SDR compensation is one of those topics everyone circles back to when something feels off.
- Pipeline is lumpy.
- SDRs feel underpaid or confused.
- AEs complain that meetings are low quality.
Nine times out of ten, the plan is either rewarding the wrong behaviour or it is so unclear that nobody really trusts it. The aim is simple: Pay SDRs in a way that attracts good people, keeps them around, and makes it obvious what they should optimise for.
1. Start With What SDRs Actually Influence
SDRs don’t own deal closure.
They do own the quality of outreach, the depth of qualification, and whether a prospect becomes a real opportunity.
Compensation should focus on the part of the journey they can control, the top of the funnel.
2. Make Qualified Opportunities the Core Metric
Paying for “meetings booked” creates noise and fills calendars. Paying for qualified opportunities creates pipeline that AEs can work with. This metric naturally drives the right behaviours:
- better targeting
- clearer qualification
- cleaner handover to AEs
- fewer “courtesy” meetings
It keeps SDRs focused on preparing prospects, not just pushing them into the calendar.
3. Add a Light Incentive for Deal Progress or Close
SDRs don’t need to be paid heavily on revenue, but a small bonus tied to sourced deals progressing or closing keeps them connected to outcomes.
It encourages:
- thoughtful handovers
- good notes
- proper expectation-setting with the prospect
This avoids the classic “fire and forget” behaviour.
4. Build a Simple, Two-Part Variable Plan
A clean structure works best:
Part 1: Fixed bonus per qualified opportunity
Clear, predictable, and tied to the SDR’s real responsibilities.
Part 2: Small bonus when sourced deals progress or close
Reinforces quality without making the SDR dependent on decisions they do not control.
When the plan is this straightforward, SDRs always know where they stand and what they need to do next.
5. Set Thresholds and Accelerators
Two simple guardrails shape performance without complexity:
Threshold
No payout until a minimum percentage of quota is hit. Prevents paying out on weak or inconsistent output.
Accelerator
Slightly higher payouts once the SDR passes target. Keeps top performers pushing beyond 100%. One of each is enough, no need for multiple tiers.
6. Example Structure
SDR base salary: £36,000
Annual variable: £12,000
OTE: £48,000
Monthly quota: 12 qualified opportunities
Quarterly quota: 36 qualified opportunities
Variable structure
- £75 per qualified opportunity
- 36 opps × £75 = £2,700 per quarter
- £300 bonus for each sourced deal that reaches a late stage or closes
- Capped at £1,200 per year
- Threshold at 60% of quota
- Payout begins only after 22 qualified opps in a quarter.
- Accelerator of +20%
- Every opportunity above target pays £90 instead of £75.
Quarterly earnings example
- 36 qualified opps → £2,700
- One sourced deal progresses/ closes → £300
- Total for the quarter: £3,000
Annually, this aligns cleanly with the SDR’s £12k variable.
Top performers can push slightly above target earnings through accelerators.
The math is simple, the expectations are clear, and the payouts are tied directly to real pipeline creation.
7. Use Guardrails That Keep the Plan Healthy
Define “qualified” with a short checklist
Prevents SDRs from pushing unready prospects into the funnel.
Make performance and projected earnings visible
SDRs should know in real time how they’re tracking. Uncertainty is the fastest way to create frustration.
Review the plan based on real data, not assumptions
If quotas are consistently missed or overshot, adjust. If payouts drift toward the wrong outcomes, tighten the structure. A good compensation plan evolves as your sales motion evolves.
