Want the SDR work without the hire? Next Reply is a done-for-you cold email agency. We build the prospect list you approve, write and send the emails, and hand you the replies. Growth and Scale plans also book meetings. See our B2B lead generation services →
Frequently asked questions
Is an SDR the same as a salesperson?
They are in sales, but the job is different. An SDR opens conversations and books meetings. An account executive runs demos and closes deals.
Do SDRs only use cold calling?
No. Many use email, LinkedIn and phone together. The mix depends on the company and the buyer.
Is SDR a good career?
It can be a strong start in sales. Many SDRs move into account executive or management roles, though paths vary.
Can one SDR replace marketing?
No. An SDR reaches chosen prospects directly. Marketing builds demand and awareness. They work best together.
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