2025 is going to be an interesting year for SDR (Sales Development Representative) compensation in tech as the industry goes through another period of adaptation and transformation. As entry-level roles undergo significant redefinition and companies prioritize specialized skills over traditional recruiting needs, Sales and Business Development Representatives are in a tricky and yet-to-be-clearly-defined place.
Betts has released the latest update to our annual Compensation Guide, which offers comprehensive insights into salary trends for tech sales, marketing, and customer success roles. This blog explores how these developments are specifically impacting SDR comp for 2025:
The Changing Dynamic for Entry-Level GTM Jobs
While 2024 saw technology companies struggling to balance available talent with tightening budgets, 2025 is shaping up to be a year of strategic realignment for go-to-market (GTM) strategies and sales motions in the industry. Next-generation AI continues to transform lead generation processes, enterprise-level accounts are providing a stable source of revenue, and mid-market organizations are making a strong comeback with renewed focus on pipeline development.
Despite this upturn, however, hiring for entry-level GTM roles in tech is still slow to revitalize to pre-pandemic rates and continues to create a barrier for new arrivals into the industry. Competition for those fewer open jobs remains fierce, particularly for Sales or Business Development Representative positions that offer a first step for junior salespeople. Even while overall compensation metrics increase for these titles, both candidates and companies are facing greater challenges in balancing performance expectations and on-target earnings (OTE).
SDR Compensation Data for 2025
Base salaries for SDRs will continue to vary based on experience level and geographic location in 2025, though the trends have shifted somewhat as hiring in traditional tech hubs has shifted towards specialists and unicorn sellers. Even while Sales Development Representatives saw salaries increase by between 5% – 10% overall from 2024, rates for candidates around the East Coast and New York in particular are evening out or starting to fall behind those seen in the middle of the U.S.
Entry-level SDRs typically earn an average range of $55,000 – $70,000 base salary, while those with at least six months of experience command an average of $60,000 – $75,000. OTE saw a significantly varying range from 20% – 60% of base salary, depending again on location.
The table below breaks down the average compensation ranges across different time zones:
| NY / SF | Pacific | Mountain | Central | Eastern | Remote | |
| Base | OTE | Base | OTE | Base | OTE | Base | OTE | Base | OTE | Base | OTE | |
| SDR (entry level) | $50-$70K | $80-$90K | $55-$70K | $80-$90K | $55-$70K | $70-$85K | $55-$70K | $70-$85K | $55-$65K | $75-$90K | $50-$70K | $70-$95K |
| SDR (6 months) | $60-$80K | $80-$100K | $60-$75K | $85-$100K | $60-$70K | $85-$100K | $60-$75K | $80-$100K | $65-$80K | $85-$100K | $60-$80K | $85-$100K |
All compensation is listed in thousands of $USD.
Top Trends Affecting SDR Compensation in 2025
Several significant trends are reshaping hiring strategies, career paths and compensation structures for Sales Development Representatives in 2025. Here are the key developments for hiring managers to understand:
The Decline of Traditional Entry-Level Jobs in Tech
Entry-level positions in tech are becoming increasingly scarce as companies prioritize candidates with specialized skills and industry-specific knowledge. This shift makes it more difficult for recent graduates to break into the industry, especially given the inherently preliminary nature of the SDR’s role for GTM teams. The position provides a natural space for new entries to begin their career and gain valuable experience that will translate into higher-level sales skill sets.
However, with the economy still in a persistent loop of uncertainty and the increasingly demanding pace of sales cycles in tech, many companies are placing a greater priority on filling key roles with unicorn candidates that bring their own knowledge already. This approach helps cut down on the time it takes to ramp up new GTM hires to begin helping generate revenue, although it is creating unprecedented competition for the fewer remaining entry-level SDR jobs available.
Some disruptors – namely AI startups – are bucking this trend a bit and still hiring Sales and Business Development Representatives to fill out their go-to-market teams. However, this is not universal and even many of the companies here are folding prospecting and other traditional SDR responsibilities into the roles of Account Executives (AEs). There are also quite a few firms that are only hiring technical sales reps for their GTM teams, further raising the bar of entry for recent graduates.
Emerging Markets as New Hubs for SDR Talent
In response to the growing challenge of attracting qualified entry-level talent in traditional tech hubs, companies are increasingly looking to emerging markets when hiring for junior-level sales roles, such as:
- Southeast: Huntsville, Dayton
- Mountain West: Colorado Springs
- Northeast: Albany, Trenton, Providence, Rochester
- Canada: London (Ontario), Halifax
These regions often offer a lower cost of living alongside a higher-than-average supply of qualified candidates, making them attractive alternative talent markets compared to hubs such as New York. Local educational institutions in these areas are producing sales-ready graduates at increasing rates, creating new opportunities for companies willing to explore distributed team models.
Compensation in these emerging markets typically runs 10 – 15% lower than in traditional tech hubs, allowing companies to balance cost efficiency with talent quality. This geographic diversification strategy is proving particularly effective for SDR teams, where remote work models have demonstrated success even as other roles return to in-office arrangements.
AI’s Transformative Impact
AI has continued to change how companies approach lead generation and qualification, duties that have traditionally fallen under the roles of Sales and Business Development Representatives. While artificial intelligence offers potential benefits like speeding up prospect outreach and improved decision-making, it also raises concerns about unconscious bias and over-reliance on automation.
Full AI tool adoption is still slow in tech, but the potential enhancements the technology brings introduces new opportunities – with experienced human input helping to course correct the possible missteps. For SDRs, this means a potential transformation in their daily responsibilities, with artificial intelligence handling routine tasks while human professionals focus on higher-value activities like relationship building and complex prospect nurturing.
The Rise of Enterprise SDRs
The increasing emphasis on enterprise sales across the tech sector is driving notable specialization in SDR functions, with Enterprise SDRs (ESDRs) emerging as a distinct and valuable talent category. These specialized professionals need deeper industry knowledge, stronger technical understanding, and more sophisticated communication abilities than their counterparts working SMB or mid-market segments.
Enterprise SDRs operate in a fundamentally different environment, navigating longer, more complex sales cycles while handling fewer accounts with greater depth. Companies expanding their enterprise focus are finding these specialized Sales Development Representatives essential to their growth strategies, but increasingly challenging to source through conventional channels.
Access Real-Time SDR Salary Insights with Comp Engine
While the Betts Compensation Guide provides valuable insights, market conditions continue to evolve rapidly – and nothing beats real-time data when making crucial hiring decisions. Our proprietary Comp Engine gives you immediate access to current SDR salary benchmarks based on actual placements, not surveys or outdated information, helping you take control of your recruiting costs.Try Comp Engine here and transform how you approach SDR compensation planning in 2025.
Our top compensation trends for Account Executives (AEs) in tech for 2025 give an early glimpse into how the industry is transforming, particularly in the face of disruption. Market dynamics, evolving enterprise sales structures and evolving workforce expectations are all contributing to new patterns for AE recruitment.
Betts has released the latest update to our annual Compensation Guide, which delves into salary trends and strategic insights for tech sales, marketing and customer success roles. In this blog, we will explore how these developments are specifically shaping Account Executive earnings in 2025: