Before we get to the costs of meetings scheduled, let’s look at the cost per conversation. If you pay a team of reps $4,000/month as a base salary to cold call and they make 50 dials a day, this is what you are currently paying your reps per conversation everyday:
Avg. Dial to Connect 2% (50 Dials to 1 Connect) = $200/conversation
Avg. Dial to Connect 3% (33 Dials to 1 Connect) = $133/conversation
Avg. Dial to Connect 5% (20 Dials to 1 Connect) = $80/conversation
Avg. Dial to Connect 8% (13 Dials to 1 Connect) = $50/conversation
Avg. Dial to Connect 10% (10 Dials to 1 Connect) = $40/conversation
Avg. Dial to Connect 20% (5 Dials to 1 Connect) = $20/conversation
Avg. Dial to Connect 30% (3 Dials to 1 Connect) = $13.33/conversation
Avg. Dial to Connect 40% (2.5 Dials to 1 Connect) = $10/conversation
Keep in mind, this is based on a smaller than average base salary for SDRs and a number of dials most teams only wish their reps would make each day.
Meetings Scheduled
Taking it one step deeper to your favorite KPI: Meetings Scheduled.
If that same team of reps who cold calls at $4,000/month base salary, and their average connect to conversion to meeting rate is 10% (10 conversations to 1 meeting), this is what you are currently paying per meeting schedule:
Avg. Dial to Connect 2% (50 Dials to 1 Connect) = $2,000/ Meeting Scheduled
Avg. Dial to Connect 3% (33 Dials to 1 Connect) = $1,330/ Meeting Scheduled
Avg. Dial to Connect 5% (20 Dials to 1 Connect) = $800/ Meeting Scheduled
Avg. Dial to Connect 8% (13 Dials to 1 Connect) = $500/ Meeting Scheduled
Avg. Dial to Connect 10% (10 Dials to 1 Connect) = $400/Meeting Scheduled
Avg. Dial to Connect 20% (5 Dials to 1 Connect) = $200/Meeting Scheduled
Avg. Dial to Connect 30% (3 Dials to 1 Connect) = $133.33/Meeting Scheduled
Avg. Dial to Connect 40% (2.5 Dials to 1 Connect) = $100/Meeting Scheduled
Keep in mind, this is only the cost of the base salary and is based on a smaller than average base salary for SDRs. It does not include benefits, variable compensation, the cost of your tech stack, etc.
Let’s be honest, most of your SDRs are not even making 50 dials a day.
Look what happens when they are only making 40 dials a day. Their conversion rate remains the same at an average of 10%.
Avg. Dial to Connect 2% (50 Dials to 1 Connect) = $2,500/ Meeting Scheduled
Avg. Dial to Connect 3% (33 Dials to 1 Connect) = $1,666.67/ Meeting Scheduled
Avg. Dial to Connect 5% (20 Dials to 1 Connect) = $1000/ Meeting Scheduled
Avg. Dial to Connect 8% (13 Dials to 1 Connect) = $625/ Meeting Scheduled
Avg. Dial to Connect 10% (10 Dials to 1 Connect) = $500/Meeting Scheduled
Avg. Dial to Connect 20% (5 Dials to 1 Connect) = $250/Meeting Scheduled
Avg. Dial to Connect 30% (3 Dials to 1 Connect) = $166.67/Meeting Scheduled
Avg. Dial to Connect 40% (2.5 Dials to 1 Connect) = $125/Meeting Scheduled
Should we look at just 30 dials a day? Their conversion rate overtime remains the same. This is very real because over time 10% is likely going to be your blended average conversation to conversion rate with large numbers.
Avg. Dial to Connect 2% (50 Dials to 1 Connect) = $3,333.33/ Meeting Scheduled
Avg. Dial to Connect 3% (33 Dials to 1 Connect) = $2,222.22/ Meeting Scheduled
Avg. Dial to Connect 5% (20 Dials to 1 Connect) = $1,333.33/ Meeting Scheduled
Avg. Dial to Connect 8% (13 Dials to 1 Connect) = $833.33/ Meeting Scheduled
Avg. Dial to Connect 10% (10 Dials to 1 Connect) = $66.67/Meeting Scheduled
Avg. Dial to Connect 20% (5 Dials to 1 Connect) = $333.33/Meeting Scheduled
Avg. Dial to Connect 30% (3 Dials to 1 Connect) = $222.22/Meeting Scheduled
Avg. Dial to Connect 40% (2.5 Dials to 1 Connect) = $166.66/Meeting Scheduled
Calculate your own conversations and meetings scheduled costs using this calculator.
The MOST expensive part of the entire SDR model is the labor of your SDR. In this example, you are paying about $200/day regardless of what they do, how they use a tool, or the outcomes they are getting.
The most effective way to leverage their labor is to eliminate any activities that are not directly related to the outcomes you seek. In most SDR teams, this is getting meetings scheduled.
Just imagine being able to cut your cost per conversation and the cost per meeting scheduled by over 10X tomorrow.
What would that do to your GTM operating plan heading into H2 2023? Curious to know? We can help you figure that out. Let’s chat (get started here).
