If you’re a little confused about the differences between BDR and SDR roles on a sales team, it’s because they’re used interchangeably much too often. 

You’re not alone, but the good news is that understanding these two critical roles can transform your place in any sales team. The game changes when we grasp that Bdrs (Business Development Representatives) and SDRs (Sales Development Representatives) aren’t just different titles used interchangeably.

They each have unique responsibilities, skill sets, compensation structures, and even paths to advancement. By the time you’re done reading, you’ll understand how BDRs and SDRs feed that crucial sales pipeline in their own ways. 

Contents

• Understanding the Roles of BDRs and SDRs in Sales
• Career Paths for BDRs and SDRs
• Compensation Structure for BDRs and SDRs
• Lead Generation in Sales: BDRs vs. SDRs
• Conclusion

Understanding the Roles of BDRs and SDRs in Sales

In the dynamic world of sales, Sales Development Representatives (SDRs) and Business Development Representatives (BDRs) are pivotal roles. These entry-level positions provide a launching pad for aspiring professionals looking to establish their careers in tech sales.

The nuances between these two job titles can be subtle but crucial when structuring an efficient sales team. Both roles play a significant part in filling up your company’s sales pipeline with potential customers, yet they serve different functions within that process.

The key difference between a BDR and an SDR lies primarily in who they target. In general terms, BDRs typically focus on outbound leads, targeting new business opportunities by sending cold emails or making cold calls outside of their company’s existing customer base.

On the other hand, SDRs typically work with inbound leads. They respond to inquiries from potential customers who’ve shown interest through various channels like social media or website forms. Their primary responsibility is qualifying these leads before passing them along to senior sales reps for further action.

Distinguishing Between BDR and SDR Roles

Broadly speaking, both BDRs and SDRs work on lead generation; however, there’s more to it than meets the eye. An important distinction lies in how they handle inbound leads versus outbound leads.

Business Development Representatives (BDR)

A typical day for a BDR involves making cold calls or sending out emails to prospective clients – generally known as outbound prospecting.

Beyond just identifying business opportunities, these development reps also follow up with existing customers or re-engage old ones.

Sales Development Representative (SDR)

The responsibilities of an SDR lean towards managing incoming queries from potential clients – we refer to this as handling inbound leads.

An essential aspect is qualifying those prospects before passing them on to another member of the sales cycle, such as Account Executives who close deals.

Essential Skills for BDRs and SDRs

Now that we’ve outlined the roles, let’s talk about the skills needed. Although both titles require excellent communication skills, they need specific capabilities to excel in their respective functions.

BDR Skills:

Given their role as ‘hunters,’ BDRs must be proactive and possess strong prospecting abilities. They need to have a knack for research that opens their eyes to new potential markets. This is where good BDRs excel – in finding and breaking into new markets and seeing the opportunities as they unfold.

While the SDR has more of a focus on nurturing, the BDR needs to be where the opportunity is at that time. So, it’s also important that they’re skilled researchers and that they have a deep understanding of the target market and competitive landscape.

From an outreach perspective, their communication needs to be engaging, as it needs to be designed to grab their prospect’s attention despite so much competition. They also need to be comfortable making discovery calls and initiating contact with potential clients.

SDR Skills:

If BDRs are “hunters,” then SDRs are “farmers.” They need to know how to nurture and qualify leads, and this, in itself, is a very nuanced skill. Good SDRs can sense when a not-yet-ready lead is about ready to proceed. 

While BDRs are breaking into new markets, SDRs are breaking down the barriers of their existing leads. As such, they need to be able to field objections, sometimes on the spot, and continue to meaningfully interact with leads over an extended period of time, following up in a way that isn’t too pushy but still keeps the sales team at the top of the lead’s mind. Speaking of, SDRs also have different types of leads to manage and prioritize, so it’s important that SDRs have good time management and organizational skills.

