The Sales Hacker Podcast
The Sales Hacker Podcast

Episode · 2 years ago

Friday Fundamentals EP 2: SDR Promotion Paths

ABOUT THIS EPISODE

Most SDR programs are built on how many pipelines you can generate. We polled The Revenue Collective to discuss the timetable when transitioning from an Entry Level Sales Representative to Junior Account Executive.

Should it take 12-18 months before a promotion to a Junior Account Executive position? Should we be focusing on milestones?

If you’re promoted too soon, does this affect your ability to succeed? We discuss all things SDR on this week’s episode of Friday Fundamentals.

Everybody, it is the sales hackerpodcast. Is your host Sam Jacobs, I'm the founder of the revenue collective,and I am the chief revenue officer of a machine learning and Vig data companycalled Behavox, which is building the first ever behavioral operating system.Now we're here for Friday fundamentals. If you remember from last week, Fridayfundamentals is a shorter, just five to ten minutes and I bet sometimes believeand go shorter than five minutes. But it's five to ten minutes in length,focusing on specific tactics, case studies and insights that werecollecting that were hearing from you, the listeners or that were discussingamongst the revenue collective. Now the revenue Colective as chapters in Denver,Toronto, London, Boston, New York and Amsterdam and grown quickly, and sowe've got a group of close to two hundred VP level, an above sales andMARKETN executives and we're talking every single day about the issues thatwe're facing. Now before we get started...

...on this episode. We want to thank oursponsor outreach, outreach triples the productivity of sales teams andempowers them to drive predictable and measurable revenue growth byprioritizing the right activities and scaling customer engagements withintelligent automation. Outreach makes customer facing teams more effectiveand improves visibility into what really drives results. Hop over tooutreach dadao forward, slash sales hacker to see how thousands ofcustomers, including cloudera glass door, Pandora and Zillo, rely onoutreage to deliver higher revenue for sale's rap. Now, today, on Friday,fundamentals, we're going to talk about the progression from SDR to accountexecutive. How long should it take what you should expect, what you should bemeasured on and why it might be better to wait a little bit, so we pulled thegroup, the revenue, collective and the consensus was that it should take abouttwelve to eighteen months on that progression from entry level, sales,development representative to junior...

...account executive, and so that's theconsensus. Now some of the folks in the group were talking about really, let'sjust focus on milestones now. What are those milestones? Those milestones areobviously going to include the number of opportunities that you open and thatyou create so again. Most SDR programs are really based on. What's the levelof pipeline that you can create, there are som str programs that are alsobased on the amount of clothed business that you generate and then there's.Finally, some programs that are really points based. They can be about meetingset sales, qualified opportunities. I think the most common, though, is goingto be sales qualified opportunities per month. Now there are other criteria forpromotion that you want to think about testing well unwritten and role playexams and alignment with company and team values, but most of the time it'sgoing to be around your quota attainment relative to pipelangeneration. Now that pipeline...

...generation is going to take place overa ramp period, of course, but what we're hearing from the group is that,twelve to eighteen months, os the amount of time that you should expectto be in SDR and there's a reason for that, and the reason is that, if youare promoted before twelve months, the data tells US- and I think TrishBertuzi in the bridge group have done some research. The data tells us thatyou have a much greater likelihood of failure as an account executive ifyou're promoted too soon. So the data tells us that under twelvemonths, thesuccess rate is just fifteen percent and over twelve months it jumps tosixty percent, so think about that, if you're an SDR and you're promoted toaccount executive under a year, you have a eighty five percent chance offailure versus a forty percent chance of failure when you're provoted toaccount executive. If you just wait a few more months- and so that's a reallybig reason to really take some time and really learn the business and theproduct that you're selling before you really push hard for that promotion.Now, that being said,...

...many of the programs that were seeingobviously have career ladders. So there might be typically three ladders withina typical str program and at every level which you achieve based on someattainment of quot attainment, you get a higher based salary. You get aslightly higher quota and variable compensation, and then you have toachieve again to get to the third level. So one of the members f, the revenuecollective talks about if you're a business development ramp, which istheir word for SDR. You have to achieve an average of eighty percent of yourfully rent quota for three months and then you get promoted to the next level.Then you achieve again eighty percent of your quota over the subsequent threemonths and you get promoted to senior business development manager senior SDR.Now the senior business development manager gets a bigger base with ahigher quota and is then eligible for to be an account executive if there's aspot open and what this revenue collective members telling us is thatwhen they do that they're seeing an...

...eighty percent time to attainment attime of promotion, so eighty percent of the aes hit quota when they managedthrough that process. So again it takes about twelve to eighteen months. Ifyou're under twelve months, it's a much higher degree of failure. I guess thelast thing I would say is that you really have to understand that there isa difference between being a sales development, rapin and accountexecutive, and you want to be careful about that. Yes, there are quotas andthere's pipeline generation expectations and some of the greatleaders, the great sales leaders out there, people like Mark Jacobs at CBNsites. They will help you develop. They will coach you, but there's reallynothing like having a quota as an account executive. Once you have thatquota, you know the clock starts taking you're on the clock. You have aresponsibility to hit that number and there's not a lot of going back, and sowhat I mean is if you're promoted too early and you become an accountexecutive, there's a very real chance that if you're not ready, you churn outof that organization fairly quickly. So I would really caution people to takethat time. Take that twelve to eighteen...

...months really learn the business findan organization that has some of those latters that we just describedtypically three latters on the way to becoming a junior account executive anduse that time, so that when you are promoted to account executive, you havea much higher likelihood that you're going to attain your quota and becomethat superstar. But you know you are so. This has been Friday. Fundamentals wereabout six and a half minutes. I'm trying to keep this short and pithy. Ifyou want to reach out to me, always feel free. You can reach me atLindoncom in Sam, F Jacobs. We want feedback. We want to hear about thetactical issues that you're facing. We want to help you with negotiation withcold calls and all of those things on Friday fundamentals. Of course, we alsowant to think our sponsor outreach, and we will see you next Friday.

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