SDR vs AE: The Difference between Sales Development Representatives and Account Executives

Charlie Mart
January 13, 2025
3 Minutes

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Deciding between SDRs and AEs impacts your entire sales operation. These distinct roles each bring unique value to the revenue generation process, yet many organisations struggle to understand where one role ends and the other begins.

What Makes Sales Development Representatives Different?

SDRs act as the first point of contact in sales. Their primary focus includes:

  • Finding new business opportunities
  • Making first contact with potential buyers
  • Screening leads based on set criteria
  • Setting up meetings for the sales team

What SDRs Do Every Day

SDRs spend their time on these key activities:

  • Reaching out to new contacts through calls
  • Writing custom messages to prospects
  • Building connections on LinkedIn and other platforms
  • Learning about target businesses
  • Checking if leads match buying requirements

The Role of Account Executives

AEs step in once leads show genuine interest. Their work centres on:

  • Leading product presentations
  • Writing sales proposals
  • Working out contract terms
  • Getting deals signed
  • Looking after client relationships

What Sets SDRs and AEs Apart

Experience and Seniority

Most people start their sales careers as SDRs, gaining essential skills before moving to AE positions. AEs usually need 3-5 years of sales experience to handle complex deals effectively.

How They Get Paid

SDR pay links to booking qualified meetings and creating sales chances. AEs earn based on deal value and meeting revenue targets.

Sales Stage Focus

SDRs work on finding and qualifying new opportunities, while AEs concentrate on moving deals forward and closing sales.

Creating Strong SDR-AE Partnerships

Good results come when both roles work well together:

  • Clear processes for passing leads between teams
  • Open communication about what makes a good lead
  • Shared knowledge about market trends
  • Weekly check-ins to track progress

Must-Have Skills

What Makes a Great SDR

  • Strong organisation skills
  • Clear and confident communication
  • Ability to handle rejection
  • Understanding of sales tools
  • Good time management

What Makes a Strong AE

  • Deep product knowledge
  • Strong deal closing abilities
  • Business case building
  • Long-term planning
  • Advanced sales techniques

Moving From SDR to AE

The path from SDR to AE takes:

  • Proven success in booking meetings
  • Strong understanding of the sales process
  • Good relationships with the wider team
  • Track record of hitting targets
  • Growing product expertise

Building Your Sales Structure

Key points to think about:

  • How many SDRs you need per AE
  • Steps for moving leads between teams
  • Ways to measure success
  • Growth plans for each role

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Tracking Performance

SDR Success Markers

  • Daily outreach numbers
  • Response rates
  • Meeting conversion rates
  • Lead quality scores
  • Pipeline contribution

AE Success Markers

  • Win rates
  • Deal sizes
  • Time to close
  • Customer retention
  • Revenue per account

Remote vs. In-House Teams

Both options bring different benefits:

Remote Benefits

  • Lower costs
  • Wider talent pool
  • Flexible scaling
  • Different time zone coverage

In-House Benefits

  • Direct team interaction
  • Easier training
  • Quick feedback loops
  • Strong company culture

Making Your Sales Teams Work Better

Tips for better results:

  • Regular training sessions
  • Clear career progression paths
  • Fair compensation plans
  • Good tech stack
  • Strong support system

Learn more about growing your sales team in our complete guide on hiring SDRs.

Working out the right mix of SDRs and AEs helps build stronger sales teams and drives better results.

Common Questions About SDRs and AEs

What's the main difference between SDRs and AEs?

SDRs focus on finding and qualifying new leads, while AEs work on closing deals with qualified prospects.

Do SDRs or AEs earn more?

AEs typically earn more as they handle larger deals and have more experience.

Can you have AEs without SDRs?

Yes, but in this case, AEs will spend more time prospecting instead of closing deals, which often reduces overall sales effectiveness.

What's a good SDR to AE ratio?

Most companies aim for 2-3 SDRs per AE, but this varies based on deal size and sales cycle length.

Charlie Mart
January 13, 2025
3 Minutes