If you're building out a sales team, you're either going to hire sales development representatives (SDRs) or business development representatives (BDRs).
Chances are, you've heard both terms thrown around quite a bit (at times, seemingly interchangeably). While they sound similar, their distinction is important when it comes to hiring decisions. Each position requires a unique set of behaviors, skills, and performance metrics.
Hiring the wrong type of sales rep causes confusion over responsibilities, inefficiencies in your sales pipeline, and underperformance if someone lacks the core strengths for the specific function.
In today's article, I'll walk you through the SDR's and BDR's roles within a company, their key differences, and how to know which one you need to hire for your sales org.
What is an SDR in sales?
An SDR, or Sales Development Representative, is the person in your sales organization who identifies, qualifies, and engages potential customers before handing them off to an Account Executive or a more senior sales rep. Think of them as a “first point of contact” who breaks the ice with interested prospects.
Typically, they:
- Follow up on people who have shown some level of interest, whether through downloading a resource, signing up for a webinar, or responding to an email campaign.
- Qualify leads by determining whether their challenges and goals match what your company can offer, and filter out the best-fit opportunities.
- Hand it off to a dedicated salesperson to continue the conversation and (hopefully) close the deal.
The SDR role engages and nurtures warm leads. They set the stage for more meaningful conversations down the line.
What is a BDR in sales?
A BDR, or Business Development Representative, is your go-to person for finding untapped business opportunities and sparking conversations with companies that may not even know they need your solution yet. While an SDR deals with warm leads and inbound inquiries, a BDR is the hunter who goes out to create opportunities from scratch.
Some of their key responsibilities include:
- Researching and identifying potential customers that fit your ICP.
- Reaching out to prospects through outbound methods like cold calls, emails, and DMs.
- Qualifying leads by understanding their business goals, challenges, and budget.
- Handing off qualified leads to an Account Executive or sales closer for further nurturing and closing.
BDRs expand your company's market reach by bringing new leads into your funnel. They get your product on the right people's radar, even before they start actively looking for a solution.
Key differences between SDRs and BDRs
The main difference between an SDR and a BDR is that SDRs are focused on inbound leads, while BDRs are focused on outbound sales.
The number-one goal of sales development is to set qualified appointments with prospects who have a strong chance of converting into customers. Someone who meets this criteria is classified as a sales-qualified lead (SQL).
Business development, on the other hand, exists to create net-new revenue opportunities. The BDR's ultimate goal is to broaden the company’s horizons through fresh channels, business partnerships, and market segments.
Let's take a look at those differences more in-depth:
Targeting and lead qualification
BDRs build the pipeline from scratch.
They’re looking for companies or markets you haven't fully tapped into yet (if at all). They start by identifying decision-makers and their roles/titles, then apply their knowledhe of industry trends, to figure out which companies stand to benefit the most from your offering. They base their outreach on simple identifiers like company size, location, and vertical.
Since the people they’re reaching out to haven’t necessarily raised their hands, BDRs start at a more basic level of qualification — that is, confirming whether there’s even a need for your product or service. By starting a conversation, they're essentially gauging (a) whether the prospect fits your ICP and (b) if the timing is right to move forward.
SDRs engage and qualify interested prospects.
SDRs primarily focus on the people who’ve already shown interest in some way, like downloading a white paper, attending a webinar, or filling out a form. These leads are a step or two closer to buying, so SDRs don’t have to comb through entire industries. Instead, they talk with people who come in through existing marketing efforts (e.g., an ad or blog post).
Because of this, qualification is all about determining if that existing interest is a genuine fit. They can delve deeper into how the prospect’s challenges align with your solution and whether the lead meets your company’s “sales-ready” criteria. If the lead checks those boxes, the SDR sets up an appointment or demo with an Account Executive to keep the conversation rolling.
Communication and outreach strategies
BDRs "break the ice."
BDRs' prospects aren’t actively looking for a solution, so they spend time researching both the company and key stakeholders to create highly relevant messages that stand out. From there, they use cold outreach strategies to
Building relationships from scratch takes time — it takes an average of 8 touchpoints to land an intial meeting. So BDRs also develop a sales cadence (a planned sequence of outreach activities) that combines emails, calls, and social media outreach at strategic intervals.
