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20SalesJun 7, 2024

How Rippling Built Their Sales Machine: How to Hire

Train and Manage the Best SDRs, What is the Right Comp Package for Sales Teams & The Playbook to Start and Scale Your SDR Team

With Ashley Kelly · Harry Stebbings

Full transcript · 54 min · 11,389 words · 2 speakers

Cold open

I would say you want look for anyone that has about six months of experience, does not have to be in sales development. My favorite hires that I’ve ever made are people that actually come from recruiting. They’re super organized. On an inbound side, if you found someone that’s ever worked in a call center, really good profile. I actually am very bullish on sales development. I think it’s the third pillar within the go to market function, and I think that it can stand alone. SDR is kind of the bridge between marketing and sales.

Ashley Kelly0:00

This is 20 Sales

Harry Stebbings0:26

Intro

Harry Stebbings

with me, Harry Stebbings. Now 20 Sales is a monthly show where we sit down with the best sales leaders in the world to discuss their tips, tactics, and strategies to scaling the best sales teams. Today, we dive inside the sales machine that is Rippling, one of the fastest growing tech companies in Silicon Valley, now with a billion valuation. And joining us is Ashley Kelly, VP of Global Sales Development at Rippling. Before Rippling, Ashley played crucial role in scaling Brex’s outbound sales from million to over million in ARR and has hired over 800 SDRs during her time in some of the best tech companies, including Lever and Zenefits.

But before we dive into the show today,

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Harry Stebbings1:09

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Conversation

Harry Stebbings4:24

Ashley, I am so excited for this. So first, thank you so much for joining me today.

Ashley Kelly

Yeah, thank you for having me. I’ve been following along for a little while now. I just feel very honored to be on the 20 Sales Podcast.

Harry Stebbings

That is very, very kind of you. I I always love to start with kind of actually the love of sales. I think it’s often a moment. When did you realize that you loved sales and that this was what you wanted to do as a career and for life?

Ashley Kelly

That’s a good question. So I actually started my career working for NASCAR, which is probably, a topic for a whole nother day. But, world of sales, I started as an SDR at Zenefits. Very truth be told, I did not know what an SDR was. I thought I was going to be doing demos in person with customers. I was clearly very wrong about that, but I ended up falling in love with the top of funnel. The SDR to me is just such a special role that is, you know, both pipeline building but also career development at the same time.

And so I stayed on this side of of the sales funnel. And within three years of Zenefits, I left as a director. And then since then, I’ve built out sales development orgs at different tech companies out of the Bay Area. So Lever, Brex, and now Rippling.

Harry Stebbings5:30

SDRs traditionally is sort of as like, respectfully a grind and freaking hard. Career development. Talk to me about that element.

Ashley Kelly

Yeah, I would say the top AEs and best leaders that I’ve ever worked with have started their careers as sales development reps. I’ve always done this about all all the companies I’ve been at, but we do a lot of promotion from within. So we promote SDRs into the account executive role, account management, into implementation. In fact, if you look at my org today, about a third of my SDR managers have actually come from the SDR role internally. Definitely a career trajectory for salespeople.

Harry Stebbings6:04

I think SDRs and I I think fundraising is the same, which is like you’ve to go from rejection to rejection with no loss of enthusiasm. You mentioned cold call. I just want go straight to it. I mean, is cold calling still a thing? Like, is outbound still a thing in this way? Like, really? Are we not past that, Ashley?

Ashley Kelly

Oh, my god. That’s it’s like a trigger. It’s a trigger for me. I I think you know that Outbound is definitely still a thing. I have over 200 of them that would definitely prove what I’m saying accurate. And so I think outbound is definitely changing. Everything in sales is always changing. Right? I think if you’re still doing the same thing that you were six months ago, you’re not going to be successful. So to say that like, outbound or SDR is dead is like a little dramatic.

And now we have AI. And so I think there’s always going to be evolutions within outbound. But to me, the most important thing to remember is that there’s no silver bullet. And I think where companies make a lot of these mistakes is that they get excited about the the new shiny object and they of follow it like sheep. And then they put all their eggs in one basket. That’s when outbound and SDR starts to fail is they they take their eye off of the fundamentals of what makes it successful to begin

Harry Stebbings7:09

I actually like outbound, and I think it’s a craft when done really well. The challenge that I have is like, with AI and a lot of the tooling that will allow for outbounding at scale infinite, I worry that we’ll have just much less appreciation for it because you’ll be able to send millions of emails and the supply will be infinite. And so everyone will be like, ugh, block, block, and too much noise.

Ashley Kelly

I agree with that. I think I’ve I’ve probably been one of the sales leaders that’s been the most hesitant to adopt to AI. I do think where it will help SDRs, though, is eliminate a bunch of the busy tasks. And so like, the hardest part about being an SDR is the little details that you have to pay attention to all day every day, and that could be cleaning and scrubbing your accounts, making sure you have the right contacts, the right phone numbers to make those cold calls effective, the right emails so that you have deliverability.

And so I think AI can actually help just make that easier and free up more of an SDR’s time to where they can focus on more personalization and LinkedIn connects and all the different channels that really require a human outside of AI. So I think there’s a lot of leveraging that can happen there.

Harry Stebbings8:14

I’m interested. When we think about like SDR accountability or where it sits, should SDRs roll into marketing or should they roll into sales, do we

Ashley Kelly

think? I have my my honest answer, but I’ll give you two other ones first, because I think there is different schools of thoughts on this. And really, it really could be either. I’ve actually done both. So I’ve been in orgs that have reported to marketing, currently in one that reports into sales. They have different use cases. So I think if you’re a heavy inbound org for SDR, there’s a lot more science to it. And being really tightly aligned with the team that’s driving the funnel is where you have that feedback loop that is so important.

