# Sales Role Specialization

The single most important principle in Predictable Revenue is separating prospecting from closing. This guide provides complete role definitions, hiring profiles, interview questions, compensation structures, and team sizing guidance for every role in the specialized sales organization.

## Why Specialization Works

When AEs prospect AND close, two things happen:

1. **Pipeline is feast-or-famine.** AEs prospect when pipeline is thin, then stop prospecting to close deals, then pipeline dries up again.
2. **Neither prospecting nor closing gets full attention.** Prospecting requires persistence and volume; closing requires strategic thinking and relationship building. These are different skills and mindsets.

Specialization fixes both problems by giving each function to a dedicated role.

## SDR (Sales Development Rep)

### Role Definition

**Mission:** Generate qualified pipeline through outbound prospecting using Cold Calling 2.0.

**Reports to:** SDR Manager or VP of Sales Development

**Key relationships:** Works closely with AEs (handoff), Marketing (ICP and messaging alignment), Revenue Operations (data and tools).

### Daily Activities

| Time Block | Activity | Duration |
|------------|----------|----------|
| 8:00 - 8:30 | Review responses, prioritize follow-ups | 30 min |
| 8:30 - 10:00 | Send new outbound emails (Cold Calling 2.0) | 90 min |
| 10:00 - 11:00 | Follow-up calls to warm responses | 60 min |
| 11:00 - 12:00 | Research target accounts, build lists | 60 min |
| 12:00 - 1:00 | Lunch | 60 min |
| 1:00 - 2:00 | Qualification calls with interested prospects | 60 min |
| 2:00 - 3:00 | Send follow-up sequences (Day 3, 7, 14) | 60 min |
| 3:00 - 3:30 | Update CRM, log activities | 30 min |
| 3:30 - 4:00 | Prepare handoff notes for AEs | 30 min |
| 4:00 - 5:00 | Training, role-play, team sync | 60 min |

### Skills Needed

| Skill | Why It Matters |
|-------|---------------|
| **Writing** | Cold Calling 2.0 lives and dies by email quality |
| **Research** | Must quickly understand target accounts and find the right contacts |
| **Resilience** | 85-90% of outreach gets no response — thick skin is essential |
| **Organization** | Managing hundreds of accounts across different sequence stages |
| **Curiosity** | Asking great discovery questions during qualification calls |
| **Coachability** | Must rapidly absorb feedback and iterate on approach |

### SDR Metrics

| Metric | Target | Cadence |
|--------|--------|---------|
| Emails sent per day | 50-100 | Daily |
| Response rate | 9-15% | Weekly |
| Qualified meetings booked per week | 3-5 | Weekly |
| Qualified opportunities per month | 10-20 | Monthly |
| Pipeline value generated per month | Company-specific | Monthly |

## MDR (Market Development Rep)

### Role Definition

**Mission:** Qualify inbound leads and route them to the right AE as quickly as possible.

**Reports to:** SDR Manager or Marketing Operations

**Key distinction from SDR:** MDRs work inbound leads that marketing generates. SDRs do outbound prospecting. Mixing these roles kills productivity in both directions.

### Daily Activities

| Time Block | Activity | Duration |
|------------|----------|----------|
| 8:00 - 9:00 | Review overnight inbound leads, prioritize by score | 60 min |
| 9:00 - 11:00 | Qualification calls with inbound leads | 120 min |
| 11:00 - 12:00 | Follow up on pending leads (no-shows, partial info) | 60 min |
| 12:00 - 1:00 | Lunch | 60 min |
| 1:00 - 2:00 | Route qualified leads to AEs, prepare handoff notes | 60 min |
| 2:00 - 3:30 | Afternoon qualification calls | 90 min |
| 3:30 - 4:00 | Update CRM, lead scoring feedback to marketing | 30 min |
| 4:00 - 5:00 | Nurture leads not yet ready (drip sequences, content) | 60 min |

### MDR Metrics

| Metric | Target | Cadence |
|--------|--------|---------|
| Speed to lead (time from form submit to first contact) | < 5 minutes for hot leads | Daily |
| Inbound leads contacted per day | 30-50 | Daily |
| Qualification rate (% of leads that become SQLs) | 15-30% | Weekly |
| Qualified opportunities passed to AEs per month | 15-30 | Monthly |

