Short answer: A commission plan for an SDR or BDR usually pays a base salary plus a bonus per qualified meeting and a smaller commission when those meetings turn into closed-won deals. In this example, OTE is DKK 45,000 a month with a 70/30 pay mix: DKK 31,500 base, DKK 450 per qualified meeting up to 20 meetings, DKK 675 per meeting above that, and 3% of first-year ARR from deals the SDR sourced.
The example is illustrative, not a benchmark: the numbers show how the plan calculates, not what an SDR should earn. Amounts are in Danish kroner (DKK) before pension. It is one of ten examples in commission plans by role.
Who is this plan for?
The plan fits SDRs and BDRs who book meetings for account executives but do not close deals themselves.
- Outbound SDRs who call and email new prospects.
- Inbound SDRs who qualify website leads. Here you can lower the meeting bonus and raise the commission part, because meetings are easier to get.
- Teams where SDRs and AEs agree on what a qualified meeting is and log it in the CRM.
If your SDRs close smaller deals themselves, the account executive plan or the inside sales plan is a better fit.
The plan at a glance
| Element | Example |
|---|---|
| Base salary | DKK 31,500 a month |
| Variable pay at 100% | DKK 13,500 a month (DKK 9,000 meeting bonus and DKK 4,500 commission) |
| OTE | DKK 45,000 a month (DKK 540,000 a year) |
| Pay mix | 70/30 |
| Targets | 20 qualified meetings and DKK 150,000 first-year ARR from closed-won deals per month |
| Rate | DKK 450 per meeting and 3% of ARR |
| Accelerator and threshold | DKK 675 per meeting from meeting 21 (1.5x). No threshold, but a meeting only counts once the AE has accepted it |
| Payout | Monthly, with the following month's salary. Commission on ARR is paid once the customer has paid the first invoice |
| Clawback | ARR commission is reversed if the customer cancels within 90 days. Meeting bonuses are not reversed |
Worked example: 70, 100 and 130% of target
At 100%, the meeting bonus is 20 x DKK 450 = DKK 9,000, and commission is 3% of DKK 150,000 = DKK 4,500. Together that is DKK 13,500, or 30% of OTE. In the example the SDR hits the same percentage of both targets.
| Attainment | 70% | 100% | 130% |
|---|---|---|---|
| Qualified meetings | 14 | 20 | 26 |
| Meeting bonus | DKK 6,300 | DKK 9,000 | DKK 13,050 |
| ARR from closed-won deals | DKK 105,000 | DKK 150,000 | DKK 195,000 |
| Commission (3%) | DKK 3,150 | DKK 4,500 | DKK 5,850 |
| Variable pay | DKK 9,450 | DKK 13,500 | DKK 18,900 |
| Base salary | DKK 31,500 | DKK 31,500 | DKK 31,500 |
| Pay for the month | DKK 40,950 | DKK 45,000 | DKK 50,400 |
At 130%, the meeting bonus is 20 x DKK 450 + 6 x DKK 675 = DKK 13,050. Pay ends up DKK 5,400 above OTE. At 70% it is DKK 4,050 below. ARR commission often lands a month or more after the meeting, so in practice the two parts rarely fall in the same month.
To compare the level with actual pay, see our sales salary guide for Denmark, based on Statistics Denmark data. More design choices for the role are in the SDR and BDR compensation guide.
Pitfalls
- A vague meeting definition. Write the criteria down, for example that a decision-maker attends and that need and timing are covered. Let the AE accept the meeting within, say, five working days so there are no arguments at payroll.
- Meeting bonus only. That rewards volume over quality. The commission part ties the SDR to whether meetings become customers.
- Too much commission. With long sales cycles, commission arrives months after the work and the link is lost. In the example it is one third of variable pay.
- No-shows and rescheduled meetings. Decide up front whether a moved meeting counts in the month it was booked or the month it was held.
- No ramp. New SDRs rarely hit full target in month one. Use a ramp period with a reduced target.
Danish rules to know
Short and general, not legal advice. Check your collective agreement and employment contract, and ask your lawyer or employers' association if in doubt.
- Holiday pay on commission: The employee is entitled to compensation for commission lost because of holiday (Danish Holiday Act, ferieloven, sections 17 and 19). Meeting bonuses and commission usually depend on the SDR being at work, so holiday normally causes a real loss. See holiday pay on commission.
- Sickness and parental leave: For salaried employees paid commission, pay during sickness and maternity leave must include the commission they would presumably have earned (Salaried Employees Act, funktionærloven, section 9(3)). Reduce the target of 20 meetings pro rata for days of absence, so absence does not cost the accelerator. See commission during sick leave.
- Bonus when someone leaves: A salaried employee who leaves during the financial year is entitled to a proportional share of profit shares, gratuities and similar payments (funktionærloven section 17 a). This plan has no period bonus. If you add a quarterly or annual bonus on top, describe what happens when someone leaves. See commission after resignation.
- Changing the plan: A material change, such as a lower rate or a higher threshold, must be notified with the employee's individual notice period. New targets that the agreement expects to be set each period do not, as a rule, require notice. Put the change rules in your commission agreement.
How to put the plan in writing
Use the commission plan template for the plan itself and the commission agreement template as an annex to the employment contract. For an SDR plan, write down at least:
- What a qualified meeting is and who accepts it.
- How a meeting is linked to a closed-won deal, and for how long after the meeting the deal counts, for example six months. That is a crediting rule.
- When commission is earned and paid, and when it is reversed.
- Targets and rates during ramp.
Try the numbers
See what the meeting bonus above target costs at different attainment levels in the commission accelerator calculator, and test pay mix and OTE in the OTE calculator. If SDR and AE share commission on the same deal, use the split commission calculator.
Related plans
- All ten commission plans by role
- Account executive commission plan
- Inside sales commission plan
- Sales manager commission plan
Terms and models used in this plan: OTE, pay mix, accelerator, activity-based bonus, split commission, clawback.
How Prowi helps
Prowi calculates the plan live from your CRM data, reps follow their earnings in the app, and once the period is approved the amount goes on to payroll. Book a demo to see your own plan calculated.
FAQ
How is SDR commission calculated?
Usually as a fixed amount per qualified meeting plus a percentage of the value of the deals those meetings lead to. In the example, 20 meetings and DKK 150,000 ARR pay 20 x DKK 450 + 3% x DKK 150,000 = DKK 13,500.
Should an SDR earn commission on closed-won deals?
It is a good idea to put part of variable pay on closed-won deals, because it rewards meeting quality. Keep that part big enough to matter but small enough that long sales cycles do not make pay unpredictable.
What is a qualified meeting?
You decide, but write it down. Common criteria are that the meeting was held, a decision-maker attended, and the AE accepted it as a real opportunity in the CRM.
How large should the variable part be for an SDR?
There is no fixed answer. In the example it is 30% of OTE. The more the SDR controls the number of meetings, the larger the variable part can be. Test your numbers in the OTE calculator.
Sources
- Danish Salaried Employees Act (funktionærloven), consolidated act no. 1002 of 24/08/2017, sections 9 and 17 a. retsinformation.dk
- Danish Holiday Act (ferieloven), consolidated act no. 152 of 20/02/2024, sections 17 and 19. retsinformation.dk
This article is general information, not legal advice. The worked examples are illustrative.