SDRs qualify and nurture the interest prospects already have.
Inbound leads are “warm,” so SDRs respond quickly (often within minutes or hours) to capitalize on that initial interest. Since these leads have already engaged (e.g., by requesting info), they focus on confirming fit and readiness rather than persuading someone to explore a solution from zero.
While the conversion cycle is shorter, SDRs still use a combination of phone calls, emails, and digital follow-ups to keep leads engaged and move them toward a productive conversation with an AE.
Performance metrics and KPIs
Business development teams care about pipeline contribution.
There are three main ways BDR managers measure and evaluate their teams:
- Number of outbound activities: Think calls, emails, and LinkedIn messages. BDRs are expected to maintain a high volume of outreach to maximize their chances of striking up new opportunities.
- Meetings booked / opportunities cenerated: The ultimate goal is creating new opportunities or setting up initial meetings with net-new prospects. BDRs get evaluated on how many of their outbound prospects get handed off to Account Executives.
- Pipeline creation value: Some organizations measure the dollar value of opportunities BDRs bring into the pipeline. Bringing in high-value and high-potential deals matters just as much as (if not more than) lead quantity.
Sales development is concerned with conversion rates.
As for sales development reps, activity metrics like call volume are also important. But, since they're dealing with warmer prospects, there are three other critical metrics to pay attention to:
- Lead response time: Up to 50% of all sales go to the vendor who responds first. Short lead response times shows reps are striking while the iron is hot.
- SQL-to-opportunity conversions: When a large percentage of SQLs move on to the Opportunity stage, it means SDRs are doing a good job at filtering out unqualified inquiries.
- Meetings scheduled: This is similar to BDRs, but with an emphasis on converting interested leads into productive conversations with AEs.
Sales cycle stage ownership
BDRs own the earliest stages in the funnel.
A BDR's prospects might be aware your product exists, but they (usually) aren't actively looking for a solution. The BDR's job is to get them interested. They're there to get the prospect talking about their challenges and see if there's a way your product can help.
SDRs cover the middle ground.
SDRs bridge the gap between marketing and sales. Their prospects have already looked at some of your marketing content and are somewhat familiar with your product. Some might even have requested a demo or trial. In this case, the BDR's job of filling the top of the funnel has already been taken care of by your marketing activities.
Overlap and collaboration: where SDRs and BDRs work together
SDRs and BDRs are both part of an inside sales team. Both roles do the “pre-work” before the heavier sales discussions happen. And both hand off their leads to an AE, who picks up to do demos, negotiate deals, and close business.
Beyond this, there are plenty of opportunities for them to collaborate:
Shared intel and best practices
BDRs might come across a promising new segment during outbound efforts and can pass that insight to SDRs, who use it to tweak their follow-up and qualification methodology. SDRs, who hear firsthand what inbound leads are responding to, share tactics and hooks that resonate.
Coordinated cadences and lead routing
Sometimes a BDR uncovers a highly interested lead who’s actually an inbound lead that slipped through the cracks. And if a lead is initially cold for a BDR but later engages with a webinar or downloads a white paper, that might shift it into SDR territory.
Aligning on company goals
SDR and BDR teams share the ultimate goal of growing and maintaining a solid pipeline. AEs share with both groups what happened post-handoff — was the opportunity a good fit, and if not, why?— so both can refine their targeting.
Should I hire an SDR or a BDR?
When you’re deciding whether to hire an SDR or a BDR first (or at all), it really comes down to what your current pipeline looks like, how established your brand is, and the nature of your sales process.
Broadly speaking, there are five factors that will influence your decision:
1. Your current lead volume and pipeline health
If you already have a lot of inbound leads thanks to marketing, brand recognition, or a customer advocacy program, an SDR is ideal. If you’re still making a name for yourself, a BDR will cold call and educate the market. They'll set up initial conversations that drive early adoption.
2. Sales cycle complexity
Complex deals require a higher degree of personalization and strategic outreach that's right within the wheelhouse of a BDR. If your solution is easier to understand and the sales cycle is shorter, an SDR should be enough to qualify inbound interest.
