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Transcript

OK10: How this CRO brings in $72K ARR per BDR, monthly, in SMB

w/ a 2:1 BDR-to-AE Ratio

Listen now on Spotify, YouTube, and Apple.

Learn how Owner.com scaled their sales team from 4 to 50 reps in 24 months while maintaining a 0.13 BDR CAC ratio through innovative outbound sales strategies.

Kyle Norton shares:

  • Why a 2:1 BDR-to-AE ratio works in SMB

  • How to achieve $72K ARR per BDR monthly

  • Building data-driven sales operations

  • RevOps investment strategy for scale

  • Machine learning for account scoring

Perfect for founders and sales leaders looking to scale efficient outbound sales teams in 2024.

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Who is Kyle Norton?

  • CRO of Owner.com

  • Host of the Revenue Leadership podcast (Pavilion Podcast)

More context about the Owner's Sales team:

- ACV: $5.5k

- Sales Cycle Length: 4-7 days

- Vertical SaaS: Restaurant industry

- Buyer personas: Restaurant owners

- Markets: North America

Some takeaways:

2:1 BDR-to-AE Ratio in SMB:

  • Maintains an unusual 2:1 BDR-to-AE ratio (19 outbound BDRs to ~8-9 outbound AEs)

  • Challenges industry standard of 1:1 or fewer BDRs per AE in SMB markets

  • Justified by impressive metrics: $72K ARR per BDR monthly with 0.13 CAC ratio

Specialized Sales Roles:

  • Completely separate inbound and outbound teams

  • Distinct SDR and BDR functions with different KPIs and processes

  • Controversial rejection of full-cycle AE model common in SMB

Machine Learning for Account Selection:

  • Built proprietary scoring model using Snowflake

  • Analyzed 300,000 businesses to identify 50,000 qualified targets

  • Uses regression analysis to predict both deal size and win probability

RevOps Investment Philosophy:

  • Maintains 1:20 ops-to-sales headcount ratio (3 full-time RevOps, 2 contractors)

  • Invests in operations before scaling, contrary to common practice

  • Front-loads systems investment rather than adding ops reactively

Channel Strategy:

  • Started with 0% outbound, peaked at 70%, now stabilized at 30-40%

  • Proves outbound can work in SMB despite industry preference for inbound

  • Successfully challenges the "inbound-only" dogma for SMB sales

Team Structure Decisions:

  • Uses pod-based structure instead of traditional 1:1 pairings

  • Separates inbound/outbound AEs completely

  • Focuses BDRs solely on cold calling craft rather than full-cycle selling

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Connect with Kyle:

Chapters

00:00 Building a highly efficient outbound team

00:48 The State of the Sales Team at Owner.com

01:48 Building an Outbound Machine

03:28 Hiring and Scaling the Outbound Team

04:02 Optimizing Deal Quality and ICP

04:57 Evolution of Outbound and Inbound Mix 06:42 BDR to AE Ratios and Efficiency

12:33 Dedicated BDRs vs. Full Cycle AEs

17:18 Importance of RevOps and Systems

23:57 The Challenge of New Skills in Sales

25:35 Building Outbound Systems at Owner.com

28:19 Leveraging AI for Sales Efficiency

41:04 Improving Conversion Rates Through Coaching

46:36 Hiring the Right Talent for Sales Success