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SDR Commission Structure: How to Reward Sales Development Reps

The Sales Development Representative (SDR) is a vital part of any modern sales organization. SDRs are responsible for generating qualified leads and setting up meetings for Account Executives (AEs). Yet, designing the right SDR compensation structure can be tricky.

How do you fairly compensate reps who don’t close deals themselves but are responsible for filling the pipeline?

In this guide, we’ll explore how to build an effective SDR commission structure that rewards effort and output, includes example plans, and helps align your SDR comp plan with company goals.

SDR Commission Plan

Why the Right SDR Compensation Matters

A well-designed SDR compensation plan should:

  • Motivate consistent outreach and qualification.

  • Encourage handoff of high-quality leads.

  • Align with team and company revenue goals.

  • Attract and retain top SDR talent.

With the average SDR salary ranging between $45,000 to $70,000 base in the US, variable compensation can significantly boost total earnings while aligning performance with pipeline growth.

Components of a Modern SDR Commission Structure

1. Base Salary

  • Provides income stability.

  • Common SDR salary ranges:

    • SMB Market: $45,000–$55,000

    • Mid-Market: $50,000–$65,000

    • Enterprise SaaS: $60,000–$70,000

2. Variable Commission

The variable portion of the SDR comp plan typically makes up 20–40% of total on-target earnings (OTE). It’s structured around:

  • Meetings booked (SQLs)

  • Opportunities accepted by AEs

  • Opportunities that close

This structure ensures SDR sales efforts are both productive and high-quality.

3. SDR Bonus Structure

You can add bonuses for:

  • Hitting monthly/quarterly targets

  • Booking meetings with ICP accounts

  • Passing enterprise leads

  • Consistency over time

Bonuses motivate reps to not only work hard but also work smart.

4. Commission Payout Models

Some common SDR commission payout models:

  • Flat-Rate per SQL: $100–$200 per qualified meeting

  • Tiered Payouts: Higher payout per SQL above quota

  • Hybrid Plans: Base payout + bonus per accepted opportunity

  • Closed-Won Influence Bonus: Extra payout if a booked meeting leads to a closed deal

Compensation Plan and comp policy download free guide

SDR Commission Plan Example

Here’s an example of a high-performance SDR commission structure:

  • Base Salary: $55,000

  • OTE: $75,000

  • Quota: 12 SQLs/month

  • Commission: $125 per SQL

  • Accelerator: $150 per SQL after 15 in a month

  • Bonus: $500 for every 5 SQLs that convert to closed-won deals

  • Payout Frequency: Monthly

This SDR comp plan rewards both volume and quality, keeping reps focused on pipeline and company goals.

How to Build an SDR Compensation Structure

  1. Define What You Value Most
    Do you prioritize quantity (booked meetings) or quality (closed deals)? The answer informs your plan.

  2. Benchmark Roles and Markets
    Use market data to set fair SDR salary and commission levels.

  3. Align with AEs and Marketing
    Ensure your SDR sales team is targeting the right leads and markets.

  4. Keep It Simple and Transparent
    Confusing compensation plans lower motivation. Clarity is key.

  5. Use Compensation Software
    Tools like Bentega streamline SDR compensation tracking, payouts, and performance analytics.

  6. Incentivize Managers Too
    Include a fair SDR manager compensation plan to reward coaching and team success.

SDR Performance Metrics formulas

Final Thoughts

Creating a winning SDR compensation structure is essential for pipeline success and long-term revenue growth. A well-balanced SDR commission structure drives accountability, quality, and performance while making your company more attractive to top sales talent.

Bentega can help you design and implement scalable SDR comp plans tailored to your business model and growth stage.

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Bentega helps modern sales organizations design effective, fair, and scalable SDR compensation structures. Whether you're launching a new SDR team, refining your SDR commission structure, or building out a full SDR manager compensation plan, our commission software and advisory services can support every step. Improve motivation, streamline payouts, and grow your pipeline with Bentega.