These representatives usually answer questions from interested parties and are experts at identifying qualified leads based on established criteria. This process is essential for maintaining a healthy sales pipeline by ensuring that only promising opportunities get passed onto account executives.

Career Paths for BDRs and SDRs

BDRs and SDRs are like the backbone of a sales team, doing all the grunt work to reel in potential customers for their companies. However, the hard work of BDRs and SDRs generates leads that become long-term customers. 

These roles are typically entry-level positions in tech sales. So, what’s the next move after this point, and what should you know if you’re interested in pursuing them? 

Transitioning from BDR/SDR to Account Executive

Becoming an Account Executive is often seen as a natural career path progression for both BDRs and SDRs. It’s like going from learning how to hit home runs in the minor leagues of baseball to being able to compete in the major league games.

This transition isn’t easy, though. You need extensive product knowledge, time management skills, a track record of success as either an SDR or BDR and, more importantly, a bachelor’s degree. 

In larger companies especially, these roles require years of experience, but if you don’t have that just yet, don’t fret – the effort really does pay off. According to Glassdoor, the national average base salary for account executives exceeds that of typical salaries earned by both SDRs and BDRs.

The Path Towards Management Roles

Apart from becoming an account executive, which primarily involves closing deals themselves instead of just setting them up, both BDRs and SDRs can also aim at climbing up towards managerial positions within their respective departments. These include becoming a Sales Manager or even Director of Sales.

However, moving into such senior roles doesn’t happen overnight, nor does it solely depend on your title—it requires proven leadership abilities, experience level and a strong understanding of the sales cycle from start to finish. 

Additionally, like above, these roles typically earn significantly more than both BDRs and SDRs. Again, while it does take years to reach the point of being considered for a sales mangement role, your time spent working as a BDR or SDR will prove invaluable. 

If you want to get ahead in any of these cases, make sure you keep track of any positive feedback you receive and make note of any big (or small) wins you’ve achieved while on the way up.

Compensation Structure for BDRs and SDRs

The base salary for BDRs and SDRs is supplemented by commission and bonuses, making up the overall pay structure. The balance between these elements can significantly impact a rep’s total income.

Base Salary: The Guaranteed Portion

A significant part of the compensation package is the base salary. This portion ensures that reps receive a steady paycheck regardless of their sales performance. For both roles, this is often considered as ‘guaranteed’ income.

In general terms, average base salaries for BDRs are similar to those of SDRs in the United States. While it may vary depending on factors such as geographical location or company size, they usually fall within a comparable range.

Commission: Incentive-Based Earnings

Beyond their basic paychecks, BDRs and SDRs also have opportunities to earn more through commissions – an incentive-based form of payment directly tied to individual or team performance metrics like closed deals or qualified leads generated.

This arrangement lets representatives boost their earnings based on successful results. Therefore, they’re incentivized not just to meet but to exceed expectations whenever possible.

Bonuses: Extra Rewards for Exemplary Performance

Companies sometimes offer additional bonuses to motivate sales teams beyond standard commission structures. These could be linked with achievements like surpassing quarterly targets or securing high-profile business opportunities.

High performers have the opportunity to do very well for themselves between inventive-based earnings, commission, and bonuses.

Conclusion

So, even though BDR and SDR are often mixed up, they’re actually unique roles in a sales team with their own duties, needed skills, and career paths. Whether you’re just starting out or a sales pro aiming for the big leagues, getting your head around these different roles could be your ticket to success. 

BDRs are like explorers discovering and igniting potential leads, creating a path for business expansion, while SDRs come in to grow these seeds of opportunity, guiding them through the first steps of the sales journey.

BDRs open the door, SDRs invite customers in. Sales pros who can rock both BDR and SDR roles will be all-star players in driving deals and making big impacts on their teams. To crush it in sales or business development, it’s important to understand what’s expected of you in your role and how far it can take your career.

The post BDR vs. SDR Positions – Why Different Sales Roles Matter appeared first on Wiza Blog.