Return-Path: Delivered-To: andrew@sterlingcal.com Received: from reseller401.webserversystems.com by reseller401.webserversystems.com with LMTP id AMxUFkPAC2iJhAIAchKAPA (envelope-from ) for ; Fri, 25 Apr 2025 12:02:59 -0500 Return-path: Envelope-to: andrew@sterlingcal.com Delivery-date: Fri, 25 Apr 2025 12:02:59 -0500 Received: from o167.ptr4513.mail.beehiiv.com ([159.183.140.27]:41924) by reseller401.webserversystems.com with esmtps (TLS1.2) tls TLS_ECDHE_RSA_WITH_AES_128_GCM_SHA256 (Exim 4.98.1) (envelope-from ) id 1u8MS2-00000000jO3-2UQg for andrew@sterlingcal.com; Fri, 25 Apr 2025 12:02:59 -0500 DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=mail.beehiiv.com; h=content-type:from:mime-version:subject:reply-to:list-unsubscribe: list-unsubscribe-post:to:cc:content-type:from:subject:to; s=s1; bh=S3zOLd0dBVt7aVW2+UrwsRCPckRIJQbX+MbLNMlcOOc=; b=cBvNJC10xot34BB3neHpTocKHogZxULayANCvb1SHWds0Wugf4kPxArTV+HQeFTCQD8V Ix3nKajtReeTuf1xHNjTW/+bCPjJ21qJMSEZrsoonGpcmDvKgH6YaqvNpeDBDTr/KQ+JHi vahtZ+6uvg40R4sCvMpCsjtn3U3CgjXTpy+56W0Xwulrn8yNVe6rppT4tsXqpVxIfn+nF3 +eAUBcxC2zQkoLTjPlTv/Pjj2CO56OygaxRDSqOtT/++N+KqHy6DeUzs2z/JDIgUdiSYlL zgqYebSSm1c5a43VQ1ziw4JBsXx2e4LxD3DavwxZDEaaSzDQx0wlwTPR4noC601A== Received: by recvd-6f6f5cf59c-6rmrp with SMTP id recvd-6f6f5cf59c-6rmrp-1-680BC027-53 2025-04-25 17:02:31.298563467 +0000 UTC m=+1450457.621223596 Received: from NDAyMzQxODk (unknown) by geopod-ismtpd-9 (SG) with HTTP id DL8LB2z0S4K878DmUtkAqw Fri, 25 Apr 2025 17:02:31.216 +0000 (UTC) Content-Type: multipart/alternative; boundary=86b0e8f0f6bd977d13fd86e76a3fc553feb6415590d069c39f5b8353c031 Date: Fri, 25 Apr 2025 17:02:47 +0000 (UTC) From: Collin Stewart Mime-Version: 1.0 Message-ID: Subject: Building an SDR Team Takes 730 Days, Not 90 Reply-To: Collin Stewart Feedback-ID: =?us-ascii?Q?afdd53fc-d10e-421e-85af-554c92791467=3Anewsletter=3A3c5b97ff-00a9-?= =?us-ascii?Q?4acc-916d-c137bca24b1d=3A23270855726497d?= List-Unsubscribe: =?us-ascii?Q?=3Cmailto=3A3c5b97ff-00a9-4acc-916d-c137bca24b1d+1d17dc26-c1df-44e?= =?us-ascii?Q?0-812a-883b6ad5b6bc+afdd53fc-d10e-421e-?= =?us-ascii?Q?85af-554c92791467=40unsub=2Ebeehiiv=2Ecom=3E=2C?= =?us-ascii?Q?_=3Chttps=3A=2F=2Ffoundersedition=2Eco=2Funsubscribe=2FeyJ0eXAiOiJKV1QiLCJhbG?= =?us-ascii?Q?ciOiJIUzI1NiJ9=2EeyJzdWJzY3JpYmVyX2lkIjoi?= =?us-ascii?Q?MWQxN2RjMjYtYzFkZi00NGUwLTgxMmEtODgzYjZ?= =?us-ascii?Q?hZDViNmJjIiwicG9zdF9pZCI6ImFmZGQ1M2ZjLW?= =?us-ascii?Q?QxMGUtNDIxZS04NWFmLTU1NGM5Mjc5MTQ2NyIsI?= =?us-ascii?Q?mxhc3RfcmVzb3VyY2VfZ3VpZCI6IlBvc3Q6YWZk?= =?us-ascii?Q?ZDUzZmMtZDEwZS00MjFlLTg1YWYtNTU0YzkyNzk?= =?us-ascii?Q?xNDY3In0=2Eeb4wwD-NMNCRUTswd4PScqRaZ1dPbD?= =?us-ascii?Q?tLe1I4EtYqR8I=3E?= List-Unsubscribe-Post: List-Unsubscribe=One-Click sId: 3c5b97ff-00a9-4acc-916d-c137bca24b1d x-beehiiv-ids: =?us-ascii?Q?{=22account=5Fname=22=3A=22https=3A=2F=2Ffoundersedition=2Eco=2F=22=2C=22campaign=5Fid=22=3A=22a?= =?us-ascii?Q?fdd53fc-d10e-421e-85af-554c92791467=22=2C=22c?= =?us-ascii?Q?ategory=22=3A=22newsletter=22=2C=22email=5Fgenerated=5F?= =?us-ascii?Q?at=22=3A1745600551=2C=22user=5Fid=22=3A=223c5b97ff-00a9?= =?us-ascii?Q?-4acc-916d-c137bca24b1d=22}?= x-beehiiv-type: newsletter x-list-id: 3c5b97ff-00a9-4acc-916d-c137bca24b1d x-list-owner: x-newsletter: https://foundersedition.co/p/building-an-sdr-team-takes-730-days-not-90 x-newsletter-id: https://foundersedition.co/ x-newsletter-signup: https://foundersedition.co/subscribe X-SG-EID: =?us-ascii?Q?u001=2E7ozyt+tmjDsHnEocxX8pymFA2v5OOh2V4Pdr6hGVjZo99sLHT4OeEg7as?= =?us-ascii?Q?oEFtQzIa0qAOkk1QezFA4qrCcff9558yNK8x6zQ?= =?us-ascii?Q?0aLhxDCyAuB9kgcSLas3IIKR+fvCUJBBOrhj3pz?= =?us-ascii?Q?PoHkkzKpfn2aGUJ0vrrnN9607JIFEMDEFIp=2FkRl?= =?us-ascii?Q?kDT7NgKBbUiBlsbAgQ6f8xTfLgFQJZqi5YvFrdE?= =?us-ascii?Q?eIaUtVoRFhpgBrgTxmm4jJvkbRQjNRReSer7rmX?= =?us-ascii?Q?+BGec8tG0lQWwtOPNqrXeiMB25i1Z6AMcwdUQh7?= =?us-ascii?Q?ozL7yY1g=3D?= X-SG-ID: =?us-ascii?Q?u001=2ESdBcvi+Evd=2FbQef8eZF3BpTL9BgbK5wfSJMJGMsmprD1ZcmFObA4po1bG?= =?us-ascii?Q?aUE6gycJ+LfRoc8X0Wm0MSorFVcoWHrIixZYD9z?= =?us-ascii?Q?w25Z143eglkAJWbQrLxndYtch6lhNuMZT4c5YbN?= =?us-ascii?Q?33IT5vku5n8BP5IRXNEzwAhbp3PpeN0mPGpd1bY?= =?us-ascii?Q?VYKZNG2tt7qrcspzQ8UeoECH0TcyTiCH0BqMAu2?= =?us-ascii?Q?RNg7XWf3pGJo52d5dOJ2+TbMu=2F0wmLNWCriIb5l?= =?us-ascii?Q?xoSkXqfA=2F2gCjJ9wnjWge2qp6pkwt+OBNwISY71?