And so when you think about an inbound funnel, if you’re thinking about what we call leads we call MQLs, right, that are coming through, and then having to convert those into an SQL, which is essentially a demo set for for an AE. And like I said, the feedback loop for the quality and the volume of those leads is so important. Again, if you have a big inbound org reporting to marketing, that makes it so much easier to do. Now if you have a big outbound org, there’s more of an art to sales development at that point.

You have to be a lot more proactive in the way that you’re engaging cold accounts. You need to be able to educate them on a product they probably have no idea even exists or pain points that they don’t even know that they have. It’s much more of a sales motion. I think that’s where it’s more successful rolling into sales. And as I mentioned, we do a lot of promotion from within. So sales development reps want to be account executives. And so if they’re already in the sales org, it makes it that much easier for them to learn from AEs and to really like progress into into their sales career.

Harry Stebbings9:47

You mentioned there about kind of when it’s a heavy inbound model and actually that MQL to SQL, should they not be like a pretty good hit? Like if there’s a big difference between MQLs and SQLs, aren’t the MQLs not doing their job very well?

Ashley Kelly

It’s a It’s a fair point. I would say it’s the different types of MQLs and where they convert. So you have like your high intent ones, which are a demo request or someone that’s clicking contact us. Like, yes, that should have a higher hit rate. But if it’s lower intent, like they’ve just downloaded content, they might not actually be like, ready to be in a buying motion or to be speaking to a salesperson. So we do see different conversion rates across different types of MQLs. But that’s why it’s important to be tied very closely to your marketing team so you can talk through those.

So it’s like, how do we actually get more demo requests coming through our funnel than people just clicking on a white paper? paper?

Harry Stebbings10:30

Okay, so heavy inbound model, we’re like, SDRs can under marketing and then outbound model, they sit under sales?

Ashley Kelly

Yeah, but then my real answer is neither. I think I actually am very bullish on sales development, if you can’t tell. And I think it’s the third pillar within the go to market function. And I think that it can stand alone. While I report into our CRO at Rippling, the relationship that we have is really SDR is kind of the bridge between marketing and sales. And so all of inbound and outbound sits underneath my org. But we work very tightly with marketing to run ABM campaigns and just strategic outreach for our one and tier two accounts.

And then same thing, partnering with sales, making sure are we targeting the right accounts that you can actually close that are going to become revenue and not just fit our top of funnel model. So that’s my bullish answer is that I think it’ll be the third pillar.

Harry Stebbings11:20

How does that sit in structures then? like I think people like to think of like all structures with different functions. When we say it’s a different pillar, how does that actually look and how should we actually think about that as founders building businesses?

Ashley Kelly

I think probably depends on the scope of your of your CRO. For us, that that’s how it works. I report into the CRO. Marketing does not report to the CRO. So I guess you could technically say that like, it is still within sales. But I think it’s really how you define the relationship internally of how those three teams actually partner and go to market as opposed to, I think, a lot of companies view SDR as as more like order takers. And I think it’s super important to give SDR orgs like, the autonomy and the ability to really build their own strategy and execution.

Harry Stebbings12:03

So do you think AES should be responsible for their own needs as well, or do you think they can solely rely on SDRs given how good you are, Ashley?

Ashley Kelly

I’ve only seen AEs prospect successfully a handful of times. It’s always the top AEs. I think it should always be an option. Absolutely. I think if you can drive the right volume and the right quality of pipeline to an AE, an AE’s time is better used closing and not prospecting.

Harry Stebbings

Which company that you’ve worked at was best in SDL?

Ashley Kelly

Rippling. the volume that we’re able to crank out while also supporting not just new logo sales, but we also dive into product. We also are in the customer base helping with cross sell and upsell. It’s probably the most complex SDR org I’ve ever led. We support about 31 different functions across the business.

Harry Stebbings

This is so confusing. You do cross sell and upsell. Like, this is like verging on account management meets customer success. Like, are we not just crossing a load of functions now?

Ashley Kelly13:00

Well, I mean, it depends on on where you again, think we’re an AE or AM’s time is best suited. And so when you have SDR resources that are able to go into the database and be able to find the customers that we are able to cross sell, I mean, we have so many different products. We have the luxury of being able to do that and it works from, you know, a CAC paybacks perspective. And so it’s very unique. You know, we’re a 350 person SDR org, so we’re an army.

Harry Stebbings

350.

Ashley Kelly

Yeah. Between leaders and SDRs. Yeah.

Harry Stebbings

That really is NAMI. I do want get to like hiring these people now. We mentioned a little bit beforehand in terms of your hiring in Dublin and you mentioned that like 350 How many have you hired in your time, Ashley?

Ashley Kelly

800 SDRs, I think, in the last decade, probably, across all all different companies. Yeah, I’d say Zenefits was the big one with that we did about 250, and then now Rippling, obviously, with about 350 And 200 of those have been just within the last year. So we’ve been on a hiring tear, I would say. And that’s, again, across all different regions.

Harry Stebbings

Okay, let’s start. When’s the right time to hire your first SDR? If you have a founder coming to you, should they hire like a an SDR first or should they hire a head of sales first who can bring with them SDRs?

Ashley Kelly14:09

I would probably hire a like junior AE, someone that has done the prospecting, but also knows how how to close and someone that can be in the weeds and helping build out the process and scale. I’ll give an example. When I was hired at Brex, I came in at the director level, but I would not suggest doing that for your first hire because you need someone that is going to be able to create the sequences, do the cold calls themselves. And I did all that stuff.

I was willing to do that. But you to find the right person that’s going to, you know, have that title that’s also willing to do the grind that you said that it is. And then once you can start proving out that it works, you get a little bit of traction, that’s when you can start hiring some some additional SDRs. And those SDRs can can have less experience. But I do think your first hire should be someone like not fresh out of college and definitely not their first SDR role.

