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The $3-5M Rule for Hiring SDRs Is Wrong
"Wait until you're at $3-5M before hiring an SDR" — Ray heard this from an attendee at a Dallas event who'd been given the rule by an EOS-type advisor. His problem with it: that rule treats the SDR as an expense you need to afford, not a revenue multiplier that helps you generate the money in the first place. "I can't afford to make more money until I've made a certain amount of money" doesn't hold up. At MSP Sales Partners, Ray's first two hires were SDRs — because when you're starting a business and need to drive demand, you hire the person who creates revenue, not wait until revenue shows up on its own.
The bigger lesson goes beyond SDRs. Business isn't paint-by-numbers, and most "rules" are just someone projecting their personal experience onto every business. Whether to hire — and when — depends on your demand, your constraints, and what role actually multiplies output at your stage.
What You'll Learn in This Episode:
- Why the $3-5M SDR rule treats a revenue multiplier like a fixed expense — and why that logic breaks down
- How Ray's first two hires at MSP Sales Partners were SDRs, and what he learned when organic demand changed the equation
- Why most business "rules" are overgeneralizations built on one person's experience
- The real question to ask before hiring an SDR: what's the core constraint in your business right now?
//
Welcome to The Ray J. Green Show, your destination for tips on sales, strategy, and self-mastery from an operator, not a guru.
About Ray:
→ Former Managing Director of National Small & Midsize Business at the U.S. Chamber of Commerce, where he doubled revenue per sale in fundraising, led the first increase in SMB membership, co-built a national Mid-Market sales channel, and more.
→ Former CEO operator for several investor groups where he led turnarounds of recently acquired small businesses.
→ Current founder of MSP Sales Partners, where we currently help IT companies scale sales: www.MSPSalesPartners.com
→ Current Sales & Sales Management Expert in Residence at the world’s largest IT business mastermind.
→ Current Managing Partner of Repeatable Revenue Ventures, where we scale B2B companies we have equity in: www.RayJGreen.com
//
Follow Ray on:
YouTube | LinkedIn | Facebook | Twitter | Instagram
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By Ray J. Green
4.5
1111 ratings
"Wait until you're at $3-5M before hiring an SDR" — Ray heard this from an attendee at a Dallas event who'd been given the rule by an EOS-type advisor. His problem with it: that rule treats the SDR as an expense you need to afford, not a revenue multiplier that helps you generate the money in the first place. "I can't afford to make more money until I've made a certain amount of money" doesn't hold up. At MSP Sales Partners, Ray's first two hires were SDRs — because when you're starting a business and need to drive demand, you hire the person who creates revenue, not wait until revenue shows up on its own.
The bigger lesson goes beyond SDRs. Business isn't paint-by-numbers, and most "rules" are just someone projecting their personal experience onto every business. Whether to hire — and when — depends on your demand, your constraints, and what role actually multiplies output at your stage.
What You'll Learn in This Episode:
- Why the $3-5M SDR rule treats a revenue multiplier like a fixed expense — and why that logic breaks down
- How Ray's first two hires at MSP Sales Partners were SDRs, and what he learned when organic demand changed the equation
- Why most business "rules" are overgeneralizations built on one person's experience
- The real question to ask before hiring an SDR: what's the core constraint in your business right now?
//
Welcome to The Ray J. Green Show, your destination for tips on sales, strategy, and self-mastery from an operator, not a guru.
About Ray:
→ Former Managing Director of National Small & Midsize Business at the U.S. Chamber of Commerce, where he doubled revenue per sale in fundraising, led the first increase in SMB membership, co-built a national Mid-Market sales channel, and more.
→ Former CEO operator for several investor groups where he led turnarounds of recently acquired small businesses.
→ Current founder of MSP Sales Partners, where we currently help IT companies scale sales: www.MSPSalesPartners.com
→ Current Sales & Sales Management Expert in Residence at the world’s largest IT business mastermind.
→ Current Managing Partner of Repeatable Revenue Ventures, where we scale B2B companies we have equity in: www.RayJGreen.com
//
Follow Ray on:
YouTube | LinkedIn | Facebook | Twitter | Instagram