Full-time SDR or fractional: what each one really costs

An SDR's salary is the smallest surprise on the bill. Benefits, payroll tax, tools, recruiting, a manager's time and the months before a new rep is productive all sit on top of it. A fractional SDR's price looks high per hour and low per year. This page puts both on the same basis so you can compare a quote with a hire.

The full-time SDR, line by line (US)

A note on the table. The Bureau of Labor Statistics reports that benefits made up 29.9% of private-industry compensation costs in the release listed under Sources, with wages and salaries the other 70.1%. Divide one by the other and benefits come to about 43% on top of wages. That figure averages every private-sector job, so treat it as an upper reference, not an SDR quote.

Adding it up for year one

Using the Bridge Group's median on-target pay of $80,000:

• Pay: $80,000
• Benefits and payroll costs at 25% to 43% of pay: about $20,000 to $34,000
• Tools: $6,000 to $12,000
• Recruiting and onboarding: $8,000 to $15,000

That comes to about $114,000 to $141,000 before any manager time. Vendor estimates of the fully loaded cost land in a similar band or above it: Revnew puts it at $110,000 to $160,000, and Artisan, which sells AI SDR software, at $120,000 to $200,000. Both sell an alternative to hiring, so their totals are not neutral.

Ramp and turnover change the real number

The Bridge Group reports an average ramp of 3.0 months and an average SDR tenure of 1.9 years, with median annual attrition of 40%. Put plainly: you pay for the ramp months before output is at full level, and within two years you are likely to pay recruiting and ramp again.

The fractional side

Published retainers for one part-time rep run from about $3,000 to $8,000 a month for 15 to 25 hours a week, according to GigRadar, so twelve months comes to about $36,000 to $96,000. Activated Scale quotes its own fractional SDRs at about $4,000 to $5,000 a month plus commission. Setup fees, where they apply, sit on top. Recruiting, benefits and, often, ramp are the provider's cost rather than yours, though you still spend time on onboarding.

The two numbers are not like for like. A full-time rep works full-time hours. A fractional rep at 15 to 25 hours a week gives you roughly half of that, and may or may not bring tools and data. Comparing annual totals flatters the fractional option.

The fair comparison: cost per qualified meeting held

Divide each option's annual cost by the qualified meetings it would hold in a year. GigRadar claims credible mid-market providers deliver meetings at about $300 to $600 each, against $800 to $1,150 for a fully loaded in-house SDR. That is a vendor claim. Your own figure depends on your market, and the only way to get it is to run the numbers with meeting counts you trust: past results from your own team, or a target the provider will commit to in writing.

The pricing models page explains how to turn a retainer or hybrid quote into a cost per meeting.

When the full-time hire is cheaper

• You need full-time outbound all year, not a test.
• You already have a sales manager with room to coach another rep.
• Your reps tend to stay well past ramp, so recruiting and ramp are spread over more meetings.
• The product takes months to learn, so a part-time rep would spend a large share of their hours learning it.

When it is the other way round, a fractional rep usually costs less per meeting while you find out what works. Cost is only one input; the non-cost side of the decision covers control, focus and what you keep when the rep leaves. For the general picture see fractional SDR price ranges, or browse fractional SDR options when you are ready to get quotes.

FAQ

What does a full-time SDR cost per year all in?

On the figures above, about $114,000 to $141,000 in year one before manager time. Vendor estimates run from $110,000 to $200,000 depending on what they include.

How much does a fractional SDR cost per year?

At published retainers of about $3,000 to $8,000 a month, twelve months is about $36,000 to $96,000, plus any setup fee or commission.

How long does a new SDR take to ramp?

The Bridge Group reports an average of 3.0 months.

Is a fractional SDR always cheaper?

Per year, usually. Per qualified meeting, not always. A productive full-time rep with a manager in place can beat a fractional rep on cost per meeting, especially after ramp.