And I think that’s another place where where companies fail is they think that they can just plug someone in and they’re going go know what to do. And it’s actually a little bit more complicated than than that.

Harry Stebbings15:05

Should the founder always be the one to build out the first sales playbook?

Ashley Kelly

Yeah. And if not the founder, someone that is either high up in marketing or in sales if you have like, I guess it depends on how big the company is. But in my mind, a founder should always be the the main seller, definitely the main storyteller. Right? And that’s how you create the content that you need to build your sales playbook is what is the vision? Like, what are we solving here, and what are we building, and being able to translate that into something that works for prospects.

Harry Stebbings

So you’re an angel in my hypothetical company, and I’m like, great, we need to hire SDRs. Okay? I have no idea how to hire SDRs. This is not a hypothetical situation when I say I’ve never hired an SDR. How do I structure the hiring process for an SDR, And what would you advise me as granular and as specific as possible? Because I don’t know.

Ashley Kelly

From a profile standpoint, I would start there. And again, this depends on, like, the state of your org, how much, like, enablement or manager support you have. But typically, I would say you wanna look for anyone that has about six months of experience, does not have to be in sales development. My favorite hires that I’ve ever made are people that actually come from recruiting that want make the transition into tech sales. And a lot of that is because they’re super organized. They’re making calls all day to people who are probably not in the market just like a prospect is not in the market.

Right? And they’re having to sell. Now they’re selling something different, but they have that rhythm, and that’s super important. I’d say on an inbound side, if you found someone that’s ever worked in a call center, again, that’s another really good profile. I’d say the hardest part about SDR is the is the cold calling. And there tends to be a lot of resistance with that. It’s much easier to hide behind sending emails. Right? And so if you find people that have already built their confidence and found their voice over the phone, like, you’ve launched miles ahead of, like, the first hurdles that you’re to run into when it comes to skills or an SDR.

Harry Stebbings16:55

Okay, so interview process. What questions do I ask in this process to understand whether you’re a potentially good candidate?

Ashley Kelly17:03

So this is an interesting one because when you’re interviewing salespeople, you can actually ask, like, what was your quota attainment? What’s the biggest deal that you’ve ever sold? Right? Like, there’s like, you ask for experience, and it’s like the complete opposite for sales development because you’re having to interview for traits and skills that are intangibles almost, right, Or stuff that they’ve learned in school or just having grown up in in life experiences. But I usually bucket them into into three different categories. So the first being coachability and ability to navigate change.

So do they take feedback well? So, you know, when their manager is critiquing them, they could do they appreciate that? Do they have like a growth mindset? Right? the

Harry Stebbings

How How do you know that in an interview? Because everyone says they’re coachable.

Ashley Kelly

So the navigate change in coachability, like, I’ve specifically had a question that said, tell me a time that you that you failed at something and that you were given feedback. And how did and how did you react to that, and how did you implement that feedback? So asking like some very straightforward, tough questions and and expecting them to give examples. And and sometimes the examples are silly. Right? It’s like my teacher got mad at me because I didn’t turn in my assignment at the right time or something.

But as long as they can think on their feet and not be afraid to show that they have failed before, because I think that’s the big thing. It’s okay to fail. You’re going to fail in sales, like, especially in your first one. So like, like, give me an example of when that’s happened and and when you were coached and how you implemented that feedback.

Harry Stebbings18:23

Okay. So coachability and implementation of feedback one.

Ashley Kelly

And then the next one I would say is like motivation factors. So what what gets them up in the morning every day.

Harry Stebbings

Do you find is a good answer to that? Because I asked this of founders and I don’t find it leads to much substance. substance. What what what should we look for?

Ashley Kelly

I like two answers. One being money motivated, which means like, basically they’ll, you know, I don’t wanna say do anything to be successful, but like, failure really isn’t an option for them. And then the other would be, which this was my answer as I was always interviewing is I wanted to be a VP of sales development. So I wanted the growth and I wanted the title and the recognition, and that is something that always motivated me. And so I think it’s just interesting to hear how people answer.

Part of that is you can ask like, why sales? And I’ll tell you the worst answer you can get is when someone tells you, well, because my dad or my mom was in sales and they think I’d be good at it. And I’m like, oh God, Like, you have no idea what you were signing up for. So like, you have to really want it. And so I think there’s like, you know, some triggers. And again, after hiring 800 people, like, you of figure it out very quickly who has the grit within them that can actually be successful in this type of role.

And then the last thing would be organization skills. I can’t tell you, like, how many different tools and tabs and things that an SDR has to click through all day, every day, every minute matters. So the more that you can be organized, you’ll be more successful.

Harry Stebbings19:44

Again, how do I tell in an interview? I’m terribly unorganized. I have an EA. thank God. Otherwise, I wouldn’t be at anything. But I would tell you that I’m very organized.

Ashley Kelly

I mean, I ask how, and one of the answers I expect is like, they live and die by their calendar. Right? And again, a lot of these people could be coming out of school or in a type of role that relies on organization. But answering like, you know, I have I have calendar blocks. That’s a big thing for SDRs to be successful is they’ll block off their calendar for different times that are dedicated to calls, dedicated to scrubbing their accounts, dedicated to personalizing emails. And so if someone is very type A in the sense that they are, you know, live and die by their calendar, they’re they’re more likely to be successful.

Harry Stebbings20:24

Do people admit to being money motivated?

Ashley Kelly

Yeah, of course. We’re in sales.

Harry Stebbings

They do? I’m surprised. I thought it’s kind of like a taboo subject where it’s like, it feels dirty to be like, yeah, yeah, I’m into the money.

Ashley Kelly

I think that’s a UK or European thing. I think in the States hiring, like, absolutely people have no problem saying that they are money motivated.