## AE (Account Executive)

### Role Definition

**Mission:** Close deals from qualified pipeline generated by SDRs and MDRs.

**Reports to:** VP of Sales or Sales Director

### The AE Sales Process

| Stage | Activity | Key Outcome |
|-------|----------|-------------|
| **Discovery** | Deep-dive into prospect's pain, process, and priorities | Clear understanding of need and fit |
| **Demo / Presentation** | Tailored solution presentation | Prospect sees how you solve their problem |
| **Proposal** | Pricing, scope, timeline | Prospect has a concrete offer |
| **Negotiation** | Handle objections, align terms | Agreement on terms |
| **Close** | Get signature, process deal | Revenue booked |
| **Handoff to CSM** | Introduce customer success, transfer context | Smooth onboarding |

### AE Metrics

| Metric | Target | Cadence |
|--------|--------|---------|
| Win rate | 20-30% | Monthly |
| Average deal size | Company-specific | Monthly |
| Sales cycle length | 30-90 days | Monthly |
| Revenue closed per month | Quota-dependent | Monthly |
| Pipeline coverage | 3-4x quota | Weekly |
| Activity: demos per week | 8-12 | Weekly |

**What makes a great AE:** Consultative selling approach, strong discovery skills, business acumen, deal management discipline, and competitive intelligence.

## CSM (Customer Success Manager)

### Role Definition

**Mission:** Retain customers, drive adoption, and grow accounts through expansion.

**Reports to:** VP of Customer Success

### CSM Activities by Customer Lifecycle Stage

| Stage | Activities | Metrics |
|-------|-----------|---------|
| **Onboarding (0-30 days)** | Implementation, training, first value milestone | Time to first value |
| **Adoption (30-90 days)** | Feature adoption, use case expansion, health checks | Product usage metrics |
| **Growth (90+ days)** | QBRs, expansion opportunities, referral requests | NRR, expansion revenue |
| **Renewal** | Renewal negotiation, ROI review | Renewal rate, churn |

### CSM Metrics

| Metric | Target | Cadence |
|--------|--------|---------|
| Net revenue retention (NRR) | > 110% | Quarterly |
| Gross churn rate | < 5% annually | Monthly |
| Expansion revenue | 20-40% of total revenue | Quarterly |
| NPS / CSAT | NPS > 50, CSAT > 4.5/5 | Quarterly |
| Time to first value | < 30 days | Per customer |

## Career Paths

### SDR Career Progression

```
SDR (6-18 months)
  |
  |--- Senior SDR (6-12 months)
  |       |
  |       |--- Account Executive
  |       |--- SDR Team Lead
  |       |--- SDR Manager
  |
  |--- (Direct promotion if strong performance)
          |
          |--- Account Executive
```

### Typical Timeline

| Role | Duration | Promotion Criteria |
|------|----------|-------------------|
| SDR | 6-18 months | Hit quota 3+ consecutive months, strong ANUM qualification |
| Senior SDR | 6-12 months | Consistently top performer, mentors junior SDRs |
| AE | 2-4 years | Hit quota, manage complex deals |
| Senior AE / Enterprise AE | 2+ years | Larger deals, strategic accounts |
| SDR Manager | 1-2 years after Senior SDR | Leadership skills, can recruit and coach |

## Hiring Profiles

### SDR Hiring Profile

| Attribute | What to Look For | Red Flag |
|-----------|-----------------|----------|
| **Coachability** | Asks for feedback, adjusts quickly | Defensive about criticism |
| **Work ethic** | History of hard work (athletics, jobs, side projects) | Entitled attitude |
| **Writing ability** | Clear, concise communication | Verbose, unfocused writing |
| **Curiosity** | Researched your company, asks good questions | Generic interview, no preparation |
| **Resilience** | Has overcome setbacks, handles pressure | Gives up easily, no examples of adversity |
| **Organization** | Can manage multiple tasks, systematic approach | Scattered, forgets follow-ups |

### AE Hiring Profile

| Attribute | What to Look For | Red Flag |
|-----------|-----------------|----------|
| **Consultative approach** | Asks discovery questions in the interview | Talks at you, pitches immediately |
| **Business acumen** | Understands buyer personas, industry dynamics | Cannot articulate how your product creates value |
| **Deal management** | Can walk through a complex deal they managed | Relies on "gut feel" with no process |
| **Competitive awareness** | Knows the landscape, can position | Has not researched competitors |
| **Track record** | Consistent quota attainment (not one lucky year) | Blames territory or market for misses |

## Interview Questions by Role

### SDR Interview Questions

1. "Write me a Cold Calling 2.0 email to a VP of Marketing at a 200-person SaaS company." (Tests writing and understanding of the method.)
2. "Tell me about a time you were told no repeatedly. What did you do?" (Tests resilience.)
3. "I just gave you feedback that your emails are too long. Rewrite the email you just wrote, shorter." (Tests coachability in real time.)
4. "Walk me through how you would research a target account before reaching out." (Tests research skills.)
5. "You have 200 accounts to prospect this quarter. How do you prioritize?" (Tests organization.)
6. "What questions would you ask to determine if a prospect is worth passing to an AE?" (Tests qualification instinct.)

