Revenue Operations
Lauren Daniels
November 14, 2025
SDRs play a defining role in driving pipeline growth, often responsible for a substantial share of new opportunities and revenue. Yet many sales leaders still struggle to design compensation plans that attract, motivate, and retain top-performing reps. According to the 2023 Salesloft State of Revenue Engagement Benchmark Study, SDRs achieve a median quota attainment of 55%, a number that highlights how frequently compensation structures miss the mark.
This guide breaks down everything you need to build a high-performing SDR compensation plan for 2025, including how to set OTE (on-target earnings), define the right pay mix, establish quotas, and align performance metrics with company goals. You’ll also see examples from Whistle’s own SDR programs that show how these principles translate into measurable performance.
An SDR compensation plan outlines how a sales development representative is paid for their contribution to pipeline generation. It typically combines a fixed base salary with variable pay tied to performance. Unlike account executives, SDRs don’t close deals; their primary responsibility is to generate qualified leads and book meetings that convert into revenue opportunities.
A well-structured plan clearly defines how pay relates to measurable results and aligns incentives with company priorities. That clarity prevents frustration, supports transparency, and drives accountability.
A strong comp plan does more than motivate performance, it shapes behavior. Misaligned incentives often lead to the wrong outcomes, such as inflated meeting numbers that don’t convert. Competitive pay, on the other hand, reinforces desired behavior and keeps top performers engaged.
Turnover remains a persistent challenge in SDR teams, and pay plays a major role. Research shows that uncompetitive compensation is the second most common reason SDRs leave a role, after lack of career growth. The right structure keeps your team motivated and reduces costly churn.
On-Target Earnings (OTE): Total expected annual earnings when targets are met, including base and variable pay.
Pay Mix: The ratio of base salary to variable compensation. Common ratios range from 65/35 to 70/30, depending on role complexity and sales cycle length.
Quota: The target number of qualified meetings, opportunities, or pipeline value expected within a set period, usually monthly or quarterly.
These fundamentals set the foundation for how SDRs perceive fairness and control in their compensation.
The first step in building your SDR comp plan is determining a competitive OTE. This should reflect market benchmarks and the complexity of the role. Data from sources like Glassdoor and PayScale can help you gauge competitive pay ranges.
When setting OTE, consider:
Use a quota-to-OTE ratio as a benchmark. Many companies aim for a ratio between 5:1 and 8:1. For example, if an SDR has an annual influenced pipeline target of $300,000, the OTE should fall between $37,500 and $60,000.
The pay mix determines how much of an SDR’s income comes from stable base pay versus performance-based incentives. Getting this balance right is crucial to maintaining motivation without creating burnout.
It’s also important to plan for ramp periods. New SDRs typically need one to three months before reaching full productivity. During this time, offering a higher guaranteed base or temporary bonus keeps morale steady and provides a fair transition into performance expectations.
Metrics are the backbone of your comp plan. They define what “good” looks like and directly shape SDR behavior. While activity-based metrics (like calls made or emails sent) help track effort, outcome-based metrics more accurately reflect performance impact.
Key metrics to consider:
Data shows that most SDRs create around 7 qualified opportunities per month in SaaS organizations. Quotas should be challenging yet attainable, aiming for 60–70% of your team to hit quota consistently. If only a small fraction achieves the target, your quota or pay structure likely needs review.
An effective comp plan should reinforce what drives revenue, not just activity volume. If your company’s focus is pipeline quality, reward conversion metrics alongside raw numbers. If growth is the priority, focus more on total opportunities created.
Your plan should also be dynamic enough to adjust to business needs. Review compensation structures regularly, at least annually, to ensure they stay relevant as your strategy or sales model evolves.
Inbound and outbound roles require different approaches.
Inbound SDRs manage leads already showing intent, through demos, downloads, or form fills. Since they convert existing interest, their variable pay can emphasize conversion rates and speed of follow-up.
Outbound SDRs create opportunities from cold outreach, which carries higher uncertainty. Their compensation should reflect this by offering more upside potential for success.
Aligning pay to what each SDR can directly control keeps the plan fair and performance-focused.
Activity-based pay works best for newer reps who need structure and predictability. It rewards actions such as calls made, emails sent, or meetings booked.
Outcome-based pay links compensation to tangible business impact, like accepted opportunities or pipeline value. This structure encourages quality over quantity.
Most modern sales teams adopt a hybrid model, where variable pay is distributed across a few core outcomes. For example:
This blend keeps SDRs motivated to strike a balance between volume, quality, and conversion.
A strong SDR compensation plan is more than numbers on a spreadsheet; it’s a blueprint for how your team behaves, performs, and grows. The balance between base pay and incentive, the clarity of metrics, and the alignment with business goals all determine whether your plan motivates or demotivates.
When designed thoughtfully, your comp plan becomes one of your most powerful management tools. It helps your SDRs focus on the right outcomes, promotes accountability, and ultimately drives consistent revenue growth.
At Whistle, we’ve helped organizations build, test, and refine compensation models that match their market, sales cycle, and growth objectives. Use this blueprint as your starting point, then revisit it regularly to keep it aligned with your company’s trajectory.
If you’re rethinking your SDR compensation plan for 2025, Whistle can help you design a structure that motivates performance and supports long-term growth. Our experience building and managing high-performing SDR teams gives us the insight to tailor comp models that deliver measurable results. Explore how Whistle can help you strengthen your sales development strategy.
What is the typical OTE for SDRs?
OTE varies by market and role complexity. In SaaS, the median is roughly $76,000, though it ranges widely by region and company size.
What pay mix should I use for my SDR team?
A 65/35 or 70/30 mix works well for most teams. Adjust based on deal size, sales cycle, and team maturity.
How should I set SDR quotas?
Base quotas on historical performance and current demand generation goals. Aim for 60–70% attainment across the team for balance.
Should I use activity-based or outcome-based compensation?
Use activity-based metrics during ramp or early tenure. Shift toward outcome-based pay once reps can control quality metrics such as SQLs or influenced pipeline.
How often should I review and update my SDR comp plan?
Every 12–24 months, or sooner if your business model changes significantly.
What’s the difference between inbound and outbound SDR compensation?
Inbound SDRs typically have more predictable lead flow and conversion rates, while outbound SDRs manage greater uncertainty and benefit from higher variable potential to reflect effort and risk.