Harry Stebbings

That is fantastic. I’m thrilled. So when we we now we’ve kind of got those kind of three core traits. Is that in one meeting? Is that in two meetings? Just help me understand, like, do we do a test? Do we Do a role play?

Ashley Kelly

Yes. We’ll have a hiring manager that has a phone screen and then we do, you know, two to three actual panels, what used to be in person, sadly, is now over Zoom in this new modern world, but essentially an in person interview. We do, we do, role plays and we do an email assessment, actually. And for me, both of those are equally important. I don’t expect someone to nail the role play. Right? They don’t work for us. They haven’t gone through our training program or anything like that.

But if someone gives you feedback on the role play and then you do the role play a second time, if you’re not implementing that feedback, then you’re clearly not what we talked about earlier, coachable. Right? You’re not implementing the feedback. And so it’s a it’s a way to, like, test it live.

Harry Stebbings21:34

What is the role play? Is it like, pitch us Rippling? How do you structure that? How long do you give them? Just talk me through that.

Ashley Kelly

Yeah, I’ve done a few different ones. Like, you know, the traditional, like, elevator pitch. So I give them a scenario. It’s like, hey, you’re in the elevator. You bump into a director of HR. You see that they’re going to a conference, they’re talking to their peer. How do you bump in and talk to them about what Rippling does and and and offer? That’s an interesting one to do.

Harry Stebbings

How often do they do it well? I mean, again, this is not a company that they’ve worked for before. This is your company that they’re coming in news. They don’t know all the product nuances. They don’t know everything that you know. How often do they do it well?

Ashley Kelly22:11

I’d say about 50% of the time. But again, it’s like, I’m not looking for them to nail the pitch. I’m looking for the manager that’s interviewing them to give them feedback saying, hey, your tone sounded like this, or you should have asked more upfront questions about this. And then for them to do it a second time and to actually add those couple pieces in, to me is a good good sign of someone that I’d I’d be willing to take a bet on that we can actually coach and develop into the role based off of, you know, all the trainings and things that we’ve built over the years.

Harry Stebbings

So we have that elevator pitch. You got 60 seconds. Go pitch this key account. The other one you mentioned was the email test. I haven’t this is very exciting. I haven’t had this before. What is an email test?

Ashley Kelly

So what we want see their writing skills, right? A lot of the times we are booking demos over email. We have sequences and we have templates that we use. But when you get an objection, it’s really important to make sure, just like the active listening on a cold call, that you can actually actively read. And so are you actually taking the content that the prospect is responding to? Are you mirroring their language? Are you able to actually respond in a in a short, cohesive way to actually continue the conversation, engage, book a demo?

So that’s one example. We also do cold email outreach as well. So the why you, why now framework that I grew up with, I still think it is, like, super valuable. And so, again, being able to be relevant with your information of why you’re reaching out to a company, why you’re reaching out to that persona specifically, and seeing someone connect those dots in their email is a good sign that they will be a good SDR.

Harry Stebbings23:43

Where do they fuck up more? On the role play or on the email?

Ashley Kelly

Email’s getting a lot tougher because of AI. Okay? So there’s another reason that I’m a little hesitant with AI, because they could use that and send over the email and, like, we don’t know if it was actually them that that wrote it or if they use ChatGPT or something.

Harry Stebbings24:01

But does it matter? That’s an interesting one. The output is the same. Like

Ashley Kelly

Maybe yeah. that’s a good that’s a really good point. Maybe it doesn’t matter. And they’re being resourceful they’re using tools that that are gonna make them a better SDR.

Harry Stebbings

Yeah, I would give them more credit for that. It’s like, great. You can probably do more scale. And if I didn’t know, it’s probably pretty good.

Ashley Kelly

That’s actually a really good point. I will take that back. That’s a good point.

Harry Stebbings

Yeah, I I think that’d be great. Okay, that’s super interesting. Do you find SDRs are, like, really wanting to engage with AI tools or not? Is that fair?

Ashley Kelly

I think a handful of them do, yes. One thing about tools in general with with my SDR is, like, I usually rely very heavily on them because they are the ones who are in the weeds all day, every day, and, like, they’re trying to make their lives easier too. And so when they come to me with a tool that they think is to help them with their job, I’m like, all let’s check it out. I’m way less inclined to be the one that’s to go look at at the tools. and so I rely very heavily on my reps and their their inputs of what they think is going to help them.

We just started using Clay to help with personalization, and that’s been, like, very recent. So I’m excited to see not only how it’s, like, impacted our numbers, but how reps are liking it too.

Harry Stebbings25:05

So we’ve done email tests. We’ve done role play. We to give this candidate the job, actually. got no idea how much to pay them, and, like, how much should be in terms of, like, actual salary versus, like, bonus, how we should structure that. Can you help me understand the actual financial package?

Ashley Kelly

Yes. So finance package will be determined based off of geolocation. So we have different markets markets that are more expensive for cost of living. So those are a little bit higher of a total OTE. But as far as the comp structure, we do a 70% base salary, and then we do 30% based off of their variable, which is tied to their quota. And so their quota is based off of what we call stage two opportunities. So basically a demo has been held by an AE. The AE has decided, yes, this is a director hire within one of our personas.

It’s something that can actually be a customer of ours. We have next steps that we’re to continue the conversation, and we’re going to try to make them a customer. And then the AE moves that into stage two, and that’s when an SDR gets their credit for it. And then each team, segment, function line, whatever you solving call them, they all have different quotas based off of the TAM and types of roles that they are.

Harry Stebbings26:16

Do you think that’s right? And what I mean by that is, it doesn’t actually it

Ashley Kelly

doesn’t wrong about it. You tell

Harry Stebbings

me. it doesn’t actually tie to revenue.

