Category: Outbound
Read time: 7 min read
A fully loaded SDR costs $110K to $160K a year and takes months to ramp. Here's how outsourcing compares and when each option makes sense.
An in-house SDR typically costs $110K to $160K a year fully loaded once you add benefits, tools, management and turnover, and takes 3 to 4 months to ramp. Outsourced SDR or done-for-you outbound usually costs a flat monthly fee, starts in days and includes the data, tools and inboxes. In-house makes sense when you have a proven playbook and a manager to run it. Outsourcing makes sense when you need pipeline now and want to test before you hire.
Most owners budget for salary and stop there. The real number is much bigger. Industry breakdowns put base pay for an SDR at around $55K to $65K, with on-target earnings of $80K to $85K.
Then add payroll taxes and benefits, sales tools and data, the time a manager spends coaching, recruiting costs and the cost of replacing reps who leave. Once it's all in, a single SDR commonly lands between $110K and $160K a year, and higher in expensive markets.
New SDRs usually need 3 to 4 months to reach full productivity, and they often perform at 25 to 50 percent of quota while ramping. That means you're paying for most of a quarter before the role pays for itself.
Tenure is the other problem. With average SDR tenure around 14 to 16 months and annual turnover near 35 to 40 percent, many companies hire, ramp and then start over again right as a rep gets good.
Outsourced options range from a single rented rep to a full done-for-you system. The better ones bundle the pieces an in-house rep would need you to buy separately.
At RGI Systems, for example, a plan covers targeting and data, messaging, the campaigns themselves, email infrastructure, reply handling and booking calls on your calendar. It runs month-to-month, and outreach can go live within days of onboarding.
In-house is the right call when you already have a proven outbound playbook, a sales leader who can manage and coach reps, and enough deal value to justify the fixed cost. It also makes sense when the product is complex enough that reps need deep, ongoing training.
Outsourcing wins when you need pipeline in weeks, not quarters, or when you haven't proven which audience and message work yet. It's also a smart way to test outbound before committing to a hire. If the channel works, you've learned your playbook. If it doesn't, you cancel instead of managing an exit.
Compare cost per qualified meeting, not cost per month. Ask any provider what counts as a meeting, who handles replies, who owns the data and domains, and what happens if you want to stop. A cheap service that sends you "interested" replies you have to chase often costs more than it looks.