How to Hire Your First SDR at a Startup

Hiring an SDR for your business helps grow your sales faster and lets founders focus on other important tasks.

This blog walks you through everything you need to know about SDR hiring tips, determining the right timing for this pivotal hire, mastering the SDR hiring process, and evaluating whether in-house or SDR outsourcing companies are the right fit for your startup's current stage.

Understanding The SDR Role In Modern B2B Startup

Today's SDRs are the architects of your sales pipeline, responsible for:

• Researching and identifying qualified prospects that match your ideal customer profile
• Executing strategic outreach campaigns across multiple channels (email, phone, social)
• Qualifying leads based on established criteria (typically BANT: Budget, Authority, Need, Timeline)
• Scheduling discovery calls for Account Executives or founders
• Contributing to the refinement of targeting strategies and messaging

The financial impact of an effective SDR can be substantial.

According to Bridge Group research, a well-performing SDR can generate 5- 8x their salary in pipeline value. At the same time, Salesforce reports that businesses with SDRs experience 35% higher conversion rates from lead to opportunity.

When to Hire Your First SDR

The timing of when to hire SDR significantly impacts both the success of the individual and the return on your investment.

Key Indicators Your Startup is Ready for an SDR

• Monthly Recurring Revenue (MRR) Threshold (Minimal Readiness): Most successful startups hire their first SDR when they reach between $15K-$25K in MRR. This provides enough financial stability to support the investment while indicating product-market fit.
• Sales Process Maturity (Complete Readiness): You've closed at least 10-15 customers through a repeatable process that can be documented and transferred to a new team member.
• Founder Time Allocation (Basic Readiness): Founders are spending 15+ hours weekly on sales prospecting activities that could be delegated.
• Clear Ideal Customer Profile (ICP) (Complete Readiness): You have data-backed clarity on who buys your product and why, allowing for focused prospecting.
• Value Proposition Stability (Basic Readiness): Your messaging has stabilized and consistently resonates with prospects.

Step-by-Step SDR Hiring Process

A structured SDR hiring process increases your chances of finding the right candidate while providing candidates with a clear understanding of the role and expectations.

1. Craft an Effective SDR Job Description

Your job description should:

• Clearly articulate the impact of the role, not just responsibilities
• Highlight growth opportunities unique to a startup environment
• Specify must-have vs. nice-to-have qualifications
• Include realistic OTE (On-Target Earnings) ranges to attract quality candidates
• Showcase your company culture and values

2. Source Your First SDR Strategically

The most effective channels for SDR recruitment include:

• LinkedIn: Direct searching and posting (77% of B2B companies source SDRs here)
• Industry-Specific Job Boards: SaaS-focused platforms like Bravado, RepVue, and RevGenius
• University Programs: Sales-focused programs at universities like Arizona State and Temple
• Sales Bootcamps: Programs like SV Academy and Aspireship that train entry-level sales talent
• Employee Networks: Referrals from advisors, investors, and team members

According to HubSpot research, referred candidates are 4x more likely to be hired and have 70% higher retention rates after two years.

3. The Multi-Stage Interview Process

Your interview process should thoroughly assess both skills and cultural fit:

Sales development leaders at companies like Gong and Outreach recommend including a practical skills assessment that mirrors actual job responsibilities. For example, ask candidates to:

• Research 5 target accounts and identify key decision-makers
• Craft personalized outreach emails based on research
• Respond to common objections during a mock call
• Present a plan for their first 90 days in the role

4. Discuss The Compensation Structure 

According to Bravado's 2024 State of Sales report, average SDR On-Target Earnings (OTE) range from $65,000-$85,000 depending on location and experience. For startups, a typical breakdown includes:

• Base salary: 60-70% of OTE
• Variable compensation: 30-40% of OTE
• Potential equity: 0.05-0.1% for early sales hires (depending on company stage)

Your compensation structure should align with:

• Your cash flow realities
• Market rates in your geography
• The complexity of your sales process
• Performance expectations (meeting/opportunity quotas)

With your hiring process complete, setting up your new SDR for success becomes the next priority.

Tools To Consider For Your SDR

1. Customer Relationship Management (CRM)

Budget Options: HubSpot Free, Agile CRM

Premium Options: Salesforce, HubSpot Enterprise

2. Sales Engagement Platform

Budget Options: Reply.io, Lemlist

Premium Options: Outreach, SalesLoft

3. Contact Data & Enrichment

Budget Options: Hunter.io, LinkedIn Sales Navigator

Premium Options: ZoomInfo, Apollo.io

4. Call Technology

Budget Options: Toky, Aircall

Premium Options: Gong, Chorus

5. Meeting Scheduler

Budget Options: Calendly, HubSpot Meetings

Premium Options: Chili Piper

6. Analytics & Reporting

Budget Options: Native CRM reports

Premium Options: InsightSquared, Kluster

Prioritize implementing high-priority tools before your SDR's first day, as these form the foundation of their daily workflow. The investment in proper tools pays dividends—SDRs with optimized tech stacks can make 2-3x more prospect touches per day according to TOPO research.

Conclusion

Hiring your first SDR marks a crucial transition point for your startup. When done right, this strategic hire will build your pipeline, capture market intelligence, and free up founders to focus on high-value activities.

Now prepared to make a hire that will catalyze your startup's growth and lay the foundation for a scalable sales organization.