Smart SDR Hiring: Benchmarks & Strategies

This blog has been originally published on the Remote First Recruiting site

Hiring a Sales Development Representative (SDR) is a critical step for startups looking to boost their sales efforts. To make a smart SDR hire and ensure a positive return on investment (ROI), founders should pay attention to specific benchmarks and strategies. Here’s what we’re seeing as we work with founders and help hire remote team members across Latin America, North America, Europe and Asia. 

Why Founders are Hiring SDRs

• Pipeline Generation: One of the primary responsibilities of an SDR is to fill the sales pipeline with qualified leads. Founders should set benchmarks for the number of leads generated per week or month, tracking both quantity and quality to ensure effectiveness.
• Appointment Setting: The ability to schedule meetings or demos with prospective clients is a crucial indicator of an SDR's performance. Look for benchmarks related to appointment setting efficiency, such as conversion rates from leads to appointments.
• Revenue Contribution: Ultimately, the goal of hiring an SDR is to drive revenue growth for the startup. Set clear benchmarks for the amount of revenue generated from leads sourced by the SDR, tracking ROI over time to assess performance and adjust strategies accordingly.

Timeline for ROI

The timeline for seeing ROI from an SDR hire can vary depending on factors such as market competitiveness, product complexity, and sales cycle length. However, founders should aim to see initial results within the first three to six months, with ROI becoming more significant as the SDR gains experience and effectiveness in their role. You should give your SDR 90 days to ramp up, have some trial and error, and really start to nurture leads through the sales pipeline.

• Lead Conversion Rate: Improvements in lead conversion rate can lead to ROI within the first few months of hiring, as the SDR becomes more effective in qualifying and nurturing leads. Significant gains in conversion rate may be observed within six to twelve months of hiring, as the SDR gains experience and refines their approach.
• Cost per Qualified Lead: While reducing the cost per qualified lead may take time, founders can expect to see incremental improvements within the first six to twelve months of hiring. As the SDR becomes more efficient and effective in lead generation activities, the cost per qualified lead should decrease over time, leading to tangible ROI.
• Sales Cycle Length: Reductions in sales cycle length can lead to ROI relatively quickly, with improvements noticeable within the first three to six months of hiring. As the SDR streamlines lead qualification and accelerates deal progression, founders can expect to see faster revenue realization and increased ROI.

Pros of Hiring an SDR in Latin America:

• Bilingual Skills: Many candidates in Latin America are proficient in both Spanish and English, making them valuable assets for startups targeting diverse markets.
• Cultural Understanding: SDRs in Latin America often have a good understanding of the U.S. market, are relatable when conversing with customers and are up to speed on the sales market here in North America. 
• Cost-Effectiveness: Labor costs in Latin America are often lower compared to North America and Europe, allowing startups to hire top remote talent at competitive rates without compromising quality.
• Time Zone Advantage: SDRs based in Latin America can cover multiple time zones, enabling round-the-clock sales outreach and support for global customers. They’re typically very used to working with US founders, teams, and their time zones overlap nicely.
• Eager Talent Pool: Latin America boasts a growing pool of skilled professionals eager to work in the tech industry, providing startups with access to motivated and ambitious talent. 

By leveraging these advantages, startups can effectively scale their sales efforts and drive revenue growth with SDRs in Latin America. We believe in this so much that we’ve created an SDR Hiring page as well as a free SDR Hiring Guide, which gives you all you need to know for your first remote SDR hire to be a success!

Having the right hiring expert in your corner can make all the difference. At Remote First Recruiting, we've helped over 300 founders and remote teams hire in Latin America (as well as North America, Europe and Asia). 

FROM BUILDING SALES TEAMS FROM 1 TO 10 TO MAKING FOUNDATIONAL HIRES, WE TAKE THE BURDEN OF SALES HIRING OFF YOUR PLATE.

Book a call on our calendar today to learn more and see how we can help with your next SDR hire.

-Krista and the RFR Team ✌️