= =?us-ascii?Q?ecYi23FsFXKEkcc2gkj1ShxDgSmkUABVb1c25nz?= =?us-ascii?Q?VEP3=2FzCYCTQIyR4noXiDRvdy7nAVYMwtg=3D?= To: "andrew@sterlingcal.com" X-Entity-ID: u001.RuZ2+X9IBGtjUb8qq3teHQ== X-Spam-Status: No, score=-4.3 X-Spam-Score: -42 X-Spam-Bar: ---- X-Spam-Flag: NO --86b0e8f0f6bd977d13fd86e76a3fc553feb6415590d069c39f5b8353c031 Content-Transfer-Encoding: quoted-printable Content-Type: text/plain; charset=utf-8 Mime-Version: 1.0 Hello Andrew,=20 I was on the Collin Cadmus podcast this week geeking out about sales develo= pment, and it was honestly one of the most fun conversations I've had in a = while. If you're thinking about building or scaling an SDR team, you might = want to check out some highlights below - I've included a link to the full = episode at the bottom. Too many founders think they can spin up an SDR team and see meaningful ROI= within 6 months. The reality? It takes at least 2 years to see consistent = returns. And no, hiring more SDRs won't speed things up - just like how nin= e pregnant women can't produce a baby in one month. #### TL;DR: * Building an SDR team takes at least 24 months: 6 months to hire, 6 months= to test campaigns, and 12 months to see consistent performance * Start with just two SDRs and a dedicated manager - more SDRs often lead t= o worse results in the beginning * The most valuable asset from outbound isn't immediate meetings but the nu= rture pipeline you build - most companies give up right before this goldmin= e begins paying out #### Why SDR Teams Need a 2-Year Runway The most frustrating conversation I have repeatedly with founders goes some= thing like this: "We need pipeline for next quarter, so we're launching an SDR team now." Those conversations are never fun because you=E2=80=99re about to crush som= eone=E2=80=99s hope for the next quarter (and maybe a raise). After being a= part of thousands of new SDR program builds, one thing is clear: building = an effective SDR function requires at least a 2-year commitment. This isn= =E2=80=99t an opinion=E2=80=94it's supported by data across companies of al= l sizes. Here's the actual timeline for building an SDR team: **Months 1-3**: Hiring your sales development leader. This often takes long= er than expected because finding someone who can both execute and build sys= tems is challenging. **Months 4-6**: Hiring your first two SDRs. Why two? Because if you only hi= re one and they leave, you lose all momentum. With two, you have redundancy= while keeping your team lean enough to test effectively. **Months 7-12**: Testing campaigns, messaging, and approaches. The first ca= mpaigns rarely work out of the gate. Effective outbound requires iteration = and optimization. **Year 2**: This is when you are finally seeing consistent results with bot= h your cold AND nurture sequences running simultaneously. Your nurture pipe= line coming online nearly doubles the output of the team. But many companies don=E2=80=99t want to make long-term investments, they w= ant a quick fix, and they=E2=80=99re disappointed when they don=E2=80=99t g= et it. As I explained to Collin (_this feels weird to write_): "It=E2=80=99= s like building a formula 1 car, and then the client drives it around the t= rack for the first time and say 'Wow, what a great car!' But then throws it= in the garbage because it took 17 months instead of 6 months to build." This fundamental mismatch between reality and client ROI expectations is pr= ecisely why we shut down our outsourced SDR service at Predictable Revenue = in Q1 of this year. Companies would sign up expecting meaningful results in= 3-6 months, and we'd consistently see them churn right as the systems were= starting to show repeatable success. It felt bad selling a service where w= e knew most clients wouldn't stick around long enough to see the real benef= its =E2=80=93 so we stopped. #### The Hidden Value Most Companies Miss Entirely What's particularly frustrating is seeing companies abandon their outbound = efforts right as they're about to pay off. The most valuable asset of any SDR program isn't the immediate meetings boo= ked - it's the nurture pipeline you build along the way. All those "check b= ack in 6 months" conversations, all those relationship foundations and call= back dates - they compound over time into a predictable revenue