How Much Does an SDR Cost? In-House vs Agency vs Remote
What a sales development rep really costs once you add taxes, tools and ramp time, and how in-house, agency and dedicated remote SDRs compare.
By the Zenstack team · · 3 min read
Most founders budget for an SDR's salary and get surprised by everything around it. This guide breaks the cost into its parts, then compares the three common ways to get SDR coverage.
The real cost of an in-house SDR
Salary is only the first line. A full-time, in-house sales development representative also brings:
- Variable pay. Most SDRs earn a base salary plus commission or bonuses for meetings booked.
- Payroll taxes and benefits. Health cover, paid leave and employer taxes sit on top of pay.
- Tools. A CRM seat, a sequencing tool, a contact database and often a dialer.
- Recruiting. Job ads, interview time, and sometimes a recruiter's fee.
- Ramp time. New SDRs need weeks before they book meetings steadily. You pay full cost during that period.
- Management. Someone has to coach calls, review messaging and check the numbers.
As a rough planning figure, we estimate a comparable local hire at about $38 an hour once salary, payroll taxes, benefits and recruiting are included. Your market may be higher or lower, so check current local salary data before you decide.
Three ways to get SDR coverage
| In-house SDR | SDR agency | Dedicated remote SDR | |
|---|---|---|---|
| What you pay | Salary, commission, taxes, benefits, tools | Monthly retainer or fee per meeting | One fixed monthly fee |
| Who they work for | You | Several clients at once | You only |
| Who manages them | You | The agency | You, day to day |
| Who keeps the playbook | You | Usually the agency | You |
| Hours | Your hours | The agency's schedule | Your exact hours |
| Typical start | Weeks to months | A few weeks | About a week |
What a dedicated remote SDR costs
With a dedicated remote SDR you get one full-time person who works only for you, in your CRM and with your messaging. Through Zenstack, rates start at $12 an hour, and most roles fall between $12 and $23 depending on experience. That is about $1,920 a month at the starting rate for a full-time hire.
The fee covers recruiting, vetting, contracts and payroll. You still provide the sales tools, the same as you would for a local hire. See the full pricing breakdown or the remote SDR page.
Which option fits you
- Hire in-house if you have a sales manager with time to coach, and you want the person in your office.
- Use an agency if you want meetings without managing anyone, and you accept that the process stays with the agency. We compare the two models in SDR agency vs dedicated remote SDR.
- Hire a dedicated remote SDR if you want full-time attention and control of your own outbound at a much lower fixed cost.
How to compare quotes fairly
Do not compare monthly prices alone. Compare the cost per qualified meeting over three months, and include ramp time. A cheap option that books unqualified meetings costs your closers more time than it saves.
Ask each provider the same questions: Is the person full-time on my account? Who owns the contact lists and sequences if we stop? What happens if the hire is not a fit?
If your leads are mostly inbound and need fast follow-up more than cold prospecting, an appointment setter may be the better first hire.
Frequently asked questions
What is the cheapest way to get SDR coverage?
A dedicated remote SDR is usually the lowest fixed cost for full-time coverage. Through Zenstack it starts at $12 an hour, with recruiting, contracts and payroll included.
Do I still need sales tools for a remote SDR?
Yes. A remote SDR works inside your CRM, sequencing tool and contact database, the same as a local hire would. You provide the seats.
How long before a new SDR books meetings?
Plan for several weeks before meetings arrive steadily. It depends on your market, your list quality and your messaging. Experienced SDRs with a clear playbook ramp faster.