### AE Interview Questions

1. "Walk me through the most complex deal you closed. What was the buying committee, and how did you navigate it?" (Tests deal management.)
2. "Role-play: I am a VP who says your product is too expensive. Respond." (Tests objection handling.)
3. "How do you prepare for a discovery call? Walk me through your process." (Tests methodology.)
4. "You have 3x pipeline coverage but your win rate is 15%. What do you do?" (Tests analytical thinking.)
5. "Tell me about a deal you lost. What happened, and what would you do differently?" (Tests self-awareness.)

## Compensation Benchmarks

### SDR Compensation

| Level | Base Salary | Variable (OTE) | Total OTE | Split |
|-------|------------|-----------------|-----------|-------|
| SDR (entry) | $45K-$55K | $20K-$30K | $65K-$85K | 65/35 |
| SDR (experienced) | $55K-$65K | $25K-$35K | $80K-$100K | 65/35 |
| Senior SDR | $60K-$75K | $30K-$40K | $90K-$115K | 60/40 |
| SDR Manager | $80K-$100K | $30K-$50K | $110K-$150K | 65/35 |

### AE Compensation

| Level | Base Salary | Variable (OTE) | Total OTE | Split |
|-------|------------|-----------------|-----------|-------|
| AE (mid-market) | $70K-$90K | $70K-$90K | $140K-$180K | 50/50 |
| AE (enterprise) | $100K-$130K | $100K-$130K | $200K-$260K | 50/50 |
| Senior AE | $120K-$150K | $120K-$150K | $240K-$300K | 50/50 |

### CSM Compensation

| Level | Base Salary | Variable (OTE) | Total OTE | Split |
|-------|------------|-----------------|-----------|-------|
| CSM | $65K-$85K | $15K-$25K | $80K-$110K | 75/25 |
| Senior CSM | $85K-$110K | $20K-$35K | $105K-$145K | 75/25 |
| CSM Manager | $100K-$130K | $25K-$45K | $125K-$175K | 75/25 |

Note: These are US-based benchmarks. Adjust for geography, company stage, and market conditions.

## Team Sizing: SDR-to-AE Ratios

### General Guidelines

| Deal Size | Recommended SDR:AE Ratio | Rationale |
|-----------|--------------------------|-----------|
| < $10K ACV | 3:1 | High volume, AEs need lots of pipeline |
| $10K-$50K ACV | 2:1 | Balanced volume and deal complexity |
| $50K-$200K ACV | 1:1 or 2:1 | Larger deals need more AE attention |
| > $200K ACV | 1:1 | Strategic selling, fewer but larger deals |

### When to Hire Your Next SDR

Hire another SDR when:

- [ ] Current SDRs consistently hit or exceed quota
- [ ] AEs are closing faster than SDRs can fill pipeline
- [ ] Pipeline coverage drops below 3x for AEs
- [ ] You have a proven, repeatable outbound process
- [ ] Your pipeline math shows a capacity gap

### When to Hire Your Next AE

Hire another AE when:

- [ ] Existing AEs have more than 4x pipeline coverage
- [ ] AEs are declining qualified meetings due to capacity
- [ ] Win rates are dropping because AEs are spread too thin
- [ ] You are expanding into a new market segment or geography

### Team Growth Sequence

For most B2B SaaS companies building from scratch:

| Hire Order | Role | Why |
|-----------|------|-----|
| 1 | First SDR | Prove outbound works before scaling |
| 2 | First AE (or founder closes) | Someone must close what the SDR generates |
| 3 | Second SDR | Double outbound capacity |
| 4 | First MDR | Qualify growing inbound volume |
| 5 | Second AE | Pipeline exceeds one AE's capacity |
| 6 | SDR Manager | 3+ SDRs need a dedicated manager |
| 7 | First CSM | Post-sale attention drives retention and seeds |
| 8 | Scale all roles | Based on pipeline math and conversion data |

This sequence assumes founder-led sales initially, with the first SDR hire being the first step toward a specialized sales organization.
