Cost of Sales - San Francisco / New York
Jr. SDR SDR Sr. SDR/Sales Ops SDR Manager VP of Sales
Salary $45,000 $55,000 $60,000 $100,000 $200,000
Commission $25,000 $30,000 $40,000 $70,000 $200,000
Social Sec (6.2%) $2,790 $3,410 $3,720 $6,200 $12,400
Medicare (1.75%) $788 $963 $1,050 $1,750 $3,500
Unemployment tax (6%) $2,700 $3,300 $3,600 $6,000 $12,000
Workers comp (1.25%) $563 $688 $750 $1,250 $2,500
Employee Insurance $10,000 $10,000 $10,000 $10,000 $10,000
Office Space $12,000 $12,000 $12,000 $12,000 $12,000
Cost of hiring $11,250 $13,750 $15,000 $25,000 $50,000
Data and Tools $5,000 $5,000 $5,000 $5,000 $5,000
Meals + snacks + events $7,500 $7,500 $7,500 $7,500 $7,500
Other (401K, equipment, transportation) $5,000 $5,000 $5,000 $5,000 $5,000
Base Costs $102,590 $116,610 $123,620 $179,700 $319,900
Costs at OTE $127,590 $146,610 $163,620 $249,700 $519,900
Sales Development What's your team composition?
SDR Team Base SDR Team OTE Role # employees
One man sales team - StartUp Jr. SDR 1.00
Experienced SDR (ex mgr) $179,700 $249,700 SDR 0.00
1 Sr. SDR, 1 SDR Coach $171,620 $241,620 Sr. SDR 1.00
Sales Ops 0.00
Small Start-Up SDR Manager 0.50
2 SDRs, 1/2 Mgr or 1 Coach $316,060 $416,060 VP of Sales 0.00
Your Teams OTE $416,060
Medium Start-Up
4 SDRs, 1 Manager/Ops $632,120 $832,120 ^ take this number to the next tab ^
Big Company SDR/CSR program
8 SDRs, 1 Ops, 1 Mgr, 1/3 VP $1,342,833 $1,906,110
Per SDR 9300
Individual Manager 3350
Part Time MGR 4700
Manager 4700
$127,590
$0
$163,620
$0
$124,850
$0
If you don't have a "Revenue goal" number.
Use this sheet!
Instructions: update yellow cells to get meetings required for
each scenario
Total
NumberSDR
ofTeam
SDRs Cost at OTE
actively (from Tabon2)your
prospecting $416,060
team 2
Customer ACV (Annual contract value) $50,000
Close Rate: (Meeting Performed to Close) 11%
Show Rate: Meeting scheduled to Performed 75%
Scenario 1: Acceptable Performance (18 month CAC
payback)
Revenue Required for the year $378,236
Customers Required 7.6
Annual Meetings Performed Required 69
Monthly Meetings Performed Required 6
Monthly Meetings Set Required 8
Monthly Meetings Performed Per SDR Required 2.9
Monthly Meetings Set Per SDR Required 3.8
Scenario 2: Best in Class for SaaS Growth (13 month
CAC payback)
Revenue Required for the year $611,853
Customers Required 12.2
Annual Meetings Performed Required 111
Monthly Meetings Performed Required 9
Monthly Meetings Set Required 12
Monthly Meetings Performed Per SDR Required 4.6
Monthly Meetings Set Per SDR Required 6.2
Scenario 3: Absolute Rocketship (10 month CAC
payback)
Revenue Required for the year $945,591
Customers Required 18.9
Annual Meetings Performed Required 172
Monthly Meetings Performed Required 14
Monthly Meetings Set Required 19
Monthly Meetings Performed Per SDR Required 7.2
Monthly Meetings Set Per SDR Required 9.6
How to use this sheet:**
In shortyour
"Given this projected
documentcosts,
tell you themuch
how following:
revenue, and therefore how many meetings do we
need to get a good ROI?"
Definitions:
Meeting Performed: A meeting that takes place between your sales rep and a customer with the appropriate title
Meeting Set: A meeting that is scheduled in the calendar but has not taken place yet
** use this document before you start a team
If you already have a "Revenue goal" target
use this sheet!
