Compensation structures can make or break outsourced Sales Development Representative (SDR) performance. With 67% of B2B companies now outsourcing SDR functions (Sales Development Report, 2023), choosing the right model has never been more important.
Understanding the Compensation Landscape
Unlike in-house SDRs, outsourced reps are primarily motivated by clear financial incentives and performance metrics.
- Companies with well-structured compensation plans see 23% higher quota attainment (Bridge Group, 2023).
- Outsourced teams perform best when rewards balance security with strong performance incentives.
Base Salary Plus Commission Model
The traditional approach combines a fixed retainer with per-result commissions.
Advantages:
- Stability for SDRs → consistent performance
- Encourages long-term prospecting relationships
- Reduces aggressive, short-term tactics
Typical Structure:
- Monthly retainer: £2,000–4,000
- Commission: £50–200 per qualified meeting
Salesforce Research found base-plus-commission models achieved 31% higher engagement rates than commission-only.
Pure Commission-Based Models
This performance-only model appeals to businesses with tight budgets or those testing outsourced SDRs.
How It Works: Clients pay only for outcomes like meetings, SQLs, or closed deals.
Typical Rates:
- Qualified meeting: £100–300
- SQL: £200–500
- Closed deals: 5–15% of deal value
Adoption is growing (34% of arrangements in 2023), but satisfaction rates are 18% lower compared to hybrid models.
Performance-Based Tiered Systems
Tiered systems increase payouts as SDRs exceed targets.
Example:
- Meetings 1–10: £75 each
- Meetings 11–20: £100 each
- Meetings 21+: £125 each
According to the UK Sales Development Association, this structure lifts SDR productivity by up to 28%.
Hybrid Retainer-Plus-Performance Models
A balanced approach combining reduced base retainers with per-result bonuses.
Benefits:
- Lower upfront costs than full retainers
- Strong alignment between client and agency goals
- Guaranteed revenue ensures service quality
SendIQ finds optimal results at £1,500–2,500 monthly retainers plus £75–150 per meeting.
Revenue Share Arrangements
For strategic, high-value partnerships, compensation is tied directly to revenue generated.
Typical Structure:
- 8–20% of deal value (different rates for new vs expansion revenue)
Pavilion’s 2023 survey found companies using revenue share saw 45% higher customer lifetime value from outsourced SDR leads.
Choosing the Right Model
Your ideal model depends on:
- Budget → Commission-only/hybrids for lower upfront costs
- Sales cycle length → Retainers for long nurturing periods
- Industry complexity → Retainers to support technical education
- Risk tolerance → Commission shifts risk to agency, but may reduce consistency
Implementation Best Practices
- Define “qualified meetings” clearly
- Set response time SLAs and reporting standards
- Run quarterly reviews to adjust structures and ensure alignment
Conclusion
The right SDR compensation model balances motivation with predictability.
- Commission-only offers cost control but risks inconsistency
- Base-plus models foster stability and stronger engagement
- Hybrids and tiered systems often deliver the best blend of performance and reliability
As outsourced SDR markets mature, businesses that tailor compensation to their needs will achieve stronger, more sustainable growth.
At SendIQ, we provide flexible SDR compensation models tailored to UK businesses—combining email outreach, LinkedIn automation, cold calling, and advanced prospect identification to deliver consistent results.
