Direct monthly costs per SDR are just the tip of the iceberg. Many organizations underestimate the hidden expenses of hiring, managing, training and equipping SDR teams—costs that lie beneath the surface but significantly impact your bottom line.

Here’s a closer look at all the factors impacting your SDR team costs:

• Salaries, benefits, and taxes: Beyond base salaries, consider payroll taxes (around 7.65%) and benefits (~20-29% of base salaries).
• Hiring and onboarding: SDR roles have notoriously high turnover rates. For the in-house option, factor in the cost of continuous recruiting, onboarding and training.
• Management costs: An effective SDR requires dedicated management. If your team is smaller than 10 SDRs, this management burden typically falls on already busy sales leaders, affecting productivity and increasing hidden costs. Factor in a 1:5 ratio of dedicated manager for each SDR team.
• Technology and tools: CRM systems, dialers, email tools, and analytics software add significant monthly overhead with the in-house function.

To see a detailed breakdown of the side-by-side costs or customize your results, click here.

Areas of risk and cost not factored into this side-by-side comparison:

• Scalability and global expansion: Quickly scaling or expanding internationally involves costs related to recruitment, compliance, local regulations, and infrastructure. If this is an area of need, consider whether your in-house IT, People and Legal teams have expertise in these areas.
• Risk of turnover and empty seats: Every SDR departure leaves a costly gap, from direct financial losses to slowed pipeline momentum. With the outsourcing model, there is little or no downtime.

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Total Savings

Yearly savings per SDR: $0.00

Yearly saving for 0 SDRs: $0.00

Yearly savings percentage: 0.0%

Additional Considerations

Outsourcing to experienced professionals often yields higher pipeline throughput than starting an in-house team. Outsourcing allows clients to rapidly scale up and down, including for seasonal sales efforts. Outsourcing offers flexibility in hiring and firing, but without worrying about finding the right fit for your team or developing the right culture. Additionally, outsourcing avoids the opportunity cost of lost revenue when training the initial team. The outsourced team has significantly shorter ramp up time, and can jump right into the pipeline. Similarly, outsourcing avoids lost revenue to turnover and spending on unproductive time. If you think outsourcing may be right for your firm, email us at sales@memoryblue.com