3. Resource allocation and team structure
If you're already pulling tons of leads from different marketing channels, an SDR can slot in to convert them into qualified prospects. If your marketing function is lean, a BDR can generate fresh opportunities without relying on a heavy marketing funnel.
4. Budget, compensation structure, and results timeline
BDRs are more expensive in the sense that outbound prospecting campaigns take longer to yield results. There’s also a lot of time and effort in building target lists, crafting outreach sequences, and refining messaging. SDRs show quicker ROI because they capitalize on your existing inbound momentum.
5. Growth goals and strategic objectives
If your goal this year is to break into a new industry vertical or geographic region, a BDR is the one who'll spearhead that effort. If your marketing is already effective at driving people to your site or product demos, an SDR will make sure no lead falls through the cracks.
Leveraging technology for SDR and BDR success
Today's customers want convenience and personalization. Internally, software helps you streamline your processes, keep everything organized, and tailor each sales conversation to the individual you're working with.
CRM integration and management
CRM is the core system your sales force will be working in. It handles just about everything:
- Lead and contact management
- Outreach automation and tracking
- Opportunity management
- Deal forecasting
- Pipeline reporting
It also integrates bi-directionally with all your other tools. For instance, when a lead comes through your marketing automation platform, it auto-syncs that info with your CRM as a contact record to follow up on.
Sales automation tools
Sales automation tools eliminate manual work from different aspects of the BDR and SDR workflow.
- Sales engagement platforms like Outreach and Salesloft
- CPQ systems like Zuora and DealHub
- Lead enrichment systems like Apollo, Clearbit, and ZoomInfo
- Customer marketing and advocacy platforms like Deeto
These are just a few examples of different tools with automation features that enhance your SDRs' and/or BDRs' productivity.
For instance, you can use Deeto to build personal mircosites for different kinds of prospects and increase top-of-funnel intent. Instead of sending a regular old email, you can send them a persona-based web page with relevant USPs and user-generated content.
Data analytics and reporting
Your tools are constantly collecting data from selling activities, customer engagement, and transactions.
CRM tells you everything you need to know about your pipeline and SDR/BDR performance. That includes things like:
- How many deals have been closed
- The value of each deal
- Average deal size
- Win rate by lead source, product, or rep
- # of activities per rep
Sales automation tools provide similar reporting but with a more granular level of detail.
You also have platforms like Deeto, which monitors opportunities and evaluates advocates' and references' impact on lead generation, opportunity progress, and conversions, and shows you which customer segments or industries are most likely to become advocates for your product.
The evolution of SDRs and BDRs in modern sales teams
Today, a significant majority of sales teams have integrated AI into their operations. Salesforce's sixth State of Sales report found that 81% of sales orgs are either testing or already using AI tools. McKinsey's global State of AI survey supports this, showing 78% of organizations use AI, with marketing and sales among the most common areas of application.
It's worked its way into just about every facet of the selling process:
- Initial lead response for warm leads
- Lead prioritization and segmentation
- Email personalization
- Sales forecasting and pipeline management
- Cross-selling and upselling recommendations
- Voice-enabled virtual assistants for scheduling, note-taking, and data entry
- Natural language processing for analyzing sales calls and conversations
Deeto's AI even analyzes a lead's profile and gives sellers personalized UGC and social proof. That way, reps have an easier time qualifying leads, and they share relevant content that addresses buyer pain points right off the bat.
Deeto helps SDRs and BDRs close more deals.
While the role of the sales rep (BDR or SDR) is a critical one, the fact of the matter is that fewer and fewer buyers are interested in interacting with them. According to research from Gartner, 75% say they prefer a rep-free experience altogether.
The reason is that they prefer to do their own research — 85% of buyers trust customers in their industry more than any other source of information, and they've completed 70% of the decision-making process by the time they engage someone from the company.
Deeto facilitates a more customer-led sales process. You can use it to gather customer feedback and social proof, distribute it across your sales and marketing channels, build a reference pool, and match relevant customer experiences to target accounts.
Request a demo to see how it works.
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