Instructions: update yellow cells to get meetings required for
each scenario
Revenue
Annual goals (ARR) required from
Revenue
Outbound SDRs $500,000
Customer ACV (Annual contract value) $50,000
Total Deals closed needed 10.0
Number of SDRs on your team 1
Show rate on meetings booked 75%
Scenario 1: Worst Case Close Rate 6%
Meetings
Meetings performed needed per
performed needed (yearly)
SDR 166.67
(monthly) 13.9
Meetings set needed per SDR (monthly) 18.5
Scenario 2: Expected Close Rate 10%
Meetings
Meetings performed needed per
performed needed (yearly)
SDR 100.00
(monthly) 8.3
Meetings set needed per SDR (monthly) 11.1
Scenario 3: Best Case Close Rate 15%
Meetings
Meetings performed needed per
performed needed (yearly)
SDR 66.67
(monthly) 5.6
Meetings set needed per SDR (monthly) 7.4
How to use this sheet:**
In short this document tell you the following:
"I already know my Revenue goals, my ACV and number of SDRs. Given my
projected close rates, how many meetings do I ned per SDR to hit my goals?"
Definitions:
Meeting Performed: A meeting that takes place between your sales rep and a customer with the appropriate title
Meeting Set: A meeting that is scheduled in the calendar but has not taken place yet
** use this document if you've had an SDR team for less than a year
Based on your current Metrics, is your SDR team viable?
Instructions: update yellow cells to get SDR ROI.
Total SDR Team Cost at OTE (from Tab 2) $858,660
Number of SDRs actively prospecting on your team 4
Current Monthly
Conversion Rate:Meeting
MeetingQuota
Set toper SDR (from
Performed Tab 3 o
(show 11
rate)
Conversion Rate: Meeting Performed to Close (win 75%
rate) 8%
Customer ACV (Annual contract value) $40,000
Estimated Customer Retention (in years) 3.33
Total LTV Generated
Total Cost bySales
of Sales and SDR Team
Devlopment $4,219,776
Organization $1,365,540
LTV to CAC Ratio* 3.09
Would this program be financially feasible for the
company?
CAC Payback period at goal 1.08
Is this program financially viable for my company? #NAME?
Still viable if you only hit 90% of quota? #NAME?
Still viable if you only hit 80% of quota? #NAME?
Still viable if you only hit 70% of quota? #NAME?
Still viable if you only hit 50% of quota? #NAME?
How to use this sheet:**
In short this document tell you the following:
"Given how our metrics look today, is our SDR program an atractive revenue
engine to investors?"
<- A 3.0+ ratio is a rocketship. A 2.2 - 2.9 Ratio and you have a good business. Below 2.2 and you're in trouble.
<- Program viable if CAC payback is under 1.8. program is amazing if CAC payback under 1.15
How many update
Instructions: SDRs do I need
yellow cells to hit meetings
to get my revenue numbers?
required for each
scenario
Revenue goals
Business Days this year 261
Business Days left in the year -1738
Annual Revenue (ARR) required from Outbound SDRs $1,000,000
Customer ACV (Annual contract value) $17,000
Revenue generated so far $150,000
# of deals currently active in pipeline 50
close rate on active deals in pipeline 20.00%
Revenue GAP $680,000
Total Deals closed needed on top of current pipeline 40.0
Sales Cycle (in days) 60.0
Weeks left to set meetings that can close this year -359.6
Number of SDRs on your team 5
Current meetings set per SDR per week 3
Show rate on meetings booked 75%
Close rate (meeting performed to closed) 10%
Catch Up:
Meetings What's needed
performed to hitoptions
needed (with goals to close this
year)
Meetings performed needed (per week, until one sales 400.00
cycle before year end) -1.1
Meetings set needed (per week) -1.5
Meetings performed needed per SDR (weekly) -0.2
Meetings set needed per SDR (weekly) -0.3
Tracker: Where you will end up if you make no
changes
Total yearly revenue projected ###
GAP by end of year $7,557,350
Definitions:
Meeting Performed: A meeting that takes place between your sales rep and a customer with the appropriate title
Meeting Set: A meeting that is scheduled in the calendar but has not taken place yet