engine. This is what I've seen repeatedly: companies churn after 6-9 months, right = as things start working. Then, predictably, they come back two years later = saying: "You'll never believe how many deals we closed from outbound!" My response? "Actually, I will. I walked you through this math two years ag= o." Consider the timeline from above, here=E2=80=99s how your team=E2=80=99= s effectiveness will level up through those cohorts:=20 * Months 1-3: 0% effective=20 * Months 4-6: 20% effective=20 * Months 7-12: 50% effective=20 * Months 13-24: 100% effective=20 The mistake people make here is not realizing that their current effectiven= ess is on a curve and that curve will continue to improve. If you judge a p= rogram by the first 6 months, you=E2=80=99re looking at the wrong data.=20 #### Why Starting Small Produces Better Results Another counterintuitive insight: starting with more SDRs often makes thing= s worse, not better. When you launch with 10 SDRs (as many venture-backed companies have tried),= what typically happens is: - Two natural "builders" thrive in the ambiguity - Eight others struggle without a clear playbook - Resources get wasted as you try to figure out what works The first few months of any SDR program are about learning - what messaging= works, which prospects respond, how to structure follow-up. This learning = phase is crucial, and it happens more efficiently with a small, focused tea= m. Having 8 SDRs that are struggling to figure things out and don=E2=80=99t= thrive in ambiguity is a great way to crush the culture.=20 Start with just two SDRs and a dedicated manager. Use this core team to dev= elop your playbook and processes. Once you've found something that works co= nsistently, then you can consider scaling. #### The Real SDR Math When founders ask me how quickly they can see value from an SDR team, I wal= k them through this timeline: - Time to ramp an SDR to fully productive: **3 months** - Time from sequencing a prospect to booking a meeting: **1 month**=20 - Time from first meeting to close: **2 months** (typically double your ave= rage sales cycle) That=E2=80=99s a 6-month lag time between start and your first opportunity = to close a deal (assuming a 30-60 day outbound sales cycle). And that math = assumes you get everything right the first time. - Time for the impact of nurture sequences to kick in: **6-12 months** That's a 12-month timeline just to get started and another 6-12 months befo= re you=E2=80=99re seeing anything _predictable_. Can it happen faster? Some= times, with luck or if you have extreme product market fit. But planning on= a shorter timeline is setting yourself up for disappointment. #### What To Do Instead If you're determined to build an SDR function, here's the right approach: 1. **Reset your timeline expectations** - Commit to at least 2 years 2. **Start small but sufficient** - Two SDRs plus a dedicated manager 3. **Invest equally in cold and nurture** - Build systems to track and foll= ow up with prospects who aren't ready now Most importantly, understand that the early months are about investment and= learning, not immediate ROI. If you're not willing to commit to the full t= imeline, you might be better off exploring other growth channels first. The companies that succeed with outbound are the ones that recognize it's a= long-term strategic advantage, not a quick revenue fix. I'd love to hear your thoughts on this. Have you tried building an SDR team= ? Did you give it enough runway? Hit reply and let me know. Collin P.S. You can listen to the full conversation with Collin Cadmus [here](http= s://youtu.be/PLo_xqqqaJk?si=3DYRTUESkZskV12cSU). =E2=80=94=E2=80=94=E2=80=94 You are reading a plain text version of this post. For the best experience,= copy and paste this link in your browser to view the post online: https://foundersedition.co/p/building-an-sdr-team-takes-730-days-not-90 --86b0e8f0f6bd977d13fd86e76a3fc553feb6415590d069c39f5b8353c031 Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset=utf-8 Mime-Version: 1.0 Building an SDR Team Takes 730 Days, Not 90
<= td align=3D"center" valign=3D"top" style=3D"border-width:0px 0px 0px 0px;bo= rder-style: solid; border-color: #FFFFFF;border-radius:10px 10px 0px 0px;ba= ckground-color:#FFFFFF;" class=3D"c">
=

