SDR commission benchmarks & OTE calculator (2025)
Are you underpaying your SDRs (and losing them)? Calculate competitive OTE and see if your base/variable split is driving or killing performance.
- 1.Enter Base Salary
- 2.Add Target Variable
- 3.Calculate OTE
- 4.Compare to Market
- 5.Check Split
Key Takeaways
- →Entry SDR OTE: $70-90K. Mid-level: $90-110K. Add 15-25% for SF/NYC.
- →70/30 or 60/40 base-to-variable is standard — too low base = can't hire
- →Target 15-20 qualified meetings/month — below 10 = underperformance
- →Accelerators (1.25-1.5x for 125%+) keep top performers from leaving
What is SDR ote (on-target earnings)?
SDR OTE is the total compensation a Sales Development Representative earns when hitting 100% of quota. It combines base salary and variable (commission/bonus) pay.
Formula: OTE = Base Salary + Target Variable
Example: $55,000 base + $25,000 variable = $80,000 OTE
SDR compensation balances a livable base with enough variable to incentivize performance. Get the mix wrong, and you either can't hire or can't retain top performers.
SDR compensation benchmarks (2025)
| Level | Base Salary | Variable | Total OTE |
|---|---|---|---|
| Entry-Level SDR | $45,000-55,000 | $15,000-25,000 | $60,000-80,000 |
| Mid-Level SDR | $55,000-70,000 | $25,000-35,000 | $80,000-105,000 |
| Senior SDR | $65,000-80,000 | $30,000-45,000 | $95,000-125,000 |
| SDR Manager | $80,000-100,000 | $30,000-50,000 | $110,000-150,000 |
Note: Coastal markets (SF, NYC, Boston) pay 15-25% higher than these benchmarks.
Base vs. variable split
| Split | Use Case | Risk Profile |
|---|---|---|
| 80/20 | New market, uncertain pipeline | Safe for SDRs |
| 70/30 | Standard SaaS | Industry standard |
| 60/40 | Proven playbook, strong pipeline | Higher performance driver |
| 50/50 | Enterprise/high ACV | For experienced reps |
Best Practice: 60-70% base / 30-40% variable is the sweet spot for SDRs. Too low on base = can't hire. Too high = no hunger.
SDR quota benchmarks
| Metric | Average | Top Performers |
|---|---|---|
| Monthly Qualified Meetings | 12-20 | 25+ |
| Monthly Opportunities Created | 8-15 | 20+ |
| Conversion Rate (Meeting → Opp) | 50-70% | 75%+ |
| Shows per Month | 10-15 | 18+ |
Quota Setting Rule: If <60% of team is hitting quota, quota is too high. If >90% is hitting, quota is too low.
Why SDR compensation plans fail (top 5 reasons)
1. ote too low vs. market
Top SDRs have options. If you pay 15% below market, you'll only hire B-players.
2. base too low
SDRs with bills to pay won't take risk on heavy variable splits without proven pipeline. 70/30 minimum for new hires.
3. vague qualification criteria
"Qualified" must be crystal clear. Disagreements about what counts as an "opportunity" destroy trust.
4. quota set in a vacuum
Quota should be based on historical data, not wishful thinking. Account for seasonality and ramp time.
5. no accelerators
If hitting 150% quota pays the same per meeting as 100% quota, top performers have no reason to push.
SDR ramp time
| Ramp Period | Quota Expectation |
|---|---|
| Month 1 | 0% (training) |
| Month 2 | 50% |
| Month 3 | 75% |
| Month 4+ | 100% |
Reality: Full productivity takes 3-4 months. Expecting 100% quota in Month 1 sets SDRs up to fail.
Accelerators and decelerators
| Performance | Commission Rate |
|---|---|
| < 75% quota | 0.75x (or no variable) |
| 75-100% quota | 1.0x |
| 100-125% quota | 1.25x |
| 125%+ quota | 1.5x+ |
Why Accelerators Matter: Top SDRs want unlimited upside. If the comp plan caps earnings, your best people leave.
Frequently Asked Questions
FAQ
What is a competitive SDR ote in 2025?
$70,000-90,000 for entry-level. $90,000-110,000 for experienced SDRs. Add 15-25% for SF/NYC.
What base/variable split should i use for sdrs?
70/30 or 60/40 is standard. New SDRs or uncertain markets = 70/30. Proven playbook = 60/40.
How many meetings should an SDR book per month?
15-20 qualified meetings is a healthy target. Below 10 = underperformance. Above 25 = top performer.
Should sdrs be paid on meetings or opportunities?
Opportunities are better — they incentivize quality. Meetings alone can incentivize booking garbage.
What is typical SDR quota attainment?
60-80% of team hitting quota is healthy. Below 50% = quota too high or poor hiring.
How long should SDR ramp be?
3-4 months to full productivity. Month 1 = training, Month 2 = 50%, Month 3 = 75%, Month 4+ = 100%.
Should SDR comp have accelerators?
Yes. Top performers need unlimited upside. 1.25-1.5x for 125%+ quota keeps your best people.
How do i know if SDR comp is too low?
High turnover, can't fill roles, losing offers to competitors = you're paying below market.