Ashley Kelly

It’s a fair question. But in taking a step back, your entire financial model should add up to revenue. Right? Let me take actually a step back. You can actually I have done this before. I have put SDRs on a revenue model. And we did, we moved SDR onto revenue, but there’s very few companies and very few examples of when it actually works. The reason it worked at Brex was we were highly transactional. Our deal cycle was, you know, two to three weeks and it was GMV it So it was consumption based on on what was being spent on the card.

Very different than an ARR model, which in most SaaS companies is longer deal cycles. And SDRs aren’t in the role that long, and they need to have more transactional focus on their goals. And so that’s why we do monthly S2s. I will say the pros of when it works. so when it worked at Brex, we were able to 3x the referring revenue that SDRs brought in within six months. So trust me, I’ve done it. I’ve seen it work. There’s also times that I don’t think it works and where I’m not a proponent of it for right now where we’re at Rippling.

I think at some point we will have teams where absolutely it makes sense, but it has to be what you’re solving for. And I think a really good example of that is the volume of demos versus the quality of them. And once you start getting too much volume with not enough quality, that’s when you have to improve the threshold of what you’re comping SDRs on. The other thing at Brex is once we started comping them on revenue, the S2s is absolutely tanked. So there weren’t enough demos and at bats because people were hitting quota at the revenue side and we weren’t giving enough, yeah, at bats or demos over to the AEs.

And any sort of finance model, that’s kind of how you build it is based off of how many, you know, opportunities that account executives get.

Harry Stebbings28:06

It’s funny. It’s what is it? Show me the incentive and I’ll show you the outcome. And by the way, there is zero questioning of me on SDRs to you.

Ashley Kelly

I It’s I mean, it’s a fair question and I I get asked it all the time. And trust me, there’s times I’m like, shoot, should we do it on this team? Because this team has a bunch of volume that’s happening right now. You have to ask yourself, are what are you solving for? And obviously, we’re all solving for revenue, but it’s the means to the ends that that matter too.

Harry Stebbings

Has the way that you hire SDRs changed over time? You’ve mentioned hiring 800. When you think about the early days of hiring SDRs compared to now, how has it changed?

Ashley Kelly

It’s funny you say that because pre COVID, I probably never would have hired an SDR that had SDR experience. I would have preferred to hire people fresh out of school that we could, you know, really like, mold and grow into the role. My fear back then, not anymore, but my fear back then was that SDRs, I would have to break a lot of their habits and then, you know, reteach them our ways at at at our company and our process. Also, there was always the the thought of, well, if you’ve been in SDR, you know, for a year and you haven’t gotten promoted yet, one, why?

Two, are you going be willing to sign up to be an SDR for another year at our company? Because, again, it’s a grind, but that was kind of a red flag back pre COVID. Now we have so many different tech layoffs that are happening left and right. There’s one of the first orgs to go typically is SDR. And so there is a lot of good talent that’s out there that has had previous experience that just kind of got the short end of the stick going through these rifts.

And so it has changed quite a bit that now we hire more people that are coming from the SDR role because there’s more talent out there that’s available.

Harry Stebbings29:39

People always say, if you’re part of the rift, you aren’t one of the good ones. Is that fair?

Ashley Kelly

Well, it Was that pre COVID, would have said that. Yeah. But now it’s like, I’ve hired these people. I’ve seen them do a great job. I think you probably have to just really trust your gut and trust your interview process. Do some channeling if you can. You know, a lot of these companies, we see top AEs and leaders that have been cut too. You can start to know people’s reputation and get feedback from people on on whether people were good or not.

Harry Stebbings30:06

What are the biggest hiring mistakes that you’ve made when it comes to hiring SDRs?

Ashley Kelly

We were when I was at Zenefits, I was a new manager. I think I had 35 reps reporting to me, which is already a a terrible thing that was happening. But we had huge hiring goals. And I remember we hired people off of just 30 minute phone screens, and that was it. So it was a true, like, just needed to get butts in seats as fast as possible. And clearly the takeaway was like, oh my gosh. Didn’t spend enough time on the quality of interviews, making sure we had the right talent that was coming through.

And really like the buy in from the candidate too is they’re probably like, really? I just got a job off of a 30 minute phone screen. That was probably my biggest mistake across the board. I feel like I’m in therapy now telling you this.

Harry Stebbings

I to move to like the onboarding side now. So we’ve got these amazing SDRs. You said You often quite like the man of school. How on earth do we onboard SDRs effectively, Ashley?

Ashley Kelly31:02

One thing that’s very unique, I think, to the way I’ve always built teams is I have my reps on the phone by week two. So kind of learning a lot of like trial and error. What I found over over the years, like I think the old like Yelp model was they kept them with like a different team for a month or so, and then they would finally join the floor. They’re not producing until month three and boom, boom, And so when I just look at my cohorts of when we’re hiring people, it’s like, how do I just get them producing sooner?

And a lot of that was like, let’s give them their books sooner. And so when they’re learning how to scrub accounts and identify the right contacts and use the different systems and tools to put them in sequences, they need their actual accounts to be able to do that.

Harry Stebbings

Week one then, what are we doing in week one to make them ready for week two calls?

Ashley Kelly

So week one is like company onboarding, heavy focus on, like our product, focused on our competitors, things like that. Week two is more about how to do the SDR job. So here are the different systems and tools that we use, which is like, Sales Navigator, info, all that fun stuff. We use Outreach, which is the email sequencing tool. And so teaching them how to actually do that. And then towards the end of the week is when we give them their books and they can actually start doing the job.

Now, I don’t expect them to do the job at full scale in week two or week three, but we give them ramping goals. They’re on a ramping quota as well. So it actually takes them until month four to be on full ramp. But every month leading up to that, they do have some sort of quota so that they learn that muscle that they like, build their pipeline. And so it’s kind of like a compounding baby steps.

Harry Stebbings32:35

When you say some sort of quota, does that mean they should be closing dollars in month one?