April 25= , 2025   |   Re= ad Online

Building an SDR Team Take= s 730 Days, Not 90

=  
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<= /tr>
3D"share
 
= 3D"share
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3D"share
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<= td id=3D"tldr" class=3D"dd" align=3D"left" valign=3D"top" style=3D"color:#2= A2A2A;font-weight:normal;padding:0px 15px;text-align:left;">

= TL;DR:

=

Months 7-12: Testing campaigns, messaging, and approaches. The first campaigns rar= ely work out of the gate. Effective outbound requires iteration and optimiz= ation.

= = =

Hello Andrew,

I was on th= e Collin Cadmus podcast this week geeking out about sales development, and = it was honestly one of the most fun conversations I've had in a while. = If you're thinking about building or scaling an SDR team, you might wan= t to check out some highlights below - I've included a link to the full= episode at the bottom.

Too many f= ounders think they can spin up an SDR team and see meaningful ROI within 6 = months. The reality? It takes at least 2 years to see consistent returns. A= nd no, hiring more SDRs won't speed things up - just like how nine preg= nant women can't produce a baby in one month.

  • Building an SDR team takes at least 24 months: = 6 months to hire, 6 months to test campaigns, and 12 months to see consiste= nt performance

  • Start with just two SDRs and a dedicated manag= er - more SDRs often lead to worse results in the beginning

    • =

  • T= he most valuable asset from outbound isn't immediate meetings but the n= urture pipeline you build - most companies give up right before this goldmi= ne begins paying out

Why SDR Teams Need a 2-Year Runway

The most frustrating conversation I have repeatedly with= founders goes something like this:

Those conversations = are never fun because you=E2=80=99re about to crush someone=E2=80=99s hope = for the next quarter (and maybe a raise). After being a part of thousands o= f new SDR program builds, one thing is clear: building an effective SDR fun= ction requires at least a 2-year commitment. This isn=E2=80=99t an opinion= =E2=80=94it's supported by data across companies of all sizes.

Here's the actual timeline for buildin= g an SDR team:

Months 1-3: Hiring your sales development= leader. This often takes longer than expected because finding someone who = can both execute and build systems is challenging.

Months 4-6: Hiring your first two SDRs. Why two? Because if you only hire one an= d they leave, you lose all momentum. With two, you have redundancy while ke= eping your team lean enough to test effectively.

