There are several scenarios when using an SDR (Sales Development Rep) is tactically the correct thing to do. There are many more when it is not.

• If your company is in a mature market, already defined offering with market leaders and incumbents, use an SDR. In this instance their role is to broadcast and amplify.
• If your industry is going into a recession and margins are being squeezed, use an SDR. Their role is to get touches that will have a greater value when the market recovers.

Most startups should not be using an SDR. They never defined their product in the market, they send sales reps into the wild and tell them to come back when they find a prospect who can tell them what it is and how much to charge for it.

Why do startups hire an SDR team?

• Some part of this is vanity. Big name brand organizations have an SDR team, therefore they should. They are keeping up with the Joneses
• To compensate for sales reps that don’t like to cold call. They persuade upper management that once they get into a prospect they can use their charms and offers of the lowest price to get a client
• You are relying on SDR’s to do this for you, you want them to tell you what it is and answer your questions
• The Execs are trying to recreate their former jobs and organizations

Do not hire even one SDR until everyone in the company can precisely say what the company does, who its prospect profile is, how clients are serviced and what the billing model is.

Here is the solution:

1. Cold calling is the straightest line between two points
2. Don’t call people who aren’t decision makers
3. Most decision makers such as CEO’s and COO’s enjoy the hustle and listening to how a product or service is communicated. They don’t like being cold called badly
4. Good cold calling is your ability to listen attentively and respond precisely, not your ability to talk charismatically
5. You must have a goal of what you would like to accomplish. What is the optimal result of your cold call? Most likely it is not a ‘sale’ because few quality products can or should be transacted from one call
6. Marquis client name dropping is always helpful. Referencing prospects or clients that are in similar industries, similar demographics, similar psychographics, similar geography From the listener’s perspective it is a certificate of authenticity
7. Be social but don’t call them looking for a friend. That is a crutch that your ego has created to make it easier for you to dial the phone
8. Be clear with what the objective of the call is. Set the agenda for the cold call, how much time it will take and what you would like to discuss, let them buy into that little sliver, or not. If they say no, get clarity as to why ‘no’
9. From the time the person answers you have about 6 seconds to engage them

The End?

This is a long essay that I have divided up into its component pieces:

1. The Cultural Shift
2. Define It or the Prospect Will
3. Exploiting the First Mover Advantage
4. Reverse Engineering a 300% Price Increase
5. Each Sales Office is a Franchise
6. Why Good Salespeople Fail
7. Why The CEO Should Not Be Selling
8. Intimacy is a Premium
9. Breeding Your Competitors
10. SDR’s. Million Dollar Solution. Hundred Dollar Problem