Ashley Kelly

No, No, they don’t know. So they won’t be closing closing deals at all. So like a full month quota, if they’re fully ramped is eight S2s a month. So on month one, it’s like two, and then the next month is four, the next month is six, and then they’re on eight. So it builds up to that.

Harry Stebbings

How do you think about good numbers to set? This sounds awful. Forgive me for it. Like four. That’s one a week. That’s an awful lot of time for one S2 So

Ashley Kelly33:07

So So you’re wrong. You’re not wrong. Trust me. Parker, my CEO, says the exact same thing to me. You’re not wrong. But no. The reality of outbound is that it takes time for these things to compound and to start actually yielding results. So when you start sending, you start working account or contact, on average, it takes about two weeks for a sequence to start actually being effective. And so you’re not really getting responses until, you know what I just said, they they don’t even start working them till their second week.

Third week, they’re putting them in sequence. typically. it takes two more weeks for them to start getting like, the real responses and start building that. And they’re not even doing it at full capacity yet. So it takes time for this to like compound. That’s the main reason why. But to answer your question more specifically from like a data and science standpoint is that we look very heavily at our account to S1 conversion rate and account to S2 conversion rate, and we look at that monthly.

Harry Stebbings

I’m I’m so sorry. Account S1 is what Account S2 is what?

Ashley Kelly34:02

So if I give you, let’s say at a 100 accounts, right, and you are working, let’s call it 10 a day, I want look at when you start working those 10 accounts, how long does it take for one of those to become a stage one opportunity in a demo? And what is the conversion of that cohort? Because that’s how we know where where to set a lot of our targets for S2s is because we know how much we can convert these accounts into opportunities.

Harry Stebbings

How does the targets differ on ACV? And what I mean by that is like, if we’re doing like, I don’t know, PLG PLG, but with expansion. But it’s like small ACVs coming in five to 20k ACVs versus big 100 k ACVs. Does that differ our expectations on stages and what should qualify?

Ashley Kelly

Yes. Well, it doesn’t change stages of what would qualify. It would change quotas that we would set for people. So the lower the ACV, the higher number of S2s you actually need to be producing. Right? Because it has to make sense from a CAC payback perspective. And so we do a lot of work. I mean, this is what my RevOps ops team focuses on all day, every day, And we make sure that the production of the SDRs is per rep production and they are hitting the number of S2s that they need to because it has to make sense in the finance model.

And so we look at not only number of opportunities that are being assigned to each AE, but win rates, ACVs, and then to your point, any sort of like product attach rates that could be in addition to those, which actually always obviously helps the CAC.

Harry Stebbings35:30

Fully ramped. So we’re like four months. Is that when we expect to be totally productive?

Ashley Kelly

Yeah. And we see some people sooner. Absolutely. But like four months is from a modeling perspective, like that’s what we expect is four months.

Harry Stebbings

How quickly do you know if you’ve made a mishire?

Ashley Kelly

Month two. And it’s it’s not even usually based off of the S2 performance. It’s usually based off of their ability to master the KPIs that that come before that. So how many calls are they making a day? How many emails we expect a certain amount of accounts and contacts getting into sequence, and so there’s a lot of inputs that get to those S1s and S2s And if they’re not able to do the inputs, like, that’s a huge red flag, right? That’s either it goes back to what I said before, that’s either, like, effort or, like, there’s there’s a reason it’s not happening.

It’s not, you know, hard to accomplish those things.

Harry Stebbings36:18

Do you really see the difference between good and great very early?

Ashley Kelly

Yeah.

Harry Stebbings

What are the signals of good and great very early? Is it just like, in first and out last and just giving it the time and effort, or are there other signals that really?

Ashley Kelly

For people in office, yes, And people that are, like, have a good prep, like, presence on the floor and everything, making their calls at their desk versus going and hiding in a in a phone booth, you know, out of fear is one easy one. I personally love when and I meet with all the new hires when they first start. I do, like, a welcome thing with them. fact, I’m doing one today. And I always tell them my calendar’s open, Like, come find time with me. Like, let’s let’s meet, talk.

I’m happy to help. And the ones that immediately put time on my calendar, I swear, are the ones that end up being successful. And it’s not because of anything I did, like, at all. It has to do with, like, their proactiveness and the fact that they actually give a shit about their career and they and they want to, you know, meet with a VP and see what they should be doing in order to stand out. and, those are the ones that tend to be top performers.

Harry Stebbings37:11

How do you manage morale when they’re not hitting? When it’s just maybe it’s a hard market, maybe people aren’t buying. I don’t know why, but people are just down. How do you manage morale?

Ashley Kelly

It’s hard. Once morale hits, it’s one of the hardest holes to dig out of for sure. And, you know, with an org as big as ours, like, not every team is humming at 100% all the time. Like, we you know, there’s ebbs and flows of different teams different for different reasons. But I think it’s like, one, you have to, like, wrap your arms around them. You need to get, like, very close and, like, make them understand that, like, you are here to help them be successful and then really hyper focus on the basics.

So going back to those inputs, like, let’s celebrate the small wins. Did you get your 70 dials today? Great job. You connected with how many people? Awesome. You had a conversation with the CEO. How did that go? Let me hear the let me hear the recording and I’ll give you some feedback on it. So it’s like it’s getting as close as you can to the business and close to you as you can to the to the the people and just working on improvements day in and day out.

It’s one of the hardest things to overcome, though. We also try and do fun spiffs and offer like rewards and competitions and stuff where it might not be based off of like the s S2s which is the monthly goal, but there’s daily and weekly ones that you can win. Again, it’s all compounding.

Harry Stebbings38:19

What would be an example of that? Because I like actually shorter term goals. There’s a brilliant Tim Minchin speech and he says, you know, Americans are to blame for our big dreams. We should have short term micro ambition that we chase with passion. And I like that a lot.

