It’s safe to say that the sales development function is here to stay. Companies, conferences, and careers are being built around the SDR movement. If your average sales price is $100K+, sales development is a no brainer. At $50K, it’s most definitely a yes. But what about $16K? Or $8K? $4K?
There are dozens of threads on Quora about sales development, but none directly answer the question:
What is the minimum ASP where “doing sales development” makes sense?
Even in our Inside Sales AE research and SDR research, we’ve never tackled this specific question. But by combining the two data sets, I think I’ve come up with a pretty good answer. You can follow my math below or skip to the end number here. (Note: I’m not commenting on growth versus profitability. See Mark Suster, David Skok, and Danielle Morrill for that.) I’m trying to answer a more straightforward question. If I spend $250K on sales development, by how much should revenues increase?
To get there, we need to step through four questions.Read More