Variable

Value

Note

Example

SDR Monthly Salary

$2000

The average SDR salary in the US is ~$47k.

Contacts Hit Per SDR Per Month

800

An SDR should be able to hit at least 200 contacts per week. Someone trained on the Salesprocess.io framework and workflows can hit 120 per day.

Cost Per Contact Hit By SDR

$2.5

Lead Rate

3.0%

A 1-3% lead rate is achievable with average messaging. However, with a strong message and offer that can be found and published using the Salesprocess.io framework, one can achieve an 8-30% conversion rate.

Example of SDR Results

Cost Per Lead

$83.33

Demo/Lead

40%

Discovery calls can be conducted by the SDR to qualify leads. The Salesprocess.io Discovery Call Matrix can be used to standardize this process.

Example of Discovery Call Matrix

Cost Per Demo

$208

Demo Show Up Rate

90%

One must account for the show up rate. Can drop during summer and holidays. Email sequences can be used to increase the show up rate and marinate the prospects before the demo.

Example of Primer Sequence

Demo Close Rate

20%

A high-performing inside sales team with the right script and assets will achieve close rates of over 20%. This 20% standard can be achieved by a junior person with 1-3 months training on the right framework. Experienced salespeople (8 months-13 months) can achieve 50%+ conversion rates.

Example of Spreadsheet + Management Tracking

Example of Spreadsheet + Management Tracking

Example of Scripts

Example of Script

CPA

$1162.8

Sales Rep Commission (% of Gross Contribution)

10%

For a high-ticket offer, 10% is the commission rate that will keep the sales team motivated and aligned.

CPA (Conversion)

$800.00

Sales rep commission.

CPA (Total)

$1962.8

The total cost to acquire a customer is extremely important and should be tracked at all times.

Annual Gross Contribution

$8,000.00

Outbound prospecting and inside sales works best for offers with gross contribution >$3k per sale.

Gross Contribution in 7 Days (if paid monthly)

$2,666.67

It is better to sell upfront deals to manage cash flow and recoup CPA immediately.

ROI (Revenue)

308%

ROI (Cash)

+35%

Payback Period (months)

0.73

You can make this <1 if you and your team are trained on selling upfront deals.

• The average salary of SDR is $2,000 in the United States. He’s expected to hit at least 200 contacts per week in order to take the total tally to 800 contacts at the end of the month. 

• While in some conditions if the salesperson is well-trained enough of the sales process and workflow he can get the better number of contacts per week.

• An SDR takes a significant cost of $2.5 per contact hit, while making sure that the lead conversion rate he must provide will be somewhere around 3%.

(SDR Salary/Contacts Hit)
2000/800=$2.5

• Now for instance, if an SDR is really hitting 800 contacts per month, then according to the lead conversion rate, he must convert at least 24 contacts that are the 3% of 800 contacts, into leads every month. 

800 x 3%=24

• Each lead has its own cost as well which is almost $83.33. Lead cost will be calculated by Dividing SDR monthly salary with the 3% lead rate of contact hit by SDR.

2000/24 = $83.33

• Now after hitting 24 contacts and converting them into leads, an SDR will put up a discovery call to see how many leads want to schedule a demo. Around 40% leads will be interested.

• There is also a demo cost per lead as well which is $208. Now if we put it all back together, an SDR will give a demo to the 40% leads out of 24 which is almost 9.6 demo qualified leads. Demo cost per lead will be calculated by dividing SDR monthly salary with the 40% leads that will take demo.

24 x 40% = 9.6

$2000/9.6 = $208

• It all depends on the show up rate now. Sometimes the sales call must be not engaging for the leads or the information is not delivered to them properly. This can be enhanced by sending useful content via emails and melting down their intentions more into your product or service before putting up a demo in front of them.

• Almost 90% leads from the 9.6 demo qualified leads will show up at the time when the demo is scheduled. Their ratio becomes 8.64. 

9.6 x 90% = 8.64

• Now with the high-performing SDR having the right script and hitting at the right corner, will close the demo rate at around 20%.

8.64 x 20% = 1.72

• This demo rate is of the SDR who is just trained for 3 months only whereas an experienced SDR will bring the demo close rate up to 50% at least. 

• The Cost per Action on each contact will be close to $1157.40. CPA is the cost required to acquire per lead and it will be calculated by dividing SDR monthly salary with the total demo rate of 20% whose value was 1.72.

$2000/1.72= $1162.7

• But this is not the final cost to acquire a customer because an SDR will also take commission for a high ticket offer. 

• If the Annual gross contribution is $8000 so automatically an SDR will take $800 which is 10%. So the CPA total cost will be $1962.7

$1162.7 + 800 = $1962.7

• The gross contribution that is paid in 7 days equals $2666.67. Keeping in mind this value we can calculate out ROI (Revenue) and ROI (Cash). ROI (Revenue) will be +308% because we spend a total amount of $1962.7 on the CPA while gaining a total amount of $8000 annually. 

• In the same way ROI (Cash) will be +35%. This point must be taken into strong consi

• The payback period in this case will be 0.73