Year 2: This is when you are finally seeing consi= stent results with both your cold AND nurture sequences running simultaneou= sly. Your nurture pipeline coming online nearly doubles the output of the t= eam.

But many companies don=E2=80= =99t want to make long-term investments, they want a quick fix, and they=E2= =80=99re disappointed when they don=E2=80=99t get it. As I explained to Col= lin (this feels weird to w= rite): "It=E2=80=99s= like building a formula 1 car, and then the client drives it around the tr= ack for the first time and say 'Wow, what a great car!' But then th= rows it in the garbage because it took 17 months instead of 6 months to bui= ld."

This fundamental mismatc= h between reality and client ROI expectations is precisely why we shut down= our outsourced SDR service at Predictable Revenue in Q1 of this year. Comp= anies would sign up expecting meaningful results in 3-6 months, and we'= d consistently see them churn right as the systems were starting to show re= peatable success. It felt bad selling a service where we knew most clients = wouldn't stick around long enough to see the real benefits =E2=80=93 so= we stopped.

The Hidde= n Value Most Companies Miss Entirely

What's particularly frustrating is seeing companies abandon their o= utbound efforts right as they're about to pay off.

The most valuable asset of any SDR program isn't t= he immediate meetings booked - it's the nurture pipeline you build alon= g the way. All those "check back in 6 months" conversations, all = those relationship foundations and callback dates - they compound over time= into a predictable revenue engine.

"You'll nev= er believe how many deals we closed from outbound!"

My response? "Actually, I will. I walked you th= rough this math two years ago." Consider the timeline from above, here= =E2=80=99s how your team=E2=80=99s effectiveness will level up through thos= e cohorts:

  • Months 1-3: 0% effective

    • <= li class=3D"listItem ultext">

    Mo= nths 4-6: 20% effective

  • = Months 7-12: 50% effective

  • Months 13-24: 100% effective

The mistake people make here is not realizing that their = current effectiveness is on a curve and that curve will continue to improve= . If you judge a program by the first 6 months, you=E2=80=99re looking at t= he wrong data.

Why St= arting Small Produces Better Results

Another counterintuitive insight: starting with more SDRs often makes t= hings worse, not better.

When you = launch with 10 SDRs (as many venture-backed companies have tried), what typ= ically happens is:

- Two natural = "builders" thrive in the ambiguity

- Eight others struggle without a clear playbook

- Resources get wasted as you try to figure out= what works

The first few months= of any SDR program are about learning - what messaging works, which prospe= cts respond, how to structure follow-up. This learning phase is crucial, an= d it happens more efficiently with a small, focused team. Having 8 SDRs tha= t are struggling to figure things out and don=E2=80=99t thrive in ambiguity= is a great way to crush the culture.

Start with just two SDRs and a dedicated manager. Use this core team t= o develop your playbook and processes. Once you've found something that= works consistently, then you can consider scaling.

=

The Real SDR Math

Whe= n founders ask me how quickly they can see value from an SDR team, I walk t= hem through this timeline:

- Tim= e to ramp an SDR to fully productive: 3 months

- Time fr= om sequencing a prospect to booking a meeting: 1 month=C2=A0

- Time from first meetin= g to close: 2 months (typically double your average= sales cycle)

That=E2=80=99s a 6-m= onth lag time between start and your first opportunity to close a deal (ass= uming a 30-60 day outbound sales cycle). And that math assumes you get ever= ything right the first time.

- Tim= e for the impact of nurture sequences to kick in: 6-12 months

That's a 12-month timeline just to get started and another 6-12= months before you=E2=80=99re seeing anything predictable. Can it happen faster? Sometimes, with luck or if you have extreme p= roduct market fit. But planning on a shorter timeline is setting yourself u= p for disappointment.

What To Do Instea= d

If you're determined to bui= ld an SDR function, here's the right approach:

1. Reset = your timeline expectations - Commit to at least 2 years

2. = Start small but sufficient= - Two SDRs plus a dedica= ted manager

3. Invest equally in cold and nurture - Build systems to track and foll= ow up with prospects who aren't ready now

Most importantly, understand that the early months are about in= vestment and learning, not immediate ROI. If you're not willing to comm= it to the full timeline, you might be better off exploring other growth cha= nnels first.

The companies that s= ucceed with outbound are the ones that recognize it's a long-term strat= egic advantage, not a quick revenue fix.

I'd love to hear your thoughts on this. Have you tried building= an SDR team? Did you give it enough runway? Hit reply and let me know.

<= span style=3D"color:rgb(44, 62, 80);">Collin

P.S. You can listen to the full conversation with Collin Cadmus = here.

3D"yt"3D"in"
 

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