SDR Calculator Assumptions:
1. The more mature your market, the more you have to rely on inbound.
2. The more immature your market, the more you have to rely on outbound.
3. The larger the company, the harder is to get the meeting.
4. An SDR can close between 8 and 25 meetings per month depending on the target company size and industry.
*Note: We’ve used data mostly from e-commerce companies, software companies, and SaaS products. These results won’t be a perfect fit for everyone.
How does it work?
It’s easy! First, we multiply your monthly deal goal by your meeting to deal win rate – that gets the *magic* number of meetings or opportunities your sales development team needs to generate each month.
Then, considering your target tier and industry, we know how many meetings on average each type of SDR can close per month (between 8 and 25 meetings).
Then we determine outbound vs. inbound SDR distribution by estimating how many inbound requests you’ll receive monthly, based on your product category’s maturity.
Finally, depending on the recommended distribution of your team, we divide your *magic* number of monthly opportunities by the average amount of meetings generated by SDRs for your target tier and industry – and get the total number of SDRs.
Why does the maturity of my market matter?
The rule of thumb is – the less mature the market is, the more you have to rely on outbound.
To put it in perspective, lots of people are already searching for sales engagement platforms. But they might not be looking for a blockchain platform that eliminates counterfeits, yet.
How familiar your target buyers are with your product influences how much inbound traffic you can count on. In turn, market maturity affects the ideal size and organization of your sales development team.
Why does my target company size make a difference?
Typically the larger the company size, the harder it is to get the meeting. The chances of getting a meeting with a decision-maker are much slimmer with an enterprise company than an SMB.
Large average deal size and long sales cycles, typical when targeting enterprise companies, also affect the necessary amount of opportunities per month. This will affect the amount of SDRs needed in your sales development team.
What’s the difference between inbound and outbound SDRs?
Outbound SDRs are responsible for cold calling and emailing prospects that haven’t opted-in or submitted their information directly to your company.
In our SDR calculator, we also classify outbound SDRs as responsible for contacting leads that have registered for a top of the funnel content piece, for example, downloading an ebook or signing up for a webinar.
We define inbound SDRs as responsible for qualifying leads and accounts that have directly requested a demo with your company through a chatbot or demo landing page.
Although their job functions are slightly different, both types of SDRs have the hefty goal of converting their prospects into qualified meetings.
What number of opportunities should an SDR close per month?
Setting monthly goals for your SDR team depends on the number of deals you need to close each month to reach revenue targets.
Our SDR calculator bases the average amount of opportunities generated per SDR on inbound or outbound function, target tier, and industry. For example, an outbound sales development rep targeting SMB SaaS should be producing between 17 and 22 opportunities per month.
Does the calculator determine my optimal SDR to AE ratio?
Yep! Once we know how many deals you need to close each month, we can determine the optimal SDR to AE ratio. We’ll send you that info in your personalized Sales Success Formula report if you decide to opt-in.
The average SDR:AE ratio as cited by the Sales Development Benchmark Report is as follows:
1 to 2 (Company revenue $0-$50M)
1 to 3 (Company revenue $0-$50M)
1 to 4 (Company revenue $0-$50M)
Does the calculator tell me how many calls an SDR should make?
It definitely helps! Once you get your ideal team size and inbound to outbound SDR ratio, you can look at your contactability rates to figure out the ideal number of calls per SDR.
Each SDR should own their personal cold call to qualified meeting ratio. However, SDR managers should guide their reps by comparing their meeting conversion rates with their average number of dials.
What else can the SDR calculator tell me about my sales development team?
Once you know your ideal SDR team size, it’s much easier to set realistic goals for your reps. Figuring out the ideal amount of leads or accounts each rep should handle is near impossible if you don’t have enough (or too many) reps on your team.
The additional PDF report breaks down appropriate SDR activity benchmarks based on your target tier, deal win rate, and revenue goals.