The Actual Costs of Hiring An SDR

We match flexible Sales Development Representatives (SDR’s) to help drive predictable leads and revenue. All high-growth Silicon Valley startups and top enterprise companies leverage this function to drive leads for senior sales roles like business development reps and Account Executives (AE’s). Once this sales and growth engine is in place, it is a pure profit center as SDRs consistently create a pipeline.

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Unfortunately, unless a team with a dedicated manager can be hired, economies of scale are difficult to reach and the customer acquisition cost associated with these leads is too high. More often than not, this makes the function an unviable option for small to mid-size companies and startups who cannot justify hiring a team of SDRs and a dedicated manager.

The challenge for small to mid-size companies and startups

An SDR salary is only the start of the costs to you as a business. When you factor in commission, infrastructure, taxes, benefits, perks, and tech subscriptions, this SDR role will cost you on average $6,400 per month. Unfortunately, this is not where it stops either as the average tenure for the role is only 14.2 months (3.8 months of which will be a ramp period with reduced output) so recruitment and attrition costs need to be considered, along with the opportunity cost as they ramp. Similarly, as it is a more junior role, your management time is a very real cost that needs to be considered as well.

Total Monthly Cost For SDR: $9,400

You will also be paying the SDR for a lot of time which is completely unrelated to outbound sales. He will have 22 annual leave days (fewer in the USA), 8 public holiday days, approx. 5 sick/personal days, approx. 2 training days, and an average of 12 meeting days per year (2 hours per week). This adds up to 54 days annually (4.5 days per month) where you are absorbing all of these costs without production. Thinking about actual production time vs cost, you will get 140 hours from the SDR each month at $67 per hour.

Even after you have absorbed all of these costs, the SDR only has a 65% chance of hitting his quota every month.

Hire FlexTal: a viable and scalable sales solution

We match flexible SDRs who specialize in opening doors for small to mid-size companies and startups. We understand that your pool of potential prospects is not infinite so, rather than adopting a “spray and pray” approach to your entire market, our SDRs practice quality over quantity and run low volume experiments, targeted multichannel sequences across email, calling, LinkedIn, video and direct mail to specific buyer profiles which are pre-approved by you. Our SDRs do extensive research on each prospect and then target them with hyper-personalized messaging before passing warm leads to your senior sales team to convert once they have been qualified.

FlexTal offers flexible SDRs starting at $3,000 per month with 0 paid days without production so the cost to a business to hire one SDR is approximately 3x the cost of using FlexTal to hire SDRs and it comes without the headaches of onboarding, ramp periods, and attrition.

Want to create a consistent pipeline without all the fixed costs?

Consistently filling a pipeline with prospects who fit your ideal customer profile leads to predictable revenue. Schedule a meeting today to talk with our team. 

FAQs:

Are there any upfront recruiting or contract fees?

There are no upfront fees. Once we provide you with an estimate, we require an initial deposit to start the matching process and begin working with your new talent.

What is your talent guarantee?

We guarantee all of our talent. If at any time customers are unhappy with their Talent, the Customer Success Team will work to make things right and replace the contractor at no additional cost to the customer.

What happens if I’m not satisfied with my Talent?

While we rigorously screen all applicants to ensure we have the top 3% of talent, we understand that not every contractor will be a perfect fit. For this reason, we guarantee all our talent. If at any time customers are unhappy with their Talent, the Customer Success Team will work to make things right and replace the Talent at no additional cost to the customer.

How is FlexTal™ different?

Many organizations are faced with the issue of finding reliable contractors and other in-demand talent. At FlexTal, we use advanced technologies and a rigorous vetting process to match the top talent. Typically, in almost all cases, we can match Talent within 7-10 days, and 90% of our customers hire the first contractor we introduce.

We thoroughly vet every applicant to ensure we only match the top 3% of Talent with customers. You’ll work with top business, marketing, sales, design, finance, and technology talent on demand.

How do you vet your talent?

Our vetting process allows us to guarantee our talent. All applicants are required to undergo an extensive screening process that measures emotional intelligence, domain expertise, industry experience, and professional skills. To ensure every contractor meets our standards, the process typically takes 2-5 weeks.

Where is your talent located?

Currently, we have talent in over 100 countries, most being located in the US.

Can I bring FlexTal™ talent on-site?

If this is a requirement, we can work with you to coordinate relocating Talent or a team to your location for a specified period of time.

If there isn’t talent currently available to fulfill the requirements of my work request, how long should I expect to wait for the right talent?

It typically takes 7-10 days to match the perfect Talent for your work. We understand your immediate needs, but our focus is on quality. At FlexTal, even if we feel we have the right Talent, we will not match them until we are 100% confident in their ability to deliver. FlexTal’s vetting process is the most important reason we can guarantee our talent and have one of the largest vetted networks of the top talent in the world.

What happens if my Talent is unavailable for the days or times they are scheduled to work with me?

We will go the extra mile to make sure this doesn’t happen. At FlexTal, we completely understand dependability is a top priority. We take measures to ensure that availability and reliability are a top priority for our talent. However, in the unlikely circumstance that such a situation arises, we will match new Talent and credit you the time.

Can I hire a full-time worker from FlexTal™ and bring him/her into our company?

For the most part, yes. We will work with you to fully understand your specific requirements so that we can establish a mutually beneficial arrangement.

Do you offer vetting and testing to help us hire contractors outside of the FlexTal™ network?

This is not something we offer at this time, but we do plan to offer this in the future.

Who owns the legal rights to the work created by FlexTal™ talent?

The customer. FlexTal’s™ focus is on providing world-class talent to the customers who want to work with them – not intellectual property. Our contracts provide that all work created by our contractors is the property of the customer, not FlexTal™ or the Talent.

How do we ensure that our IP is protected?

FlexTal enters into work agreements with every member of our talent network. Through these agreements, FlexTal obtains exclusive ownership of the work created by the FlexTal talent that works with you. We then provide you with the intellectual property for the work that the FlexTal Talent creates for you under our client agreement. This clean, simple, pass-through arrangement has worked well for our customers for many years. However, if you would like our talent to enter into a direct agreement with you to effect the direct transfer of IP property, we can work with you to ensure that your needs are met.

How much does FlexTal™ cost?

Because we have talent all over the world, pricing can vary across several factors. We will work with you to find the right price point for your work request. Typically, engagement pricing falls between $30-$250/hr depending on domain, industry, experience, and customer expectations.

How often will I be charged? How are payments and invoices handled?

We typically invoice our clients twice a month, though there is some flexibility here. Invoices are due upon receipt.

What methods of payment do you accept?

We currently accept all major credit cards, ACH, bank wires, and PayPal.

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