Ashley Kelly

I do too. And that’s why I love SDRs. It’s a daily function. Like you could be I could have a rep right now at the 22nd and they’re not even close to Target, but we still have at least six days of selling that we can like, make an impact on this month, and they could get to their quota still. And so that’s the cool part about SDR. Like, sales is very different, right? Like, it takes can take months for deals to progress. But an example of it, we’ve done a lot of spiffs that are what I’ll call a fast start.

And so we’ll want people to get, you know, halfway to their quota by week one of the month. And so then they’re like already pacing and set up for the rest of the month. So anytime we do a spiff, it’s always tailored around how what the end goal is, right, Like any incentive should be. We also do a lot of call blitzes. We have paired people up together. We’ve done competitions where regionally, like, we’ll have, you know, West Coast versus East Coast. Whoever, you know, has the most dials with the most connects gets put into a raffle and then we draw the raffle and they win money.

There’s a lot. We did March Madness. Like, there’s a lot of creative, like, fun things you can do too. And that’s the best part about SDR is like, these teams are fun. They want have a good time. And again, back to when we said, like, they’re making 100 calls and getting told no all day. It’s the more fun you can make it, the better.

Harry Stebbings39:44

So I’m, for my sins, kind of a marketer in many ways. I love content, and I think content is, you know, the superpower. Like you think SDRs is the superpower. Marketing and content should sell you entirely to contract signing if done well. But I’d be pissed if I was an SDR and people didn’t know our brand. I’d be like, you marketing team didn’t do your job. and that would have helped me a lot in the process. Because it’s much easier if you send me an email and I’m like, oh, Rippling.

Yeah, great. I’ve heard about you. Is there tension between SDR and marketing?

Ashley Kelly40:17

I wouldn’t say there’s tension between it. I’d say there is a lot of opportunity still in the ABM world for teams like SDR and marketing to partner better together. It’s a muscle we started about last year. We do a lot of direct mail campaigns, help, you know, kind of warm up the awareness with the prospect before an SDR will call in and start doing emails. Content, I think, is really nice actually for SDRs. It’s really easy to send like a white paper over or something to them that they you’re of putting the ball back in their court, and then that way you’re able to follow with them later because you did what they asked.

So I think those are all super important LinkedIn ads, making sure that marketing. I

Harry Stebbings

don’t know why SDRs aren’t way more effective. Sorry, I’m going off on one. But like, you choose your ICP, start a podcast interviewing the world’s biggest and best in that ICP. If I worked for you, this is what I’d do. You give me a segment, I’ll start a podcast interviewing the biggest, I don’t know, CHROs in software companies between and people. And now I have a reason to twice a week meet the biggest CHROs. What an unbelievable lead funnel I’m getting. And I’m

Ashley Kelly41:21

hired. Harry, you’re hired. That’s That’s great. We haven’t doubled in podcasts, but I will say events now that those are back have actually been very successful. And I also think it depends on who your persona is. HR people love love going to events, and so we’ve had a a lot of success at the last couple of SHRM events we’ve been to.

Harry Stebbings

I do to go back. You know, You mentioned at the start, 350 now in your SDR team. What are the points in scaling an SDR team to that stage?

Ashley Kelly

You definitely need the right senior leaders. I would say one of the most challenging things has been the international piece. We just move so quickly. And by the time I wake up and I’m talking to my team in EMEA, it’s like they only have a couple more hours left in the day that they’re working. And like, we miss out on a day all the time. And so we’re a heavy Slack culture, which is good. So we can, you know, get messages to each other that are important as fast as possible.

But I’d say that’s been the biggest muscle that I’m learning is how to, you know, in a disperse that big of a dispersed in geographical time zones, being able to still run as fast as we always have.

Harry Stebbings42:22

How do good SDRs go bad? I know that sounds strange, but you mentioned it being quite a short life cycle in terms of people often on an SDR for long. How do good SDRs go bad?

Ashley Kelly

I think one of the traits that I look for also that I don’t think I mentioned is like, overcoming adversity. And so I think when someone faces failure in the SDR role, are they able to identify why did they fail last month? What do they need to do differently this month to get back on track? Are they using the resources around them with their managers, their peers, really looking at their own data and seeing where, you know, what worked, what didn’t before, and where things fell off.

And if they can make it back on track, they’re good. Where they go to reasons why where they can’t identify those things. They don’t want to identify those things, and then they’re just kind of in this, like, slump for the foreseeable future. The other thing is maybe they don’t to be in sales. That’s something huge that, happens in SDR. You know, you think you to go into sales. You do the SDR role, and then you’re like, oh my god. This is terrible. And that happens a lot, and that’s a lot of the reasons why our promotion path is not just to AE.

There’s different routes where people can go across the business because my commitment to them is if you’re a good contributor to the team, you’re positive and at least performing the best that you can, like, will put you into a different type of role. It’s not necessarily a promotion, but it could be a lateral move. But, you know, we to keep good people that we can trust in our in our company regardless.

Harry Stebbings43:44

When you think about, like, what you are today as a leader, how do you think you most need to improve?

Ashley Kelly

Probably time management when it comes to all the different functions that I that I run. I always laugh saying that my brain feels like a pinball machine where it’s bouncing from like, you know, my team, my SDR team that goes after the channel side of the business is totally different than my SDRs that are in The UK going after direct business or global over here. And it’s like so there’s just a lot of different moving pieces.

It’s what I love about my job and about Rippling that we’re able to to, you know, build this type of complex org, but I I need to do a better job of managing my time so that I can effectively be present for all of those different things and also hire the right leaders to take over those different things.

Harry Stebbings44:25

I’m intrigued. Does your motivation methods need to change dependent on geography? what I mean by that is I think people in the UK are very different to Americans in many respects, and you kind of have to cater to the different cultural psychologies.

