SDR Commission Plan: How to Structure It (With Template)

An SDR commission plan is a base salary plus variable pay that rewards the outcomes a sales development rep controls, usually qualified meetings held or opportunities your closer accepts. The best plans are simple: one or two measures, a monthly payout and a written definition of what counts. This guide walks you through each decision and gives you a template you can copy.

What an SDR commission plan includes

Every SDR compensation plan answers five questions:

• On-target earnings (OTE): what the rep earns in a year if they hit 100% of target.
• Pay mix: how OTE splits between fixed base salary and variable pay.
• Measure: what the variable part is paid on.
• Quota: how many of that measure count as 100% for the month.
• Payout rules: when you pay, what happens above and below target, and what gets clawed back.

SDRs are paid differently from closers. Salesforce notes in its guide to SDR commission plans that SDRs usually earn commission on activities and quota attainment rather than a percentage of closed-won deals. That makes sense: an SDR creates the meeting, but an account executive runs the sale.

How to structure an SDR commission plan in 5 steps

1. Set the on-target earnings

Start with the total, not the split. Check current salary data for the location you hire in, and decide what a fully ramped rep should earn at 100% of target. OTE is also the number candidates compare when they weigh your offer against others.

Remember that OTE is not the full cost of the seat. Payroll taxes, benefits, tools and management sit on top, which we break down in how much an SDR costs.

2. Pick the base vs variable split

The split decides how much risk the rep carries. According to the same Salesforce guide, the base vs variable mix for SDRs often falls between 50/50 and 70/30.

Split	When it fits	Risk
70/30 (more base)	Inbound SDRs, long sales cycles, a new market with no proven messaging	Weaker pull toward results
60/40	Most outbound SDRs once the playbook works	Balanced
50/50 (more variable)	Proven outbound motion with good data and clear targets	Reps chase volume, turnover rises in slow months

If you are hiring your first SDR, lean toward more base. Your messaging, list and targeting are still unproven, and it is unfair to put most of the rep's pay at risk for problems they did not cause.

3. Choose what to pay on

This is the decision that shapes behaviour, so take the most time here.

Measure	What it rewards	Main risk
Activity (calls, emails)	Effort	Volume with no results
Meetings booked	Getting on calendars	No-shows and weak fits
Meetings held	Meetings that actually happen	Still allows poor fits
Qualified meetings held	Fit and attendance	Needs a clear written definition
Opportunities accepted by the AE	Real pipeline	Depends on the AE's honesty and speed
Closed-won revenue sourced	Revenue	Long delays, outcomes the SDR cannot control

For most teams, qualified meetings held or opportunities accepted by the closer is the right primary measure. Both reward the thing you need, real pipeline, and both stay within the SDR's control. A small kicker on closed-won revenue can keep the SDR interested in quality, but it should not be the main measure.

Whatever you choose, write down what "qualified" means: company size, role, problem, timing and disqualifiers. Our lead qualification questions give you a starting list. Without this, every payout turns into an argument.

4. Set the quota

Quota should come from what your pipeline needs, not from a number you heard elsewhere. Work backward from revenue: how many opportunities does your closer need each month, and how many qualified meetings does that take? Our guide to the pipeline coverage ratio shows the maths.

Salesforce suggests a quota-to-OTE ratio of 5:1 to 8:1 as a rule of thumb, meaning the pipeline or revenue tied to an SDR's quota should be several times what they earn. Use it as a sanity check, not a target.

During ramp, lower the quota or guarantee part of the variable pay. A new rep cannot book meetings in week one, and the usual SDR ramp time is weeks to months. A guaranteed draw for the first one to two months stops good hires from leaving before the pipeline arrives.

5. Write the payout rules

Decide these before the first month, not after a dispute:

• Payout frequency. Pay SDR commission monthly. The feedback loop is short, and quarterly payouts feel abstract to someone booking meetings every day.
• Below target. Pay pro rata, or set a floor (for example, nothing below 50% of quota). Pick one and write it down.
• Above target. An accelerator, such as a higher rate per meeting above 100%, rewards your best months. Cap it only if you have a real reason.
• No-shows and rejects. State that only meetings held and accepted count, and give the closer a deadline (for example, two business days) to accept or reject.
• Clawbacks. Avoid them for SDRs unless a meeting turns out to be fake. Clawing back pay for a lost deal punishes the SDR for the closer's work.

SDR commission plan template

Copy this into a doc and fill in the blanks. Keep it to one page.

SDR COMMISSION PLAN: [Name], effective [date]

On-target earnings (OTE):     $______ per year
Base salary:                  $______ per year (___%)
Variable at target:           $______ per year (___%), paid monthly

Primary measure:              Qualified meetings held  /  Opportunities accepted
Monthly quota:                ___ per month
Rate at target:               Variable per month ÷ quota = $____ per unit

Qualified means:              [company size, role, problem, timing, disqualifiers]
Who confirms:                 [closer name], within 2 business days of the meeting

Below quota:                  Paid pro rata  /  nothing below ___% of quota
Above quota:                  $____ per unit above 100% (accelerator)
Ramp:                         Months 1–2: quota ___, variable guaranteed at ___%
Kicker (optional):            ___% of first-year revenue on closed-won deals sourced

Review date:                  [every 6 months]
Signed:                       ____________ (rep)   ____________ (manager)

A worked example

Here is how the template fills in using the outbound example plan from the Salesforce guide: $65,000 OTE with a $32,500 base, a 50/50 split, and a quota of 10 accepted meetings a month.

• Variable at target: $65,000 − $32,500 = $32,500 a year, or about $2,708 a month.
• Rate per accepted meeting: $2,708 ÷ 10 = about $271.
• At 8 meetings, the rep earns about $2,167 in variable that month. At 12, with the same rate, about $3,250.

The rate per unit makes the plan easy to explain. The rep knows exactly what one more accepted meeting is worth, and you know exactly what you are paying for each one.

Common SDR commission plan mistakes

• Paying on meetings booked. You get calendars full of people who never show. Pay on meetings held, or better, on meetings your closer accepts.
• Too many measures. Three or four weighted metrics feel thorough but nobody can work out their pay in their head. One main measure, at most one kicker.
• No written definition of qualified. Every disputed meeting costs trust between the SDR and the closer.
• Changing the plan mid-quarter. Change it at a set review date, with notice.
• Using the plan instead of managing. Commission does not replace a weekly review. Track the SDR KPIs that matter and coach on them.

Do remote and offshore SDRs need a commission plan?

Not always. If you hire a full-time SDR through a remote staffing partner, you usually pay one fixed fee, and the partner handles payroll. Performance then comes from clear targets, a written definition of qualified and a weekly review, the same tools a commission plan relies on anyway.

That suits small teams well. Designing, tracking and paying a commission plan takes admin time, and with one or two reps, a simple target sheet and a weekly conversation often get the same result. If you want a results bonus on top of the fixed fee, agree the measure and definition in writing, exactly as you would for an in-house plan.

Getting a dedicated remote SDR without building a comp plan

Through Zenstack, a dedicated remote SDR works only for you, in your hours and inside your CRM and sequencing tool. Rates start at $12 an hour, about $1,920 a month full-time, as one fixed fee with recruiting, contracts and payroll included. There is no commission paid to us and no per-meeting fee. You meet vetted candidates within 48 hours, each with a 2-minute video, and get a free replacement in the first 30 days. Book a call to talk through your targets and get a fixed monthly price.