The Sales Hacker Podcast
The Sales Hacker Podcast

Episode · 3 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.

Hey everybody, it is the saleshacker podcast, it's your host, Sam Jacobs, the founder of the revenuecollective, and I am the chief revenue officer of a machine learning and bigdata company called behave ox, which is building the first ever behavioral operating system. Now we're here for Friday fundamentals. If you remember from last week,Friday fundamentals is a shorter just five to ten minutes, and I bet sometimesbelieve and go shorter than five minutes, but it's five to ten minutes inlength, focusing on specific tactics, case studies and insights that were collecting thatwe're hearing from you, the listeners, or that we're discussing amongst the revenuecollective. Now the revenue collective as chapters in Denver, Toronto, London,Boston, New York and Amsterdam and growing quickly, and so we've got agroup of close to two hundred VP level and above sales and marketing executives andwe're talking every single day about the issues that we're facing. Now, beforewe get started on this episode, we...

...want to thank our sponsor outreach.Outreach triples the productivity of sales teams and empowers them to drive predictable and measurablerevenue growth by prioritizing the right activities and scaling customer engagements. With intelligent automation. Outreach makes customer facing teams more effective and improves visibility into what really drivesresults. Hop over to outreach DOO forward sales hacker to see how thousands ofcustomers, including cloud era, glass door, Pandora and Zillo, rely on outreachto deliver higher revenue for Sales Rep now today, on Friday fundamentals,we're going to talk about the progression from str to account executive. How longshould it take, what you should expect, what you should be measured on andwhy it might be better to wait a little bit. So we pulledthe group, the revenue collective, and the consensus was that it should takeabout twelve to eighteen months on that progression from entry level sales development representative tojunior account executive, and so that's the...

...consensus. Now some of the folksin the group we're talking about really less just focus on milestones. Now,what are those milestones? Those milestones are obviously going to include the number ofopportunities that you open and that you create. So, again, most SDR programsare really based on what's the level of pipeline that you can create.There are some SDR programs that are also based on the amount of closed businessthat you generate and then there's finally, some programs that are really points based. They can be about meeting set sales qualified opportunities. I think the mostcommon, though, is going to be sales qualified opportunities per month. Nowthere are other criteria for promotion that you want to think about, testing wellon written and role play exams and alignment with company and team values, butmost of the time it's going to be around your quota attainment relative to pipelinegeneration. Now that pipeline generation is going...

...to take place over a ramp period, of course, but what we're hearing from the group is that twelve toeighteen months is the amount of time that you should expect to be an SDRand there's a reason for that, and the reason is that if you arepromoted before twelve months, the data tells us, and I think Trishpertuc andthe bridge group have done some research, the data tells us that you havea much greater likelihood of failure as an account executive if you're promoted too soon. So the data tells us that under twelve months the success rate is justfifteen percent and over twelve months it jumps to sixty percent. So think aboutthat. If you're an str and you're promoted to account executive under a year, you have a eighty five percent chance of failure, versus a forty percentchance of failure when you're promoted to account executive if you just wait a fewmore months. And so that's a really big reason to really take some timeand really learn the business and the product that you're selling before you really pushhard for that promotion. Now, that...

...being said, many of the programsthat we're seeing obviously have career ladders. So there might be typically three ladderswithin a typical SDR program and at every level which you achieve based on someattainment of quota attainment, you get a higher base salary, you get aslightly higher quota and variable compensation and then you have to achieve again to getto the third level. So one of the members of the revenue collective talksabout if you're a business development ramp, which is their word for U SDr, you have to achieve an average of eighty percent of your fully rimpquota over three months and then you get promoted to the next level. Thenyou achieve again eighty percent of your quota over the subsequent three months and youget promoted to senior business development manager, senior str now the senior business developmentmanager gets a bigger base with a higher quota and is then eligible for tobe an account executive if there's a spot open. And what this revenue collectivemember is telling us is that when they do that they're seeing an eighty percenttime to attainment at time of promotion.

So eighty percent of the AE's hitquota when they manage through that process. So again, it takes about twelveto eighteen months. If you're under twelve months, it's a much higher degreeof failure. I guess the last thing I would say is that you reallyhave to understand that there is a difference between being a sales development wrap andan account executive and you want to be careful about that. Yes, thereare quotas and there's pipeline generation expectations and some of the great leaders, thegreat sales leaders out there, people like Mark Jacobs at CB insights. Theywill help you develop they will coach you, but there's really nothing like having aquota as an account executive. And once you have that quota, youknow the clock starts taking you're on the clock. You have a responsibility tohit that number and there's not a lot of going back. And so whatI mean is if you're promoted to early and you become an account executive,there's a very real chance that if you're not ready, you churn out ofthat organization fairly quickly. So I would really caution people to take that time, take that twelve to eighteen months,...

...really learn the business, finds anorganization that has some of those ladders that we just described, typically three ladderson the way to becoming a junior account executive, and use that time sothat when you are promoted to account executive, you have a much higher likelihood thatyou're going to attain your quota and become that superstar. But you knowyou are. So this has been Friday fundamentals, where about six and ahalf minutes. I'm trying to keep this short and pithy. If you wantto reach out to me, always feel free. You can reach me atLinkedincom in. Sam F Jacobs. We want feedback, we want to hearabout the tactical issues that you're facing. We want to help you with negotiation, with cold calls and all of those things. On Friday fundamentals, ofcourse, we also want to thank our sponsor outreach, and we will seeyou next Friday.

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