Ashley Kelly

I’m learning that, absolutely. Yes. I’ve been in Dublin three times the last like two and a half months because it is new to me. I’d never been there before. And so I think for me, it’s a it’s a go and see exercise for me to understand that at the ground level. Because if I sit here being an American and you know, try and put all of my playbooks on them and all my, you know, ideas that are so great, it’s never to work. And so building that trust and understanding that the different cultural differences is super important.

Harry Stebbings45:07

Going international is one of the hardest though. Do you make them spend any time in customer support? I find that a really interesting lesson.

Ashley Kelly

We don’t. I think that is interesting. What I typically do though is I do hire people into the inbound role and then we move them into outbound after about six months. And so while that’s not customer support, obviously, it is like warmer conversations where they learn a little bit more before going into having to pitch cold.

Harry Stebbings

Okay, listen, I want move into a quick fire because otherwise I could talk to you all day. So I say a short statement, you give me your immediate thoughts. Does that sound okay?

Ashley Kelly

Okay.

Harry Stebbings

Okay. So what have you changed your mind on most in the last 12 months?

Ashley Kelly

That maybe AI can help my team be more efficient.

Harry Stebbings

Well, you’ve got seven months left to make that New Year’s resolution. But don’t worry, if you’ve still got time. What sales tactic has died of death?

Ashley Kelly

Sadly, the handwritten notes. That was something I used to love doing when I was in sales, but I feel like not a lot of people are in the office anymore, and so it might be more of a waste of time than it used to be, and I think it’s died out.

Harry Stebbings46:09

Are you not in the office with your team?

Ashley Kelly

I’m not. No. I’m in Dallas. My teams are all around the world, and so it’s actually easier for me to hop on a flight and zip to all the different offices, which I do about once a month.

Harry Stebbings

Everyone’s like sales remote. That’s the one that’s so hard. That’s the one that doesn’t work remote. What do you say to them?

Ashley Kelly

It’s easier in person. That’s for sure. We pivoted about nine months ago, I to say, and started hiring in office more. And you do see the in office SDRs perform much higher than than the ones that are remote, especially for outbound, just because there’s so many learnings sitting next to each other, literally shadowing each other’s, you know, computers, seeing where people are clicking around, hearing calls on the floor. So I I definitely prefer in office. But for me, like, if I was just in one of the offices, it wouldn’t matter.

I would still have to travel to all the other ones monthly.

Harry Stebbings

What advice would you give to someone who’s starting a new role as an SDR tomorrow?

Ashley Kelly47:00

To go find the top performer on the team and shadow them and copy every single thing that they do. And then from there, add your own little secret sauce and figure out, like, what your expertise are. I think too many too many times people come in trying to reinvent the wheel, trying to make a name for themselves in a different way because they did it a different way. And, really, it’s like, go replicate the top performer. There’s no asterisks in sales when you hit your quota because you mimicked a top performer.

Right?

Harry Stebbings

How do the best SDRs use sales recordings to be better?

Ashley Kelly

Individual funnel metrics. So how many calls did they make? How many connects did they have? How many of the connects were they able to book demos? And being able to use data to then work with their manager or enablement on the coaching side of it. So leveraging the science and the art of sales development.

Harry Stebbings

Glad I asked that one. That’s a good one. What would you most like to change about the world of SDRs?

Ashley Kelly

The stigma around it. So sick of hearing what’s dead and what’s not. I think every market and industry is just very different. I take it personally just because I’m so bullish on SDR when they say that it’s dead. So I think just the stigma around it.

Harry Stebbings48:08

What advice are SDRs often given that you think is bullshit?

Ashley Kelly

Actually so there’s one where AEs pushed back a lot saying that the the SDR needs to go do more qualification and needs to go warm the deal up more for them. And I think to me, that’s BS because if I’m if if I’m a good AE, I to take any conversation that someone at one of our top accounts is willing to have, and I want be that person having that conversation versus an SDR that we really haven’t trained or coached to have those conversations quite yet.

Harry Stebbings

Tell me, what’s the kindest thing anyone’s done for you?

Ashley Kelly

Hire me. No, but I would say hiring me and giving me the autonomy and trust. I’ve been really lucky to have amazing bosses that have like allowed me to create the environment of where me and my team can be successful. And that doesn’t happen everywhere. And I think that’s also a lot of reason why SDR orgs aren’t aren’t successful is their executive leadership and, like the buy in at the exact level is not there and you need that. And so I guess like, I don’t if that’s kindness or not, but I think that is what I’m like most grateful for.

Harry Stebbings49:10

Who is the best boss you’ve worked beneath?

Ashley Kelly

Oh my gosh. Don’t make me answer that. What? That’s allowed? Okay, so I work for Plank now. Absolutely love working for Plank. And then Sam Blond was was the other boss CRO that I worked with. And those are the two that I think of most frequently that have helped grow and develop my career.

Harry Stebbings

Which one?

Ashley Kelly

I’m not answering that.

Harry Stebbings

You can. Matt’s coming on the show, we’ve had Sam on the show, so it’s equal.

Ashley Kelly

Ask them Ask them who their favorite sales development leader was.

Harry Stebbings

I’m not getting an answer, am I? help me out here. Ten years time, where does Ashley want be then?

Ashley Kelly

I will be a chief sales development officer. I think that sales development will sit at the executive level within 10 years.

Harry Stebbings

I love it. Ashley, thank you so much for putting up with my meandering. I love this. this. has been fantastic.

Ashley Kelly50:00

Good. Well, I’ve had fun too. Thank you so much for having me on and hopefully some people got to learn a little bit more about sales development and either like some high level or tactical stuff they can walk away with.

Harry Stebbings

So much fun there with Ashley. And if you to watch the full episode on YouTube, you can of course find it by searching for 20 VC, that’s 20VC VC on YouTube. But before we leave you today,

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Harry Stebbings

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