A pharmacy tech is a stepping stone to pharmacist…
A nurse’s assistant is a stepping stone to nurse…
And an SDR is a stepping stone to Account Executive (AE).
Or is it?
Many folks in the game of sales would agree with that statement — that SDR is just a stepping stone on the way to AE. But I want to challenge you on that.
Sure, most SDRs come into the role with AE on their mind. They spend six months to a year working the phones cold calling prospects, then move into a cush AE role. It’s a natural path!
Depending on the person, you might even fast track your path from SDR to AE. Don’t get me wrong, there’s a whole world of potential to tap into as an AE. Not to mention the pay can be higher.
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But I recommend against this move in some situations. I argue that you can build an incredibly lucrative and fulfilling career as an SDR, you just have to have the right mindset and make the right moves.
So with that, let’s quickly define some terms and then jump head first into the good stuff.
FYI: In a nutshell, SDRs work the top of the funnel, whereas AEs work the bottom of the funnel and beyond. These are two completely different stages of the buyer’s journey or sales cycle.
SDR vs AE: What’s the Difference?
What is an SDR?
An SDR connects with and qualifies leads. They are the first point of contact with prospects. They are responsible for prospecting, cold calling, qualifying, and booking sales appointments.
What is an AE?
The AE is the salesperson who closes the deal. They are responsible for account management, which includes building strong business relationships, onboarding new clients/customers, customer retention, etc.
Both of these roles, the SDR and AE, target different metrics and are responsible for completely different sales activities.
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Earning Potential
So, who makes more — SDRs or AEs?
SDR Earnings: When you combine base salary and commissions, the top-performing SDRs can easily make $100,000+ annually. Expect a comp plan between a 50/50 to 70/30 split, with 50-70% salary and 30-50% commissions (OTE).
AE Earnings: Account Executives might make $100,000-$150,000 annually. They make more than SDRs on average, mostly because they have more responsibilities and are in-charge of bringing the deal from the funnel into the organization.
Of course, SDRs can make multiple six-figures and AEs can make $300-$500K plus annually. It all depends on the company, industry, and how much effort you put into your work.
Why Stay in the SDR Role?
Targeted Focus
There’s something to be said about learning one thing to mastery. In fact, the Japanese have a name for this, Shuhari. The more focused you can be on improving your cold calling skills, the better you’ll become and the closer you’ll get to the stage of mastery. And once you reach mastery you are able to innovate.
The great jazz pianists, for example, have mastered their craft to the point of being able to improvise and innovate new frontiers in music. Wouldn’t it be something to innovate into new frontiers in business and sales? This can be greatly rewarding, even in the SDR role.
Better Work-Life Balance
There is typically a better work-life balance as an SDR. Compared to AEs, SDRs have a more predictable schedule with less travel. SDRs don’t have to deal with late-night account maintenance or have to put out fires on the weekends. You won’t need to worry about the scope creep of your work nearly as much as AEs do. Remember, you have one job — cold call to book meetings. That’s it. That focus makes for a better work-life balance in most cases.
Career Advancement
You don’t have to work as an AE to move up on the sales org chart. SDRs can often move into a sales training or coaching position, using their expertise to bring new hires up-to-speed and help sharpen the skills of their team. And from there you can become an SDR Manager, where you’ll step into real sales leadership and help guide other salespeople through their career.
Improve Financial Standing
In many cases SDR pay can actually rival or exceed the pay of AEs. You just have to be willing to focus and hustle. Here are some moves to make if you’re aiming to earn more in your role.
- Move laterally to a different company in a different industry. An SDR at a leading software company stands to make way more money than an SDR selling dog food subscription boxes.
- Negotiate a better comp plan at your current company. If your performance warrants it, have this discussion with your manager. Go from a 70/30 split to 50/50 and knock it out of the park. If you’re crushing it on the phones, negotiate more variable pay (commissions) and less fixed pay (salary).
- Master your craft and double your meetings-booked rate. I’ll discuss this more in just a bit.
You CAN Make Millions
It’s true, you can make millions as an SDR. Maybe not in one or two years. But over the course of 5-10 years, if you’re smart with your money and invest, you can easily become a millionaire as an SDR. If you’re in your 20’s, you should aim for millionaire status by the time you’re 40. It’s very doable. And don’t do it just for the money. Rather, as my mentor Jim Rohn would say, do it for the person you’ll become in the process.
Tip: Did you know that many self-made millionaires are actually teachers? Teachers rank as the third most likely profession to have millionaires among their ranks — even with a median salary of just $60k! (Teachers rank just behind engineers and accountants for most millionaires). So if someone on a teacher’s salary can make millionaire status, so can you!
Final Words
Look, I don’t want to dissuade you from working up to Account Executive. If you want to handle large accounts and eventually have more leadership opportunities, then AE is probably the way to go. But if you want to become a whip on the phones and be great at one thing (and make lots of money), then why not stick with SDR for the long haul?
There are plenty of benefits — from financial to social and even personal-development benefits — that you’ll enjoy as a career SDR. So at the very least, be sure to entertain “rockstar SDR” status as a possibility. But whatever you end up doing in the world of sales, you’re in for a wild and thrilling ride!
Until next time…
Johnny-Lee Reinoso